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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Enterprise Resource Management

Which statement best describes the core architectural feature of an Enterprise Resource Planning (ERP) system?

An ERP system is an integrated software suite whose functional modules, such as finance, HR, production and sales, share one common central database. This lets data be entered once and used across departments, unlike isolated departmental applications that keep separate databases.

  1. AA single integrated software suite with a common central database shared by all functional modulesCorrect
  2. BSeparate standalone applications for each department, each with its own database
  3. CA tool used only for external website hosting and email
  4. DA hardware device that encrypts network traffic

Explanation

An ERP integrates finance, HR, production, sales and procurement modules on one common database, so data is entered once and is visible across functions. Standalone departmental systems with separate databases are the 'silo' arrangement that ERP is designed to replace.

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