What Is an ERP System? Meaning, Modules, Top 10 ERPs and Connecting to E-commerce

30. 9. 2026
Co je ERP systém? Význam, moduly, top 10 ERP a propojení s e-shopem

An ERP system is a business information system that connects a company's core operations in a single database: accounting, inventory, purchasing, sales, manufacturing, HR and reporting. ERP stands for Enterprise Resource Planning. Instead of ten spreadsheets and programs that don't talk to each other, the company has one place where an order, an invoice, a stock movement or a payroll entry flows into every related area at once.

In this article we explain what ERP means, which modules it consists of, what types of ERP exist, who needs it, what it costs and how to choose one. We also show which ERP systems are used most in the Czech Republic and worldwide, and we cover a topic generic articles skip: how to connect ERP to an online store.

Key takeaways

  • ERP = Enterprise Resource Planning. It brings a company's operations together in one shared database.
  • Typical modules: finance and accounting, inventory, purchasing, sales, manufacturing, HR and payroll, reporting.
  • Globally, Oracle and SAP lead; in the Czech Republic, local systems such as Helios, ABRA, Money and POHODA hold a strong position.
  • For an online store, the ERP integration is key: orders, stock, prices and invoices should be transferred automatically, not by hand.

Table of contents

What ERP stands for

ERP stands for Enterprise Resource Planning. Resources means everything a company manages: money, stock, materials, production capacity, people and time. An ERP system is software that records, plans and connects these resources.

ERP grew out of older manufacturing systems. In the 1960s and 1970s, MRP systems for material requirements planning appeared, followed in the 1980s by MRP II, which added production capacity planning. The term ERP came into use in the early 1990s for systems that covered not just manufacturing but the entire company. Today ERP is used even by companies that make nothing: retailers, online stores, distributors and service businesses.

"ERP system", "ERP software" and "business information system" all refer to the same thing.

What an ERP system consists of

An ERP system consists of modules that cover individual business areas and share common data. Companies usually choose only the modules they need. The most common modules:

Module What it handles
Finance and accounting General ledger, invoices, banking, VAT, receivables and payables, financial statements
Inventory and logistics Stock levels, goods receipts and issues, stocktaking, multiple warehouses, shipping
Purchasing Supplier orders, supplier price lists, stock replenishment
Sales Quotes, orders, price lists and discounts, invoicing
Manufacturing Bills of materials, production planning, work orders, capacity
HR and payroll Employees, attendance, payroll, social and health insurance contributions
Fixed assets Recording and depreciation of long-term assets
Projects and service Jobs, timesheets, service calls
Reporting and BI Dashboards, analytics and planning across the company
CRM Contacts and sales opportunities (a built-in module in some ERPs)

A small company often needs only finance, inventory and sales. A manufacturer also needs production and purchasing; a larger company adds HR and advanced reporting.

How ERP works in practice

The core principle of ERP is that every piece of data is entered once and all areas of the business work with it. It's easiest to see by following a single order:

  1. The customer places an order in the online store or with a sales rep. The order is created in the sales module.
  2. The warehouse reserves the goods and stock levels drop immediately across all sales channels.
  3. When stock falls below the minimum, purchasing receives a suggested supplier order.
  4. Shipping prints a label and the goods go out to the customer.
  5. The invoice is issued automatically and posted to finance, including VAT.
  6. The payment is matched to the invoice from the bank statement.
  7. Management sees revenue, margin and stock levels in real time in a report.

Without ERP, the same order would be retyped by the sales rep into a stock spreadsheet, by the warehouse staff into their records and by the accountant into the accounting program, while management waited for the month-end close. Every retyping step is a delay and a chance for an error.

