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What is ERP? Enterprise resource planning explained
ERP stands for enterprise resource planning. It is business software that brings the core parts of a company, such as finance, people, sales, purchasing and operations, into one connected system.
The simple definition
ERP software lets different departments work from the same data instead of separate spreadsheets and tools. When sales records an order, finance and inventory can see it without re-entry.
The major vendors describe it the same way: SAP calls ERP a way to integrate core processes, Oracle highlights a single source of truth and removing duplicated data, Odoo describes shared apps on one database, and Zoho positions ERP as one platform for finance, supply chain, commerce and payroll.
How an ERP works
Modules for different functions sit on a shared database. A change made in one module is visible in the others, which reduces errors and manual copying.
Who uses ERP
Originally built for large enterprises, ERP is now offered as cloud software for small and mid-sized businesses too, often starting with a few modules and adding more over time.
ERP and CRM
A CRM focuses on customers and sales. An ERP is broader. Many modern platforms, including Flowhive, combine both.
Frequently asked questions
What does ERP stand for?
Enterprise resource planning.
What is ERP in simple words?
One connected business system where finance, sales, HR and operations share the same data.
Is ERP only for big companies?
No. Cloud ERP is available for small and mid-sized businesses and can start with a few modules.
Sources and further reading
Researched from these public vendor pages and rewritten in our own words. See acknowledgements.
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