Why Data Security is crucial for ERP users

Published: 17 May 2023

Data Security is about protecting your digital information. This could be information held in databases, CRMs, or ERP’s. It needs to be protected not only from outages but also from unauthorised users. Data Security includes everything from protecting your hardware to admin access to software security. It involves using tools that allow you to see where your data is, and how it’s used. You can increase your data security by encrypting data, using data masking (having a fake but realistic version of your data), and reducing sensitive files.

Data security is hugely important for all areas of your business but in this blog, we’re looking specifically at ERP and the data stored within.

Reasons Data Security is important

  • Protecting Sensitive Information

ERP systems store and manage large amounts of data, like customer information or financial data all of which is extremely sensitive. Your business must take steps to protect this data and avoid data breaches or cyber-attacks. A data breach can result in the loss of trust with customers, legal issues, and financial loss.

  • Compliance with Regulations

Any company that uses ERP and stores data legally has to comply with regulations such as GDPR (General Data Protection Regulation, EU), HIPAA (Health Insurance Portability and Accountability Act, US). These regulations require companies to take measures to ensure the security and privacy of the data they store. Failure to comply can lead to significant penalties.

  • Avoiding Cybersecurity Risks

Hackers are continually searching for vulnerabilities in a business’s systems to gain access to their sensitive data. Companies must take measures to mitigate cybersecurity risks. These measures might include using firewalls, encryption, and multi-factor authentication and carrying out regular Penetration Testing.


  • Protecting Against Insider Threats

Insider threats can be just as dangerous as external threats. Employees with access to ERP systems can inadvertently or intentionally cause data breaches. To protect against insider threats, your company should provide regular Cyber Security training. This can be things such as providing regular training or testing your staff with phishing emails. You can also make sure that your staff only have access to the data they need for their roles.


  • Continual Monitoring and Updating

Data security is not a one-time job; your business must ensure you have continuous monitoring and updating of systems and training to stay ahead of new threats. Companies must conduct regular security audits, identify vulnerabilities, and implement security patches and updates to mitigate risks.


Data security is a critical concern for businesses that use ERP systems. Companies need to take proactive measures to protect their sensitive data from external and internal threats. Regular security audits, employee training, and the use of encryption and multi-factor authentication as well as regular training can help mitigate cybersecurity risks and ensure compliance with regulations.


Read More

How to use your ERP platform as a game changer for company g...

17 January 2024

Want to find out how you can utilise your ERP platform to accelerate growth? One of our expert's Simon shares his tips and insights.

Construction ERP: How to level up with Microsoft Teams

17 January 2024

Let's take a look at how you can use Microsoft Teams integration with your construction ERP solution, to streamline communications.

Business Central Streamlines finance for Boiswood

7 December 2023

Our latest client Boiswood adopt Business Central to streamline their financial processes.

Dynamics 365 Business Central and finance management

4 December 2023