Difference between Compact and Modular ERP

What is Integrated ERP System?

With an integrated ERP system, you can manage different sectors of a business in a single system. So, you can get all systems in one place, which stops you from paying an additional cost for separate modules.

Also, when all information is in one place, your work gets very efficient and informed. This system also helps everyone access information, communicate and perform the tasks through one system – from anywhere.

You can create separate modules for different functions and departments in the ERP system. But in an integrated ERP system, modules are connected in a classified manner, making it more accessible. 

What is Modular ERP?

Many owners use effective software customized for their business needs, called a Modular ERP system. This system can help to enhance productivity, profitability, and processes.

Nevertheless, it is very easy to design a modular ERP system. In M-ERP, you can select your required elements and pay based on your use. Also, there's an option to omit modules that you don't need.

If you own start-up business, it would be best to invest in such a system as you can easily include modules in the future. However, it may cost you more when you use it for a long time.

What is Compact ERP?

One of the broad software for accounts is the Compact ERP system. They are mainly for start-ups and mid-size businesses. You can make your accounting processes very easy with Compact ERP. Also, you can get information on the development and condition of your business.

There are a few modules for Compact ERP, like:

• Supplies and warehouse
• Sales
• CRM
• Banks
• E-commerce
• Procurement
• Production
• Distribution
• CEO monitor
• Reports.

With ERP Compact, you can register all your documents in one system, which helps in regular activities. If your business is a start-up or midsized, this software helps examine your business operations.

Read Also: How Soon a Business Gets Benefits from an Erp System?

Similarities Between Compact and Modular ERP

Though modular and compact ERP definitions vary, they tend to have similarities. Let's get to know the important ones.

Collaboration

In both the ERP system, data can come in different forms. For example, files, documents, forms, etc. However, you will find many data mediums to be uneconomical. In place of using different platforms or systems, you can use these ERP systems to keep your data in one place.

Start-ups or Midsized Business

Whether you have a start-up or mid-sized business, you can choose a compact or modular ERP to stay organized. These ERP systems will help you in different ways.

Through compact ERP, you can know the development and condition of your business. On the other hand, you can use limited modules in Modular ERP and pay accordingly.

Data Security

It is challenging to manage your data security while many people access the same system. However, you can control the Modular ERP to prevent your information from getting compromised easily.

On the other hand, compact ERP solely works with accounts, so this system needs to be secure and uncompromised. Therefore, both these systems tend to have tough data security.

Difference between Compact and Modular ERP

Unlike the similarities, the modular and compact ERP system has a lot of differences. Let's look into some of them!

Methods and Workflows

Using these ERP systems, you can keep your business methods and workflows systemized. You might have your data on different platforms, which wastes time working.

However, you can boost productivity, profitability, and processes when you use Modular ERP. On the other hand, you can keep your accounts sorted using Compact ERP.

Decision making

There is a vast difference in the category of decision-making. Compact ERP solely works with accounts; therefore, your accounts are more sorted than usual.

However, you can find a shortcut to decision-making when using modular ERP. It's possible for data classification based on employee, location, and profit center. Also, your decision-makers can come to accurate decisions through this system.

Budgeting

When you use modular ERP, you can pay-per-use. This means you can selectively use a few modules and pay for the specific ones.

On the other hand, the same way doesn't go for compact ERP. You can keep all your documents in one place so that it's helpful when you work regularly. But you will rarely get sites where they allow pay per use for such ERPs.

Why use ERP System?

Whether it is a start-up or a well-developed business, you might get scattered with a lot of data when your business is growing. Therefore, a good ERP system can save time, mismanagement, and costs.

Other than these, your business requires a good ERP system. The 3 main reasons to get a good ERP system are:

• Well developed software system
• A good way to track your information
• Save a lot of costs spent on hiring the workforce

Final Words

There's no simple answer to which one is the best system between Compact and Modular ERP. Both of them serve their purpose. You should choose the system based on your priorities and how you maintain your business. Knowing the difference between compact and modular ERP can help you choose one.

Over the years, many businesses got proper support when they merged operations and finances using an ERP. Also, you can always seek professional advice if you are not sure about it. So, good luck with a proper ERP system!