What is Enterprise Resource Planning (ERP)?

Enterprise Resource Planning (ERP) is a type of software that organizations use to manage and integrate their core business processes into a single system. An ERP system typically handles accounting, procurement, project management, risk management, compliance, and supply chain operations.

For Startups: While a full-blown ERP system (like SAP or Oracle) is overkill for most startups, the concept is relevant. As a startup scales, it needs an integrated financial stack where its accounting software, CRM, and payroll system can "talk" to each other to provide a unified view of the business. Modern cloud-based solutions like Zoho offer an ERP-like integrated experience tailored for smaller businesses.

Example: A growing e-commerce startup uses an ERP to connect its inventory management system with its accounting software and its sales platform, providing a single source of truth for all its operations.