Enterprise resource planning systems are information management systems that automate many of the business practices associated with the operational or productive aspects of a company. An expanded definition of ERP consists of the total unification of operations in the same system; that is, the traceability of all its processes. The lack of total unification limits and nullifies the possibility of planning business resources.

ERP applications are global management systems for the company. They are characterized by being composed of different modules. These parts have different uses, for example: production, sales, purchasing, logistics, accounting (of various types), project management, GIS, inventory and warehouse control, orders, payroll and much more. The opposite would be like considering a simple billing program as an ERP for the simple fact that a company integrates only that part.

The main objectives of ERP systems are:.

The benefits that an ERP tool can provide are summarized in the resolution of the company's accounting, commercial or tax problems. Likewise, it can allow greater control of fixed assets in the permanent inventory, bank reconciliation, tax settlement, etc.

The characteristics that distinguish an ERP from any other business software are that they must be modular, configurable and specialized:.

Other notable features of ERP systems are:.

ERP solutions are sometimes complex and difficult to implement because they require personalized development for each company starting from the initial configuration of the application, which is common. Customizations and particular developments for each company require a great effort in time, and therefore money, to model all real-life business processes in the application.

The methodologies for implementing ERP in the company are not always as simple as would be desired, given that multiple facets come into play.

There are no magic recipes or explicit scripts for successful implementations; only work well done, a correct methodology and aspects that must be taken care of before and during the implementation process, and even when the system comes into operation. Therefore, before, during and after the implementation of an ERP, it is advisable to carry out the following procedures:

Not all ERPs have exactly the same functionalities. There are some basic ones and others more complete and complex. The choice will depend on the characteristics of the company that will install it, its needs and resources. In general, there are some basic functionalities, which in most ERPs are integrated into modules. (ERP Finance, Purchasing, Management, etc.).

The documentary "What is an ERP" summarizes in a didactic way how an ERP can be a technological solution that affects the entire company in improving its processes in a modular way.

Because it covers a wide range of aspects of running a business, an ERP software system is based on some of the largest and most complex software products in the industry. When implementing such systems in a company, the traditional methodology usually involved a group of analysts, programmers, and users. This was the scheme that was used, at least, until the development of the Internet. This allows consultants to have access to the company's computers in order to install updated and standardized ERP implementation data, without professional help. These types of projects can be very expensive for large companies, especially transnational ones. Companies specializing in ERP implementation, however, can streamline these processes and complete the task in less than six months with a solid pilot test.

When implementing ERP systems, companies often seek the help of an ERP provider or vendor or technology consulting firms. ERP consulting is of two types, business consulting and technical consulting. Business consulting studies the company's current business processes and evaluates their correspondence with the ERP system processes, which usually includes customizing certain aspects of the ERP systems for the organizations' needs. Technical consulting often involves programming. Most ERP vendors allow their software to be modified for their customers' business needs.

Many companies looking to implement an ERP make the mistake of looking for low-cost solutions, or not hiring an integration company. This type of company not only helps them in the implementation but also helps them visualize their client in all aspects of their business, both in hardware, software and change management. These integrating companies not only focus on implementing the ERP solution, but also previously carry out a consultancy to know the status and needs of each company, recommend which is the most appropriate ERP based on size, costs, processes, implement and provide ongoing support.

Implementing or implementing an ERP has become very trivialized in the market and it seems that anyone can do it, but that is not the case. To correctly implement an ERP, the following fundamental aspects are necessary: ​​having a specialized ERP that reduces or eliminates developments; that the technical teams understand the problems of each sector and define implementation sequences; adapt the ERP modules to the needs of the company and train workers on this new tool, work on a methodology established by each sector; maintain important project management.

Customizing an ERP package can be very expensive and complicated, because many packages are not designed for customization, so many businesses implement their ERP systems following industry best practices. Some ERP packages are very generic in their reports and reports; The customization of these elements must be done in each implementation. It is important to keep in mind that in certain cases it makes much more sense to purchase reporting packages manufactured by third parties and that are made to interact directly with the ERP.

