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What Is ERP? Overview In 200 Words


November 21, 2019


June 29th, 2023

ERP is business management software that collects, stores, manages and interprets data from many business activities.

The organization can use ERP as single system to manage business processes rather than having a bunch of different specialized applications.

The concept of ERP dates back as far as the early 1900s when the system was used to organize manufacturing processes.

It relies on a central relational database to collect business information and store them in tables.


  • Modular Design
  • Flexible and Open Database
  • Automatic information generation
  • Reporting
  • CRM
  • Accounting
  • Tracking and Visibility

Businesses need an ERP system when the spreadsheet and siloed software system are not compatible and they need functionalities of unifying systems for growth.



  • Improves the company’s performance
  • Increases efficiency
  • Makes decision faster with fewer errors
  • Follows standardized process


  • Difficult to implement
  • Incurs high cost
  • Customization can be problematic

ERP vendors do offer configuration options that let organizations incorporate their own business rules.

ERP deployment includes:

  • On-premises ERP
  • Cloud ERP
  • Hybrid ERP

The type of ERP business chooses depends on requirements, budgets, convenience, and what works the best for the company.

A Good Read: The Best ERP


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