An Enterprise Resource Planning (ERP) is a type of business management software that integrates an organization's core operational processes. While most individuals use "ERP" as a general term to describe a company's main information system, "ERP" by formal definition mainly refers to the inventory and accounting system. Other functions such as customer relationships management (CRM), human resources (HRM), and production management are generally add-on modules and not part of the ERP core.
Instead of using separate tools for each department, an ERP connects them through a shared database and interface. This helps businesses streamline operations, avoid duplication, enhance efficiency, and increase transparency. This also helps teams gain real-time insights across departments. Additionally, it helps provide a single source of truth during data mismatch or discrepancies with stakeholders like customers and suppliers.
The main challenges of adopting an ERP system are high initial investment and setup costs, especially for companies requiring customization to fit their workflow or niche industry requirements. Specialized knowledge from consultants and external parties is often required to make customizations, change designs, and maintain the system. This dynamic can often lead to longer development periods for each change or feature.
Well-known ERP systems include SAP, Oracle, Netsuite, and Sage.
While ERP systems integrates an organization's core operational processes, a Line of Business Application (LOB) is a software or tool that supports business units or departments within an organization. They are often used to complement ERP systems' shortcomings and are customizable to fit very specific needs. LOBs can be developed in many different ways, with no-code being the most efficient and flexible approach.
No-code database tools like Ragic allow users to build LOBs easily through its no-code design. This empowers users to design their own systems through a drag-and-drop interface that requires zero coding skills, shifting autonomy and control from consultants and external service providers to internally-selected users with administrative privileges. This provides companies with the flexibility and efficiency to create what they need when:
1. It's too time-consuming or costly to develop on the ERP system
2. It involves something different from ERP systems' rigid and standard modules
3. The ERP system does not support cloud or mobile accessibility for field and remote teams
