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Enterprise system software is a multibillion-dollar industry that produces components that support a variety of business functions. IT investments have become the largest category of capital expenditure in United States-based businesses over the past decade. Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.
The ERP system is considered a vital organizational tool[by whom?] because it integrates varied organizational systems and facilitates error-free transactions and production. However, developing an ERP system differs from traditional system development.[4] ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository