ERP stands for Enterprise Resource Planning and refers to software and systems used to plan and manage all the core supply chain, manufacturing, services, financial and other processes of a corporation. Enterprise Resource Planning software is often used to automate and simplify individual activities across a business or organization, like accounting and procurement, project management, customer relationship management, risk management, compliance, and provide chain operations.
Individual ERP applications offer software as a service (SaaS), while an entire suite of ERP applications forms an ERP system which will be used to effectively communicate and bring together business processes to enable a flow of knowledge between the applications, typically through common databases either on-site/on-premise or within the cloud.
ERP software has the power to gather and compare metrics across departments and supply a variety of various reports based on roles or specific user preferences. the info collected makes finding and reporting on data faster and offers a whole view of business performance with complete insights on how resources are being spent.
ERP synchronizes reporting and automation by reducing the necessity to take care of separate databases and spreadsheets that might need to be manually merged to come up with reports. This combined data collection and reporting offers valuable insight, like where to chop costs and streamline processes, providing the knowledge to create real-time business decisions.
ERP systems typically cover all aspects of business operations and commonly provide:
- An integrated system
- Common database
- Real-time operation
- Support for all applications/components
- Common user interface across application/components
- On-premise, cloud-hosted, or SaaS deployment
ERPs connect every aspect of an enterprise. An ERP software allows for better performance and project management that helps plan, budget, predict, and accurately report on an organization’s financial health and processes.
The main purpose of an ERP system is to extend the organizational efficiency of a corporation by managing and improving how company resources are utilized. Improving and/or reducing the number of resources necessary without sacrificing quality and performance are keys to effectively improving business growth and profitability.