ERP system modules connected to an online store

Types of ERP systems

ERP systems are categorized by deployment model, target company size and focus. By deployment:

Type How it works Who it's for
Cloud ERP (SaaS) Runs at the vendor, paid by subscription, accessed via a browser Small and mid-sized companies, companies without in-house IT
On-premise Installed on your own servers, license is purchased Companies with in-house IT that need full control over their data
Hybrid Partly in the cloud, partly on your own servers Companies in transition to the cloud

By focus, there are horizontal ERPs for companies across industries and industry-specific (vertical) ERPs for particular sectors such as furniture manufacturing, food production or construction. By company size, ERPs are labeled tier 1 (multinational corporations), tier 2 (mid-sized and larger companies) and tier 3 (small companies).

ERP or accounting software? In the Czech Republic, business and accounting programs for small companies are often called ERP too. The difference is scope: accounting software mainly covers bookkeeping, invoicing and simple inventory, while a full ERP also connects manufacturing, purchasing, planning and other areas. The line is blurry, though, and many Czech products offer both in different editions.

Who needs ERP

A company needs ERP when separate programs and spreadsheets start slowing work down. Company size is not the only measure. Typical signs:

  • the same data is retyped into multiple programs,
  • stock levels in the online store don't match reality,
  • the month-end close takes days because data is assembled by hand,
  • management lacks an up-to-date view of revenue, margin and stock,
  • the company added another warehouse, branch or sales channel and its records can no longer keep up,
  • errors in orders and invoices cost time and customers.

For a sole trader or a small online store with dozens of orders a day, accounting software connected to the store is often enough. A full ERP starts to make sense with your own warehouse, a larger product range, multiple sales channels or manufacturing.

Benefits and risks of ERP

The main benefit of ERP is that the company works with a single version of the truth. Specifically:

  • Less manual work thanks to automatic documents, payment matching and stock replenishment.
  • Fewer errors, because data isn't retyped.
  • An up-to-date overview of finances, stock and company performance.
  • Better planning of purchasing, production and cash flow.
  • Easier growth: a new warehouse, branch or channel is added to the existing system.
  • Regulatory compliance: local accounting, VAT, VAT control statements and payroll.

The risks are just as real. Implementing ERP is one of the most demanding IT projects a company undertakes. The most common problems are budget and schedule overruns, employee resistance to change, poor-quality data migrated from old systems and excessive customization that makes later upgrades harder. Good preparation prevents most of them, as we describe in the section on choosing and implementing ERP.

ERP, CRM and an online store: what's the difference

ERP runs the company, CRM manages customer relationships and the online store handles online sales. In a modern company they work together and exchange data.

System Key question Typical data
ERP How does the company run? Inventory, purchasing, manufacturing, accounting, invoices, payroll
CRM Who is the customer and what are we doing with them? Contacts, communication, sales opportunities
Online store How does the customer buy? Products, cart, orders, payments

Some ERPs have a built-in CRM module, but sales teams often use a standalone CRM. What exactly a CRM does and when a company needs one is explained in our article What Is a CRM System.

Top 10 ERP systems in the Czech Republic and worldwide

Globally, ERPs for multinational corporations lead the market, while in the Czech Republic local software for small and mid-sized companies holds a strong position. Rankings also differ depending on whether they measure vendor revenue or the number of companies using a system.

Worldwide: Oracle and SAP

According to the analyst firm Apps Run The World, in 2024 Oracle, with ERP revenue of around USD 8.7 billion, overtook the long-time leader SAP, with approximately USD 8.6 billion, for the first time. Oracle benefits mainly from its cloud-based Fusion ERP and from NetSuite for mid-sized companies. Other major global players include Microsoft with Dynamics 365, Infor, Sage and Workday. Revenue rankings, however, mostly reflect large companies with expensive licenses and implementations.

In the Czech Republic: local systems for small and mid-sized companies

There is no current public ranking of ERP market shares in the Czech Republic. The last larger studies by the Czech Centre for Information Systems Research (CVIS) showed the long-standing dominance of Helios and a strong position for ABRA among small and mid-sized companies, with SAP and Microsoft Dynamics among larger companies. These studies are older, but the picture still holds today: Czech companies often choose local systems that support Czech legislation out of the box.

