Workflow in ERP has not the same meaning as in BPM. What are the differences between them?

1. Difference between BPM and
ERP
Dr. Karl Schindler
Bangkok, 5.11.2015

2. ERP Workflow and BPM Workflow
Many ERP provide a good embedded workflow.
Since ERP workflow is embedded it is a poor enterprise workflow.
ERP tells the business how to work.
BPM supports both functional and enterprise workflows.
BPM is more flexible than ERP and requires usually less effort to implement.
Business tells BPM how it works.
BPM encapsulates the ERP.

3. BPM using technology (BPMS) 1/2
Business Process Management Systems (BPMS) needs some technology to
realize:
Design & Simulation tools
Process Registry
Rules Engine
Integration Services (e.g. accessing the ERP)
Data Repository (e.g. can be provided by the ERP)
Monitoring Service

4. BPM using technology (BPMS) 2/2
BPMS focuses on
optimizing the efficiency of existing business processes
monitoring process effectiveness
process modelling and simulations
It is a process-intelligent layer that may be integrated with an organization’s
ERP.
With BPMS you can manage processes across disparate systems.
BPMS can manage processes not covered by the ERP.

5. Summary
BPM is a practice and does not need a technology. It can be implemented
with technology.
ERP is a technology.
ERP can support BPM practice.
ERP often needs BPM to help realize its full value.
ERP is an application implemented with technology
Workflow in ERP is not BPM.
Change management is faster with BPM than with ERP.

6. Conclusion
Doing BPM first does highlight the possibilities (and thus limitations) of the
ERP and if there is one, its embedded workflow
BPM is much more flexible, allowing quicker changes.
A change in BPM does not mean a change in the ERP.
A change in the ERP should always first consider the BPM.
BPM does not replace the ERP nor vice versa.
Both support each other.