Understanding ERP: A Practical Guide For Business Leaders

Enterprise Resource Planning (ERP) often gets framed as a technology decision, but at its core, it’s really about how a business runs. In a Forbes article by Deanna Laster, Forbes Council member and CEO of DeannaMichel, ERP is positioned as an operational framework first—and software second. As organizations grow and adapt to shifting markets, leaders face increasing complexity across finance, people, data, and decision-making. That complexity is what’s driving renewed interest in ERP. Rather than solving isolated problems, ERP brings structure and discipline to how core functions—from finance and HR to supply chain and customer management—work together as one system. A key theme in the article is the importance of starting with the business, not the technology. Many issues that look like “tech problems” are actually operational ones: manual processes, disconnected data, inefficient workflows, or limited visibility. Assessing business needs first helps leaders clarify what truly matters, where standardization is required, and what capabilities will be needed to compete in the future. This assessment step is critical before selecting any system. It helps organizations avoid unnecessary complexity, overspending, and disruption by clearly separating essential requirements from nice-to-haves and ensuring new tools align with long-term goals and existing systems. Ultimately, Laster argues that ERP should be viewed as an organizational operating system—one that supports clarity, consistency, and responsible growth. When approached through a business lens, ERP becomes a strategic enabler, helping people, processes, and information work together seamlessly in an increasingly fast-moving and competitive landscape.

 

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