Hi Venkatesh,
Your question is very open ended, entire books could be written on the differences between SRM and ERP or R/3, however, I suggest you review the SRM help documentation to see exactly what it is SRM is capable of, e.g. the main scenarios covered by SRM_SERVER are:
Self Service Procurement
Service Procurement
Plan Driven Procurement
Sourcing
Contract Management
Catalog Management
We do not cover such strategies as Industry Specifics/Stragegic Enterprise Management, Financials in SRM are taken from ERP using RFC's to the backend system, SRM has no standalone financial/costing system.
I hope this is of some help.
Regards,
Jason
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