Question - What is ERP(Enterprise Resource Planning)?
Answer -
ERP(Enterprise Resource Planning) is a software or an integrated computer-based system that is effectively used by a business for planning and managing daily activities such as manufacturing, supply chain, financials, services, and other processes. It ensures smooth information flow and manages workflows within different departments in a company or an enterprise. In the beginning, the main purpose of ERP was to plan and manage core business such as production and financial market. Now it is useful in integrating information across the entire organization.
SAP was one of the first companies to provide industry-leading ERP solutions and develop standard software for business solutions purpose. Microsoft Dynamics, JD Edwards, Siebel, PeopleSoft, Baan are other examples of ERP available in the market.
ERP software consists of all core business areas such as production, procurement, finance, marketing, sales, materials management, human resources(HR), etc. The below figure represents the business area covered by ERP.