Nowadays, a good number of ERP systems have a Web Interface. The advantage of this type of interface is that it does not require the installation of a client application. As long as you have a connection to the Internet (or the company's local network, as the case may be), Web-based ERPs can be accessed through the typical web browser.

Implementing ERP software in a company allows you to optimize the daily management of various key areas. For example, in the inventory and purchasing department, ERP automates processes, ensuring that stock is always up to date. In the field of finance and human resources, the system offers a comprehensive view of the treasury, facilitating decision-making based on accurate data and improving electronic payroll management and indicator analysis. Additionally, ERP unifies and streamlines marketing and sales processes, resulting in greater efficiency and customer attraction. In short, an ERP not only drives innovation, but also reinforces the company's competitiveness in the market. [3]​.

A company that does not have an ERP system, depending on its needs, may find itself with many closed software applications, which cannot be customized, and are not optimized for its business. Engineering design to improve the product: customer tracking from acceptance to complete satisfaction, complex management of interdependencies of material receipts, structured products in the real world, engineering changes and review and improvement, and the need to develop substitute materials, among others. The advantage of having an ERP is that all this, and more, is integrated.

The change as a product is made in the engineering details, and is how it will now be made. The effectiveness of data can be used for control when the change occurs from a previous version to the new one, in both products the data is directed towards effectiveness and some goes to its suspension. Part of the change may include the label to identify the version number (bar code).

Computer security is included within the ERP, to protect the organization against external crimes, such as industrial espionage, and internal crime, such as embezzlement. A falsification in the data scenario may involve terrorism by altering the receipt of materials such as putting poison in food products, or other sabotage. ERP security helps prevent abuse.

There are concepts of marketing and sales (which include CRM or the administrative relationship with consumers), back end (the internal work of the company to satisfy the needs of consumers) which includes quality control, to ensure that there are no unfixed problems in the final products; supply chain (interaction with suppliers and infrastructure). All of this can be integrated through ERP, although some systems have areas of less understandability and effectiveness. Without an ERP that integrates all of this, manufacturing management becomes more complex.

Many of the problems companies have with ERP are due to inadequate investment in the continuing education of ERP personnel, including implementation and testing changes, a lack of corporate policies that affect how ERP data is obtained and how it is kept up to date.

Limitations and obstacles of ERP include:.

The classification of a certain management software as ERP determines that it has a series of requirements and functionalities that enable its differentiation. In today's software market it is common for any management suite to seek greater recognition (generally unrealistic, given that normal management software is equally necessary as an ERP, just for different levels) by being known as ERP instead of management software. Thus we can see how marketing strategies certain management programs that have been on the market for several years suddenly change their name to ERP, seeking a higher work niche (usually accompanied by greater remuneration, recognition, etc.) without proportionally increasing functionality.

The main difference lies in the definition. An ERP is an application that integrates all of a company's business processes into a single system. Additionally, it is intended that all data be available all the time to everyone in the company (ignoring for the moment availability permissions, etc.) in a centralized manner.

This rules out ERP programs based on multiple independent or modular applications (commonly called suites) that duplicate information (even when they link it automatically) or do not centralize it in a single database. It also eliminates those programs that are based on independent file database systems (without a database engine).

On the other hand, the traditional definition tells us that ERPs are designed to model and automate all basic processes with the aim of integrating information throughout the company, eliminating complex connections between different systems. An ERP is a software architecture that facilitates the flow of information between a company's manufacturing, logistics, finance, and human resources functions.

So to the characteristic of the centralized database and that the ERP components interact with each other, consolidating all operations, it must be added that in an ERP system the data is entered only once, and must maintain consistency and be complete. As a collateral feature, it can be added that, normally, companies must modify some of their processes to align them with those of the ERP system. This is what is known as Process Reengineering.

