Business Improvement Tips and Tactics
Business Improvement Tips and Tactics

What is ERP Software and How Does it Work?

Illustration for article titled What is ERP Software and How Does it Work?

​ERP is stand for Enterprise Resource Planning, but even its full name doesn’t lean much light on what ERP is or what it does. For that, you need to take a step back and think about all of the various business processes that are essential to running a business, including inventory and order management, accounting, human resources, customer relationship management (CRM), and beyond. At its most basic level, ERP software integrates these various functions into one complete system to streamline processes and information across the entire organization.

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The central feature of all ERP systems is a shared database that supports multiple functions used by different business units. In practice, this means that employees in different divisions—for example, accounting, sales and marketing—can rely on the same information for their specific needs.

Thus we can say that ERP offers degree of synchronized reporting and automation.​

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