Driving business excellence: How a leading financial firm achieved seamless ERP integration for superior data governance

As financial services organizations continue to advance their data governance programs, they begin to reap substantial rewards in compliance, risk management and business insights. However, gaps can arise that hinder the full realization of these benefits. 

For one leading financial services firm, a significant gap emerged in integrating their ERP (Enterprise Resource Planning) data into their data governance framework, creating challenges for business intelligence (BI) teams who lacked the transparency needed to optimize workflows and extract actionable insights.

A leading financial institution’s story to uncovering ERP data’s crucial role in governance

ERP systems, like SAP, house crucial organizational data, from financial records to operational logistics. For financial services firms, this data is essential not only for daily operations but also for strategic decision-making. However, without seamless integration into the broader data governance framework, BI & Analytics teams lack the transparency needed to fully leverage the data for reporting, forecasting and compliance.

In this case, the absence of integrated ERP data led to siloed key financial and operational metrics, causing inconsistencies and delays in reporting. This disjointed data landscape made it difficult for teams to trust the data they were using, ultimately impacting the accuracy and timeliness of business decisions.

Recognizing the need for a more streamlined and accurate approach to integrating ERP data, the firm decided to implement Collibra’s ERP Connector. The decision to adopt Collibra’s ERP Connector was not just about automation, but unlocking the full potential of their ERP metadata for enhanced visibility, deeper insights, and more reliable decision-making across the organization.

Almost immediately, the firm saw improvements in supported critical business processes. It enhanced the accuracy and efficiency of their data models, leading to documented gains in business performance. Additionally, the automation provided by the connector translated into significant cost savings by reducing the need for manual intervention and lowering the reliance on high-cost architectural resources. This dual benefit – better data accuracy and efficiency – highlighted the strategic value of cataloging ERP data and illustrated the advantage of a specialized connector over manual methods.

Quantifying efficiency gains

The integration of Collibra’s ERP Connector led to substantial improvements in the firm’s business model performance, which depends heavily on precise and timely data. Before this implementation, the firm faced significant challenges, as documented in their internal model rating scale. This scale highlighted variance in decision accuracy and delay in model execution speed – hampering operational efficiency. Additionally, the firm received a Matter Requiring  Attention (MRA) in the OpRisk Audit. The ERP Connector effectively addressed these challenges, reducing decision accuracy variance by 6%, speeding up model execution by 13% and fully resolving the compliance risks associated with ERP data governance.

3 reasons to consider ERP Connector over manual approaches  

The decision to implement Collibra’s ERP Connector over generic JDBC or manual integration methods was influenced by several key factors that underscored its strategic and operational advantages:

1. Automation and accuracy: The ERP Connector automates the discovery, extraction and integration of ERP metadata, significantly reducing the risk of human error. This automation ensures that the data which feeds into the firm’s business models is accurate and reliable, directly impacting the quality of decisions made.
2. Scalability: The ERP Connector is specifically designed to handle the complexities of ERP systems like SAP, which often involve highly customized data models. This scalability ensured that the firm could maintain consistent and reliable data governance practices as their data landscape evolved, something that would have been more challenging with manual or generic solutions.
3. Resource efficiency: The ERP Connector required considerably fewer resources compared to manual or JDBC-based approaches. Originally, integrating ERP data using the JDBC connector necessitated a full-time commitment from ~3 architects over three months, followed by ongoing maintenance by one architect at 8 hours per week for the rest of the year. The high hourly rates for these architects translated into substantial costs. In contrast, the ERP Connector reduced the resource requirements dramatically:

• • Initial setup: 1 Collibra Ranger working full-time for three months
  • Ongoing maintenance: 1 Collibra Ranger working 8 hours per week

This shift resulted in significant cost savings. The firm saved nearly 1,200 person hours by reducing the need for multiple high-cost architects, enabling more efficient use of resources.

Resource efficiency comparison: The table highlights significant cost and resource savings with Collibra’s ERP Connector, including a 70% reduction in the first year, demonstrating its value for streamlined ERP integration.

Conclusion: Realizing the full potential of data governance

For financial services firms, integrating ERP data is not just a technical necessity but a strategic imperative. Collibra’s ERP Connector enabled this firm to seamlessly integrate critical ERP data, closing gaps in their data governance framework. The result was enhanced model performance, reduced costs and more reliable decision-making—demonstrating the clear value of Collibra’s specialized solutions over generic approaches. By investing in Collibra, the firm not only elevated their data governance practices but also achieved significant financial returns. 

Discover how Collibra’s ERP Connector can drive success for your organization by visiting Collibra ERP Connector Overview.