ERP stands for Enterprise Resource Planning. The systems used by organizations to manage day-to-day business activities for an organization. ERP systems can be used to maximize revenue and minimize costs across the entire business while gaining visibility into their operations, streamlining business processes and freeing up the time & resources needed to accelerate growth, drive innovation and remain competitive.
At its most basic level ERP software integrates the various processes that are essential to running a business including, inventory and order management, accounting, human resources, customer relationship management and beyond into one complete system.
THE central feature of all ERP systems is a shared database that supports multiple functions used by different business units. In practice this means that employees in different divisions eg: accounting and sales can rely on the same information for their specific needs.
Originally coined by Gardner in 1990, ERP was primarily used as a manufacturing term resource planning or MRP to help companies plan their resource requirements. Over the next decade the term involved in the industry to be more encompassing of business processes in both, the back office and front office operations.