With the continued embracement of digital transformation, the need for efficient collaboration and communication between departments and partners becomes increasingly important. Enterprise Resource Planning (ERP) systems have a vital role as major systems for corporations� core business process management activities and as utilizations to offer access to gain new visibility and control over corporation operations. However, integrating ERP systems remains challenging, particularly in virtual and extended enterprises. Our work discusses the importance of ERP integration in enhancing collaboration and communication within virtual and extended enterprises. It explores the challenges and benefits of ERP integration and presents best practices for successful integration, e.g., middleware and API utilization. The role of cloud computing in ERP integration and its potential to support collaboration in virtual and extended enterprises are explored. Finally, the paper discusses the importance of data governance, security, and compliance in ERP integration and highlights the need for a comprehensive approach to ensure successful integration. By following these best practices, businesses can enhance collaboration, streamline operations, and gain a competitive edge in the digital era. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024.