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What is the difference between ERP and EPM?

Understanding the difference between erp and epm is of a great importance of almost every business, which solution is best for your business?
difference between erp and epm

Understanding the difference between erp and epm is of a great importance of almost every business, Enterprise resource planning (ERP) and enterprise project management (EPM) are both software-enabled management solutions that help organizations plan, execute, coordinate, and track projects of all types — from large-scale initiatives to minor service improvements.

EPM and ERP have overlapping features, but each solution also has critical advantages. Consider the following when making an EPM-ERP comparison to decide which solution is best for your business. While several corporate solutions are available, enterprise resource planning (ERP) and enterprise performance management (EPM) software are two that many businesses across sectors explore.

While these two systems may seem similar, each has its own set of features and purposes. Additionally, they have a distinct emphasis and distinct advantages. When comparing ERP vs. EPM, the ideal platform for you is determined by your organization’s demands. So today, we will take a deeper look at what distinguishes these systems.

What is ERP?

An enterprise resource planning (ERP) system automates and simplifies the back-office transactional operations that comprise the majority of your daily company. For instance, ERP systems have a general ledger that consolidates the information included in the primary financial modules.

Authorized users have access to ERP data to enable collaboration, monitor employee performance, and communicate with customers. Additionally, they may have complete insight into all aspects of the business’s operations by monitoring raw materials from purchase through delivery.

Business executives may utilize this data to make better-educated choices about allocating firm resources. Many businesses seek ERP choices because it eventually saves time and money by automating previously laborious, cumbersome, and error-prone operations. Companies today are increasingly looking to ERP solutions to revolutionize their workflows and increase efficiency.

In a world where information is constantly changing and businesses are expected to be more agile and more efficient with their operations, ERP features offer the perfect solution. ERP solutions are software programs that help businesses manage their entire operations.

They include everything related to the management of their financials, records, and inventory. In other words, they make it easier for small businesses to handle their accounting, inventory, sales, and profits. So, what exactly makes ERP solutions so special? We’ll take a look at that and many other key features to know before selecting the right ERP solution.

Read More About ERP benefits for your organization

What is EPM?

Often, an EPM solution is used in conjunction with a complete ERP platform. While ERP software improves operational data, EPM gives managerial insights into that data,
enabling the following management procedures to be carried out:

  • Planning
  • Forecasting
  • Modeling
  • Analytical advancements
  • Reporting on data
  • Consolidation of finances

It equips users with the tools necessary to monitor, analyze, manage, and report on their company, with a view that extends beyond everyday transactional activity.

Without an EPM component, it might be challenging to convert raw ERP data into actionable insights. For example, you may have the correct projections and objectives, but you also need a method for identifying patterns, forecasting outcomes, and monitoring results.

While it is crucial to evaluate how your company is doing, it is equally critical to grasp the implications of those metrics on the overall health of your organization. Businesses may utilize ERP data to create plans, develop strategies, and execute instructions using EPM.

Typically, the CFO or finance department is the one that advocates for EPM adoption, owing to the software’s ability to support optimal resource allocation.

Finance managers may execute the following activities using EPM data:

  • Establish introductory objectives
  • Establish initial budgets
  • Develop strategies and projections
  • Organize organizational planning in a coordinated manner
  • Make choices based on financial and operational performance

Organizations may use EPM software to choose based on “what-if” scenarios generated by comprehensive EPM modeling and analytics. Without EPM, however, a finance department would often depend on its ERP to manage day-to-day transactions while managing management responsibilities like planning and reporting on separate Excel spreadsheets.

While this strategy may succeed in the near term, most businesses rapidly outgrow such a lengthy procedure. Businesses want a data analysis solution to automate and simplify the process, and EPM meets the bill. It is intended to interact smoothly with numerous ERP systems and with human capital management (HCM) and customer relationship management (CRM) solutions.


If you’re contemplating an enterprise software deployment, you may be unsure whether to pursue ERP, EPM, or a combination of the two. First, consider a few of the primary distinctions between these two platforms.

1-difference between erp and epm according to the Areas of Focus
While ERP is primarily concerned with transactional data, EPM is primarily concerned with management data.
EPM enables customers to comprehend the relationship between their financial and operational performance and their overall company success and recommends improvements to maximize both. This is feasible because EPM systems are intended to interact with various sources of information, including ERP software, to provide sophisticated management insight.

2-Implementation Complexity
ERP vs EPM are clearly defined in terms of Implementation Complexity
ERP implementations may take years to complete, depending on the functionality required and chosen deployment methodology. By contrast, a regular cloud-based EPM integration needs little IT assistance and often takes just a few months. As a result, many businesses choose to implement an EPM program before pursuing ERP.
However, it is still typical for organizations to deploy ERP first since the software often has built-in EPM capability that may be suitable for their purposes.

3-Scope of Reporting
An ERP system can handle some management reporting and consolidation. Users may, for example, access data to generate financial statements such as balance sheets and cash flow statements.

  • Profit and loss statements
  • Reports on financial management (e.g., actual vs. budget variance)

While these duties overlap considerably with EPM, the latter goes far further in reporting. Finance executives may use EPM technologies to create initial objectives and coordinate financial planning throughout the business. They may also gather, create, and monitor budgets throughout the company and integrate and report on financial outcomes from numerous enterprise systems.

Which System is Right for Your Company?

Now the time we have outlined erp vs epm:When weighing the advantages and disadvantages of ERP against EPM, you may be dismayed to discover that there is no “one-size-fits-all” solution. Instead, your selection should be guided by your company’s requirements.

Many businesses have discovered that it is helpful to deploy these platforms in tandem since they complement one another. However, this isn’t the best option for every company in every situation.

Our ERP consulting team can assist you in evaluating your present technology and business processes and determining the most appropriate IT strategy for your organization. Please fill out the form below to obtain a free consultation.

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