Glossary

ERP

Enterprise Resource Planning (ERP) is an integrated business software system that coordinates core enterprise processes in a shared database.

Enterprise Resource Planning (ERP) is an integrated business software system used to manage and coordinate core enterprise processes within a shared data model and database. ERP systems typically cover functions such as finance, accounting, procurement, inventory, order management, production planning, human resources, and sometimes customer and supplier management.

Operationally, an ERP system:

  • Stores business data (for example, orders, materials, work centers, costs, and employees) in centralized, structured tables.
  • Executes defined business processes such as purchase-to-pay, order-to-cash, and plan-to-produce.
  • Applies business rules for transactions, approvals, and record keeping across departments.
  • Exchanges information with other systems through interfaces or integration standards (for example, with MES or SCADA in an ISA‑95 context).

Within the ISA‑95 reference model, ERP is considered a Level 4 enterprise business system that plans and manages business operations, as distinct from Level 3 manufacturing operations management systems and Level 2–1 control systems on the plant floor.

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