Stands for "Enterprise Resource Planning." ERP is an umbrella term that covers all the resources of an enterprise business.
When used as an adjective, ERP describes specific products or processes, e.g., ERP software, ERP management, and ERP insights. When used as a noun, ERP refers to the integration of enterprise business processes. For example, it may encompass the accounting, human resource, and sales operations of an enterprise organization.
In the IT world, ERP commonly refers to business management software. Most ERP software is cloud-based, meaning it runs on a server and is accessible over the Internet. Benefits of cloud-based software include:
- Centralized data storage
- Real-time updates
- Consistent look and feel for all users
- Easily upgradable
- Remotely accessible
These benefits are significant to large organizations, such as enterprise companies. A centralized system makes it possible for global businesses to operate efficiently. For example, a project manager in California can check supply chain status in Taiwan and send updates to a team in Singapore using a single ERP system.
Consolidating processes also makes it easier for businesses to analyze data and adapt as needed. For example, ERP software that integrates e-commerce and business intelligence (BI) can provide customer insights without requiring third-party analytics tools.
Examples of ERP Software
- SAP Business One
- Oracle NetSuite
- Microsoft Dynamics