An overview of the ten ERP and business systems you'll encounter most often in Czech companies:

# System Vendor and origin Who it's for What stands out
1 Helios Asseco Solutions, Czech Republic Small, mid-sized and larger companies Long-time leader of the Czech market, wide partner network
2 ABRA ABRA Software, Czech Republic Small and mid-sized companies Strong among trading and manufacturing companies, cloud version
3 Money Solitea, Czech Republic From sole traders to mid-sized companies Range of editions from accounting to full ERP
4 POHODA Stormware, Czech Republic Sole traders and small companies Very widespread business system, easy online store integration
5 SAP SAP, Germany Mid-sized and large companies, corporations Global standard, Business One for smaller companies
6 Microsoft Dynamics 365 Microsoft, USA Mid-sized and larger companies Business Central for mid-sized companies, integration with Microsoft 365
7 K2 K2 atmitec, Czech Republic Trading and manufacturing companies Strong solution for trade and e-commerce
8 QI DC Concept, Czech Republic Small and mid-sized companies, services and manufacturing Versatile system with a focus on job management
9 Altus Vario Altus software, Czech Republic Small companies and shops Accounting, inventory and sales at an affordable price
10 Odoo Odoo, Belgium Small and mid-sized companies Open-source core, ERP, CRM and online store in one

The order is not a quality rating or a precise measure of market share. It reflects how widespread the systems are and their position on the Czech market. The best ERP is the one that covers your processes and that your people will actually use.

How the Czech Republic differs from the rest of the world

  • Czech legislation. Local systems handle accounting, VAT, VAT control statements and payroll under Czech rules out of the box. With foreign systems, this is handled by a partner's localization.
  • Company size. Global revenue is driven by corporations, while the Czech market consists mainly of small and mid-sized companies.
  • Price and speed of implementation. Czech systems for small companies are implemented in weeks, corporate ERPs in months or even years.
  • Integration with Czech services. Online stores, banks, carriers and price comparison sites often have ready-made integrations with local systems.

ERP and an online store: how to connect them

An online store without an ERP integration means retyping orders by hand and stock levels that don't add up. With dozens of orders a day, that's the main source of errors and wasted work. What to sync between the online store and ERP:

Data Direction Why
Orders Store → ERP Invoicing, shipping and accounting without retyping
Stock levels ERP → store Customers see real availability, no overselling
Prices and price lists ERP → store One price everywhere, including individual B2B price lists
Products and attributes ERP → store (or from a PIM) A new product is entered once
Customers Both ways Billing details, company and VAT IDs, payment terms
Order and invoice status ERP → store Customers see that goods have shipped and the invoice is paid

On Shopify, the integration is handled in three ways: a ready-made app for a specific ERP, a universal integration tool, or a custom integration via the API. When choosing, watch the sync frequency (stock should update as often as possible), behavior during outages and which system is the master for which data. Connecting Shopify to POHODA, Money and other accounting systems is covered in our article Accounting on Shopify.

Off-the-shelf ERP or custom ERP?

For most companies, an off-the-shelf ERP is the right choice, because it already handles legislation, accounting and updates. A custom ERP or an extension pays off where the company has a process the off-the-shelf system can't handle, or can only handle with expensive customization. Typical examples are specialized manufacturing, capacity bookings, product data management for multiple markets or internal approval workflows.

In practice, the two are often combined: an off-the-shelf ERP or accounting software for bookkeeping and legislation, and a custom system for a specific part of the business, connected via an API. We build custom information systems and PIMs for product management on the Directus platform, including integration with Shopify and accounting systems.

