Implementing GDPR in a company is a process that still keeps many business owners awake at night. When the heart of business operations is an ERP system that processes thousands of personal data records from employees to customers the matter seems even more complicated. Is an ERP system an ally or an enemy in the fight for compliance? The good news is that modern ERP software not only facilitates meeting GDPR requirements but can also become the foundation for secure and transparent data management across the entire organization.

Table of Contents:

• Why is ERP–GDPR compliance crucial?
• Key ERP functionalities supporting GDPR
• Procedures and training – how to prepare your company for GDPR compliance in an ERP system?
• Agreements, legal support, collaboration with the ERP provider, and personal data security in ERP
• The most common mistakes and challenges when implementing GDPR in an ERP system

Why is ERP–GDPR compliance crucial?

ERP (Enterprise Resource Planning) systems are the command centers of modern business. They collect data from various departments—HR, payroll, sales, marketing, or logistics. In practice, this means that they store vast amounts of personal data. Ignoring GDPR requirements in this context is not only a risk of damaging customer and partner trust but also the threat of severe financial penalties, reaching up to 20 million euros or 4% of a company’s annual turnover.

However, viewing GDPR solely through the lens of penalties is a mistake. Compliance brings benefits. Organized processes, data centralization, and clearly defined access permissions translate into higher efficiency and operational security. A company that cares about data builds the image of a responsible partner, which becomes a real competitive advantage. In this area, a CRM for marketing agencies also works well.

Key ERP functionalities supporting GDPR

Wondering how ERP systems can actively support your company in meeting GDPR obligations? Modern platforms offer a range of built-in tools that automate and simplify compliance management. Here are the most important ones:

• Access control and permission management – precise definition of who has access to personal data, when, and to what extent. This is the foundation of the data minimization principle.
• Record of processing activities – the system should allow maintaining an electronic register documenting what data is processed, for what purpose, and on what legal basis.
• Anonymization and pseudonymization – these functions support the “right to be forgotten.” They allow permanent deletion of personal data or encryption that prevents identifying an individual once the legal basis for storing the data expires.
• Consent management – modules for recording and managing consents for data processing, including tracking their history and withdrawal.
• User activity logging – every operation on personal data (viewing, editing, deleting) is recorded. This is invaluable during audits or when an incident occurs.

Procedures and training – how to prepare your company for GDPR compliance in the ERP system?

The best ERP system will not ensure GDPR compliance if employees do not know how to use it safely. Technology is only half the success—the other half is people and procedures. Creating a culture of data security awareness within the company is crucial.

It is essential to implement internal regulations such as a data retention policy (defining how long each type of data is stored) or an incident response procedure. Equally important are regular training sessions for all employees with ERP access. They must understand not only how to click, but above all why certain actions are required and others prohibited.

Agreements, legal support, collaboration with the ERP provider, and personal data security in ERP

Formal and legal aspects are an inseparable part of implementing GDPR. When collaborating with an ERP provider who stores your data in the cloud or provides support services, you must sign a data processing agreement. This document specifies the provider’s obligations regarding the protection of entrusted data.

Do not hesitate to seek help. Consultations with a law firm specializing in GDPR or with a Data Protection Officer (DPO) can help you verify agreements and internal procedures. Remember that your ERP provider should be a partner in ensuring compliance, offering not only technology but also substantive support.

Ensuring that an ERP system is GDPR-compliant is not a one-time project, but an ongoing process. It’s an investment that pays off in security, customer trust, and peace of mind. To effectively manage this area daily, keep in mind a few golden rules. Maconomy and its features also work well here.

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