ERP stands for Enterprise Resource Planning, which refers to a type of software system that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. ERP software coordinates the integration of people, processes, and technologies across a modern enterprise. A complete ERP suite also includes enterprise performance management, software that helps plan, budget, predict, and report on an organization’s financial results.
ERP systems are designed to automate and manage core business processes for optimal performance. They unify critical business functions like finance, manufacturing, inventory and order management, customer communication, sales and marketing, project management, and human resources. ERP modules are integrated into one complete system and share a common database to streamline processes and information across the enterprise.
ERP is important for businesses because it builds continuity and resiliency into their processes through insights that help them innovate at a rapid rate today while preparing for what’s next. ERP enables companies to identify areas of the business with room for improvement or opportunities for expansion. By integrating and automating business processes, ERP eliminates redundancies and improves accuracy and productivity.
