Security and Data Governance Best Practices for Sage ERP Integrations

3 min read ● Silk Team

Security and Data Governance in Sage ERP Integrations

The primary benefit of connecting multiple systems (including eCommerce, CRM, Logistics and Finance) into one unified process through ERP integration is efficiency and automation of many processes. However, there are significant security and data governance risks when multiple systems are connected and used to exchange data unless they are designed with these risks in mind.

As such, both security and data governance need to be considered as core components of any Sage ERP integration project and not an after-thought.

How ERP System Integrations Increase Security Risks

Each integration provides an additional opportunity for malicious users to gain unauthorized access to your ERP data since each integration includes the use of API’s which are vulnerable to attack if not properly secured.

Some examples of common risks include:

• Unauthorized access to your pricing or financial data
• Poorly implemented or insecure API’s and/or passwords
• Grants of excessive permission to external systems
• Transmitting sensitive data in plain text

Since many Sage ERP integrations involve sensitive business data (such as inventory levels, customer contact lists, contract terms, etc.) security breaches are potentially very expensive.

Creating a Data Governance Plan for Your Sage ERP Integration Project

Data governance plans define who has ownership of specific types of data, who may have access to those data types, and how the data will be maintained on a going forward basis. If you do not develop a data governance plan prior to integrating your systems you run the risk of having a brittle and difficult to support integration environment.

To establish strong governance within your Sage ERP integration project you must first:

• Determine which systems are “systems of record” for each type of data.
• Define the rules for creating, updating, and deleting data records.
• Document the flow of data between systems.
• Assign responsibility for ensuring the quality of data within each system.

Typically, in an ERP based environment, Sage should be the single system of record for all data, including pricing, inventory, and financial transactional data, while all other systems (or “connected platforms”) simply consume and display that data.

Limiting Access to Integrated Systems to Only What Is Required

One of the most effective ways to reduce security risk is to limit access to only what is required.

You can achieve least privilege best practices by implementing:

• Role-based permissions for integrated systems.
• Different credentials for each integration.
• Implementing read-only access where possible.
• Regularly reviewing and eliminating unused permissions.

Least privilege will minimize the amount of damage that could occur if an integrated system was to be compromised, and reduce the likelihood of accidental modifications to the data.

Protecting Data During Transmission and Storage

Integrated data is constantly flowing between systems, so encryption is necessary to protect data.

To safeguard against data interception or misuse during transmission, consider the following:

• Using encrypted API connections.
• Implementing secure authentication mechanisms.
• Replacing shared credentials with token-based access.
• Safely storing sensitive configuration data.

These measures will help prevent unauthorized parties from obtaining sensitive customer, pricing, or financial data.

Providing Visibility Through Monitoring, Logging, and Auditing

Security is not only about preventing attacks; it is also about providing visibility.

Your integrated systems should provide:

• Logging of all data exchanges.
• Notification of failed syncs or attempted unauthorized access.
• An audit trail of critical data changes.

This visibility will allow your team to identify problems early, investigate unusual activity, and prove compliance during audits.

Compliance and Regulatory Support

Many manufacturers are subject to regulations or contractual requirements regarding data protection. Integration governance supports compliance by:

• Enforcing consistent data management policies.
• Eliminating unauthorized data disclosure.
• Providing the ability to track data changes across systems.

A well-governed integration will eliminate compliance risks while also reducing the complexity and costs associated with auditing and reporting.

Achieving a Balance Between Security and Usefulness

Too restrictive a control set can hinder workflow performance, too lenient a control set increases risk. The objective is to find a balance — protecting data without hindering workflow.

Security and governance should enable integration, not restrict it.

Conclusion

Security and data governance are critical to the long-term success of Sage ERP integrations. As systems become increasingly interconnected, the cost of poor security controls will continue to grow — both in terms of dollars lost and reputational impact.

Manufacturers can connect their systems confidently by defining clear data ownership, enforcing role-based access controls, securing data flows, and providing visibility. A secure and well-governed integration will not only protect your business, but ensure that ERP integration remains a strategic advantage, not a liability.