ERP, or enterprise resource planning, is a modular software system designed to integrate the main functional areas of an organization’s business processes into a unified system.
An ERP system includes core software components, often called modules, that focus on essential business areas such as finance and accounting, HR, production and materials management, customer relationship management (CRM), and supply chain management.
In-house ERP system can involve considerable business process re-engineering, employee retraining and back-end support for database integration, data analytics and ad hoc reporting.
Cloud ERP may be more efficient with automatic upgrades and easier scaling. cloud-based ERP modules are built to be loosely coupled, which can reduce the cost and complexity of a deployment.
Part of the ERP software suite runs on premises and part runs in the cloud.
The impact ERP software can have on a business or organization is not specific to industry. Here are a few examples of industries that are better off because of ERP software.