The term “enterprise resource planning” (ERP) refers to a class of software that businesses use to oversee routine operations, including accounting, purchasing, project management, risk management, and compliance. Enterprise performance management, a piece of software that aids in planning, budgeting, forecasting, and reporting financial outcomes for a business, is also a component of a full ERP suite.

ERP systems enable data to move between various company operations and connect them all together. ERP systems guarantee data integrity with a single source of truth by gathering an organization’s common transactional data from several sources, eliminating data duplication.