Is ERP System an example of Data Warehouse?

Enterprise resource planning (ERP) software is now commonly seen in many companies, be it small scale, medium scale or large scale. ERP software has ushered in a era of transparency, digital recording and smooth data flow. Data warehouse is component that stores business related information from the different verticals within the company.

While the functionality of an ERP system and a data ware house might seem the same, they are actually just overlapping and are discrete components. Data warehouse is essentially a warehouse, as in it is used to store information about the enterprise. Data accompanying with different departments of a company are stored together on one common platform.

It also supports data querying and reporting. The data warehouse is used to make managerial decisions based on the nature of data available. Enterprise resource planning software on the other hand, is more of a transactional software, it records the different negotiation and contracts of the company.

The day-to-day work flow with regard to the various independent processes within a company are recorded in a ERP system. ERP systems are aimed at bettering operational efficiency and reducing costs, while a data warehouse is primarily for sorting and storing data, that is later used to make decisions at the management level.