The ERP system is now an essential part of a business as it helps in timely regulating the requirements of business by centralizing all the information at one place. This paper studies the impact of ERP system over the business showing the importance of its implementation. The enhancement in relation to timely processing the needs of the business and the fulfillment of the communication gap within different departments of a business are also exhibited in this paper. A comparison is made between the traditional method and modern ERP system in order to present the benefits and drawbacks of the ERP system. Different parts of ERP system such as HRM, CRM, SCM, business intelligence, inventory system management as well as financial management are studied and presented to know its impact over the business. This paper also exhibits the progress in the ERP system by presenting the work of different researchers who gave their time and work through their researches since past few decades.