Enterprise resource planning

Enterprise resource planning (ERP) is the integrated management of main <a href="/facts/Business_process/fYH2eREc">business processes</a>, often in <a href="/facts/Real-time_computing/p9HxgL4L">real time</a> and mediated by <a href="/facts/Software/RP79lVSW">software</a> and <a href="/facts/Technology/9Uav5WVR">technology</a>. ERP is usually referred to as a category of <a href="/facts/Business_management_tools/jeuACW95">business management software</a>—typically a suite of integrated <a href="/facts/Application_software/YQuj7Kog">applications</a>—that an organization can use to collect, store, manage and interpret data from many <a href="/facts/Business_sector/UVySRfXc">business</a> activities. ERP systems can be local-based or <a href="/facts/Cloud_computing/guhg0FGV">cloud-based</a>. Cloud-based applications have grown in recent years due to the increased efficiencies arising from information being readily available from any location with Internet access.
ERP differs from integrated business management systems by including planning all resources that are required in the future to meet business objectives. This includes plans for getting suitable staff and manufacturing capabilities for future needs.
ERP provides an integrated and continuously updated view of the core business processes using common <a href="/facts/Database/VYcpkevb">databases</a> maintained by a <a href="/facts/Database_management_system/VYcpkevb">database management system</a>. ERP systems track business resources—cash, <a href="/facts/Raw_material/cthCpclF">raw materials</a>, <a href="/facts/Production_capacity/FhyA894V">production capacity</a>—and the status of business commitments: orders, <a href="/facts/Purchase_order/caBsYrlP">purchase orders</a>, and <a href="/facts/Payroll/NLDBySWS">payroll</a>. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, <a href="/facts/Accounting/sHznDY3V">accounting</a>, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside <a href="/facts/Stakeholder_(corporate)/yN9L44ac">stakeholders</a>.
According to <a href="/facts/Gartner/9hd9zakC">Gartner</a>, the global ERP market size is estimated at $35 billion in 2021. Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.
The ERP system integrates varied organizational <a href="/facts/Systems/hmqQ4ASX">systems</a> and facilitates error-free transactions and production, thereby enhancing the organization's efficiency. However, developing an ERP system differs from traditional system development.
ERP systems run on a variety of <a href="/facts/Computer_hardware/8jSjsCNv">computer hardware</a> and <a href="/facts/Computer_network/3w5RM99p">network</a> configurations, typically using a <a href="/facts/Database/VYcpkevb">database</a> as an <a href="/facts/Information_repository/P5x77e39">information repository</a>.

Enterprise resource planning open-in-new

Enterprise resource planning