Project management

How does an integrated system work?

Understand what an integrated system is and its importance for companies of all sizes.

Thiago Coutinho
Published on Sep 10, 2021
integrated system lean production

Bureaucratic and inefficient systems are the villains of any organization, aren't they? Whether a large or small company, today everyone is looking for simple, fast, and efficient tools to facilitate their day-to-day processes.

In view of this, the integrated system has become a key part of companies, as, as the name itself mentions, it came to integrate all business areas.

A well-integrated system also directly reflects the reduction of bureaucracy in a significant portion of the processes within an organization.

So what do you think about finding out more about this type of system? I guarantee that the benefits of this program will interest you even more.


What is an Integrated System?


Integrated System is a software or a set of management software that has the function of promoting interaction between all departments and processes of a company.

Therefore, through this system, a company's information is not restricted to just one area. The purchasing area, for example, has direct access to financial sector information and vice versa.

However, it is very common for people to confuse this software with the business management system. But it must be emphasized that a management system is capable of covering only a specific area of ​​the company, while an integrated system has the function of covering all areas.


Why should I have an integrated system in my company?


Working with an integrated business management system can bring many advantages to your organization, get to know the main ones:

  • Facilitate communication between sectors: as mentioned above, the integrated system enables the communication between sectors of an organization.

In this way, all information about the company can be found in a single system, which prevents employees from wasting time searching for documents and optimizing their time of service.

  • Cost reduction: through the integrated system, it is possible to make a more precise stock control.

After all, the more goods a company has accumulated, the more space it must have and the greater the risk of some material spoiling.

On the other hand, the lack of these products can affect the production flow. Therefore, one of the advantages of the integrated system is precisely the indication of the exact time to order a product.

  • Greater production efficiency: the integrated system allows processes to be developed faster and with higher quality, as manual processes have a greater tendency to generate production bottlenecks.

Furthermore, with the use of the integrated system, all data can be sent without human interference.

  • Financial monitoring: through the integrated system, payment and receipt processes become much more viable, as most of these processes are carried out automatically.

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See the difference between Integrated System and ERP!


When talking about Integrated systems and their use in industry, most people think of ERP (Enterprise Resources), which is perfectly normal, since ERP is one of the main information technology systems used in Brazil.

However, there is one point that makes all the difference: "ERP is an integrated business management system, but not necessarily an integrated system is an ERP".

This explanation, which seems rather philosophical and confusing, is because both can be used for the same functions.

However, the integrated system may have more than one database and different interfaces for viewing and entering information, which culminates in repeated data and duplication of information in the various modules or functions of the system.

ERP, on the other hand, has a single database, or compatible modules, which avoids rework and especially the duplication of information...


What is ERP?


The ERP (Enterprise Resources Planning), as mentioned above, is an Integrated Business Management System whose function is to manage all information needs for decision-making within a company.

Thus, ERP is a software that does not have its application restricted to the manufacturing environment, its operation covers the areas of logistics, billing, accounting, human resources, and others.

Due to its wide range of applications, it is estimated that 55% of companies in Brazil use this type of integrated system.


See an example of an Integrated System!


Think of a food products company which has several branches spread throughout Brazil. Each store needs to buy input products from nearby manufacturers and others are brought directly from the head office.

Managing such an enterprise is no simple task, right? Therefore, this company uses a well-integrated system and, through it, it is possible to control all the stores.

With this system, information arrives in real-time, which makes it possible for company directors to track all expenses and delegate functions to the managers of each company instantly.

In addition, when it is necessary to purchase more products, the system automatically places the order and also issues the invoice. It is noteworthy that this entire process was previously configured at the time of system implementation.


Can you see how important the integrated system is?


For companies to stand out in a highly competitive market, all resources must be wisely used.

Therefore, as I mentioned in the ERP x MRP article, human labor must be used for what is needed, such as negotiations, people management, and decision making.

Furthermore, the integrated system has numerous advantages, remember them? Cost reduction, increased production efficiency, financial monitoring of organizations, and others.

So, if your company doesn't have a system like this, don't waste time and invest in your venture's potential.


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Thiago Coutinho
Written by
Thiago has a degree in Production Engineering, a graduate course in statistics and a degree in administration from the Federal University of Juiz de Fora (UFJF). Black Belt in Lean…

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