Question 1

What are Enterprise Resource Planning (ERP) Systems?

Accepted Answer

Enterprise resource planning (ERP) evolved from materials requirements planning (MRP) software, which was created in the 1960s for large companies that needed to manage complex manufacturing operations. MRP was used mainly to identify, allocate, and track resources such as raw materials, parts, ingredients, and labor. As technology became more accessible, vendors added features for the back office (accounting and HR) and front office (sales and CRM). While initially, only enterprises could afford to invest in ERP, it is now more affordable and widely used by small and medium-sized businesses. 
 ERP evolved through organic development or mergers and acquisitions. The result was often a mix of multiple products that were more or less integrated and sold as a package or separately. 
 
Organic development strategies were adopted by vendors who focused exclusively on creating and improving their offering. Some vendors focused on one product only, while others created multiple solutions and sometimes different editions of the same product for different purposes. For instance, an ERP solution can be delivered as a light version for small businesses and as an enterprise edition for large companies.
Acquisitions are the most common strategy vendors use to expand into new markets and deliver new features. The primary challenge with acquiring software is that it is difficult to integrate all products into a single offering. While some vendors combined multiple products into one, most ERP solutions acquired are still sold as standalone systems.
Mergers are rare in the ERP market, and they usually happen when two vendors join forces to complement each other’s offering. This can lead to a sophisticated package of multiple systems with overlapping functionality.
Partnerships allow vendors to offer additional functionality without investing in developing it. When vendors partner, they provide standard integration between their products, which makes it easier for companies to use them together.

Question 2

What does ERP stand for?

Accepted Answer

ERP stands for enterprise resource planning, which means it’s a tool that defines, schedules, and tracks current tasks and critical processes. It supports companies’ automation, manufacturing, production, supply chain, and distribution processes.  
 Moreover, an ERP system integrates all the functional units of your organization into one. The software can be personalized based on departmental key performance indicators (KPIs) as well. 
 As discussed above, ERP systems typically include modules for finance, human resources, marketing and sales, accounting and bookkeeping, logistics and supply chain, and customer service. Its main goal is perfecting processes, improving efficiency, and helping maintain a repository of apps and workflows so teams can view progress, update goals, and keep productivity up.

Question 3

What types of ERP systems exist?

Accepted Answer

ERP systems differ based on the source code of the system and its availability to customers and partners.

Software development: Depending on who develops and manages the system, some ERP vendors have full control of the product and only allow partners to create apps or extensions. Other ERP providers rely on resellers to add entire modules and change the source code.

General purpose ERP: These ERP systems are specific to a particular industry. They can be customized to suit the needs and use cases of various industries.

Industry-specific ERP: Also known as vertical ERP, these systems provide functionality to a limited number of industries. The vendors specialize because generic solutions do not apply to niche industries with specific challenges.

Small and mid-size business (SMB) ERP: Designed for smaller teams with renewable resources, these ERP systems offer basic workflow automation at an affordable price.

Cloud ERP: These solutions are hosted on the cloud so you can expand your business infrastructure to support growing volumes of data at a cost-effective price plan. It provides data storage, scalability, and reduced scope of vulnerabilities.

On-premises ERP: Traditional on-premise systems are installed locally on a business server. They’re set up to store, modify, and retrieve data for internal teams and their project input. Due to package deployment, this may incur higher upfront installation costs.

Open source ERP: Users can download these free ERP services from the internet or smartphone marketplaces like PlayStore or App Store. These solutions offer basic features that access and modify business workflows.

ERP for specific functions: These solutions trigger functionalities for departments like finance, human resources, or supply chain management. They are modular and can be integrated into broader ERP systems for businesses.

Mobile ERP:  Mobile ERP solutions enable geolocation tracking, data access, and management via mobiles and other gadgets. Leading ERP service vendors offer a mobile-compatible version of their desktop ERP software.

How Many ERP Systems Products Does G2 Track?

Category Stats (Sep 2026)

How Does G2 Rank ERP Systems Products?

G2 Grid® for ERP Systems

ZOVETO OS

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Zynthoro

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Best ERP Systems - Page 103