The best way to succeed for your business is to have the right tools in place. In today’s competitive world, businesses that don’t adapt to new technologies and follow best practices can quickly fall behind their competitors. However, with so many systems available, it cannot be easy to know which is right for your company. That’s why we’re going to explore the differences between ERP and HCM systems so that you can better understand which one will work best for your business needs.
Oracle Fusion HCM or Oracle Fusion ERP?
Oracle Fusion HCM and Oracle Fusion ERP are two solutions built on the same cloud-based platform, Oracle Fusion.
- Oracle Fusion HCM is a cloud-based Human Capital Management solution that allows organizations to operate more efficiently, effectively, and strategically.
- Oracle Fusion ERP is a cloud-based Enterprise Resource Planning solution that helps businesses improve profitability by increasing efficiency across all business processes in the organization.
HCM vs. ERP: The Differences
When you think of business management systems, you might think about the general ledger or financial reporting. But there are other types of business management systems as well.
ERP stands for Enterprise Resource Planning, an all-in-one solution that includes modules like accounting, manufacturing, human resources, and others. Large companies usually use ERP systems to manage their overall business operations in one place.
HCM stands for Human Capital Management and focuses on managing people and processes in the human resources department. HCM systems are usually used by midsize companies or large organizations with multiple divisions where each division has its HR team that works independently from other departments within the company but still needs seamless access to the same data across multiple units (e.g., employees can work at both headquarters AND a satellite office).
The Key Benefits of ERP Systems
ERP systems are designed to help you manage your business. As such, they’re built to help you with your business processes, providing a way to manage the data associated with each process and the transactions that take place as part of that process. ERP systems include modules for finance, accounting, and payroll; purchasing; manufacturing; supply chain management; human resources management; project management; manufacturing operations management; sales order processing (including quotations); customer service management (including call center); warehouse management system (WMS) functionality.
ERP systems can be purchased as a standalone product or with other business software. Many companies use them as the backbone of their operations, but they’re not necessarily right for every company and may not be the best solution for your industry. So consider your needs before deciding whether or how to implement an ERP system.
ERP systems are designed to provide an integrated view of the business and its processes, which can help you improve efficiency and streamline operations. They’re also designed to be highly configurable, so they can be tailored to meet your needs.
The Key Benefits of HCM Systems
- Improved productivity. An HR system can do much more than allow you to keep track of employee information easily; it also provides a platform for increased collaboration and communication throughout your organization. This can lead to improved productivity for all employees and better customer service, ultimately leading to increased revenue for your company.
- Reduced costs. An HR system like Oracle HCM Cloud allows companies to streamline their processes by making them more efficient and effective than ever before—which means reduced costs in terms of time spent on administrative tasks and money spent on software maintenance.
- Self-service functionality. A cloud-based HR system allows employees to perform their functions without needing a human resource manager or another administrator. The result is that employees can complete tasks like requesting time off, making changes to their benefits packages, and submitting expense reports—all on their own.
- With an HR system in place, you can expect to see immediate and long-term benefits. You’ll be able to make better business decisions by having access to more accurate data about your employees and a streamlined workflow for administrative tasks like managing payroll and benefits packages.
Leveraging the Power of HCM Automation
HCM automation is a powerful tool that can help you work smarter, not harder. With HCM automation, you can do more in less time and save money on unnecessary manual processes.
Automating your HR processes will allow your organization to be more efficient with fewer human errors associated with manual tasks.
As you read this article, you might ask: “Which one is better, Oracle HCM or ERP on Oracle Fusion?” Even though both systems have their benefits and drawbacks, they are usually more than enough to help you decide which would work best for your business. When it comes down to it, it all boils down to what kind of system will provide the most value. If you have little experience with either platform, we recommend starting with Oracle Fusion HCM first before moving on to ERP later on down the line when necessary (as well).