Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) is business management software—typically a suite of integrated applicationsthat a company can use to collect, store, manage and interpret data from many business activities, including:

Product planning, cost

Manufacturing or service delivery

Marketing and sales

Inventory management

Shipping and payment

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 resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across the various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data.

[1] ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.

[2]Enterprise system software is a multi-billion dollar industry that produces components that support a variety of business functions.have become the largest category of capital expenditure in United States-based businesses over the past decade. Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.

[3]The ERP system is considered a vital organizational tool because it integrates varied organizational systems and facilitates error-free transactions and production. However, ERP system development is different from traditional systems development.

[4] ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository.