ERP vs. EPM: Understanding the Difference and Why Industry-Specific EPM Matters

In today's fast-paced business world, organisations rely on technology to streamline operations and make informed decisions. Two critical types of enterprise software are Enterprise Resource Planning (ERP) systems and Enterprise Performance Management (EPM) systems. While both play a vital role, they serve distinct purposes.

For businesses in specialised industries, using an industry specific EPM solution can unlock deeper insights, improve forecasting accuracy, and drive better decision-making. This blog will break down the differences between ERP and EPM, explaining why an industry specific EPM is often the best choice for financial planning and analysis.

What is ERP?

ERP (Enterprise Resource Planning) systems are designed to manage day-to-day business transactions across multiple departments, such as finance, procurement, human resources, and inventory. They centralise data, ensuring consistency and accuracy across the organisation.

Key Functions of ERP:

• Accounting and financial management

• Procurement and supply chain management

• Human resources and payroll

• Order processing and inventory tracking

Examples of ERP Systems: Oracle Fusion ERP, SAP S/4HANA, Microsoft Dynamics 365, NetSuite, Certinia, Odoo

ERP systems are great for maintaining historical records and ensuring compliance but are not built for detailed financial planning, forecasting, or strategic decision-making.

---

What is EPM?

EPM (Enterprise Performance Management) systems go beyond transaction management to help businesses plan, budget, forecast, and analyse financial performance. EPM solutions enable organisations to turn raw data from an ERP system into meaningful insights for decision-making.

Key Functions of EPM:

• Budgeting and forecasting

• Financial consolidation and close

• Scenario modelling and planning

• KPI and performance tracking

Examples of EPM Systems: Oracle EPM Cloud, SAP Analytics Cloud, Anaplan, Workday Adaptive Planning.

Why an Industry-Specific EPM Matters

While general EPM solutions offer financial planning and analysis, many industries have unique challenges that require tailored solutions. An industry-specific EPM provides custom features, workflows, and analytics designed for specific business needs.

Key Benefits of Industry-Specific EPM:

• Customised Financial Models: Pre-built templates and calculations tailored for your industry (e.g., event management, healthcare, manufacturing).

• Improved Forecasting Accuracy: Uses industry-specific drivers and historical data to provide more accurate projections.

• Regulatory Compliance: Ensures adherence to industry regulations and financial reporting standards.

• Better Integration with Industry ERP Systems: Aligns seamlessly with ERP systems commonly used in your sector.

• Faster Implementation & Adoption: Employees can quickly adapt to familiar terminology, reducing training time and errors.

For example, event management companies require EPM solutions that allow them to track event profitability, forecast costs based on seasonality, and monitor vendor expenses. A generic EPM might not provide the flexibility to handle these requirements as efficiently as an event specific EPM solution.

Conclusion

While ERP systems focus on managing business transactions, EPM systems help organisations plan. Businesses looking to improve financial decision-making should consider investing in an industry specific EPM that aligns with their unique needs.

If you're in an industry that requires complex budgeting, forecasting, or reporting, choosing a tailored EPM solution could provide a significant competitive advantage.

Looking for an EPM solution designed for the events industry? Get in touch to explore how our software can help optimise your financial planning and performance.

Written by James Traynor

Co-Founder at Procast