--- title: BPM vs ERP: Comparing Business Process Management with Enterprise Resource Planning --- # BPM vs ERP: Comparing Business Process Management with Enterprise Resource Planning Last Reviewed: March 18, 2026 9 min read [No comments](https://www.selecthub.com/business-process-management/bpm-and-erp/#respond) [ ![Khaleel Hayes](https://www.selecthub.com/wp-content/uploads/2020/07/Khaleel-96x96.jpg) ](https://www.selecthub.com/author/khaleel-hayes/) [Written by Khaleel Hayes](https://www.selecthub.com/author/khaleel-hayes/) Technical Content Writer [ ![Hunter Lowe](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-Hunter-Headshot-96x96.jpg) ](https://www.selecthub.com/author/hunter-lowe/) [Edited by Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) Content Editor Table of Contents * [What Is ERP?](#What%5FIs%5FERP "What Is ERP?") * [What Is BPM?](#What%5FIs%5FBPM "What Is BPM?") * [ERP vs BPM](#ERP%5Fvs%5FBPM "ERP vs BPM") * [ERP Is About Modules and Functions](#ERP%5FIs%5FAbout%5FModules%5Fand%5FFunctions "ERP Is About Modules and Functions") * [BPM Offers Workflow Customization](#BPM%5FOffers%5FWorkflow%5FCustomization "BPM Offers Workflow Customization") * [Both Provide Business Intelligence](#Both%5FProvide%5FBusiness%5FIntelligence "Both Provide Business Intelligence") * [ERP Provides Data Storage and Visibility](#ERP%5FProvides%5FData%5FStorage%5Fand%5FVisibility "ERP Provides Data Storage and Visibility") * [Can You Use Them Together?](#Can%5FYou%5FUse%5FThem%5FTogether "Can You Use Them Together?") * [Choosing the Right Software](#Choosing%5Fthe%5FRight%5FSoftware "Choosing the Right Software") * [Cost Considerations](#Cost%5FConsiderations "Cost Considerations") * [Lean Selection Simplifies the Software Selection Process](#Lean%5FSelection%5FSimplifies%5Fthe%5FSoftware%5FSelection%5FProcess "Lean Selection Simplifies the Software Selection Process") * [In Conclusion](#In%5FConclusion "In Conclusion") Comparing [BPM](https://www.selecthub.com/c/business-process-management-software/) and [ERP software](https://www.selecthub.com/c/erp-software/) is similar to juxtaposing two musical artists from different genres. These solutions share a similar purpose but offer different approaches to fulfill that purpose. Despite their equal intentions, these solutions aren’t interchangeable. A BPM ERP comparison will demonstrate critical differences. It’s essential to understand the role each one plays so you can decide what is best for your business. [Get our ERP Software Requirements Template](https://pmo.selecthub.com/erp-requirements-template-site-vers/) ![BPM vs ERP comparison guide]() This article breaks down BPM vs ERP by reviewing their features, advantages, how they work together and choosing the best solution. ## What Is ERP? [Enterprise resource planning (ERP)](https://www.selecthub.com/category/enterprise-resource-planning/) is a type of software that provides users access to numerous department [capabilities](https://www.selecthub.com/enterprise-resource-planning/erp-capabilities-list/). These [modules](https://www.selecthub.com/enterprise-resource-planning/top-5-common-erp-modules/) serve multiple business sectors, such as [human resources](https://www.selecthub.com/category/hris/), [accounting](https://www.selecthub.com/category/enterprise-resource-planning/accounting/), [inventory management](https://www.selecthub.com/category/inventory-management/), [manufacturing](https://www.selecthub.com/category/manufacturing/), [product lifecycle management (PLM)](https://www.selecthub.com/category/plm/) and more. An ERP system’s core purpose is to store and pull data from a common database, allowing a single source of truth. ![ERP Benefits and Features]() This centralization enables all employees to work with the same set of data. Companies no longer have to stand by while different departments work with outdated stock levels or ledgers. ERP systems provide real-time data to keep everyone on the same page. ERPs provide other [benefits](https://www.selecthub.com/enterprise-resource-planning/erp-advantages-and-disadvantages/), such as: * Reducing costs and time as you boost productivity. * Monitoring and enhancing customer satisfaction. * Supervising all supply chain facets. * Garnering [business intelligence (BI)](https://www.selecthub.com/category/business-intelligence/) data to make more-informed business choices. * Verifying your company aligns with all standard and regional compliances (i.e., [FDA](https://www.fda.gov/), [ISO](https://www.iso.org/home.html) and more). * Offering scalability as you upscale or downsize your business. ![ERP finance dashboard displaying reconciliation, income, margins, transactions, and debt metrics.]() ERP software provides a comprehensive overview of your company. [Get our ERP Software Pricing Guide](https://pmo.selecthub.com/erp-price-report-site-vers/) ## What Is BPM? Business process management (BPM) software is a solution comprised of diverse strategies and techniques to automate workflows. This system offers process modeling tools to design and edit workflows. Process modeling allows you to add descriptions to inform others about what happens during workflows. ![BPM Features and Benefits]() This feature helps you include instructions for specific tasks. These instructions may have strict rules or flexible guidelines. Process modeling also includes workflow explanations to justify jobs. You can also explain how to perform specific duties. Other BPM software [features](https://appian.com/bpm-basics/features-of-bpm.html) include: * Real-time reports and analytics * Scalability * Mobility * Knowledge management * Compliance management * Integrations ![Appian request management dashboard showing change request details, milestones, status, and actions.]