The Benefits of Integrating Biometrics with an ERP System

Today’s business industry is largely dependent on ERP software for a faster and more effective way of managing business tasks. Enterprise Resource Planning or ERP in short is a cross- functional information system that enables access to various departments such as sales, manufacturing, human resources, financials, etc. with a single database. In other words, it provides organization-wide coordination and integration of business processes and helps in planning the resources of an organization. With the help of ERP system, security will be enhanced and expenses will be reduced which lead to productivity boosting and smoother business processes.

Iris Biometric enterprise

However, companies that use ERP solution rely on the systems and applications to run their businesses, while storing a tremendous amount of sensitive and business-critical data inside its modules. With enterprise’s sensitive data sent outside every 49 minutes, companies urge to look for ways to enhance data security. In addition, the rise of cloud technology in the market has shifted the deployment methods from on premise like desktops and laptops to cloud-enabled ERP such as smartphones and tablets. However, most of these smart devices are yet to be fitted with operating systems and security elements as strong as those in immobile devices. While single authentication SAP passwords are too hard to remember or too easy to crack and Oracle single sign-on (SSO) have been quite expensive to manage, biometric technology is favored to be used instead in order to help patch the ERP vulnerabilities and solve the drawbacks of traditional password and credentials.

Biometric technology recognized humans based on their physical traits such as fingerprint, face, palm veins or the iris. People don’t have to carry or remember anything to get the access. This advanced technology has been deployed in many large projects across various industries including law enforcement, national ID, e-voting and mobile applications. The integrating of biometrics with an ERP system would be the most viable method for individual authentication which helps to reduce the aforementioned ERP system problems and bring many advantages for example buddy punching elimination. According to APA, over 75% of companies in the U.S lose money from buddy punching and can account for approximately 2.2% of gross payrolls annually. One of the ways companies can curb this issue is by implementing biometric ERP system which uses unique employee’s biometric data to record attendance.

Another benefit of biometric integrated ERP system is that the central database will be secured and trackable. While password can be hacked and cards can be stolen, biometric system will only allow authorized person to access the ERP system. Each year, retailers lose more merchandise to employee theft than to any other cause. According to the Global Retail Theft Barometer study, retail shrinkage adds up to about $42 billion lost each year – more than traditional shoplifting or organized retail crime. The cause came from some loopholes in swipe cards and password, which helps employee easily make transactions with stolen credentials. With biometric digital security, enterprises can provide a closed inventory access control system which helps to keep a clear audit trail for each transaction, hence encourage employee responsibility to act ethically and be accountable for their actions. Not to mention that, biometrics has become one of the standard features for mobile device in an effort to bring digital identity protection to the consumers. Enterprises are also beneficiaries of this innovation in terms of enhancing their cloud-enabled ERP system security.

Although the adoption of biometric in ERP or enterprise systems as a whole is relatively slow when compared to other applications, it has witnessed an increase in these recent years. Enterprises have started to deploy fingerprint scanner integrated ERP software such as SAP or Oracle to track employee attendance, manage access to restricted information or perform secured financial transfers. In the near future, the biometric ERP market is expected to grow fast thanks to the proliferation of biometric sensors into everyday items, including smartphones. It offers employees the flexibility of accessing enterprise resources wherever they are located and from whatever device they are using.