ERP System. What is this software and what should a company know about it?
An ERP (Enterprise Resource Planning) system is a strategic tool that revolutionizes business processes across all areas of a company's operations. It provides a single, integrated IT solution, replacing multiple, distributed programs with a single, centralized place to manage data, processes, and information flow throughout the organization.
Although ERP systems have been around for a long time, thanks to advances in IT technology and artificial intelligence, they are now state-of-the-art software that effectively automates processes and streamlines data flow throughout an entire enterprise, regardless of size. They operate within a single integrated IT system, based on a single database and a set of interconnected functions. They provide a central platform for managing key areas of operations, such as finance, accounting, production, logistics, sales, and HR, ensuring complete information consistency and ongoing control over all processes.
According to data from the Central Statistical Office (GUS), an increasing number of Polish companies have been using ERP systems in recent years. By 2025, this number had already reached 40.5%, representing a 4.5% increase compared to 2023, and the trend is steadily growing [source: CRN "More Polish companies have ERP, share has fallen," online]. This is because they extend far beyond the realm of technology, becoming important elements of business strategies, shaping the future of the enterprise.
Functionality and structure of ERP systems
ERP integrates all key areas of a company's operations—from finance, through sales and logistics, to production and human resources management. This enables decision-making based on current data, predicting market trends, optimizing processes, and responding more quickly to changes in the business environment. ERP systems also support strategic planning and building competitive advantage, enabling companies to more efficiently utilize resources, reduce costs, and implement innovation. Professional ERP systems consist of modules equipped with functionalities that address specific areas of company management. These modules allow the software to be expanded and adapted to business needs.
- Finance and Accounting - a module for controlling and optimizing company finances, including invoice management, payments, budgets, and financial performance analysis.
- Production Management - a module responsible for production process planning, product quality control, and efficient inventory management.
- Supply Chain Management - a module responsible for order planning and fulfillment, warehouse management, and logistics organization.
- Sales and Marketing - a module supporting customer service, customer relationship management, and the planning and implementation of marketing campaigns.
- Human Resources Management (HR) - a module supporting HR and payroll management, recruitment processes, and employee training and development management.
ERP vs. CRM, WMS, MES, and DMS – what's the difference?
Many companies, alongside ERP systems, utilize highly specialized domain-specific systems such as CRM, WMS, MES, or DMS to further support specific processes in specific areas of their business. These solutions will not replace an ERP system, but they are an excellent complement to it where, in addition to its standard functionalities, more domain-specific mechanisms are needed. The table below presents the main tasks performed by various business software solutions that can be used in a company alongside an ERP system.
| System | Functional scope | Main tasks |
| ERP (Enterprise Resource Planning) | Standard scope for all organizational areas | Integration and automation of key business processes within the company, ensuring data consistency, and supporting management and decision-making at all levels of the organization. |
| CRM (Customer Relationship Management) | Customer Relations | Improving customer contact management and relationships, optimizing sales, marketing, and customer service processes, and increasing customer satisfaction and loyalty. |
| WMS (Warehouse Management System) | Warehouse and Logistics | Warehouse and logistics management, including inventory control, goods receipt and issue, and order fulfillment. |
| MES (Manufacturing Execution System) | Operational Production | Production monitoring, quality control, and machine performance. |
| DMS (Document Management System) | Documentation and information flow | Document storage, retrieval, versioning, and archiving. |
Domain-specific systems play a crucial role in the functioning of enterprises when integrated with the ERP system, which serves as a central platform integrating all areas, ensuring data and process consistency and full visibility into the company's operations. Together, they form a single ecosystem that supports employees in performing their tasks and streamlines process management.
How do you know if a company needs an ERP system?
While awareness of the potential of both ERP systems and complementary solutions is high in business, not all areas of operations are automated. According to the PMR Market Experts and Comarch "Made in Poland 2024" report [source: Business Insider Polska and Comarch ERP "Digital Companies. From Vision to Implementation" 2025], 38% of companies still send and store paper documents, while the level of digitization is increasing, along with the digitization of documents, eliminating their traditional versions. This naturally creates difficulties, just as it does in other areas still handled manually. Without the support of new technologies, they may remain less efficient, which generally impacts business efficiency. There are usually certain signals indicating the need to implement IT solutions.
