How can businesses choose a modern and secure ERP system?

Ukrainian businesses, despite the challenges of war, demonstrate resilience and growth, highlighting entrepreneurial spirit of the nation. The increasing number of new enterprises demonstrates a desire to seek new opportunities and adapt to conditions of uncertainty. The success of these initiatives largely depends on the implementation of modern technologies, particularly reliable ERP systems that help optimize business processes, ensure data security and create a foundation for further development.

In a new article for the portal speka.media, Dmytro Popinako, CEO of Innoware, explained why using russian solutions such as 1C and BAS is dangerous, and also examined key aspects to consider when choosing an ERP system to ensure business stability and growth even in challenging times.

Currently, Ukraine has approximately 2 million sole proprietors and over 1.5 million juridical persons, most of which are LLCs, private enterprises, and public organizations (according to data from the State Statistics Service and Opendatabot). Despite tens of thousands of companies closing every year, the number of new businesses is growing even during the war, reflecting the entrepreneurial spirit of Ukrainians and their willingness to take risks.

This growth is an indicator of Ukrainians’ optimism and desire to seek new opportunities. The opening of new businesses also stimulates domestic consumption, creates jobs and supports the economy, sending positive signals about economic sustainability.

However, security uncertainty creates significant challenges for businesses. Entrepreneurs need to solve issues of financing, customer acquisition, management, and in particular the selection of reliable software that enables the integration and automation of core business processes (ERP system). Due to the urgent need for cybersecurity, this topic is particularly relevant. Russian accounting systems with basic ERP functions are still widely represented on Ukrainian market – 1C and its modern clone BAS, which once gained popularity due to their low cost. However, today they are primarily associated with risks.

There are many alternatives to russian software on the market. However, when choosing an accounting or ERP system, it is important to consider several characteristics that will help ensure maximum reliability, productivity, and flexibility of the company’s work, while also contributing to its faster growth.

Data security and reliability

It is necessary to replace accounting systems with those that provide a high level of data protection from cybercriminals. These systems store and process the most critical information for the organization, the destruction or leakage of which would lead to very serious consequences and losses. According to a 2024 study by Onapsis, ERP systems were impacted by cyberattacks in 89% of companies. The study highlights that cybercriminals are increasingly targeting ERP systems. This is a concerning indicator, considering the critical role these systems play in managing business processes.

That is why it is important to choose solutions based on cloud technologies, with high security standards, that comply with international certifications (such as ISO 27001 or SOC 2) and data protection regulations (such as the European General Data Protection Regulation, GDPR). These standards involve strict requirements that are typically supported by cloud system providers. However, you should not rely on 1C or BAS meeting these standards.

Zero Trust principle

Western systems also implement the Zero Trust concept, which increases control over data access. This is a cybersecurity concept that assumes that no user or device is automatically trusted, regardless of whether it is on or off the corporate network. Instead, every attempt to access the company’s resources requires verification and authorization. This allows companies to avoid uncontrolled user actions and better protect critical information.

Russian 1C or BAS do not have such an integrated security policy, which makes companies using these systems extremely vulnerable. Although, if 1C is hosted on Microsoft Azure, the Microsoft cloud service provides two-factor authentication. Users often believe that in this case, using 1C is completely safe for their systems, although in fact, protection depends on additional security measures.

Cloud infrastructure with global support

Cloud solutions have a significant advantage, providing continuous access to data from anywhere in the world on any device (Windows, iOS, Android). Cloud solutions also reduce the cost of maintaining local infrastructure, which usually includes a set of physical servers, uninterruptible power supply systems, and server room cooling systems, as well as technical staff to manage this equipment.

In addition, cloud service providers spend billions of dollars each year to make the system user-friendly, accessible and secure. There is no company that can do more to protect its data than such providers. Therefore, it is advisable to choose solutions built on cloud technologies.

Scalability and integration with the ecosystem

The system you choose must be easily scalable to adapt to changes in the business, which is an important criterion for companies that plan to grow or need to expand their functionality. When selecting an ERP system, it is also important to find out whether it integrates with other applications. Integration creates a unified ecosystem where all business processes can interact, allowing effective management of data, analytics, and document workflow.

Convenience for international business

If your company plans to enter new markets, it is important to consider whether the accounting system supports multi-currency, multiple languages, and considers the tax and regulatory specifics of different countries. This makes it easier to manage international operations. For ambitious companies, it is important to adopt the management and accounting methods used by companies in developed countries. This allows them to get closer to the industry leaders and compete with them. Russian 1C and BAS, on the other hand, were primarily developed for the local (post-Soviet) market and are not adapted to international requirements.

Innovations and regular updates

Modern international accounting and ERP systems stand out for their constant updates, adding new features and technologies to improve business processes. This allows companies to remain flexible and implement innovative approaches. In particular, Artificial Intelligence systems are now becoming more widely used and global leaders are already offering built-in AI features in their software (such as Copilot). Providers from the russian federation do not have such developments, and this will increase the technological gap in the future, in addition to cybersecurity issues.

Community for support and learning

It is important to choose a system that has a developed international community of users and partners who share experience and support companies in implementing and configuring the system. This greatly facilitates the adaptation process. When choosing an accounting system or a company to help integrate an ERP system into your organization, it is important to look for a partner, not just a contractor. Therefore, it is worth communicating with different representatives, getting to know their teams, sharing your needs and concerns about implementing modern systems. There are no perfect systems, so it is worth taking the time to find the one that suits you best.

Original article: ERP для бізнесу в Україні: чому варто відмовитися від російського ПЗ та що обрати взамін