Window application software

Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) is business-management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including: product planning, cost. manufacturing or service delivery. marketing and sales.

The ERP system is considered a vital organizational tool because it integrates varied organizational systems and facilitates error-free transactions and production. However, developing an ERP system differs from traditional system development. ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository.

The Gartner Group first used the acronym ERP in the 1990s, where it was seen to extend the capabilities of material requirements planning (MRP), and the later manufacturing resource planning (MRP II), as well as computer-integrated manufacturing. Without replacing these terms, ERP came to represent a larger whole that reflected the evolution of application integration beyond manufacturing.

Not all ERP packages developed from a manufacturing core; ERP vendors variously began assembling their packages with accounting, maintenance, and human-resource components. By the mid-1990s ERP systems addressed all core enterprise functions. Governments and non–profit organizations also began to use ERP systems