EPM Vs. ERP: What Is The Difference?


Nowadays, various operations in enterprises require to be adequately managed. For this purpose, there are two most commonly used tools – Enterprise Performance Management (EPM) and Enterprise Resource Planning (ERP). While these software systems might seem similar, they are pretty separate applications. It is worth mentioning that oracle enterprise performance management is also quite helpful software to implement into your business. Today, we will discover the main difference between ERP and EPM systems to take into account.

Enterprise Performance Management at the glance

Essentially, EPM appears as a set of tools designed to keep the management process in an enterprise compelling enough. It includes planning, modeling, analytics, consolidation, and reporting from any instances of the ERP system. Enterprise Performance Management is needed to provide tools that are helpful while analyzing, monitoring, and managing the business’s current performance. This software is essential for enterprises to create plans, set goals, review results, and meet market tendencies.

The EPM system is typically driven by the finance department or CFO of the organization. This cooperation is needed to make initial budgets and targets, apart from planning coordination in the enterprise. It allows businesses to collect all the operational results and create an effective decision fast. The EPM solution is also great for getting a«what if» analysis and improving the financial auditing process, providing great flexibility and strategic features.

Definition of Enterprise Resource Planning

The Enterprise Resource Planning system works well to process transactions and operations and perform tracking of the resources that an organization has. This software focuses on providing operational data to the enterprise, revealing the most appropriate ways to use current resources within the organization daily. 

Additionally, the ERP system incorporates a ledger specializing in collecting details regarding accounts payable and receivable and purchasing modules. The financial aspect of this software makes it similar to the EPM system, but it doesn’t mean they are entirely the same.


When it comes to EPM vs ERP, we need to understand that these systems are significant for enterprises covering different aspects of workflows. While ERP ensures substantial financial transactions and cash management, EPM focuses on performance improvement planning and provides essential details. The difference between ERP and EPM also includes valuable principles regarding the company’s overall performance for better decision-making strategy vs. support for various financial operations within the organization, like budgetary and financial statement planning.

In most cases, implementing an EPM solution ahead of ERP will bring more advantages to the organization. It provides reliable planning and reporting systems before and during the ERP upgrades. Keep in mind that various ERP systems are more complex than EPM ones. EPM and ERP software solutions are better to use together – an enterprise will reach stable management systems, as well as effective transactional processes.