What makes implementing a system worthwhile?
- A high number of document errors resulting from human error and repetitive, manual processes.
- Distributed programs and a lack of integration between applications, forcing manual data transfer.
- Inefficient communication and difficulties in exchanging information between employees and entire departments, causing delays and a lack of a consistent picture of the company's situation.
- Difficulties in generating reports, a lack of consistent data, and distributed systems hinder the rapid creation of reliable reports, delaying decision-making and limiting control over company operations.
Common problems for companies without an ERP system
According to the Business Insider Polska and Comarch ERP report "Digital Companies: From Vision to Implementation" 2025, only 31% of companies currently have a fully digital document workflow. We can only speculate on the future of automation in other areas of operations. Companies that have not implemented an ERP or domain-specific system face numerous difficulties in their daily operations. The lack of a single, coherent system translates into information chaos, process inconsistency, and an increased risk of errors, which impacts work efficiency in virtually every area of the business.
- Sales – lack of access to current inventory data, manual preparation of offers and orders, and difficulties in managing prices and customer credit limits significantly reduce work efficiency.
- Finance and accounting – lack of access to consistent data hinders forecasting, planning, and cost control. Most financial reports are generated manually, which lengthens processes, increases the risk of errors, and limits the ability to quickly analyze the company's situation.
- Warehouse – lack of ongoing inventory control and manual recording of receipts and deliveries lead to inaccuracies and delays. Order picking errors also occur.
- Production – difficulties in order planning, limited quality control, and a lack of current data on machine performance and lead times cause delays, downtime, and problems maintaining a stable production schedule.
- Management – lack of a complete, consistent overview of the business and scattered data significantly hinder strategic decision-making and limit the company's ability to quickly respond to market changes.
However, problems can arise not only with daily tasks but also with achieving strategic business goals. As a company grows, expanding into new markets, opening new branches, or implementing a growing number of processes, coordinating activities across various areas and maintaining data consistency becomes increasingly difficult. Strategic criteria such as company growth, the need for integration, and the effective management of distributed resources make ERP implementation not only an operational tool but also a key element supporting the implementation of a company's long-term strategy.
How does ERP enhance a company's efficiency and competitiveness?
Awareness of the benefits of modern software is high. In the report "Made in Poland 2024. How is digital transformation progressing in medium-sized and large Polish enterprises," prepared by the research and analysis firm PMR Market Experts on behalf of Comarch, as many as 68% of respondents see the benefits of document digitization, and 67% see the benefits of process automation and integration.
Implementing an ERP system improves key KPIs. Orders are fulfilled faster and more accurately (improving the OTIF ratio), inventory is better controlled and utilized more efficiently (increasing inventory turnover), and financial data is available in real time. Shortly after implementation, companies gain improved workflow organization, faster reporting, and greater operational transparency. Companies using integrated ERP systems also experience a 20% increase in employee productivity, according to the report "ERP Industry Statistics, WifiTalents," published on June 2, 2025.
Standardization and transparency also translate into increased company value while simultaneously reducing operating costs. Access to current and reliable information improves communication between departments, while precise monitoring of finances, inventory, and other key areas allows for more effective operational control.
Classification of ERP systems by functionality and implementation method
ERP systems can be classified according to several criteria, making it easier for companies to choose the solution best suited to their needs.
| Criterion | System type | Description |
| Implementation model | on-premise | The system is installed locally, with full control over data and infrastructure. |
| cloud | Cloud access, rapid deployment, and easy scalability. | |
| hybrid | Combines local installation with cloud-based features. | |
| industry | Tailored to the specific needs of each industry. | |
| System profile | universal | Suitable for a variety of business sectors. |
| platform | A flexible platform that allows for extensible functionality. | |
| Code availability | commercial | Closed-source software, developed by the manufacturer. |
| open-source | The code is available for modification and customization by users. | |
| Range of functionality | First generation ERP | Focused on transactions and basic data processing. |
| Second generation ERP | Process integration, information flow between departments. | |
| Third generation ERP | Intelligent systems with AI, automation, and advanced analytics. |
How to choose the right ERP system?
