ERP vs EPM: A Comparative Guide for Businesses
Traditional payroll software had one user managing the entire process from start to finish. As companies continued to increase in size, companies began to look towards ERP and EPM software. Does your company need ERP or EPM software? An ERP was created for a large organization with multiple departments. EPM acts as an extension to an ERP system. Companies only need one if their departments are still small. We’ll compare, contrast, and provide the benefits of an ERP vs EPM system.
Let’s get into it!
What Is ERP?
This is a type of software that integrates all of the business operations of a company on a single, centralized platform. This system is typically divided into modules. Each addresses a specific department or area of the business, such as the following:
- human resources
- customer service
It is the most comprehensive approach to managing the business processes of an organization. ERP software provides a comprehensive view of an organization. This can help improve process efficiency, decision-making, and resource utilization.
What Is EPM?
EPM (Enterprise Performance Management) is an analytics and process optimization solution that provides businesses with tools to better evaluate and manage overall performance. It helps to ensure that decisions are made according to defined performance standards and business objectives.
It is a set of processes, techniques, and frameworks that organizations use to measure and manage their performance across the enterprise. Also, it is similar to ERP in many ways but differs in some areas. EPM enables organizations to address performance through the following:
- strategic alignment
- target setting
- execution tracking
Through EPM, businesses can use a range of metrics and objectives. This measures performance which helps to gauge operational efficiency, effectiveness, and accuracy. The main difference between EPM and ERP is in the focus of their activities. While ERP focuses on automating the business processes required to run a company, EPM takes more automating the business.
Key Differences Between ERP vs EPM
ERP (Enterprise Resource Planning) and EPM (Enterprise Performance Management) are two business management methods used to streamline corporate operations. Their convergence enables better decision-making. As a result, there is more efficient utilization of resources.
ERP automation systems are designed to focus on core operational activities. At the same time, EPM focuses more on planning, budgeting, and forecasting. When it comes to key differences between ERP and EPM, ERP helps to maintain raw processes efficiently and cost-effectively. This is by automating business processes. In contrast, EPM provides an efficient platform for managerial insight into data and analysis.
In comparison, ERP is more efficient for individual transactions. This can give detailed information about customers and internal operations due to its integrated system. While EPM helps to track performance, monitor efficiency, and evaluate trends over time.
By combining the two in an organization, it is possible to get a better operational view of the organization. This results in better decision-making and improved operatives. Check out this NetSuite Partners List to get started and reap the benefits today!
Comparing The Differences Between ERP vs EPM
Businesses should consider implementing ERP vs EPM as per their requirements and service objectives. Both have their own advantages and can greatly benefit any business.
It is important to have a clear understanding of both systems and create a roadmap to evaluate and arrive at the best decision, depending on the business. Request a consultation today to find the right fit for your organization.
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