ERPs and CPMs are common organizational systems. While both can be valuable for an organization, it is often seen that one or the other is adopted. To understand which will better serve your organizational needs, it’s important to understand the differences between the two.
Why Do We Use ERPs?
ERP systems maximize transaction flow across business functions. This allows for accuracy and consistency in how data is used. ERPs help in business planning processes by collecting, managing, and interpreting data from different business functions.
ERPs are comprised of two parts: a set of business processes and a database. ERPs reduce the drag created by siloed data and allow multiple departments to share and visualize their data. ERPs are useful in providing real-time tracking of KPIs, optimizing business resources, removing redundancies, and eliminating silos.
Reasons why organizations may hold off on implementing an ERP include their high price-tag, the burden of training and implementation, and the investment in IT infrastructure.
CPM systems
CPM systems are used to help an organization in executing its goals and plans by providing insight into planning processes. The goal of a CPM is to provide insight through planning processes including forecasting and FP&A. Benefits of CPM systems include the ability to align business strategy with goals, planning and execution, providing real-time data, giving visibility into KPIs, and allowing for better project management.
More systems, more order
Adopting organizational systems will allow you to help teams create and monitor budgets and other KPIs. Leveraging real-time data and bringing together data sources can help businesses make better use of their data to inform decision making.