These basic characteristics should allow us to basically differentiate between a management suite (usually composed of billing and accounting programs or modules) and a pure ERP that should include all those functionalities that a company may need (project management, campaign management, e-commerce, phased production, traceability, quality management, decentralized or centralized cash register management (POS), electronic payment gateways, supply chain management, logistics, etc.) integrated and linked to each other. It is not enough to have some of those functionalities. It is really necessary to have all of them, even if companies do not always need them at the moment. But they must be available internally to meet future needs.

Knowing whether or not a company needs an ERP or a simple management suite is another matter, however the definition and characteristics of an ERP should be clear.

For example, correct management of the supply chain is vital for a company that requires an ERP (a large part of the business processes depend on the supply chain and its associated logistics), but it may not be so vital for another that only needs to automate a part of its business processes. The fact that the first must use an ERP is clear, that a simpler management suite is enough for the second, it may be more debatable (depending on the real needs of the company after going through process reengineering), what is neither fair nor real, is to call the management suite used by the second company commercially as ERP.

In short, management suites and ERPs occupy two market niches, clearly distinguishable from a technical point of view, but commercially and advertising intersectable from the bottom up. The latter is what causes many medium or large companies to face serious management problems when implementing software that they believed to be ERP and that leaves out of their needs, whether current or future, many of the basic business processes that the company uses or has come to use over time.

Some ERP systems can be integrated with external applications aimed at payment management and automation. These integrations allow you to connect the ERP purchasing and accounting modules with tools that facilitate the issuance of purchase orders, budget control, invoice reconciliation and the execution of electronic payments.[4]​.

Examples of this type of solutions include platforms such as Tipalti, Coupa, Precoro or ControlHub.[5]​ The choice of tool usually depends on the size of the company, the sector in which it operates and the specific functionalities required.[6]​.

This is a list of notable free and open source enterprise resource planning (ERP) software.

Enterprise resource planning systems are information management systems that automate many of the business practices associated with the operational or productive aspects of a company. An expanded definition of ERP consists of the total unification of operations in the same system; that is, the traceability of all its processes. The lack of total unification limits and nullifies the possibility of planning business resources.

ERP applications are global management systems for the company. They are characterized by being composed of different modules. These parts have different uses, for example: production, sales, purchasing, logistics, accounting (of various types), project management, GIS, inventory and warehouse control, orders, payroll and much more. The opposite would be like considering a simple billing program as an ERP for the simple fact that a company integrates only that part.

The main objectives of ERP systems are:.

The benefits that an ERP tool can provide are summarized in the resolution of the company's accounting, commercial or tax problems. Likewise, it can allow greater control of fixed assets in the permanent inventory, bank reconciliation, tax settlement, etc.

The characteristics that distinguish an ERP from any other business software are that they must be modular, configurable and specialized:.

Other notable features of ERP systems are:.

ERP solutions are sometimes complex and difficult to implement because they require personalized development for each company starting from the initial configuration of the application, which is common. Customizations and particular developments for each company require a great effort in time, and therefore money, to model all real-life business processes in the application.

The methodologies for implementing ERP in the company are not always as simple as would be desired, given that multiple facets come into play.

There are no magic recipes or explicit scripts for successful implementations; only work well done, a correct methodology and aspects that must be taken care of before and during the implementation process, and even when the system comes into operation. Therefore, before, during and after the implementation of an ERP, it is advisable to carry out the following procedures:

Not all ERPs have exactly the same functionalities. There are some basic ones and others more complete and complex. The choice will depend on the characteristics of the company that will install it, its needs and resources. In general, there are some basic functionalities, which in most ERPs are integrated into modules. (ERP Finance, Purchasing, Management, etc.).

The documentary "What is an ERP" summarizes in a didactic way how an ERP can be a technological solution that affects the entire company in improving its processes in a modular way.

