The core ERP components are typically the essential functionalities that support the primary internal operations of an organization. These components commonly include areas like finance and accounting, human resources, production and materials management, and sales and distribution. By focusing on these internal processes, core ERP components help streamline operations, improve data accuracy, and enhance overall operational efficiency.
This emphasis on internal operations distinguishes core ERP components from extended components, which may deal more with external functions such as collaboration with suppliers or customers. Understanding the importance of core ERP components is vital, as they serve as the foundation upon which additional functionalities can be built, ultimately supporting the organization’s overall strategy and business goals.