Why is Workflow Automation Different from Enterprise Resource Planning (ERP) Applications?

It is a common misconception that ERP applications such as PeopleSoft, SAP, Siebel, and Oracle are Workflow Automation tools as well. Each has its own special, and unique, benefits.

Since ERP applications generally contain pre-packaged workflows such as accounting procedures, they usually represent an "average" company's process. ERP systems use fixed database schemas in order to integrate with other modules from the same vendor. Generally a company will have to change its existing procedures to fit an ERP application.

Another thing to keep in mind when using an ERP solution: if Company A and Company B are competitors, and both use the same ERP system, neither can gain a competitive advantage over the other in their business critical processes.

Changes to processes are either time consuming or just not possible with ERP. Any customizations that are done must be re-done each time the software is upgraded.

Using ERP for processes that add little value to the bottom line and for fairly simple, static processes is the ideal situation.

Workflow Automation excels at automating processes which may be unique to a particular industry or company. Processes that require frequent updates and/or changes to business rules are good candidates for Workflow Automation. If a process requires conditional routing, manual intervention, or escalation scenarios, Workflow Automation may be a better fit.

If your business's competitive advantage is derived from order processing times or other internal process, you may want to consider Workflow Automation over ERP to keep your advantage.

The chart below shows where various automation solutions fall within a cost and complexity matrix:

Less complex tasks include basic accounting information, employee databases, and inventory processing. More complex tasks may include new hire handling, customer service workflow, expense reports, and many company-specific processes. The most complex processes would include requisition systems for telecommunications companies, insurance claims processing, and other highly complex, business specific tasks.