What Is ERP?

ERP stands for Enterprise Resource Planning. It refers to software that brings together the core operational functions of a business — sales, invoicing, inventory, HR, and projects — into one connected system, instead of managing each with separate tools or spreadsheets.

The purpose of ERP is to give a business a single source of truth for its data. Instead of a sales lead living in one spreadsheet, an invoice in another tool, and inventory counts in a third system, an ERP connects these so that information flows between them automatically.

Typical ERP modules include a CRM for managing leads and customers, invoicing for billing and tax compliance, inventory management for tracking stock, HR for managing employees and payroll, and project management for tracking deliverables and deadlines. Some modern ERPs also include AI-powered business intelligence that reads across all of these modules to answer questions about the business.