ERP Dictionary – Definitions of Key Concepts and Terms

Successful implementation of Business Management Systems (BMS) requires more than just a budget—the key is proficiency in terminology, which remains an insurmountable barrier for many managers. Understanding how ERP (Enterprise Resource Planning) systems and integrated enterprise resource management truly impact operations helps avoid costly mistakes during the planning phase. In this guide, we decode specialized IT vendor jargon so you can consciously select modules and take full control of your organization’s digital transformation. Discover how to translate complex acronyms into measurable business results.

Concepts

A dictionary of BMS-related concepts is best started with the absolute basics, which are:

• Business Management Systems (BMS) – The name of the department at Mindbox that handles business management systems for our clients. It primarily concerns ERP solutions, but also others such as CRM, DMS, BI, etc.
• Enterprise Resource Planning (ERP) – A software system that integrates business processes such as accounting, sales, production, procurement, and inventory management into one unified system.

However, the above cannot be understood without knowing the following terms:

• Business Intelligence (BI) – Technologies and practices used to collect, analyze, and present business information to support informed decision-making.
• Business Process Management (BPM) – A methodology involving the analysis, optimization, and improvement of business processes to increase efficiency and effectiveness.

It is also worth familiarizing yourself with specialized terms regarding working conditions on BMS systems—knowing them will help you better understand what a vendor of such solutions intends to communicate to the client:

• Account Payables (AP) – A company’s short-term obligations to suppliers for goods or services received. In Epicor Kinetic, this is the module related to handling suppliers and purchase invoices.
• Account Receivables (AR) – A company’s receivables for products or services provided to customers. In Epicor Kinetic, this is the module related to handling customers and sales invoices.
• Change Request – A formal proposal to introduce changes to a system, process, or product to accommodate new requirements or fix issues.
• Country Specific Functionality – Functionalities or requirements designed to comply with specific legal, regulatory, or market conditions of a given country.
• Full-Time Employment – A type of employment where an employee works a standard number of hours per week, typically 40 hours.
• Human Resources (HR) – The department responsible for managing an organization’s personnel, including recruitment, training, and employee relations.
• Human Capital Management (HCM) – A strategic approach to managing and optimizing human capital within an organization, including talent acquisition, development, and retention.
• Project Management Office (PMO) – A central team or department responsible for overseeing and supporting project management practices and standards within an organization.

The following concepts are used to evaluate the effectiveness of BMS systems:

• Gap – The discrepancy between existing functionalities and desired capabilities, usually identified during requirements analysis.
• Key Performance Indicator (KPI) – A measurable value that indicates how effectively an organization is achieving its business objectives.
• Standard – A defined and agreed-upon norm or guideline establishing specific requirements or criteria for processes, products, or services.

It is worth discussing one concept separately – Proof of Concept (PoC) – as it has two meanings:

1. A demonstration of a finished system prepared for the client’s needs; it most often contains client data, customizations prepared for the client, parameterized processes, and configured print templates.
2. A sample or simplified implementation of a solution intended to prove that a given solution will meet the client’s expectations. It is sometimes used in the sales process to demonstrate the effectiveness of the proposed solution and its compliance with expectations. In the sales process, it usually concerns only a critical fragment of the solution, as full implementation often requires many hours of work and cannot be realized without a signed contract. Not to be confused with a PoC carried out as part of a project.

In short, in the first sense, PoC refers to a specific element of the system; in the second, it is proof that the system works.

Processes

It is impossible to talk about BMS without knowing the processes that make up the conception, preparation, and implementation of this type of system. Below are the most important concepts in chronological order:

• Business Activity Query – A query used to analyze and report on business activity based on transactional data.
• Development – The process of creating, building, or modifying software or systems to meet specific requirements.
• Extract, Transform, and Load (ETL) – A data integration process that involves extracting data from various sources, transforming it for analysis, and loading it into a data warehouse.
• Quality Control (QC) – A process involving testing and verifying products or services to ensure they meet specified quality standards.
• Quality Assurance (QA) – A set of activities and processes aimed at ensuring that products or services are of high quality and meet specified requirements.
• Software Integration Tests – Tests verifying that different software modules or systems work together as expected.
• User Acceptance Tests – The final phase of testing, where actual users verify that the system meets all business requirements and functions correctly in real-world conditions.

Tools and Methods

A BMS consists of many smaller tools that together build a unified system for managing the entire enterprise. Below is a list of tools, programs, and modules that may be part of a BMS or are used during their design or implementation:

• Advanced Planning System (APS) – Software tool helping to plan and optimize production and supply chain processes.
• Applicants Tracking System (ATS) – Software solution helping organizations manage the recruitment and hiring process by tracking and organizing candidate applications.
• Application Studio Management – A module in Epicor Kinetic used for designing system customizations and writing code.
• Assets Management – A module used for managing fixed assets.
• Azure DevOps – A set of Microsoft tools and services supporting software development, CI/CD, and project management.
• Conference Room Pilot – A simulated test environment aimed at verifying whether a new system or process is ready for deployment in a controlled environment. Key users test the system to identify any issues and assess its readiness for implementation.
• Configure, Price, Quote (CPQ) – Software tool helping companies quickly configure products, determine accurate pricing, and generate sales quotes for customers.
• Customer Relationship Management (CRM) – A system used to manage customer interactions, track sales, and optimize relationships to increase customer satisfaction and business efficiency.
• Data Management Tool – A software application used for effectively managing and organizing large datasets. In the case of Epicor Kinetic, this is the name of the software used for importing data into the system.
• Document Management System (DMS) – Software enabling the management, storage, and tracking of electronic documents and digital images of paper documents.
• Electronic Data Interchange (EDI) – A standardized method for the electronic exchange of business documents, such as invoices and orders, between companies.
• Functional Requirements Specification – A document describing the specific functions and capabilities that a system must possess to meet business requirements.
• General Ledger (GL) – A complete record of all financial transactions in an organization, forming the basis for financial reporting. All transactions from other Epicor Kinetic system modules are recorded in the General Ledger.
• Manufacturing Execution System (MES) – A software system that manages and monitors the production process at the factory floor level.
• Material Resource Planning (MRP) – A system for planning and controlling production processes, including inventory management, scheduling, and production planning.
• Percentage of Completion – A method of measuring and recognizing revenue or project progress based on the percentage of work completed.
• Product Data Management (PDM) – Software managing product-related data and ensuring that all stakeholders have access to accurate product information.
• Product Information Management (PIM) – A system that centralizes and manages product information to ensure consistency and accuracy across various channels.
• Product Life Management (PLM) – A system managing the full product lifecycle from inception, through design and production, to disposal.
• Service Connect – A tool in iScala and Epicor Kinetic used for building interfaces with external software. It can read XML files, CSV files, and Excel files. It most often runs in the background without user intervention.
• Solution Design Specification – A document describing the architecture and detailed design of a system or software solution.
• SQL Server Reporting Services (SSRS) – Microsoft server software for report generation, enabling the creation, management, and distribution of reports.
• Stock Control – A module for inventory (warehouse) management.
• Supply Chain Management System (SCM) – Software supporting the management of supply chain processes, from procurement and production to delivery and returns.
• Transport Management System (TMS) – A software system designed to manage transport logistics, including routes, scheduling, and shipment tracking.
• Warehouse Management System (WMS) – Software used to control and manage warehouse operations, such as inventory tracking, picking, and shipping.
• WiseTeam System – Software for project or team management, specific to an organization’s processes.