The abbreviation stands for Enterprise Resource Planning, but what does the ERP mean? A term coined by Gartner in the 1990s is defined as the ability to deliver an integrated suite of business applications. ERP tools are crucial for managing thousands of businesses because they integrate all the companies needed in a single system. They share a common process and data model, covering broad and deep operational end-to-end processes, such as those found in Finance and Accounting, Marketing and CRM, Supply Chain Management, Distribution, Manufacturing, Employees and Human Resources.
ERP software systems consists of business applications that are all connected and share one common database, centralizes data and resolves data conflicts and this is the reason why they sometimes been described as the “central nervous system of an enterprise”. They provide automation and integration of all day-to-day business operations, cross-departmental visibility and transparency, enable efficient analysis, and drive process improvements. Decreasing the number of resources necessary to run the business end-to-end leads to cost savings combined with higher productivity.