The acronym ERP stands for Enterprise Resource Planning. This refers to all systems and software used by organizations to manage daily business activities, define a plethora of business processes and efficiently enable and track the flow of data between them.
At the core of an ERP lies a common database management system, as opposed to a pool of smaller fragmented databases, and around which a defined data structure is built. This DB forms the secure and centralized data repository which can be used by all, from CEOs to accounts payable clerks, without the hassle of combing through multiple DBs.
A centralized DB ensures that data is at all times, complete and up-to-date. Data integrity is assured for every task and query performed on the DB, without deploying error-prone spreadsheets.
The major reasons why ERP is an indisposable tool in the business industry today is:
- Common user experience improves efficiency and business insight with real-time information generated by reports.
- Consistent infrastructure ensures risk-free data collection and reduces operational costs.
- Streamlined system enables enhanced and easy collaboration