Enterprise Resource Planning (ERP) is specialized software (web or mobile apps) used to manage various aspects and departments of a business. These systems facilitate the interaction between core processes.
ERP helps companies manage their day-to-day operations while creating a strategic outlook for the future of their organization. It makes up a unified system that involves all departments in the process. The software collects data from networked systems, improves business efficiency, and reduces costs.
There are two main approaches to developing an ERP system: out-of-the-box and custom. The first is software designed for the mass market with little to no customization options. This means that each organization must adapt such solutions to its processes and invest time and money in employee training. Custom ERP, on the other hand, is customized by a company's software engineers to fit the processes better and be more user-friendly.
Many companies build ERP systems for internal use. The main advantage of a custom ERP system is the ability to link various processes and increase the company's overall efficiency. For example, a simple ERP system can allow users to track the entire revenue cycle, from invoicing to receipt of payment.