ERP vs. BPM

Today, there are many discussions on the internet about relationship between ERP and BPM which show that many people are confused and don’t understand the differences between these two solution. The question in this area included;

- Does BPM is going to replace ERP?

- What is the business value of BPM comparing with ERP?

- Which solution should be implemented first?

ERP: the concept of ERP is focusing on integrate information flow within a company using the concept of decentralize database which will be updated on demand and give a single view on customer data. In order to work with ERP in multi user environment, it requires the effective process management to make sure that all users realize the important of process and discipline to business procedure. Some customers didn’t realize an important of business process in implementing ERP and expect that the system will support their processes. However in most cases, company need to reengineering their business process to match ERP best practice and this is why the cost of ERP solution is very expensive.

BPM: in the other hand, BPM is focusing on workflows of task which essential to deliver business objective. BPM aim to make business processes more efficient, more effective and flexibility enough to support any change that happen within the company.BPM tools provide the platform that allows users to create business applications bringing all different data, document, operation and people together. Moreover, it will help improve business agility and productivity while business components can be reusable and changeable.

The difference characteristics of these two systems give the answer that BPM cannot replace ERP system as they focus on different purpose. In spite of those facts, I'm not surprise to see both of BPM software vendors and ERP software vendors offer the solution of complementing these two systems together.

In SAP website, the given information shows that the company adjusts BPM concept solution to help integrate business process throughout application and organizations, know as SAP BPM solutions. SAP BPM claim to have ability to exchange data across applications or module both from SAP and non-SAP. The latest improvement of using SAP BPM is the ability to allow mobile users to interact with SAP and non-SAP application via mobile application. This is just only one example of benefit from combining ERP and BPM together.

As ERP can handle all the data and information while BPM will create business process base on those data to make sure that the data was used through entire business process even the process has been changed, I think ERP BPM solution will easily attract new ERP customer to go for this solution.

References

1. http://processgeniearchitect.wordpress.com/2009/08/10/bpm-or-erp-or-both/

2. http://www.ebizq.net/topics/bpm/features/11594.html

3. http://www.architectsap.com/sap-netweaver/sap-bpm/

4. Enterprise Resource Planning: Implementation and Management Accounting Change in a Transitional Country. Ahmed O. Kholeif, Magdy G. Abdel -Kader and Michael J. Sherer. Palgrave Macmillan, 2008. Palgrave Connect. Palgrave Macmillan. 24 Apr 2012 http://0-www.palgraveconnect.com.pugwash.lib.warwick.ac.uk/pc/doifinder/10.1057/9780230584051

5. DAVIS, R. & BRABÄNDER, E. 2007. An Introduction to BPM ARIS Design Platform. Springer London.

Kanita Tippayajan : 25 Apr 2012 08:00 |  Tags: Bpm Erp |  Comments (2) |  Report a problem