A line of business (LOB) application is a software solution tailored to support specific operational needs of a department or vertical industry, rather than a company-wide solution with multiple functions. They are often used to complement ERP and CRM systems' shortcomings and are customizable to fit very specific needs and workflows that general-purpose software can't easily manage. Line of business applications can be developed in many different ways, with no-code being the most efficient and flexible approach.
Enterprise resource planning (ERP) is a software system that helps companies streamline core business processes like sales, purchasing, manufacturing, supply chain, finance, HR, among others. They often have multiple functions for company-wide applications. On the other hand, LOB systems are specialized and focused, offering in-depth features that align closely with industry-specific workflows.
A finance department may use an expense tracking system to manage employee reimbursements, track budgets for specific projects, and generate department-level reports. While an ERP system might include general financial modules for accounting and payroll, they might not necessarily provide granular, department-specific workflows needed for day-to-day expense management, approvals, and reporting.
Similarly, a healthcare provider may use a patient intake and management tool to schedule appointments, capture patient information, track treatment plans, and monitor follow-ups. An ERP system may handle billing or inventory in the clinic, but may not necessarily include detailed workflow specific to patient care that front-line staff need every day.
