Enterprise Resource Planning
ERP stands for “Enterprise Resource Planning”, but even the full form of this acronym does not give much insight into what ERP is or what it does. In order to understand it, we first have to consider all the different processes that are essential to running a business: Inventory and order management, accounting, human resources, customer relationship management (CRM) – and these are only the most important ones. ERP software integrates these different functions into one overall system to streamline processes and information throughout the enterprise.
The central feature of all ERP systems is a common database that supports various functions and is used by the various business units. In practice, this means that employees in different areas – for example, accounting and sales – can access the same information for their specific needs.