A business management software (BMS) and enterprise resource planning (ERP) are usually mistaken for one another as they provide almost the same kind of services. They can also be used interchangeably. It is important to understand their differences to figure out the best solution for your business needs before you make a choice and decide where your money goes.
An ERP system is a software system that helps you run your entire business, including processes in finance, human resources, manufacturing, supply chain, services, procurement, and many more. An ERP system is a software that covers the company’s financial management, supply chain management, and customer relationship management all in a single comprehensive, integrated system. Altogether, an ERP system allows you to make fast and accurate business decisions.
A business management software has a wide range of tools to help businesses streamline their operations and improve efficiency. That’s why BMS is called all-in-one. BMS will be able to reduce errors and make use of reporting tools to track performance. Other than that, it has an automation function that completes your manual tasks.
|Business Management Software
|An ERP system focuses on business functions and the modules that support them.
They are all about planning and are heavy in data.
|A business management software streamlines processes and improves collaborations for the organization.
They are all about tracking and flexibility.
|An ERP system works better for large sized organizations.
The benefits of an advanced ERP system will not be of much usage in a smaller organization.
|BMS can be scalable, making it a better fit for small and medium sized organizations.
|An ERP system usually requires a significant amount of investment. Its prices vary to the type of deployment, users, and levels of customizations.
|The prices for BMS can begin anywhere from free services, to more manageable monthly subscriptions.
|An ERP system is only able to provide the entire HR module to you.
This can be costly if your organization does not use all the features.
|BMS allows your organization to be able to customize processes.
|· Purchasing, payroll, invoicing
· Inventory management
· Customer management
· HR and project management
|· Improving processes
· Documenting steps
· Analysing performance
· Encourages transformation
In terms of being similar, the ERP system and business management software will both help your organization in ways such as increasing efficiency, profit and also reducing costs. In the end, it is up to you to decide what are your specific business goals and how do you want to achieve them.
Do you work with a larger number of small vendors?
Do you work with a small number of large vendors?
Does your business have multiple locations?
Are you planning to expand your business?
Does your organization focus on pushing a singular successful product?
Does your organization push multiple moderately profitable items?
Your organization’s size determines which system will suit your company best. Usually, ERP systems are aimed to target large organizations and companies. As an ERP system provides solutions for the required functions that run through in an organization, such as customer relationships, sales, supply chain, finance and human resources. However, ERP solutions for small to medium enterprises do exist. Although a business management software would provide all the necessary and required tools and functions, making it a better fit for SMEs.
Usually, implementing an ERP system into your organization will take up a certain time. Migrating to any new system will come with speed bumps. This is because of the amount of data that is needed to be gathered and analyzed. However, BMS is an all-in-one solution, which makes it easier for integration. A business management software takes your whole organization into consideration, unlike an ERP system which mainly focuses on the industry’s specialty.
If you are looking for a system to automate all your processes while being able to store a large amount of data, an ERP system will best suit your organization. However, if you are more concerned into areas of management and analysis, a business management system will be exactly what you’re looking for.
Lastly, we’re down to the most important question to ask. Which solution best fits your organization? It’s not where one solution that is better than another, as both solutions offer different functions for your changing and different organization needs. When it comes down to finding the right solution for your organization, a whole lot of research has to be done. Check out some reviews on the softwares that are on your list.
Are you still figuring out what’s the right solution for your organization’s needs? It might be Cosmo Synergy’s SYSPRO solution that you’re looking for.