Definition

ERP (enterprise resource planning)

ERP (enterprise resource planning) is an industry term for the broad set of activities that helps a business manage the important parts of its business. The information made available through an ERP system provides visibility for key performance indicators (KPIs) required for meeting corporate objectives. ERP software applications can be used to manage product planning, parts purchasing, inventories, interacting with suppliers, providing customer service, and tracking orders. ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system uses or is integrated with a relational database system.

The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures.

Rebecca Gill, vice president of Technology Group International says:

"For almost twenty years we have had people ask for demonstration copies of our ERP software, so they may play with it at their leisure. For years we have said no and we've done so with good reason. An ERP package is an advanced system. It isn't Microsoft Office and it isn't an iPhone. You can't simply turn it on and expect it to run without training."

Contributor(s): Paul Brislen and K. R. Krishnakumar
This was last updated in November 2007
Posted by: Margaret Rouse

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