Choosing an ERP system is a strategic decision that can have a key impact on a company's operational efficiency and growth opportunities. When evaluating a solution, it's important to consider many factors, including the system's fit with business processes, its stability and security, as well as financial considerations, including licensing or subscription costs and implementation. Integration with other systems, post-implementation support, and a software development roadmap are also crucial.
Common mistakes when purchasing an ERP system include choosing a system that isn't tailored to the specifics of the industry and processes. Companies often opt for "standard" solutions that don't take into account unique operational requirements, resulting in integration problems, low productivity, and limited scalability. Lacking a long-term system development plan is also a mistake, as it limits the benefits of process automation and optimization and fails to utilize the system's potential. According to the report "Effectiveness of Digitization in the SME Sector," as many as 44% of small and large companies purchase IT software without a defined strategy [source: Business Insider Polska. "Digitalization in SMEs is still weak. Could mandatory KSeF change this?" Business Insider Polska, October 30, 2025].
How AI is changing the face of modern ERP systems
Modern ERP systems increasingly utilize artificial intelligence and machine learning. According to the report "Made in Poland 2024. How Digital Transformation is Taking Place in Medium-Sized and Large Polish Enterprises" [source: erp24.pl], nearly 75% of respondents feel a strong pressure to implement artificial intelligence, but only 49% know how to use it and in which processes. Meanwhile, AI is radically changing the way companies are managed and the role of users.
- Intelligent decision support features – AI assistants assist in data analysis, suggest optimal actions, and identify potential risks.
- Automatic anomaly detection – ERP systems can identify irregularities in processes, such as financial transactions or inventory levels.
- Demand and inventory prediction – ML algorithms predict future needs, supporting production and supply planning.
- Automated document approval and report generation – AI enables document processing and the creation of analyses and reports in natural language, reducing work time and reducing the risk of errors.
- Changing user roles – users move from performing routine operations to overseeing processes, making strategic decisions, and controlling results.
Summary
An ERP system is a strategic tool that supports the integration of processes across the entire company and serves as a central information hub. For its implementation to be a profitable investment, it must meet key functional, technical, and integration requirements, and offer post-implementation support and the potential for further development. Before deciding on a specific product, it is essential to thoroughly analyze the organization's business processes and needs, define goals and expected KPIs, estimate licensing, implementation, and maintenance costs, and develop a strategy for integration with existing systems.
Before deciding to implement ERP, management should first assess whether the company actually needs an integrated system by analyzing the scale of processes, the number of departments, and the complexity of operations. It is also important to determine the optimal timing of implementation, so that the system implementation aligns with the company's development plan and does not disrupt ongoing operations. The selection of solutions available on the market is wide, and entrepreneurs appreciate domestic IT vendors. The previously cited report, "Made in Poland 2024. How Digital Transformation is Performing in Medium-Sized and Large Polish Enterprises," shows that as many as 73% of surveyed organizations consider their vendors highly competent and experienced in local law and software development in compliance with regulations.
FAQ
What is an ERP system?
Enterprise Resource Planning software integrates all company processes into a single, coherent IT environment. ERP allows centralized access to data, ensures process transparency, and supports effective decision-making at every level of the organization.
What does an ERP system do?
An ERP system enables centralized management of all key processes within a company, including finance, accounting, sales, purchasing, warehouse, production, and human resources. It enables real-time data recording, processing, and analysis, automates routine operations, supports cost control and operational efficiency, and allows for the rapid generation of reports and analyses essential for strategic and operational decision-making.
What are the functions of an ERP system?
ERP systems consist of modules corresponding to specific business areas, automating daily tasks and simplifying management. Companies can independently select functionalities, tailoring the system to their needs and gradually expanding it with additional modules as the organization grows.
What are the benefits of an ERP system?
An ERP system allows a company to integrate all processes in a single environment. It automates daily operations, reduces errors and costs, improves the flow of information between departments, and enables ongoing monitoring of key performance indicators (KPIs).
What are the stages of ERP system implementation?
System implementation typically involves several key stages. The first step is a needs analysis, which allows us to determine the functional and technical requirements of the system. Next comes the selection of the appropriate system and modules, tailored to the specific needs of the organization. The next step is infrastructure preparation and system configuration. This is followed by data migration and testing to ensure proper operation. The final stages include user training, system launch, and post-implementation support.