How much an ERP system costs

The cost of ERP consists of licenses, implementation and operation, and licenses are usually the smaller part of the total. The range is huge: cloud business software for small companies starts at a few hundred Czech crowns (around EUR 10–30) a month, while implementing ERP at a mid-sized manufacturer costs hundreds of thousands to millions of crowns. What makes up the price:

  • License or subscription: based on the number of users and modules.
  • Implementation: analysis, configuration, data migration, testing. Often the largest item.
  • Customization: the more customization, the more expensive both implementation and future upgrades.
  • Integrations: connecting the online store, bank, carriers and CRM.
  • Employee training.
  • Operation and support: servers or cloud, annual maintenance and update fees.

Compare the total cost of ownership over five years (TCO), not just the license price. A cheap license with expensive implementation and necessary customization often ends up costing more than a pricier system that covers your processes out of the box.

How to choose and implement ERP

Choose ERP based on your processes, not on vendor presentations. A proven approach:

  1. Describe the processes the ERP should cover: from order to invoice, from purchasing to production.
  2. List your requirements and separate must-haves from nice-to-haves.
  3. Map the integrations: online store, bank, carriers, CRM, attendance.
  4. Approach 3–4 vendors and have them demonstrate your specific scenarios, not a generic presentation.
  5. Check references from companies of a similar size and industry.
  6. Compare the total costs over five years.
  7. Implement in phases: finance and inventory first, then other modules.
  8. Clean up your data before migrating it from old systems.
  9. Train your people and appoint an internal system administrator.
Criterion What to ask
Process coverage How many of our processes can the system handle without customization?
Local legislation Does it handle accounting, VAT, VAT control statements and payroll under local rules?
Integrations Does it connect to our online store and other systems? Does it have an open API?
Vendor How long has it been on the market, how many customers like us does it have, how does support work?
Scalability Can the system handle twice the orders, a new warehouse, a new country?
Costs How much will we pay over five years, including implementation and maintenance?

The most common implementation mistakes: carrying old inefficient processes into the new system, too much customization, underestimating data migration and training, and a lack of support from management.

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Frequently asked questions (FAQ)

What is an ERP system?

An ERP system is a business information system that connects a company's core operations in a single database: accounting, inventory, purchasing, sales, manufacturing, HR and reporting. Each piece of data is entered once and every part of the company works with it. The company gets an up-to-date overview and less manual work.

What does ERP stand for?

ERP stands for Enterprise Resource Planning. Resources means money, stock, materials, production capacity and people. The term has been used since the early 1990s and builds on older MRP systems for production planning.

What is the difference between ERP and CRM?

ERP runs the company: inventory, purchasing, manufacturing, accounting and invoices. CRM manages customer relationships: contacts, communication and sales opportunities. The systems complement each other and exchange data. Some ERPs have a built-in CRM module, but sales teams often use a standalone CRM.

Which ERP systems are used most in the Czech Republic?

In the Czech Republic, the local systems Helios, ABRA, Money and POHODA hold a strong position, followed by K2, QI and Altus Vario. Larger companies use SAP and Microsoft Dynamics 365. Globally, Oracle and SAP lead by revenue, followed by Microsoft, Infor, Sage and Workday.

How much does an ERP system cost?

Cloud business software for small companies starts at a few hundred Czech crowns a month. Implementing ERP at a mid-sized company costs hundreds of thousands to millions of crowns. The price includes licenses, implementation, customization, integrations, training and operation. Compare the total cost over five years, not just the license price.

Does an online store need an ERP system?

A small online store can often get by with accounting software connected to the store. ERP pays off with your own warehouse, a larger product range, multiple sales channels or wholesale. The key is for orders, stock, prices and invoices to be transferred automatically between the online store and the ERP.

Need to connect your online store to an ERP?

We'll connect your Shopify store to an ERP or accounting system, or build you a custom information system where an off-the-shelf ERP isn't enough. Take a look at our app development services or book a free consultation.

Sources

Author: Miroslav Volovec, CEO of 3NODE Software s.r.o. – specialists in e-shop and app development on the Shopify platform.