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What is an ERP System and How Does it Work

Dave WoodBy: Dave Wood


One of the best investments for your firm is enterprise management software. To successfully manage your business it is necessary to have a centralized view of the organization's processes, financial reports and KPIs.

Many organizations use an ERP to manage their back office processes. Properly implemented and ERP streamlines and supports all the core operational processes.

This article explains what exactly an ERP system can do for your business.

Continue reading to learn:

ERP is an acronym for Enterprise Resource Planning. An ERP system is single platform that gives managers control over the entire business operating system. ERP integrates the majority of back-office functions, which increases efficiency and enhances user-experience.

Companies can configure ERP platforms according to their specific needs. You can pick and choose from a variety of modules, such as

ERP integrations with other software products such as customer relationship management (CRM) can unlock huge potential for marketing, sales, and employee collaborations. You can host the ERP system in a cloud or on-premise.

ERP Implementation Process

ERP is very user-friendly once it is installed and configured. The deployment of the ERP system should be handled by specialists. Certified software experts ensure safe and secure data migration.

ERP consultants also configure user interfaces (access, permissions, and more) as well as customize the features to your business processes.

Variations of ERP Deployment options

There are several deployment methods for ERP systems. Originally, ERP has been on-premise, installed on a dedicated server in the organization's data center. This is less common now because of cloud computing's rapid development and often companies will leverage a 3rd party data center for running their applications. Cloud-based ERP's are accessible from any location and device, which makes it flexible and convenient. Customers can also use a hybrid cloud deployment where the application lives is a public or 3rd party cloud and the data is stored locally or in a private cloud.

Variations of ERP Deployment options

ERP Integrations

When researching ERP software one of the main concerns is that it won't integrate with existing programs and applications. Most ERP solutions are made to work with the programs that organizations already utilize.

ERP solutions are configurable and customizable. Both options are beneficial, but it is important to see the difference. Configurable ERP can be integrated with programs that are already in place. Customizable ERP is to create a unique integrative solution to meet specific business needs.

ERP for Industries

Organizations of all shapes, sizes, and types can benefit from an ERP solution. A small business may use an ERP to consolidate all components of the management system. A large organization needs an ERP to keep each of the moving pieces in one accessible place. Not-for-profit organizations, like schools and charitable foundations, are also well-served by an ERP.

Some of the industries that most often employ ERP include:

This list is not inclusive. Any business in any industry can achieve great benefits by adopting an ERP.

Industries that rely on ERP

Top ERP Software Providers

If you are considering ERP deployment, it's a little tricky deciding on a software provider. Leveraging our extensive experience, we have prepared the list of top 10 providers.


Pros: Easily tailored to any industry

Cons: Lengthy implementation process

Oracle ERP Cloud

Pros: Excellent add-on functionality

Cons: Expensive and may be difficult to learn


Pros: Integrates well with existing Microsoft products

Cons: Not suitable for larger markets


Pros: Ideal for manufacturers and wholesale distributors

Cons: Not ideal for other industries


Pros: Perfect functionality for large businesses

Cons: Smaller businesses should look elsewhere


Pros: Flexible product works with businesses, schools, media, and non-profits

Cons: Only available as SaaS


Pros: Includes Point-of-Sale services, making it ideal for foodservice and retail

Cons: Reports may not provide adequate detail


Pros: Assembled-to-order system is customized to the user's needs

Cons: Response time can be slow


Pros: Allows for industry-specific management

Cons: May not integrate with all software programs

Sage Enterprise Management

Pros: Very intuitive

Cons: Customizing reports is difficult

What does ERP stand for? Though it technically stands for Enterprise Resource Planning, it also stands for improvement, progress, and prosperity. When you decide on implementing and ERP, you understand the importance of transparent business tracking.

Do not forget to hire specialists to deploy, configure, customize and integrate your ERP. Professional ERP implementation maximizes KPIs and ROI. ERP consultants assure your ERP meets your business requirements and delivers business results. They also help you train your team, update, and extend software when needed.


Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.

Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.

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