Selecting the right technology is essential for the success of your business. Choosing the wrong software is a critical mistake that can cause significant problems in your operation. It can waste time, money, and staffing.
Applications under ERP or EPM systems have a few differences but also share many similarities. They are both business systems providing solutions to common problems of management. But do you know how to choose between ERP vs EPM?
Read on to learn about EPM vs ERP and which is better for your business.
What is ERP vs EPM Software in a Nutshell
ERP systems integrate all aspects of the company’s operations, including accounting, inventory, customer relationship management (CRM), and human resources. EPM software is a subset of ERP software that focuses on financial planning and budgeting.
EPM systems often include project, asset, and risk management features. You can also consult experts to learn about ERP and get more ERP software marketing examples. That way, you can weigh in professional ERP tips and ERP guides for your business automation.
The Differences Between EPM vs ERP for Your Business
Every business has a long list of tasks it must perform weekly, monthly, or even daily. Here are some of the factors to weigh which system works for your business needs:
Deployment
ERP is deployed on-premise, while EPM deployment is in the cloud. This difference involves the different needs of the two types of software.
ERP comprises a suite of software modules with a common database. The modules are all integrated, making a seamless transition between processes.
EPM, on the other hand, is a stand-alone software application that interfaces with other applications to share data. Because of this difference in architecture, ERP is more complex to implement than EPM.
Areas of Focus
ERP software manages an organization’s core business processes. It includes accounting, inventory management, manufacturing, customer relationship management, and more.
EPM software, on the other hand, manages specific areas of an organization’s operations. It can include financial planning, project management, human resources management, etc. EPM systems are often used with ERP systems to provide a more comprehensive view of an organization’s operations.
Scope of Reporting
ERP only reports on the performance of the projects under its control. In contrast, EPM can report on all projects within the enterprise.
In addition, EPM provides a higher level of visibility into the project portfolio. It can help executive teams make better decisions about which projects to invest in and how to allocate resources.
The Benefits and Disadvantages of EPM and ERP
EPM systems are designed to help businesses better manage and execute projects. Meanwhile, ERP systems are focused on providing a centralized platform for managing all aspects of a business, from finances and accounting to manufacturing and supply chain.
However, one disadvantage is that EPM and ERP can be inflexible and unable to cope with change. They can also be difficult to use and often require specialized skills. Another disadvantage is that EPM and ERP can be costly to implement and maintain.
A Comprehensive ERP vs EPM Guide for New Businesses
ERP and EPM systems help organizations manage their data and processes. However, they differ in their approach and functionality. ERP systems focus on integrating all aspects of an organization’s business.
In contrast, EPM systems help organizations plan, track, and report on their progress. Understanding the difference between ERP vs EPM systems is essential to decide which is best for your needs.
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