What Is The Difference Between Erp And Enterprise System

By Author: Dr Andrew Napier
Total Articles: 504
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Enterprise system and Enterprise Resource Planning System terms are similar but there is difference between an enterprise system and an ERP system. An ES or enterprise system is a large scale system which includes packages like ERP and CRM. ERP is a subset of Enterprise System or it can be said that ES is a superset of ERP. It contains a variety of solutions. ES contains applications and packaged solutions which can be directly used in an enterprise. On the other hand ERP system is the automation of the business processes and the solutions are in the form of modules which are designed according to the client's requirements.

The functions are customized according to the client's business environment. Enterprise system does not include architecture of other solutions whereas an ERP implementation automates systems using technical aspects. ERP system includes architectures and databases and is client server architecture. The system is server based therefore the consultant needs to be aware of the technical aspect too.

Another difference between an ES and an ERP system is that the ERP is aimed at improving the functionalities ...
... of the organization whereas the ES helps to improve the overall maintenance and accuracy. It provides for better solutions and aids in decision making. ES is difficult to implement compared to Enterprise resource planning and even the timeframe needed for implementation maybe more. The overall impact is high but so are the risks involved. If the ES is not implemented in the right manner, it can cause business failure and if implemented properly it can increase the efficiency and profits of the business organization. It is normally required when there is a big drawback in the current procedures and methodologies in the organization and need to be corrected. The company going in for enterprise system needs to be careful while choosing the software and the vendors due to the risk of failure involved.

The difference between an enterprise system and an ERP system is that ERP is mostly used for medium scale companies to big companies and ES is restricted to the big companies. There are many complex functions involved in big companies which cannot be provided solutions for alone by ERP. The role of ERP is restricted when compared to enterprise system because it does not include customer relationship or vendor management.

These applications are needed when the business process is complex and on a big scale. Therefore bigger organizations need to go with ES instead of enterprise resource planning alone. ERP is also an important system to streamline the internal processes but it does not provide for taking care of the external processes. Enterprise system takes care of the end to end business process of organization since it involves other applications also like SCM and CRM. There is quite a lot of difference between an enterprise system and an ERP and it depends on the company whether it wants to go with an ES to streamline the entire process starting from supplying, production and customer or whether he wants to go with an ERP system to streamline the internal process.

Read about ERP Benefits. Also know about SAP ERP Review. Read about NetSuite ERP Review.