Because it covers a wide range of aspects of running a business, an ERP software system is based on some of the largest and most complex software products in the industry. When implementing such systems in a company, the traditional methodology usually involved a group of analysts, programmers, and users. This was the scheme that was used, at least, until the development of the Internet. This allows consultants to have access to the company's computers in order to install updated and standardized ERP implementation data, without professional help. These types of projects can be very expensive for large companies, especially transnational ones. Companies specializing in ERP implementation, however, can streamline these processes and complete the task in less than six months with a solid pilot test.

When implementing ERP systems, companies often seek the help of an ERP provider or vendor or technology consulting firms. ERP consulting is of two types, business consulting and technical consulting. Business consulting studies the company's current business processes and evaluates their correspondence with the ERP system processes, which usually includes customizing certain aspects of the ERP systems for the organizations' needs. Technical consulting often involves programming. Most ERP vendors allow their software to be modified for their customers' business needs.

Many companies looking to implement an ERP make the mistake of looking for low-cost solutions, or not hiring an integration company. This type of company not only helps them in the implementation but also helps them visualize their client in all aspects of their business, both in hardware, software and change management. These integrating companies not only focus on implementing the ERP solution, but also previously carry out a consultancy to know the status and needs of each company, recommend which is the most appropriate ERP based on size, costs, processes, implement and provide ongoing support.

Implementing or implementing an ERP has become very trivialized in the market and it seems that anyone can do it, but that is not the case. To correctly implement an ERP, the following fundamental aspects are necessary: ​​having a specialized ERP that reduces or eliminates developments; that the technical teams understand the problems of each sector and define implementation sequences; adapt the ERP modules to the needs of the company and train workers on this new tool, work on a methodology established by each sector; maintain important project management.

Customizing an ERP package can be very expensive and complicated, because many packages are not designed for customization, so many businesses implement their ERP systems following industry best practices. Some ERP packages are very generic in their reports and reports; The customization of these elements must be done in each implementation. It is important to keep in mind that in certain cases it makes much more sense to purchase reporting packages manufactured by third parties and that are made to interact directly with the ERP.

Nowadays, a good number of ERP systems have a Web Interface. The advantage of this type of interface is that it does not require the installation of a client application. As long as you have a connection to the Internet (or the company's local network, as the case may be), Web-based ERPs can be accessed through the typical web browser.

Implementing ERP software in a company allows you to optimize the daily management of various key areas. For example, in the inventory and purchasing department, ERP automates processes, ensuring that stock is always up to date. In the field of finance and human resources, the system offers a comprehensive view of the treasury, facilitating decision-making based on accurate data and improving electronic payroll management and indicator analysis. Additionally, ERP unifies and streamlines marketing and sales processes, resulting in greater efficiency and customer attraction. In short, an ERP not only drives innovation, but also reinforces the company's competitiveness in the market. [3]​.

A company that does not have an ERP system, depending on its needs, may find itself with many closed software applications, which cannot be customized, and are not optimized for its business. Engineering design to improve the product: customer tracking from acceptance to complete satisfaction, complex management of interdependencies of material receipts, structured products in the real world, engineering changes and review and improvement, and the need to develop substitute materials, among others. The advantage of having an ERP is that all this, and more, is integrated.

The change as a product is made in the engineering details, and is how it will now be made. The effectiveness of data can be used for control when the change occurs from a previous version to the new one, in both products the data is directed towards effectiveness and some goes to its suspension. Part of the change may include the label to identify the version number (bar code).

Computer security is included within the ERP, to protect the organization against external crimes, such as industrial espionage, and internal crime, such as embezzlement. A falsification in the data scenario may involve terrorism by altering the receipt of materials such as putting poison in food products, or other sabotage. ERP security helps prevent abuse.

