search Where Thought Leaders go for Growth

Is BPM a powerful complement to ERP? Focus on these two super-software packages

Is BPM a powerful complement to ERP? Focus on these two super-software packages

By Grégory Coste.

Published: 17 November 2024

ERP and BPM are different, but complementary. As a result of digital transformation, a large number of SMEs and large groups are adopting the two solutions because of their interdependence.

While IT departments seem to be the most concerned, procurement management (public and private sectors) and companies aiming to obtain or maintain ISO 9001 certification are increasingly attracted by the benefits of this winning combination.

Concept a little vague for you? Let's take a closer look at Business Process Management.

ERP and BPM: what are the differences?

Definition of ERP

Enterprise Resource Planning is an integrated management software package: by this we mean that this type of super software connects several programs together.

The aim of ERP is to rationalise and centralise data, processes and information to avoid duplication and work more efficiently. Centralising information avoids having data scattered across several software packages: the same information circulates throughout all departments.

Using a single database, communication is unified and aimed at organising and planning the company's operational processes. The information system unifies and contextualises all the data from all the company's businesses: human resources management, accounting, sales management, etc.

Definition of a BPM

Business Process Management is software that automates business processes and boosts employee productivity.

It is a lever for competitiveness and cost reduction. It brings together human processes and IT applications in a single approach: the approach is based on the desire to give employees greater agility.

It involves identifying tasks, human exchanges and interactions with the information system with a view to improving business processes, its management and, ultimately, productivity and performance.

💡 Why choose between the two types of solution? In fact, there are software packages that offer a perfect combination of the two.

Such is the case with Axelor, an ergonomic Open Source ERP comprising more than thirty business applications: CRM, HR and financial management, supply chain, etc. Above all, the platform natively integrates low-code BPM functionalities. So you can create your own applications and model all your business processes, thanks to an intuitive, low-code app studio!

ERP VS BPM: comparison table

The table below compares ERP and BPM, highlighting their respective strengths and differences.

ERP and BPM comparison table
Criteria ERP BPM
English name

Enterprise Resource Planning

Business Process Management

Purpose of the software

Management of resources, data
and information

Business process management

Benefits

Wide range of functionalities

Complete coverage of business needs

Uniqueness of information

Process automation

Customisation by business line

Flexibility of the tool

Adapted to collaborative processes
involving a large number of players

Cross-functional view of the company's activity

Weaknesses

Complex processes to change

Operating in silos

Each process must be developed
upstream

Implementation time

Long for each process

Quick for each process

Cost

High purchase and implementation costs

Moderate implementation costs

BPM complements ERP

An ERP-type management software package cannot be used to conceptualise or customise a company's own business processes.

Let's look at a few examples of how BPM complements ERP in the table below.

Explanatory table: how BPM complements ERP
Problems not solved by ERP Complementary contributions of BPM Examples Benefits
Dematerialisation
and updating
of documents

Automation
of business processes :

  • document contextualisation,
  • update management.

Your SME's HR manager can optimise
HR processes by automating them
from their payroll software, such as
expense reports, appointments for annual
annual appraisals and bonuses.

Reduce processing times

Optimised management

Optimised organisation

Productivity gains
Monitor
interactions
interactions

Trigger cross-functional
cross-functional processes :

  • efficient management,
  • security.

To optimise the delivery of customer orders
you can set up a process
that enables you to :

  • check product availability on the supplier side,
  • check the availability of carriers,
  • reserve a place on a route.
Reduce processing times

Articulation
interactions

Optimisation of
customer satisfaction
Carry out
validation
validation
steps

Workflow automation

Your company is committed to quality
and must comply with specific standards
in stages.

Several experts take it in turns to examine the product or customer order.

Streamline processing stages

Controlling quality

Optimising productivity
Collaborate
between experts
from different specialities

Documentary process
computerised and systematised :

  • simplified collaboration,
  • precise tracking of tasks,
  • monitoring of responsibilities,
  • real-time updates.

Different players in the insurance sector
insurance sector have to exchange documents
and follow specific procedures.

Streamlining the process

Easier interaction

Smooth, meticulous management

Agility and the power of BPM to help ERP

Greater in-house agility

BPM is not a tool reserved for seasoned professionals. On the contrary, if it is implemented in an intelligible way within an intuitive platform, users will adopt it, because the tool supports and guides them within a user-friendly and structuring ergonomics.

Do your teams shun rigid systems? BPM is flexible enough to appeal to many: you can improve your processes at any time, which encourages internal communication and learning, as well as employee responsiveness.

Examples of software specialising in Business Process Management (BPM):

  • Agilium is a French BPM that enables you to model, automate and supervise all your business processes (Business Tracking, Non-conformities, Quality, Purchasing, Suppliers, Project Management, Production Progress, etc.). All quickly and easily, thanks to its low-code approach. Bonus: training is included in your starter pack, so you can get to grips with the software and develop your own processes in just a few clicks.

    Overview of the Agilium workflow creation interface:

  • Bonitasoft is an open source solution, available as a community version under the GPL v2 licence,

Bonitasoft in pictures:

  • Iterop, a solution incorporating effective workflow modelling functionalities.

Iterop's process automation capabilities :

Beneficial consequences for competitiveness

Adopting a BPM approach also means gaining a global and accurate view of your activities and their interactions: this cross-functional view enables you to identify areas for improvement and take swift action.

Business Process Management software accelerates your ability to respond to opportunities:

  • task automation is a powerful driver of efficiency and productivity gains;
  • modelling a business process in stages makes each stage of the process faster;
  • risk detection is accurate and doesn't slow down your processes.

ERP + BPM = synergy = performance + cost optimisation

For the equation to be perfect, it is crucial to enable your teams to grasp PBM and adapt to change, and to train them.

The right solution provides a guided user experience, simplifying the BPMN 2.0 process modelling standard to enable users to master and use the tools in the best possible way.

Article translated from French