When we ask ourselves what an ERP is, we can refer to its acronym (Enterprise Resource Planning) and say: an ERP is enterprise resource planning but the meaning of ERP is much more. ERP encompasses all the systems and software packages that organizations use to manage their daily business activities such as accounting, procurement, project management, and production.
Definition of ERP
An ERP is a software that links and determines a multitude of business processes and facilitates the flow of data between them. In other words, it collects transaction data shared by the various sources in an organization, eliminates data duplication, and provides data integrity with a “single trusted source.”
What is the meaning of ERP really?
The ERP is a prefabricated system with industrialization techniques, integrated, and at the same time modular, whose purpose is to collaborate with the information systems of organizations. The software is made up of a wide set of standard modules that can be adapted to the needs of each client with greater or lesser limitations.
What is an ERP for?
It is a unique software system that serves the needs of people in finance, as well as people in human resources and the warehouse. Each of these departments usually has its own computer system optimized for the particular ways in which the area does its work. But ERP combines all of them in one program. The integrated software works with a single database so that different departments can more easily share information and communicate with each other.
This integrated approach can have a tremendous return on investment if companies install ERP software correctly.
ERP defeats the old standalone IT systems in finance, human resources, production and warehouse, and replaces them with a single unified software package divided into modules.