ERP is an acronym for Enterprise Resource Planning which involves systems and applications used by businesses and organizations to manage day-to-day activities and operations. These activities include accounting, sales and marketing, procurement, manufacturing, project management, and others. ERP connects and ties together the varied business processes in an organization in order for it to work smoothly, run efficiently, and be productive, all with the end result of growing the business and making it profitable.
Regardless of size, type and niche, a business has several critical areas that need to be managed well. ERP software applies integrated solutions to streamline, automate and link the different departments and divisions of an organization such as HR, IT, finance, sales, and customer service. An ERP system serves as the hub whose network of solutions pumps vital nutrients to all areas and functions of the organization to keep them in tune and in good working condition.
ERP software is generally classified as an enterprise application designed to meet the more complex and heavy-duty functions of big businesses. Often, large corporations have their own IT departments or dedicated teams that utilize ERP systems to analyze big data and address the needs of multiple departments. However, small business ERP applications have come about to cater to the lightweight business management requirements of startups and growing companies. This type of ERP solution is usually customized to fit smaller business operations and match specific business industries. In a survey by Panorama Consulting, 46% of respondents cite “best functional fit” as the top reason for selecting particular ERP software.