What is ERP System?

Definition?
Enterprise resource planning (ERP) systems serves to smooth the flow of business information inside the boundaries of the organization and manage the networks to outside stakeholders. ERP systems are able to incorporate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. Under ERP systems, these functions were automated with an integrated software application.

ERP software consists of many enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.

As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in other business activities and may also incorporate modules for CRM and business intelligence  -- and present them as a single unified package.

The basic goal is to provide one central repository for all information that is shared by all the various ERP facets in order to smooth the flow of data across the organization.


Source: Wikipedia, Webpodia, Phitomas