What is an ERP System – And How Business Simulations Like RealGame Make It Easy to Learn
- RealGame Team
- May 26
- 3 min read
What is an ERP System?
An ERP system, or Enterprise Resource Planning system, is a type of software that integrates core business processes into one unified system. These processes typically include finance, supply chain management, manufacturing, human resources, customer relationship management (CRM), and more.
ERP systems are used by companies to improve data visibility, streamline operations, enhance cross-functional collaboration and productivity, and support data-driven decision-making. In today’s digital economy, ERP systems play a vital role in helping businesses scale efficiently and remain competitive.
Why Understanding ERP Systems Matters
Understanding how ERP systems work is essential for future business leaders, managers, functional experts, and IT professionals. These systems reflect the way real businesses function, emphasizing the importance of coordination, timing, and strategic thinking. However, teaching and learning ERP concepts can be complex without a practical, hands-on approach. Furthermore, the ERP applications used in companies are often way too complex and heavy for university teaching.
Teaching ERP Systems Through Business Simulations
Traditional classroom methods often fall short in conveying the dynamic nature of ERP systems. This is where business simulations come in. They provide an interactive environment where learners can experiment with different business decisions and immediately see the results. Instead of passively learning about supply chains, finance, or marketing, students actively run a simulated business where all departments are connected with each other but also with the supply and customer markets, just like in a real ERP system.
RealGame: An ERP System in a Nutshell
RealGame is a dynamic business simulation that acts as an ERP system in a simplified, educational format. It is designed to help students and trainees see how business operations evolve continuously over time and understand the impact of every decision they make.
In RealGame, participants manage a virtual company — purchases, inventory, production, sales, logistics, and finance. Each function affects the others, mirroring the interconnectivity found in real ERP systems. As decisions are made, participants instantly experience the outcomes, whether it's increased profitability or a supply chain bottleneck. In RealGame, processes trigger transaction-specific information on business events, just like real-world ERP systems. This digital trace data is also the basis for RealGame Business Intelligence.
Read how university educators integrate RealGame into their courses here.
Key Benefits of Learning ERP with RealGame:
Hands-on experience: Participants don’t just read about ERP—they use it in action and in interaction with the markets.
Immediate feedback: See the real-time consequences of decisions across business functions.
Team collaboration: Just like in real companies, functions must work together to succeed.
Big picture thinking: participants develop a holistic view of business operations and strategic planning.
Big data view on business operations: participants understand how a business triggers data and how it is applied in analysing business operations.
Why RealGame Works for ERP Training
RealGame simplifies the complexity of ERP systems without losing depth. It’s ideal for:
University courses in business, supply chain management, operations management, entrepreneurship, management accounting, and industrial engineering.
Corporate training programs for onboarding new employees and for training teams to pitch and catch, to align their input for a smoother process.
Workshops and seminars focused on process optimization and cross-functional collaboration.
By translating theoretical knowledge into practical skills, RealGame helps bridge the gap between isolated concepts and their real-world application.
Conclusion
ERP systems are the backbone of contemporary business operations. Teaching and understanding them effectively requires more than theory—it demands experience. Business simulations like RealGame provide a compelling, interactive way to understand ERP systems from the inside out.
Whether you're a university educator or corporate trainer, integrating RealGame into your program can empower learners to grasp the full scope of ERP and prepare them for success in the business world.
This post was prepared by the RealGame Business Simulations Team
RealGame provides real-time, interactive business simulations for business management, supply chain, logistics, entrepreneurship, operations, and data analytics. Our cloud-based simulations offer hands-on experience with real-world business scenarios, helping learners understand the direct impact of their decisions. Scalable for both online and onsite learning, RealGame bridges theory and practice, equipping participants with critical decision-making and problem-solving skills essential for today’s fast-changing business landscape.
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