Editing Enterprise resource planning (section)

{{Short description|Corporate task of optimizing the existing resources in a company}}
{{Use British English|date=January 2022}} 
{{Use dmy dates|date=January 2022}} 
[[File:ERP_modules.svg|300px|thumb|Diagram showing some typical ERP modules|alt=Refer to caption]]
'''Enterprise resource planning''' ('''ERP''') is the integrated management of main [[business process]]es, often in [[Real-time computing|real time]] and mediated by [[software]] and [[technology]]. ERP is usually referred to as a category of [[Business management tools|business management software]]—typically a suite of integrated [[application software|application]]s—that an organization can use to collect, store, manage and interpret data from many [[business sector|business]] activities. '''ERP systems''' can be local-based or [[Cloud computing|cloud-based]]. Cloud-based applications have grown in recent years{{timeframe?|date=May 2025}} due to the increased efficiencies arising from information being readily available from any location with Internet access.
ERP differs from integrated business management systems by including planning all resources that are required in the future to meet business objectives. This includes plans for getting suitable staff and manufacturing capabilities for future needs.

ERP provides an integrated and continuously updated view of the core business processes using common [[database]]s maintained by a [[database management system]]. ERP systems track business resources—cash, [[raw material]]s, [[production capacity]]—and the status of business commitments: orders, [[purchase order]]s, and [[payroll]]. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, [[accounting]], etc.) that provide the data.<ref>{{Cite journal|title=Antecedents of ERP systems implementation success: a study on Jordanian healthcare sector|journal=Journal of Enterprise Information Management|volume=29|issue=4|pages=549–565|last=Almajali|first=Dmaithan|doi=10.1108/JEIM-03-2015-0024|year=2016|url=http://elartu.tntu.edu.ua/handle/lib/31749}}</ref> ERP facilitates information flow between all business functions and manages connections to outside [[stakeholder (corporate)|stakeholder]]s.<ref>{{cite book |last=Radovilsky |first=Zinovy |editor-last=Bidgoli |editor-first=Hossein |year=2004 |title=The Internet Encyclopedia, Volume 1 |publisher=John Wiley & Sons, Inc. |page=707 |url=https://books.google.com/books?id=ACfBmYiNaTcC&pg=PA707|isbn=9780471222026 }}</ref>

According to [[Gartner]], the global ERP market size is estimated at $35 billion in 2021.<ref>{{cite web |url=https://blogs.gartner.com/debbie_wilson/2019/04/19/erp-software-market-35-billion-40-years-making-still-growing-nicely-chris-pang/ |title="The ERP Software Market: $35 billion+, 40 years in the making, but still growing nicely!" by Chris Pang |first=Deborah |last=Wilson |date=April 19, 2019 |publisher=Blogs.gartner.com |access-date=2022-07-24}}</ref><ref>{{cite web|author=Louis Columbus |url=https://www.forbes.com/sites/louiscolumbus/2020/10/14/predicting-the-future-of-services-centric-erp/?sh=683316ee1c43 |title=Predicting The Future Of Services-Centric ERP |work=Forbes |access-date=2022-07-24}}</ref> Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.<ref>{{Cite conference |author=Runtong Zhang|author2= José Cordeiro|author3= Xuewei Li|author4= Zhenji Zhang |author5= Juliang Zhang |date=2011 |title=ACCEPTANCE OF ENTERPRISE RESOURCE PLANNING SYSTEMS BY SMALL MANUFACTURING ENTERPRISES |conference=Proceedings of the 13th International Conference on Enterprise Information Systems |publisher=SciTePress - Science and Technology Publications |pages=229–238 |doi=10.5220/0003500302290238 |isbn=978-989-8425-53-9|doi-access=free }}</ref>

The ERP system integrates varied organizational [[systems]] and facilitates error-free transactions and production, thereby enhancing the organization's efficiency. However, developing an ERP system differs from traditional system development.<ref>{{cite journal | last1 = Shaul | first1 = L. | last2 = Tauber | first2 = D. | year = 2012 | title = CSFs along ERP life-cycle in SMEs: a field study | journal = Industrial Management & Data Systems | volume = 112 | issue = 3| pages = 360–384 | doi=10.1108/02635571211210031}}</ref>
ERP systems run on a variety of [[computer hardware]] and [[Computer network|network]] configurations, typically using a [[database]] as an [[information repository]].<ref>Khosrow–Puor, Mehdi (2006). ''Emerging Trends and Challenges in Information Technology Management''. Idea Group, Inc. p. 865.</ref>