What Is EAM or ERP?

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ERP, or Enterprise Resource Planning, is a software system that enables business processes in the financial, distribution, manufacturing, sales and other areas of a company. EAM, or Enterprise Asset Management, focuses on controlling the assets, typically plant and equipment, in a company. EAM can be thought of as being separate from ERP or part of ERP.

Scope of EAM

EAM is more focused than ERP and can be a part of an ERP system. When EAM is perceived as separate from ERP, it usually indicates that the company requires more focus on, and control of, its assets to maintain profitability. EAM covers plant and equipment--maintenance, improving up time, reliability, retirement--and views asset management as a strategic process that requires planning.

Scope of ERP

ERP covers business processes across a broader range of company functions. It generally is larger in terms of software deployed, software cost, implementation cost and implementation time frame.

ERP and EAM Operate Together

EAM information can be accessed from an ERP system or the other way around. This requires that the two systems be integrated to eliminate redundant functions and data. When acquired and implemented separately, EAM and ERP software may require integration to allow them to operate as one system.



About the Author

Bob Turek started writing in 1994 for "The Performance Advantage" magazine. His book "Value Selling Business Solutions" draws on technology industry experiences gained from his position as director of business development for Infogain's cloud CRM for customer support operations practice. He holds a bachelor's degree in economics and psychology from Claremont McKenna College and a Master of Business Administration from the University of Southern California.

Photo Credits

  • Making a financial plan image by Allen Stoner from Fotolia.com