ERP is short for enterprise resource planning.
Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.
ERP software is considered an enterprise application as it is designed to be used by larger businesses and often requires dedicated teams to customize and analyze the data and to handle upgrades and deployment. In contrast, Small business ERP applications are lightweight business management software solutions, customized for the business industry you work in.
- To realize the full benefits of an ERP system it should be fully integrated into all aspects of your business from the customer facing front end, through planning and scheduling, to the production and distribution of the products you make.
- ERP provides an integrated view of core business processes, often in real-time, using common databases maintained by a database management system. ERP systems track business resource cash, raw materials, production capacity and the status of business commitments.
- By automating aspects of business processes, ERP makes them more efficient, less prone to error, and faster.
- It also frees up people from mundane tasks such as balancing data.
- By integrating disparate business processes, ERP ensures coherence and avoids duplication, discontinuity, and people working at cross purposes, in different parts of the organisation.
- The cumulative positive effect when business processes integrate well is overall superior performance by the organisation.