() An example of Appian’s request tool. Like ERP, BPM offers several [advantages](https://kissflow.com/workflow/bpm/benefits-of-business-process-management-bpm/), including: * Increasing productivity by catching and fixing production bottlenecks. * Ensuring you meet all compliances. * Managing data accessibility and protection. * Simplifying internal and external collaboration. [See our ERP Software Buyer’s Guide](https://www.selecthub.com/c/erp-software/) ## ERP vs BPM ### ERP Is About Modules and Functions If you think the definition of BPM still sounds a lot like ERP, you’re not wrong. ERP systems focus on various business functions and modules. ERP can also track module data. This solution tracks everything from sales to employee wages, all while allowing the free flow of information between modules. ### BPM Offers Workflow Customization But let’s say you need software to manage one specific HR workflow. An ERP vendor can only provide the entire HR module, which can be costly if you’re not benefiting from all the available features. A BPM system allows your business to manage that workflow with a level of customization that ERP systems don’t possess. ERP process management exists, but ERPs don’t always provide the same granular data as a BPM system. Both types of software utilize [BI tools](https://www.selecthub.com/business-intelligence-tools/) but differ in the scope of their analyses. ### Both Provide Business Intelligence Both systems provide analytics using your KPIs and custom reports. However, BPM can track specific process efficacies. BPM’s BI capabilities provide insight into process execution times, statuses and the number of open and closed procedures. ### ERP Provides Data Storage and Visibility In this ERP vs BPM comparison for data storage and transparency, ERP wins. It stores data on a central server allowing different departments to input data, and it all gets stored in one location. This centralization exhibits how the company and its functions collaborate. ERP gives users a holistic view that BPM cannot offer. It also stores much more data, allowing for extensive analysis across all business functions showing how each is interrelated. This solution provides almost-infinite [functions](https://www.selecthub.com/enterprise-resource-planning/key-erp-functional-requirements/) and [requirements](https://www.selecthub.com/enterprise-resource-planning/erp-requirements-checklist-cheat-sheet/) that stretch. ## Can You Use Them Together? The short answer is yes; you can use these systems as a joint BPM ERP solution. Much of the confusion surrounding BPM and ERP stems from the fact that they perform the same job in some instances when used separately. Interestingly, you observe the differences between the two systems best when used together as an ERP business process solution. Typically, BPM is integrated into a more extensive ERP system to manage what ERPs can’t. This gap can lead to numerous company inefficiencies and tedious workarounds as you resolve them. A BPM’s heightened analyses strengthen the process, allowing the more extensive ERP to facilitate more general business functions. If integrated properly, the two can complement each other. You can have automated process management that monitors the use of resources and assigns tasks along with centralized data storage and collaboration. [Compare Top ERP Software Leaders](https://pmo.selecthub.com/top-erp-software-site-vers/) ## Choosing the Right Software Whether you choose BPM, ERP, an ERP business process system or any other software, you need a strategy. First, we must consider factors that affect the [total cost of ownership (TCO)](https://www.wallstreetmojo.com/total-cost-of-ownership/). ![Pricing Considerations for New Software]() ### Cost Considerations #### How Big Is Your Company? Do you own a Fortune 500 or 1,000 organization, a local mom-and-pop shop or somewhere in between? Are you looking to expand or downsize in the next five to ten years? Most business programs scale as you add more employees, machinery and other assets. When starting a business out of your basement, you don’t want to buy an enterprise-level platform with many features. Size, in this case, matters. #### How Much Are You Willing To Spend? [ERP costs](https://www.selecthub.com/enterprise-resource-planning/erp-cost/), and other business software, can range anywhere from $1,000 to $100,000+ depending on the vendor. Establishing a budget early on will help you know which features you need, the necessary deployment option and what you want to gain in [ROI](https://www.businessnewsdaily.com/4659-what-is-roi.html). Think of business software as buying a car, home or appliance. Sure, the sticker price is high, but establishing a reasonable budget and financing plan can ensure you’re purchasing something you need and that it’s worth every penny. #### Which Deployment Option Is Best? Do you want the cloud, on-premise or a hybrid of both? Each has its pros and cons and heavily affects your TCO. Cloud solutions, which typically operate with subscriptions, enable you to run the solution through the vendor’s third-party server. In short, you can access the solution on any device via the internet. This option can work if you have multiple regional or worldwide businesses that you need to monitor closely. Also, if you need to run to conferences or special meetings, you can monitor data on the go instead of waiting to return to the office. On-premise solutions are more expensive and run on your company’s servers and hardware. You’re in charge of maintenance and updates. Some on-premise vendors offer customer support packages to help you in case problems arise. This deployment option is ideal if you have a few company locations and don’t have much traveling. The