In order to understand clearly the difference between these two terms, we must first of all define them. Once we know what each of them means on their own, we can easily grasp the difference and which one better suits our needs or requirements. Data-warehousing This is the storage of a large amount of data, mostly electronic data, by a business or an organization in order to facilitate secure, reliable and easy management of the same data. The main aim of data-warehousing is organized and efficient record-keeping for future reference.
ERP is an abbreviated term which stands for Enterprise Resource Planning. This is the management of data based on their nature or function, ie sales and marketing, human resource, Accounts and finance etc by integrating them on one centralized platform or by decentralizing these functions on the platform by way of separate/specialized functions. The difference – While ERPs are more efficient for running day to day specialized functions or/and transactions, Data-warehousing is more efficient with archiving accumulated data over long periods of time as ERPs become slower with time as the data accumulates.
Most ERPs are specialized for specific industries, i.e hospitals, banks, hotels, etc as they are tailored only for that industry and cannot serve easily in a different industry, however, Data-warehousing can be used to store enormous data regardless of the industry dynamics, i.e stock exchange, government archives, etc. – Data-warehousing can be used to store information from ERPs and other sources for future reference and analysis, but on the other hand ERP require servers to store large accumulative data. -Data-warehousing is used mostly to store data by aggregation while ERP serves to give the correct data to the correct department or person.