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Exercises · Q3

Q.Define ERP. State any two core features of an ERP system.

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✓ Free question

Definition: Enterprise Resource Planning (ERP) is a single, integrated software system that plans and manages all the resources of an entire organisation — money, materials, machines, people, and information — by bringing all its departments onto one platform that shares a common, centralised database.

Core features (any two required):

  1. Integration — all functions are connected, so an action in one area automatically updates the others. This is the most important feature.
  2. A single centralised database — all data is stored once, in one place, and shared by every module ('one version of the truth').
  3. Real-time processing — information is updated the instant a transaction occurs.
  4. Modular structure — the system is built from separate but connected modules.
  5. Automation and standardisation of business processes.
✓Final answer

ERP is a single integrated software system that manages all of an organisation's resources through one shared, centralised database. Two core features: integration of all functions, and a single centralised database (also acceptable: real-time working, modular structure, automation).

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