An ERP system is built to support an integrated approach to managing
some or all of the core processes involved in running a company: human
resources management, financial management, procurement, etc. ERP
systems were originally developed to handle these “back office”
functions. ERP is actually the business process of integrating the core
functions across an organization; the term by itself is not defined as a
“system,” although many people refer to an ERP systems as an “ERP.”
ERP software was developed to implement the ERP process; such
software integrates, standardizes and streamlines (or optimizes) the
business processes across departments. Users of the various functions of
ERP system are presented with common screens and system functions to
allow them to move easily between functional components, and to reduce
training costs. Generally, the ERP system operates as a single system with
a common database employing common data definitions. Using one
database saves organizations from updating several systems with the
same data, and provides greater accuracy and collaboration between
departments.