The terms enterprise system and enterprise resource planning system are similar, however, there is a difference between an enterprise system and an ERP system. An ES or enterprise system is a large system that includes packages such as 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 includes applications and packaged solutions that can be used directly in an enterprise. On the other hand, the ERP system is the automation of the business processes and the solutions are in the form of modules that are designed according to the customer’s requirements.
The functions are adapted to the customer’s business environment. The enterprise system does not include the architecture of other solutions, while an ERP implementation automates systems using technical aspects. The ERP system includes architectures and databases and is a client-server architecture. The system is server-based, 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 improve overall maintenance and accuracy. It offers better solutions and decision support. ES is difficult to implement compared to Enterprise Resource Planning and even the time frame needed for implementation might be longer. The overall impact is high, but so are the associated risks. If the ES is not implemented properly, it can lead to business failure and, if implemented properly, increase the efficiency and profits of the business organization. This is usually required when the current procedures and methods in the organization have a major flaw and need to be corrected. The company that chooses an enterprise system needs to be careful in choosing the software and vendors due to the risk of failure that comes with it.
The difference between an enterprise system and an ERP system is that ERP is mainly used for medium to large companies and ES is limited to the large companies. In large companies there are many complex functions that cannot be solved by ERP alone. The role of ERP is limited compared to the enterprise system as it does not include customer relationship or supplier management.
These applications are needed when the business process is complex and large. As a result, larger organizations must rely on ES rather than just Enterprise Resource Planning. ERP is also an important system to streamline the internal processes, but it doesn’t take care of the maintenance of the external processes. The enterprise system takes care of the end-to-end business process of the organization as it also includes other applications like SCM and CRM. There is a big difference between an enterprise system and an ERP, and it depends on the business whether they want to go for an ES to streamline the whole process from delivery to production to the customer, or whether they want to would like to decide on an ERP system in order to optimize the internal process.