In this topic we will cover the most common myth about difference between ERP software and Normal software. First let’s talk about Simple software – A simple software is synonyms with ERP software which is done by many vendors just to brand it in the mind of the customers.
A simple software is also know by other different names such as “Applications” “Tool” “Software” which provides you with single functionality for a department. Eg : An Accounting software – which helps you in providing end to end solutions in Accounting, or simply a human resource management software which can help you in payroll, employee management and overall Human resource management, but it cannot perform the functions of Sales, Warehouse or Purchases. Therefore simple software helps you to cover single department or two departments of your business
Read our Article – Quick tips on successful ERP implementations
But as we know that organizations are working closely with other departments to achieve growth and easy functionality. Single software for one department cannot fulfill the needs and requirements or implementing multiple specialized software for every department is also cost effective and silos.
Our Own Experiences:
“We have seen many organizations who are willing to pay for license fees for one single functionality in addition they will use multiple software by multiple departments, which is creating silos in reporting with additional cost”
Example: HRM tool for Human resource department, Another separate CRM software for Sales force Automation and so on . .
What is difference between ERP – Enterprise resource planning software compare to Simple software/applications available in the market.
ERP software is mainly implemented to manage all your enterprise needs. Which means an ERP software doesn’t concentrate on one department of your organization but covers every department from Sales to Accounting with every aspects from Lead to final payments, delivery & support to your customers.
Read our Article: Why Open Source ERP software is best for Small Businesses
ERP software integrate all the entire functioning of an Enterprise as to create one single unit, It also covers multiple branches and their respective departments. This makes communication and information transfer easy from one department to another.
Further every module is integrated with other modules to reduce the duplication and manual interference which further increases the efficiency and effectiveness of every department.
As an Example : When a product sale order is created, Automatic entries in the warehouse management module will be pushed to know the product availability – if available then it will further go for delivery and account will be alerted for payments with respective entries in accounting books.
Further ERP software can be easily customizable as per the requirements or business workflows and rules. There is even specialized ERP software available as per the business some of the examples are MRP specifically crafted for Manufacturing Industries, ERP for eCommerce or for Trading Organizations.
In summary comparing simple software v/s ERP software.
One must remember that ERP is not limited with its functionalities, it can be increase till the technical specification and its structure allows, whereas in simple software there are limitations in increasing the functionalities as well as features.
Must read Articles related to ERP
Excellent article. Most small and medium business houses looking for a ERP does not seem to realize the difference between the two. This article is a must for them.
Normally SME feels ERP are those which empowers their current needs although this can be done by a simple software. Even there is a difference between ERP and Enterprise systems which many of us don’t know you can check our article Difference between ERP and Enterprise software
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do follow 🙂
By using CRM software and installing an Enterprise Resource Planning system you can take control of your business like never before.
Completely agree, but one should remember that the functionality ERP software offers cannot be provided by a CRM software or specialized software such as HRM or Accounting