Enterprise resource planning (ERP) systems integrate internal and external management of information across an entire organization-embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
Enterprise system software constitutes a multi-billion dollar industry that produces components to support a variety of business functions. IT investments have grown to be the largest category of capital expenditures in United States-based businesses over the past decade. Enterprise systems are complex software packages that offer the potential of integrating data and processes across functions in an enterprise; the main example is ERP systems. Organizations consider the ERP system to be their backbone and a vital tool for organizational excellence because it integrates varied organizational systems, and enables flawless transactions and production. However, an ERP system is radically different from traditional systems development. ERP systems can run on a variety of computer hardware and network configurations, typically employing a database as a repository for information.