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Difference between ERP & Enterprise Systems



ERP v/s Enterprise System

ERP or Enterprise system

ERP or Enterprise system

In today’s post we will clear misunderstanding between ERP software and Enterprise Systems. Since both terms sounds alike. Many people use these terms ERP and (ES) Enterprise Systems for ERP Systems or Business Systems, Accounting Software, and so on . . . although every terminology has minor or major differences when it comes to technical and functional aspects further the purpose of each software is different.

Read our article on Main Purpose of ERP software

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

ERP software is a business application which 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. .

Read our article on How to speed up your Business Processes with ERP solutions

ERP 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 . . .

ERP 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.

ERP modules 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.

Read our article on How Long does it take to Implement ERP solutions

ERP software is 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 ES

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.

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 ERP Services

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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