This video explains what an Enterprise Resource Planning system is.
An Enterprise Resource Planning (ERP) system is software that integrates the information from each of a company’s departments into a centralized database. Prior to the advent of ERP systems, various departments throughout the firm would have their own information systems. This resulted in information silos, where information was not easily shared between departments. ERP systems exist to solve this problem by allowing information to be automatically shared throughout the firm. For example, when the shipping department updates the system to indicate that inventory has been shipped, the shipping information would automatically be available to the people in the accounting department and the customer billing department.