Enterprise resource planning
ERP · A software system that combines business processes such as accounting, stock, purchasing, production, sales and human resources on a single database.
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Why it matters
In a business using separate programs and spreadsheets, the same data is entered again and again and departments work with different numbers. ERP makes every department look at the same up-to-date data. Implementing it is a serious project: clarifying processes first and cleaning the data are preconditions for success.
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Example
A manufacturer enters orders in the sales team's spreadsheet, the production plan in a separate program and invoices in the accounting software, all by hand. After moving to ERP, the production plan and draft invoice are created from the same record the moment the order is entered.
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Common mistake
Moving existing messy processes into the new system as they are. Software does not fix a disorderly process; the process must be simplified first.
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Related terms
Related services and guides
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