What is an ERP?

Definition: ERP, the industry acronym for Enterprise Resource Planning, refers to the broad set of activities that multi-module application software supports. It aims to serve as a backbone for whole business and management process to facilitate the flow of information between all functions within your organization.

What does ERP do? ERP helps businesses manage important functions such as product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders.

Idea Behind ERP: An Enterprise - Wide information system solution.
The software needs to communicate across functions (with minimum of human intervention and paperwork). ERP aims to replicate business processes.