Enterprise Resource Planning (ERP) software is a comprehensive solution that integrates and manages key business processes into a single unified system. Its goal is to streamline operations, improve data accuracy, and facilitate better decision-making across an organization. For instance, an ERP system can manage and automate financial transactions from purchase orders to budget reports, ensuring accuracy and compliance.

An ERP system also includes functionality such as inventory tracking and customer relationship management, enabling companies to track and respond to market demands effectively. Example: A manufacturing firm could use an ERP to track orders from inception to delivery, monitoring each stage in the process for efficiency improvements. By centralizing data in an ERP, businesses can reduce errors and gain valuable insights into performance across various departments.