The terms Enterprise System and Enterprise Resource Planning System are similar, but there is a difference between an enterprise system and an ERP system. An ES or enterprise system is a large-scale system that includes packages such as ERP and CRM. ERP is a subset of Enterprise System or ES can be said to be a superset of ERP. Contains a variety of solutions. ES contains packaged applications and solutions that can be used directly in an enterprise. On the other hand, ERP system is the automation of business processes and the solutions come in the form of modules that are designed according to the customer’s requirements.
Features are customized according to the customer’s business environment. The business system does not include the architecture of other solutions, while an ERP implementation automates the systems using technical aspects. The ERP system includes architectures and databases and is a client server architecture. The system is based on a server, so the consultant must also be aware of the technical aspect.
Another difference between an ES and an ERP system is that the ERP aims to improve the functionalities of the organization while the ES helps to improve overall maintainability and accuracy. It provides better solutions and help in decision making. ES is difficult to implement compared to ERP and even the time frame required for implementation can be longer. The overall impact is high, but so are the risks involved. If SE is not implemented in the right way, it can lead to business failure and if implemented correctly, it can increase the efficiency and profit of the business organization. It is normally required when there is a major problem in the current procedures and methodologies of the organization and it is necessary to correct it. The company looking for an enterprise system must be careful when choosing software and vendors due to the risk of failure involved.
The difference between an enterprise system and an ERP system is that ERP is mainly used for medium and large companies and ES is restricted to large companies. There are many complex functions involved in large enterprises that ERP alone cannot provide solutions for. The role of ERP is restricted compared to enterprise system because it does not include customer relationship or supplier management.
These applications are necessary when the business process is complex and large-scale. Therefore, larger organizations should opt for ES rather than just enterprise resource planning. ERP is also an important system to streamline internal processes, but it does not deal with external processes. The business system deals with the business process of the organization from end to end as it involves other applications as well like SCM and CRM. There is a big difference between an enterprise system and an ERP and it is up to the business whether they want to use an ES to streamline the entire process from supply, production and customer, or whether they want to use an ERP system. to streamline the internal process.
