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What Is The Difference Between An Enterprise System And An ERP System?

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Enterprise System (ES) refers to the packaged enterprise based large scale system which includes the integrated packages such as the ERP, CRM, and SCM. Although the term is similar to Enterprise Resource Planning and it is used together by many organizations but there is much dissimilarity and some of the features of ES as compared to ERP are

It is the bigger term: ES is the superset of ERP. It contains a number of solutions.

Packaged solution: It refers to packaged solutions and it contains applications which can be implemented in an enterprise directly. ERP refers to the automation of various work procedure followed by the organization and most of the solutions are in the form of modules which are designed for the client's working environment.

Solution to ease work: The solution involves defining the large scale integrated package which can provide real time support and coordination. The features include providing easy way of working to the employees of an organization.

Does not include architecture: ES refers to solution which is directly related to the enterprise and it can be implemented throughout the organization. It does not include the architecture of other solutions such as NetWeaver or Tiers such as Two tier, three tiers or N tier architecture whereas ERP refers to a set of applications which can automate systems and it includes even the technical aspects. It includes the database and architectures. It is based on the either client server architecture, that is, the Two Tier or One-Tier or N-Tier architecture. It includes the server based systems and therefore, the ERP consultant should be aware of associated technical features of the solution.

ES for a purpose: The functions of the system should help in shaping the enterprise and providing some missions such as improving the overall maintenance and increasing accuracy. The new system should be able to help in decision making and should be out of box kind of solution. Enterprise Resource Planning is restricted to the improvement of the functionalities of the enterprise.

Does not include database or technicalities: It does not refer to the applications such as Data warehouse and business intelligence whereas ERP also includes the database and the business architectures.

For better ROI: ES is considered difficult to implement as compared to Enterprise Resource Planning and the time spent on implementation of the solution is can be more. It will have a major impact on the business and it is aimed to get high ROI but the risk are also very high because it can even cause business failure if it is not implemented properly but if these systems work properly it will provide better business solution and get better efficiency which will increase total profits.

For a major change: ES is required when there is a major drawback in the existing methodologies followed by the organizations. The company that is planning to bring in a completely new system can aim to go for it but there are a number stories of failures therefore one should be excessively careful in the selection of vendor and software.

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