This type of system clearly improves experiences for humans, but the nature of ERP systems also makes them friendly to new software that a company may want to implement in the future. This creates one “true” source of information for the whole enterprise. Not only does this mean that data can be more easily accessed, it also consolidates where new data is stored. Rather than having separate data collection and management programs for each department-one for sales, one for inventory management, another for production, and so on-an ERP system provides a single hub for it all. What Is ERP Software?Īt the core of any ERP system is a central database that’s shared by the many disparate elements of a company. Modern systems, however, afford a greater degree of simplicity, organization and automation to the employees and business leaders responsible for day-to-day operations. As much as ever, ERP remains a data-driven approach to consolidating and improving business functions. More recently, the use of centralized software in the workplace has revolutionized the way these goals are carried out by integrating once-separate systems. While still commonly encountered today, these don’t tend to integrate easily with other software within the same company, nor do they provide a good platform for new management technology to be built in. Companies have long sought to streamline business processes through the consolidation of internal data, but early versions of ERP were “siloed” systems that worked only for one department or component of a business. ERP stands for “enterprise resource planning” and describes the process of analyzing business functions for increased efficiency and productivity.

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