What is an ERP? I am actually asked this question a lot, and for people not well versed or immersed in the world of ERP, it's pretty common to not know what this acronym means.
AX is an ERP
ERP stands for Enterprise Resource Planning. I know, that really cleared it up.
|Enterprise resource wha...?|
For the simple, down and dirty explanation, I just tell people that it's fancy terminology for an accounting system.
But an ERP is so much more than just an accounting system. If you do a search for ERP, the definitions that are out there can be overwhelming and sound more like they belong in a textbook on ERP Theory.
For example -
Microsoft defines ERP as:
ERP stands for enterprise resource planning. An ERP system helps companies integrate and manage all their financial, supply chain, manufacturing, operations, reporting, and human resources activities. ERP systems can be deployed on-premises, but automated, cloud-based solutions are becoming more popular every year.
Wikipedia states that an ERP is:
Enterprise resource planning (ERP) is the integrated management of core business processes, often in real-time and mediated by software and technology. These business activities can include:
- product planning, purchase
- production planning
- manufacturing or service delivery
- marketing and sales
- materials management
- inventory management
- shipping and payment
ERP is an Enterprise Application
In contrast, Small business ERP applications are lightweight business management software solutions, often customized for a specific business industry or vertical.
Urban Dictionary - NO!
Don't even bother looking in the Urban Dictionary!
|I just didn't know the difference between regular and Urban Dictionary!|
ERP solutions give companies a way to tie together everything in their company to find the true cost of doing business. From order entry to payment, human resources, procurement, production - all modules provide a benefit to help a company plan and execute the most cost effective way to do business. An ERP provides so much insight into a business, allowing decision makers the visibility to make clear business decisions and manage their business in the most effective way possible.
How do you describe an ERP to someone who asks? Tell me more in the comments. I'd love to hear how you explain what this is when people ask.