What is an ERP?

Enterprise resource planning (ERP) is business management software or a software suite of integrated applications, that a company can use to collect, store, manage and interpret data from many business activities such as 

  • Product planning, cost

  • Manufacturing or service delivery

  • Marketing and sales

  • Inventory management

  • Shipping and payment

  • Human Resource

ERP systems track business resources such as cash, raw materials, production capacity etc. and the status of business commitments such as orders, purchase orders, and payroll.

The applications that make up the system share data across the various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.

ERP provides an integrated view of core business processes using common databases. It integrates varied organizational systems and facilitates error-free transactions and production. 

ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository.

Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.


Examples of ERP software systems include:

  • SAP ERP, which is part of the applications in the SAP Business Suite (and SAP Business All-In-One software) by SAP.

  • mySAP from SAP

  • SAP Business ByDesign from SAP

  • SAP Business One from SAP

  • JD Edwards EnterpriseOne from Oracle

  • JD Edwards World from Oracle

  • Microsoft Dynamics AX (formerly Axapta) from Microsoft

  • Microsoft Dynamics GP (formerly Great Plains) from Microsoft

  • Microsoft Dynamics NAV (formerly Navision) from Microsoft

  • Microsoft Dynamics SL (formerly Solomon) from Microsoft

  • Oracle E-Business Suite from Oracle

  • Oracle Fusion from Oracle

  • Tally.ERP 9 from Tally Solutions