[Term of the Day]: ERP

Term of the Day

"Enterprise Resource Planning"

Definition — What is ERP?

ERP, the acronym of Enterprise Resource Planning, is a set of business software tools that integrate your core operational processes into a single system. It helps to standardize, streamline and integrate business processes across finance, CRM (customer relationship management), human resources, procurement, manufacturing, and other departments. ERP systems collect your business data from multiple software components, usually called modules, to provide you with visibility across every aspect of your business.

Before the rise of ERP systems, businesses had some sort of accounting, finance, or HR process, but the software systems they had often worked separately and didn’t work collaboratively. With modern ERP systems, businesses are able to bring all these different processes to the table to collaborate and create one fluid system that improves enterprise efficiency and effectiveness in numerous ways.

ERP systems were originally designed for manufacturing companies but now it has become an integral part of the majority of businesses as it helps with overall business performance management providing intelligence, visibility, analytics, and efficiency.