Difference between ERP & Enterprise Systems

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Difference between ERP & Enterprise Systems

Difference between ERP & Enterprise Systems

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ERP and Enterprise Management System also known as EMS both are used interchangeably. In this blog post we will clear misunderstanding between both the solution. Many times people get confused with both the terminology. The major differences in both the software is when it comes to technical and functional aspects.

Let’s have a look on difference between ERP and Enterprise Systems

ERP software is a business application that offer solution to different departments as Modules; whereas Enterprise Systems can include ERP, Supply Chain Management, Customer Relationship Management.

Enterprise Resource Planning Software are implemented to enhance the internal functions of business; whereas Enterprise Systems are implemented for the external functions and people such as supplier, customers and so on. .

Enterprise Resource Planning covers complete process and provide accurate data in real time, whereas Enterprise System helps in crafting decisions such as from where to purchase Raw Materials, Profitability, Timely delivery, increasing customer retention and so on . . .
It comes with a database and variety of architecture where as ES don’t have any architecture ES use data that is available with the organization.
Modules or Apps in an ERP can be customized as per the requirements of the business but ES doesn’t need any changes or customization they are normally deployed and business run according to the suggestions of these Applications.
Enterprise System can take longer time as compare to ERP software due to bulk data collection from a particular period compare to ERP software implementations.
ERP systems are normally implemented by Small as well as Big organizations, whereas Enterprise System is only meant for large organization.
ERP implementation consist of low risk on failures compare to Enterprise System due to high churning of data from the main database

Read our article on Quick tips for successful ERP Implementations

What our Favorite Source Wikipedia defines about ERP and EMS

Enterprise Resource Planning

Enterprise resource planning (ERP) is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. ERP gives a company an integrated real-time view of its core business processes such as production, order processing, and inventory management, tied together by ERP applications software and a common database maintained by a database management systems.

ERP systems track business resources (such as cash, raw materials, and production capacity) and the status of commitments made by the business (such as customer orders, purchase orders, and employee payroll), no matter which department (manufacturing, purchasing, sales, accounting, and so on) has entered the data into the system. ERP facilitates information flow between all business functions inside the organization, and manages connections to outside stakeholders.

– Source Wikipedia

Enterprise System

Enterprise systems (ES) are large-scale application software packages that support business processes, information flows, reporting, and data analytics in complex organizations.

Source Wikipedia

An Example which can differentiate ERP with Enterprise software

Organization “A” who is into manufacturing as well as into trading complete a sale order that needs goods to be manufacture and deliver to the client place, As soon as the order arrives – ERP software of Organization A will start checking the availability of Raw materials, Production planning, Materials management and every other activities till the payments are received.

But an Enterprise System get active beyond the above processes of ERP, ES will help in getting more business from existing customers, selecting the suppliers and vendors who can provide best quality of Raw materials, Quick Delivery and Best Prices. ES helps in building external relationship.

ERP Software :

Enterprise resource planning software is one single software that consist of various module that focuses on different department of your organization for example:

Sales Management – CRM Module
Purchase management
Inventory
Warehouse
Assets Management
Accounting & Finance
Human resources etc.

Moreover with specific industry like Manufacturing – you can add Manufacturing module or for project industry a project management module. ERP software are design in order to optimize all your internal business processes by providing accurate and Realtime reporting.

The duty of an ERP software starts when a small transaction happen in your company or even before that when your sales team started finding a prospective customer.

Enterprise Systems

Enterprise Management systems are more data focused that tracks and control all your complex operations of an organization. These tracking by Enterprise system helps management to take powerful business decision through convenient reports and data.

Basic Functions of an Enterprise Management System

Secures customer data
Ease mission critical process
Streamline supply chain
Provide scale to IT center of a business
Improved Customer service process
Real time data access

Conclusion

Since both ERP software and EMS have similar goals towards the productivity of an Organization. They both have technical differences and architecture. ERP software ensure the proper feeding of data whereas, Enterprise system leverage the available data. ERP system can be implemented quickly as due to module requirements organization can opt for the list of module they need in their business whereas EMS system take long time to launch and implement.

To end our Blog post we can summarize in few words the differentiation between ERP and ES “Where ERP functionality ends the role of ES begins.”

About GlobalTeckz

We at GlobalTeckz offer our clients with leading Open source ERP software implementation and customization. We select the best methodology and perfect ERP software to meet your business needs and requirements. For a demo you can contact us on sales@globalteckz.com

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