An ERP software or a simple business application? This dilemma is very common for business owners who want to invest in such software but are not aware of them. Well, it is easy to believe the vendors of such software but it is way easier to read this blog, know the difference between them and then take an informed decision. 

To start, Enterprise Resource Planning is basically business management software with various comprehensive systems integrated, so that this whole software can be used as one tool to manage the entire business. Whereas a business application is an application which is designed specifically for one need and is completely isolated from other applications.

Except for the basic definition distinction, the   other differences in them are as follows:

1.      Integration

 As ERP software cover every functional area of business like accounts, marketing, sales, inventory, human resource and etc, it facilitates better and wider integrated data or system. A business application has no integration because it is designed for one specific function. For example, if you have an application for inventory function then that application will not integrate with other functions of the business. 

2.      Flexibility

 The current competitive state of the market need not be told and to stay in this cut-throat competition, it is imperative to have well aligned and systematic functions in the organization. A business application can't do this for you whereas ERP software enables you to manage and control all your functions effectively. ERP software does not only coordinate various functions within an enterprise but also integrate at different entities level. 

3.      Cost-effective

 Deploying business applications can be really costly especially when your business has a variety of functions. A separate application for an individual function only creates chaos in the organisation. Whereas deploying an ERP is a very smart and cost-effective move. It’s modular software, where there is an ease to choose specific modules that are required in the business and also add the left ones later when the business grows.

4.      The requirement of planning

 A successful implementation of ERP accounting software calls for proper planning from the top management level. The top management along with project management will decide on the appropriate module, training required and the finance to be invested. For single business applications, only the specific department needs to plan amongst themselves. 

5.      Ease of communication

 With ERP software, integration of all organizational entities is very simple. For example, if you generate a report of procurement that can be easily shared with the other relevant departments with the help of functions enabled in the software. On the other hand, in the case of the business application, if a report is generated about any field then that can only be shared by the way of mailing or sending it by hand. 

Thus, the ERP and business application are very different and so are there uses. Therefore, it is advised that before making your final decision on them, do understand your business size, operations, and requirements first because every business is different and every owner wants good returns.