There are concepts of marketing and sales (which include CRM or the administrative relationship with consumers), back end (the internal work of the company to satisfy the needs of consumers) which includes quality control, to ensure that there are no unfixed problems in the final products; supply chain (interaction with suppliers and infrastructure). All of this can be integrated through ERP, although some systems have areas of less understandability and effectiveness. Without an ERP that integrates all of this, manufacturing management becomes more complex.

Many of the problems companies have with ERP are due to inadequate investment in the continuing education of ERP personnel, including implementation and testing changes, a lack of corporate policies that affect how ERP data is obtained and how it is kept up to date.

Limitations and obstacles of ERP include:.

The classification of a certain management software as ERP determines that it has a series of requirements and functionalities that enable its differentiation. In today's software market it is common for any management suite to seek greater recognition (generally unrealistic, given that normal management software is equally necessary as an ERP, just for different levels) by being known as ERP instead of management software. Thus we can see how marketing strategies certain management programs that have been on the market for several years suddenly change their name to ERP, seeking a higher work niche (usually accompanied by greater remuneration, recognition, etc.) without proportionally increasing functionality.

The main difference lies in the definition. An ERP is an application that integrates all of a company's business processes into a single system. Additionally, it is intended that all data be available all the time to everyone in the company (ignoring for the moment availability permissions, etc.) in a centralized manner.

This rules out ERP programs based on multiple independent or modular applications (commonly called suites) that duplicate information (even when they link it automatically) or do not centralize it in a single database. It also eliminates those programs that are based on independent file database systems (without a database engine).

On the other hand, the traditional definition tells us that ERPs are designed to model and automate all basic processes with the aim of integrating information throughout the company, eliminating complex connections between different systems. An ERP is a software architecture that facilitates the flow of information between a company's manufacturing, logistics, finance, and human resources functions.

So to the characteristic of the centralized database and that the ERP components interact with each other, consolidating all operations, it must be added that in an ERP system the data is entered only once, and must maintain consistency and be complete. As a collateral feature, it can be added that, normally, companies must modify some of their processes to align them with those of the ERP system. This is what is known as Process Reengineering.

These basic characteristics should allow us to basically differentiate between a management suite (usually composed of billing and accounting programs or modules) and a pure ERP that should include all those functionalities that a company may need (project management, campaign management, e-commerce, phased production, traceability, quality management, decentralized or centralized cash register management (POS), electronic payment gateways, supply chain management, logistics, etc.) integrated and linked to each other. It is not enough to have some of those functionalities. It is really necessary to have all of them, even if companies do not always need them at the moment. But they must be available internally to meet future needs.

Knowing whether or not a company needs an ERP or a simple management suite is another matter, however the definition and characteristics of an ERP should be clear.

For example, correct management of the supply chain is vital for a company that requires an ERP (a large part of the business processes depend on the supply chain and its associated logistics), but it may not be so vital for another that only needs to automate a part of its business processes. The fact that the first must use an ERP is clear, that a simpler management suite is enough for the second, it may be more debatable (depending on the real needs of the company after going through process reengineering), what is neither fair nor real, is to call the management suite used by the second company commercially as ERP.

In short, management suites and ERPs occupy two market niches, clearly distinguishable from a technical point of view, but commercially and advertising intersectable from the bottom up. The latter is what causes many medium or large companies to face serious management problems when implementing software that they believed to be ERP and that leaves out of their needs, whether current or future, many of the basic business processes that the company uses or has come to use over time.

Some ERP systems can be integrated with external applications aimed at payment management and automation. These integrations allow you to connect the ERP purchasing and accounting modules with tools that facilitate the issuance of purchase orders, budget control, invoice reconciliation and the execution of electronic payments.[4]​.

Examples of this type of solutions include platforms such as Tipalti, Coupa, Precoro or ControlHub.[5]​ The choice of tool usually depends on the size of the company, the sector in which it operates and the specific functionalities required.[6]​.

This is a list of notable free and open source enterprise resource planning (ERP) software.