Defining business process management vs. ERP

How is ERP different from business process management (BPM)? Do I need to buy both types of software suites, or can one suffice to handle my daily business data needs?

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Business process management is significantly different from ERP. Usually, BPM is used in the daily operations that you need to run your business. ERP is a culmination of providing the system components of consolidating business processes under one umbrella. ERP consists of financials, possibly customer relationship management, inventory control, human resources, or human capital management and payroll, to name a few.

Typically, a company revamps or tunes their business process before an ERP implementation so as to not to contaminate the ERP system with bad processes and data. The business processes are revisited in order to streamline and optimize most or all operations, and these processes are then transferred and intrinsically built into to the ERP. It is very important to investigate how the potential ERP system handles change and or portability of business processes, data and workflows.

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This was first published in December 2013

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