Enterprise resource planning (ERP) is business management software that is generally a set of integrated applications that a company uses to accomplish core commercial events, including:
Product Planning and Development
- Marketing and sales
- Inventory management
ERP delivers an integrated real-time view of primary business processes, maintained by a database management system using common databases. ERP systems track business resources raw, cash, materials, production capacity and the status of business commitments: payroll, orders and purchase orders. The applications that make up the system share data across the various departments (manufacturing, sales, purchasing, accounting, etc.) that entered the data. ERP facilitates information flow between all business utilities and manages connections to outside stakeholders.
Enterprise system software industry produces components to support a variety of business functions. IT investments have become the largest category of capital expenditure in United States-based businesses over the past decade. Although early ERP systems focused mainly on large enterprises but still smaller enterprises progressively use ERP systems.
ERP system is a vital organizational tool, so organizations consider it as it integrates varied organizational systems and enables error-free transactions as well as production. However, ERP system development is totally different from traditional systems development. ERP systems run on different types of computer hardware system and network configurations that typically use a database as an information source.