What is an ERP (enterprise resource planning) system?
Software that tries to run the whole business from a single database, and what that means for a small company.
An ERP (enterprise resource planning) system is a software package that manages a company's processes by integrating all of its functions: accounting and finance, human resources, purchasing, sales, distribution and decision support. Because every function shares the same data, information entered once is reused everywhere instead of being typed in again.
In short
- The key word is integrated: one database behind several business functions.
- In French, the OQLF prefers progiciel de gestion intégré (PGI).
- CRM software can be one module of an ERP package.
- For a small service company, a full ERP is often more than it needs.
Where do the terms ERP and PGI come from?
ERP stands for enterprise resource planning. The OQLF records English equivalents such as enterprise resource planning software, ERP software and ERP system, and gives progiciel de gestion intégré (PGI) as the French term. It defines the concept as a software package that manages a company's processes by integrating all of its functions [1].
Functions named in the entry include human resources, accounting and finance, decision support, sales, distribution, procurement and e-commerce [1].
How does an ERP system work?
The core idea is a shared database. When a technician closes a work order, the part used comes out of inventory, the invoice gets prepared and the revenue lands in the books, with nobody re-keying anything.
Modules can often be bought separately. The OQLF notes that customer relationship management software (CRM) can be a standalone package or a module of an ERP [2]. Many current ERP products are sold as software as a service: hosted by the vendor and reached over the Internet for a subscription [3].
How does ERP differ from other business software?
| Tool | What it covers | Shared data? |
|---|---|---|
| ERP system | Several functions: finance, purchasing, sales, HR | Yes, one common database |
| Accounting software | Books, sales tax, sometimes payroll | No, except through connectors |
| CRM software | Customers, sales, follow-ups | Yes if an ERP module, otherwise via connectors |
| Booking software | Calendars, open slots, assignment | Depends on integrations |
| Spreadsheet | Whatever you type in | No |
How much does the double entry an ERP removes really cost?
Does a small service business need an ERP?
Not necessarily. A five-technician company that bills labour and a few parts often does fine with accounting software, a booking tool and a CRM that talk to each other. ERP starts to make sense with inventory, several locations, heavy purchasing or fast growth.
An ERP becomes the heart of your information system. In Quebec, the private-sector privacy act requires a privacy impact assessment for any project to acquire, develop or overhaul an information system involving personal information [4].
What goes wrong in a first ERP project?
- Buying the most complete ERP on the market and using only the invoicing module.
- Rebuilding every exception of the old process in the new system instead of simplifying.
- Migrating data without cleaning it, so duplicate customers move from one system to the next.
- Underestimating training: a misunderstood ERP turns back into a shared spreadsheet.
- Skipping the privacy impact assessment that Law 25 introduced.
Is Pilotiko an ERP?
No. Pilotiko doesn't do accounting, payroll or purchasing. It covers online booking, real open slots, assignment proposed from calendars and workload, and internal reports on bookings, revenue and workload, all inside a virtual office. It does not replace an ERP or accounting software.
Frequently asked questions
What is the difference between ERP and PGI?
There is none in meaning. ERP is the English acronym and PGI (progiciel de gestion intégré) is the French term preferred by the OQLF. Both refer to the same kind of software.
Does an ERP include a CRM?
Often, but not always. The OQLF notes that CRM software can be an ERP module or a separate package. Check the module list before you buy.
Can an ERP be cloud-based?
Yes. Many ERP products are sold as software as a service: the vendor hosts the software and you access it over the Internet for a subscription. The OQLF actually cites management software as a typical example of software as a service.
At what size does a business need an ERP?
There's no official threshold. The need comes from complexity: inventory, multiple locations, lots of purchasing, or several systems that don't talk to each other. A small crew without inventory can often do without.
What does "integrated" mean in an ERP?
It means the company's functions share the same database. Something entered once, such as a job or an invoice, feeds every module without being typed again.
Sources
- Office québécois de la langue française (Vitrine linguistique), progiciel de gestion intégré (GDT) (accessed on October 15, 2026).
- Office québécois de la langue française (Vitrine linguistique), logiciel de gestion de la relation client (GDT) (accessed on October 15, 2026).
- Office québécois de la langue française (Vitrine linguistique), logiciel-service (GDT) (accessed on October 15, 2026).
- LégisQuébec, Act respecting the protection of personal information in the private sector (CQLR, c. P-39.1) (accessed on October 15, 2026).
Read next
What is CRM (customer relationship management)?
What CRM means, what CRM software actually holds, a follow-up calculation for a Quebec service business, and the privacy duties Quebec's Law 25 adds.
What is SaaS (software as a service)?
What SaaS means, how it differs from installed software, a three-year subscription calculation for a Quebec service SME and the contract traps to avoid.
What is an information system (IS)?
What an information system is for a small business: hardware, software and people, how it differs from IT, a quick inventory example and Quebec privacy duties.
What is an API?
What an API is: the contract that lets two pieces of software exchange data. Includes a worked example for a Quebec service SME and common mistakes.