ERP stands for enterprise resource planning; the most straightforward approach to describe ERP is to include all of the fundamental business operations required to operate a corporation, including finance, human resources, manufacturing, supply chain management, services, and procurement. At its most fundamental level, ERP implementation enables the effective management of all these operations via an integrated system. It is often referred to as the organization’s recordkeeping system.

Yet today’s ERP systems are far from simple and bear little relation to ERP systems from decades ago. They are now cloud-based ERP and use cutting-edge technology such as artificial intelligence (AI) and machine learning to bring smarter automation, increased efficiency, and quick insight throughout the organization. Additionally, modern ERP software links internal operations to business partners and global networks, providing businesses with the cooperation, agility, and speed necessary to compete today.

An ERP system, sometimes referred to as an ERP suite, is composed of interconnected modules or business applications that communicate and share a common database. Each ERP module is usually focused on a single business sector, but they collaborate to satisfy the company’s objectives by using the same data. Popular entry points include finance, accounting, human resources, sales, procurement, logistics, and supply chain. Businesses may pick and choose which modules to use and can scale up or down as required. ERP systems also handle industry-specific needs, either directly or via application extensions that interact smoothly with the suite. Also, ERP software may be purchased as a cloud subscription service or as a licensing model.

To know more about a brief history of Enterprise Resource Planning, an infographic from Integral Management is below.