What is ERP (Enterprise Resource Planning)?

ERP (Enterprise Resource Planning) refers to a type of software used to manage the day-to-day business activities of organizations. ERP helps organizations run the business process in areas such as accounting, purchasing, risk management, and project management. Enterprise Resource Planning is a system designed to use a business' resources efficiently and effectively. Although the concept of ERP was first used in production areas, today ERP systems are spread over wide areas.

A Brief History of ERP

ERP, which means Enterprise Resource Planning, was not linked to other systems in the past but consisted of single packages. This results in expensive and complex codes being required as each system meets different business requirements. For this reason, business activities became inefficient as new technologies and processes slow down. Today, however, ERP software has become an information system for integrating all data and organizational processes at a single point.

A modern ERP software provides organizations with security, enhanced privacy, and distribution options, giving them the opportunity to personalize with little code usage. Helping organizations' desire to always improve and change themselves, the ERP system helps businesses to provide sustainability and resilience.

What Does ERP Do?

ERP is a structure that brings together software modules that enable the management of an organization's business process and activities under a single database. There are many independent applications within ERP software. Some of these applications are as follows:

  • Budget Management
  • Finance Management
  • Production Management
  • Business Mind

Businesses need to recognize and simplify their business processes before changing to ERP software. While ERP makes an organization's business process efficient, it also simplifies that process. In this way, it is seen that the costs of the organizations are reduced and time is saved. At the same time, ERP software integrates all departments of the enterprise under a single structure and achieves harmony between business processes. Thus, when a business comes to the decision-making stage, it can have an objective point of view and make the right decisions.

Sectors Using ERP

ERP systems benefit many areas of an organization. Here are some examples of how well-defined ERP systems make the common areas of the business more efficient and convenient:


By ensuring compliance with the business intelligence generated by well-defined ERP systems, profit is increased, errors are identified and duplications are eliminated.


ERP systems that accelerate product delivery and production provide a unified solution for manufacturing. By monitoring, planning, and optimizing product manufacture and delivery, the benefits of ERP systems provide support from product to customer and at every level in between.


ERP systems provide a unified retail experience to create smooth and error-free transactions. Product information, stock, customer promotions, and sales data are centrally managed, making both in-store and online purchases more efficient.

Supply Chain

It increases visibility by supporting improvement and makes the supply chain more efficient from sales to fulfillment. ERP systems help you optimize logistics in production facilities, warehouses, facilities, and transportation.

Human Resources

Human capital management systems that provide centralized data on a single platform are often integrated with ERP systems. Benefits management enables employee success through absenteeism and leave management, options to attract and hire top talent, and tools used to ensure compliance.

Importance of ERP

ERP technology brings all business processes together and provides integration. By making business operations sustainable, facilitates access to needed information and provides dominance of compatibility between operations. There are some advantages that ERP provides to improve institutions. Let's examine together what is ERP, its importance, and its advantages for companies.

Maximizes Efficiency

Enterprise Resource Planning helps to maximize efficiency by improving operational performance in the future by accelerating the decision-making process with the solutions it offers. In this way, organizations can achieve the best performance by discovering new ways to streamline business processes with ERP technology.

Accelerates Business Processes

ERP systems provide the connection by acting as a bridge between transactions. This link between processes and data offers employees flexibility and visibility. Thanks to these features, employees take action quickly, accelerating the operational impact across the organization and maximizing the business process. Thus, business operations are accelerated while employees provide more value to organizations.

Need-Oriented ERP Solution

ERP solutions are adapted to the needs of organizations and contribute to growth. In this way, it quickly responds to any operational disruption or changes that may occur. In addition, need-oriented ERP solutions provide corporate agility and improve institutions.


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