The Difference between ERP and Excel

IntroductionExcel, a commonly used software, utilizes spreadsheets to organize data. An ERP (Enterprise Resource Planning) software however, utilizes a system of different programs to maintain the order and organisation of a business which can vary from a small one, to a corporate giant. That being said, Excel theoretically also has the capability of organizing data and creating a system for a business, and many small businesses use it; therefore, what are the differences in using a ERP software and Excel?

The BenefitsAn ERP system can be much more complicated than Excel; moreover, this comes with benefits and disadvantages of using Excel or ERP. Excel is a lot less automated than the use of an ERP system. Although ERP software sometimes have to be maintained, they are mainly automated, hence the use of the software. Excel, on the other hand, can also do calculations and follow commands, but to an extent. Excel is limited to, well, what the application can do. ERP modules, are limited to what a programmer can create, which has a lot more potential than an Excel sheet. These limits bring the next benefit or disadvantage, complexion. ERP software can be extremely complex to the point that the user does not know how to use them. Excel sheets are simple, and within an hour, an average person can learns the ins and outs of the application.

Who Uses Which and WhyAs stated above, Excel can be a lot more simple than a nice and refined ERP system; therefore, very small businesses tend to use them for many reasons. They do not have the resources to obtain such refined software. They might not have the ability to understand and maintain the ERP system. Finally, they probably do not need an ERP system as Excel is perfectly capable and usable for maintaining the company. ERP is beneficial to all types of business, from small to big, as long as it is necessary and able to be integrated. They can maintain the order and organization of the business as long as the business can handle and properly use an ERP system. In bigger businesses, Excel is used to store information that are specifically used for certain employees of certain branches.

ConclusionThere are many differences between Excel and an ERP system, and these differences bring around benefits to the users that are also different. Minuscule businesses would prefer the use of Excel over an ERP software because it would less overwhelmingly, and they don’t necessarily need such a software. Bigger businesses will have the resources and ability to handle the software, which will greatly benefit them and their growth.

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