An ERP system gathers data from many sources so that it can “make decisions and manage the organisation’s resources efficiently.”

The process consists of the following steps:

1. Scanning and gathering data The system pulls data from many departments, such as finance, production, inventory, and sales.

2. Bringing data into the system Data is imported using technology that is secure and fast.

3. Transforming the data The data is reformatted to be compatible with the system.

4. Checking accuracy and completeness The system checks accuracy to prevent errors.

5. Linking the data The various data are linked together for complete analysis.

6. Making the data consistent The data is adjusted to align with the system’s structure.

7. Recording the data The data is recorded in the database for access at any time.

8. Generating reports and analysis The data is used to generate reports for decision-making.

How does an ERP system collect data into the system?