EPM and ERP, different but work well together
It takes a large amount of intelligent software to manage the day-to-day operations of an enterprise. In today’s world there are two that are used most frequently, Enterprise Performance Management (EPM) and Enterprise Resource Planning (ERP).
Although their terms are regularly interchanged, they are entirely separate systems. Yes, there is overlap in terms of features and functionality, but there are also key differences that set EPMs and ERPs apart.
If you are a business leader and looking to implement a software that will help manage and grow your business, you might be asking yourself the following questions. Which is most useful? Which is easier to implement? Which will deliver the most value in terms of time, money, and effort? This article will help to answer these questions and give you a greater understanding of defining what an EPM and ERP are.
EPM vs ERP – comparison of features
ERP software has been around for decades, born out of helping companies primarily with their accounting and business transactions. An ERP is mainly focused on resources and transactions while reflecting the operational and economic condition of the organisation.
As companies grew and expanded, new complexities and challenges were found. This gave rise to another software application, EPM. Although it started as a solution to the shortcomings of an ERP, EPM software is now at a stage where it handles core business challenges such as strategic planning and tax provisioning.
Let’s look at some of the high-level features of both.
An EPM system integrates and analyses data from many sources, including, but not limited to, e-commerce systems, front-office and back-office applications, data warehouses and external data sources.
- Building plans/strategies with a significant amount of detail.
- Support for budgetary, financial plans and financial statement planning.
- Faster deployment with minimum IT support – it can be implemented in as little as 3 months.
- Complex budget maintenance and development.
ERP tools share a common process and data model, covering broad and deep operational end-to-end processes, such as those found in finance, HR, distribution, manufacturing, service and the supply chain.
- Processing of core financial transactions like A/R, A/P, cash management.
- Provides accurate, real-time insights into enterprise performance through advanced integrated reporting.
- Enterprise budgetary management.
- A robust cloud technology platform that can scale with your business.
See related blog article on the definition of an ERP.
The difference between EPM and ERP
Despite being designed to address different objectives, EPM and ERPs complement one another in their everyday functionality. While an ERP (mostly) addresses the operational processes, EPM works to streamline the management processes.
It is undeniable that implementing a new software is an investment, worth researching and considering with thought. But if it can guarantee efficiency and growth in the future, isn’t it the right thing to do?
Arguably the best thing for business leaders to do is to integrate both an ERP and EPM software – looking to negate challenges by thinking of them as an EPM and ERP not as EPM vs ERP. At Elevate2, we can help business leaders do both through NetSuite and NSPB.
- NetSuite – The world’s leading provider of cloud-based business management software. NetSuite helps companies manage core business processes with a unified, fully integrated system covering ERP/financial accounting, CRM, eCommerce, BI and more.
- NSPB – Built on the powerful Oracle Hyperion EPM technology that has been used worldwide for over 20 years, NetSuite Planning and Budgeting is recognised by Gartner as the leading Financial Planning & Analysis (FP&A) tool for mid-sized to large enterprises.