Enterprise Resource Planning (ERP)
Enterprise Resource Planning (ERP) refers to the system used by organizations to manage daily business activities. Every area of a business – accounting and finance, human resources, inventory and order management, customer relationship management and sales, and manufacturing – are essential to running a business. Left to their own devices each department would have its own system to optimize for the jobs they do. An ERP is intended to integrate these various functions into one system by streamlining information and processes to produce consistent data across the entire organization. The central feature of an ERP is a shared database that supports multiple business functions, sometimes referred to as the single source of truth. Using a single centralized data source of truth is intended to help the company eliminate system complexity and data duplication to improve efficiency and data integrity.