The Challenge of Connecting Multi-Vendor ERP Solutions

Increasingly, local governments recognize that using APIs to connect solutions from multiple vendors can create challenges for IT departments. APIs can be difficult to manage in the long run because of burdensome development, testing, and maintenance requirements.

Due to the added complexity of using APIs, local governments are turning to integrated ERP solutions that reduce IT department workloads while seamlessly connecting finance, civic services, and property and recording. Below, we will look at the disadvantages of multi-vendor API systems that require custom coding to connect disparate systems.

Care and Feeding

The primary challenge of a cobbled-together system from multiple vendors is that it is difficult to keep systems “talking” to each other over time. A system that uses APIs to connect multi-vendor solutions may require:

• Connecting software that uses different deployment types or technologies, complicating the ability to share data across an organization and increasing exposure to data as it moves between systems
• Running and managing multiple environments to test connections and train staff, complicating system management
• Managing user accounts across multiple systems, complicating security oversight

In comparison, an integrated ERP solution can employ a single-sign-on system and provide out-of-the-box connectivity. It simplifies administration and maintenance because integrated ERP applications run on a single cloud, with integrations maintained and updated by a single vendor.

Update Conflicts

IT departments may find managing APIs through software updates particularly challenging. While systems may be successfully connected today, an update to any one of the disparate solutions may cause problems down the road. Third-party vendors aren’t focused on coordinating product update cadences with each other. Over time, multiple updates from multiple vendors can cause a domino effect of incompatibilities that can be difficult to resolve.

Resolving defects with an accretion of custom coding can be ungainly. As a Center for Digital Government report notes: “Different vendor update schedules may extend the time involved, especially to resolve synchronization issues. As a result, the ERP system and its associated applications become increasingly out-of-sync and out-of-date over time."

In comparison, an integrated ERP solution is built to ensure the compatibility of upgrades. A single vendor coordinates releases that ensure compatibility with other modules in the vendor’s product ecosystem.

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No Single Source of Support

Finding the right point person to solve a problem in a multi-vendor system can be challenging.

A support question may require outreach to help desks at multiple vendors, forcing an IT department to play detective in trying to find the right person to resolve a problem. While support staff may be experts in their own solution, they will not be experts in third-party solutions connected to their software. Troubleshooting becomes more complex over time as customizations increase.

In comparison, an integrated ERP solution is purpose-built to ensure that data is shared efficiently, streamlining operations and keeping data up to date across an organization.

When APIs Make Sense

There are certain situations where APIs make sense. For example, an organization may have made a recent investment in a solution for a third-party vendor that must be connected via APIs as part of the organization’s overall system. In addition, there may be niche software that isn’t available in an integrated solution.

An experienced public sector software vendor will provide API toolkits and expertise in cases where connections with multiple vendors are needed.

Source

Managing the Business of Government in a Single Connected System. (2021) https://papers.govtech.com/Managing-the-Business-of-Government-in-a-Single-Connected-System-139625.html