hybrid option merges characteristics from both cloud and on-premise deployment. You’d have to discuss fees, capabilities and more with vendors. #### Do You Need Add-ons or a New Solution? When your computer mouse stops working, do you get a new laptop or a brand new mouse? Apply this principle to your business software. If you own a BPM or ERP that manages accounting, [CRM](https://www.selecthub.com/category/customer-relationship-management/) and BI but need [supply chain management (SCM) tools](https://www.selecthub.com/c/supply-chain-management-software/), you can just look for SCM vendors and ask if their features can integrate with your current system. ## Lean Selection Simplifies the Software Selection Process After reviewing cost factors, it’s time to discuss a software selection strategy. SelectHub’s nine-step methodology, aptly named [Lean Selection](https://www.selecthub.com/miscellaneous/technology-selection/software-evaluation/), offers a thorough roadmap for finding the right software for any company or industry. Here’s a quick rundown of this technique: ![Lean Selection Methodology]() 1. **Establish:** Understand why you need a new BPM ERP or a standalone system. Are you having trouble boosting workflows, collaborating with other sectors or storing information? 2. **Collaborate:** Establish a software selection committee of internal and external stakeholders, department leaders, end users, IT and more for in-depth analysis. 3. **Define:** Collaborate with your software selection team to determine ideal requirements and modules. 4. **Distribute:** Compare vendors with your requirements list, and shortlist potential suppliers. 5. **Justify:** Ask yourself and your team: Do we need new software, add-on tools or to stop the software selection process? 6. **Prove:** Sit down with prospective software providers and ask to demonstrate their features through standard demos, use cases or proofs-of-concept (POCs). Score software-specific functionality performance. 7. **Rank:** Categorize at least two to three potential programs based on demo scores and TCO. 8. **Negotiate:** Converse and bargain with your number one vendor on terms and contracts. Seek professional legal advice, if necessary. If you can’t meet a compromise with one vendor, repeat this step with your other ranked software providers. 9. **Sign:** Sign with your provider and establish an implementation strategy. [Get our ERP Software Requirements Template](https://pmo.selecthub.com/erp-requirements-template-site-vers/) ## In Conclusion If you’re looking for a solution that can manage your business functions across your company with a heavy focus on storing data in a shared database, ERP is the system for you. If you’re more focused on specific processes and optimizing them to their full potential, BPM software is a better fit. You can also merge these solutions for maximum efficiency. We hope our BPM vs ERP comparison helped you determine what you need for your business. Given this ERP BPM comparison, which software system do you plan on implementing? Let us know by leaving a comment below! Originally published in September 2018 and last updated in March 2026\. Contributions from Khaleel Hayes, and Hunter Lowe. ## About the Contributors The following team members helped research, create, and review this content. [ ](https://www.selecthub.com/author/khaleel-hayes/) Written by [Khaleel Hayes](https://www.selecthub.com/author/khaleel-hayes/) Technical Content Writer Khaleel Hayes is a Technical Content Writer for SelectHub, with over 4 years of experience crafting content for manufacturing, PLM, ERP and technology selection audiences. He's also a freelance writer in his spare time. His body of work includes poetry, short plays, feature articles and film reviews either self-published or in Denver publications. He graduated with a B.A. in Journalism and an English minor from Metropolitan State University of Denver in May 2018\. When not writing, he enjoys classic movies and music, tasty burgers, tasteful bookstores, and breathtaking art and photography. [See Full Bio](https://www.selecthub.com/author/khaleel-hayes/) [ ](https://www.selecthub.com/author/hunter-lowe/) Edited by [Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) Content Editor Hunter Lowe is a Content Editor, Writer and Market Analyst at SelectHub. His team covers categories that range from ERP and business intelligence to transportation and supply chain management. Hunter is an avid reader and Dungeons and Dragons addict who studied English and Creative Writing through college. In his free time, you'll likely find him devising new dungeons for his players to explore, checking out the latest video games, writing his next horror story or running around with his daughter. [See Full Bio](https://www.selecthub.com/author/hunter-lowe/) Khaleel HayesBPM vs ERP: Comparing Business Process Management with Enterprise Resource Planning * ‹ * › ### Conversation ![Avatar](https://secure.gravatar.com/avatar/281d3616cf761f3582c0d76c23517846?s=32&d=mm&r=g) Write a response [Cancel reply](https://www.selecthub.com/business-process-management/bpm-and-erp/#respond) Your message Your name \* Your email \* Website Save my name, email, and website in this browser for the next time I comment. Δ **Tier 1:** Fully/moderately supported out-of-the-box allowing for quick and easy deployment. Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. **Tier 2:** Supported with workarounds or add-ons that may require additional costs. Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. **Tier 3:** Requires partner integrations or custom development that is often at an additional cost. Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. 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