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The Contemporary Marketing Management Glossary

Enterprise Resource Planning

Short Definition

An integrated software system that organizations use to manage and coordinate key business functions such as finance, supply chain, production, sales, and human resources.

Context

The concept of Enterprise Resource Planning (ERP) evolved from Material Requirements Planning (MRP) systems in the 1960s and 1970s. In the 1990s, scholars and practitioners such as Thomas Davenport highlighted ERP as a key enabler of process integration and business process reengineering. ERP reflects systems theory in management, where information flows seamlessly across departments to improve coordination, efficiency, and strategic alignment.

Extended Definition

Enterprise Resource Planning (ERP) refers to a suite of integrated applications that centralize and automate core business processes within a unified database and platform. By connecting functions such as procurement, inventory management, finance, sales, and human resources, ERP systems eliminate data silos and enable real-time information sharing across the organization.

Contemporary ERP platforms operate in the cloud and incorporate analytics, automation, and AI to enhance decision-making and adaptability. They support transparency, compliance, and efficiency—key factors in digital transformation and sustainable growth. Beyond technology, ERP represents a managerial philosophy of integration and coherence, aligning people, processes, and information under a common strategic vision.

Contemporary Example

Solutions like SAP S/4HANA, Oracle NetSuite, and Microsoft Dynamics 365 integrate financial, operational, and marketing data, allowing organizations to forecast demand, manage supply chains, and monitor sustainability metrics in real time.

See also

Part of chapter: Glossary