what is an erp system

Enterprise resource planning (ERP) is a software system that helps organizations manage and integrate their core business processes. ERP systems provide an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources such as cash, raw materials, production capacity, and the status of business commitments such as orders, purchase orders, and payroll. ERP systems are made up of integrated modules or business applications that talk to each other and share a common database. Each ERP module typically focuses on one business area, but they work together using the same data to meet the company’s needs. Finance, accounting, human resources, sales, procurement, logistics, and supply chain are popular starting points. ERP systems can help organizations automate and manage core business processes for optimal performance. ERP systems have become table stakes for businesses looking to use resources wisely.