Knowledge base

Glossary for business decision makers

Plain-language definitions of IDP, CRM, ERP, API, security and process terms in one place. Search or filter by topic.

API

Application Programming Interface

The standard way two systems exchange data. A good API lets your team (or another vendor) plug in a new solution without involving the original vendor.

Industry examples
  • E-commerce: Shopify pushes orders into the ERP via API with no manual export.
  • Banking: PSD2 bank statements flow into accounting automatically.

Audit trail

A chronological record of who changed what, and when, inside a system. Essential in finance, insurance, healthcare and public-sector solutions.

Industry examples
  • Finance: Auditors see the invoice was extracted by AI and approved by a specific clerk.
  • Public sector: All decisions on grant applications are time-stamped and recorded.

Batch

Processing in groups (e.g., once a day) instead of real time. Cheaper and easier to audit; fits finance and month-end close processes.

Industry examples
  • Finance: Month-end close runs as a nightly batch — audit sees one complete bundle.
  • Payroll: Payroll is calculated in a single run once a month.

Chart of accounts

The structure of accounting accounts in the ERP. Any change (new GL code, tax category) ripples through every integration that posts financial data.

Industry examples
  • Finance: Adding a new expense category means the IDP integration must be retuned to post invoices correctly.
  • International group: A parent unifies the chart of accounts across countries — the change touches 10+ integrations.

Compliance

Adherence to legal, regulatory and security requirements (GDPR, ISO 27001, NIS2, industry rules). In AI projects it usually decides where data may be stored.

Industry examples
  • Banking: Customer documents must stay in the EU — so EU-region cloud or on-premise is chosen.
  • Healthcare: Patient data is used with AI only after pseudonymisation.

CRM

Customer Relationship Management

The system that stores customer information, sales opportunities and communication history (e.g., Salesforce, HubSpot, Microsoft Dynamics 365, Pipedrive).

Industry examples
  • B2B services: Sales sees the full client history before a meeting.
  • Retail: Loyalty segments are pushed into email campaigns.

ERP

Enterprise Resource Planning

Enterprise software that consolidates finance, inventory, procurement, manufacturing and HR in one place (e.g., SAP S/4HANA, Oracle NetSuite, Microsoft Dynamics, Odoo).

Industry examples
  • Manufacturing: A production order automatically reserves raw materials in the warehouse.
  • Distribution: Purchase order + vendor invoice + payment all in one record.

GDPR

General Data Protection Regulation

EU regulation on personal data protection. Governs how personal data may be collected, stored, transferred and used — including inside AI solutions.

Industry examples
  • HR: CVs in the ATS are auto-deleted after the agreed retention period.
  • Retail: On request, all customer data is exported and erased within 30 days.

Human-in-the-loop

A process where a human approves or corrects the AI's decision before it is committed to a system. Used for uncertain cases (e.g., when AI confidence is <80%).

Industry examples
  • Insurance: Large claims are always approved by an expert; small ones are decided by AI alone.
  • Finance: Invoices above a set threshold are routed to a manager for approval.

IDP

Intelligent Document Processing

An AI solution that automatically extracts structured fields from documents (invoices, contracts, waybills, forms) and feeds them into business systems. Replaces manual data entry.

Industry examples
  • Finance: Vendor invoices flow from PDF straight into the ERP without a clerk keying them in.
  • Logistics: CMR and customs declarations become a WMS record automatically.
  • Insurance: Claim documents are classified and routed by claim type.

LLM

Large Language Model

A large language model (e.g., GPT, Claude, Gemini) trained on massive text corpora. Used for document understanding, generation, classification and AI agents.

Industry examples
  • Customer service: AI answers recurring questions from an internal knowledge base.
  • Legal: Contracts are compared with a standard template and deviations are flagged.

MCP

Model Context Protocol

A 2025 standard that lets an AI agent securely connect to business systems (CRM, ERP, document archives) and take rule-bound actions on its own.

Industry examples
  • Customer service: An AI agent checks order status in the ERP itself and replies to the customer.

Middleware / iPaaS

Integration Platform as a Service

An intermediate software layer that connects multiple systems and keeps integration logic in one place (MuleSoft, Workato, Azure Logic Apps, Boomi, n8n). Prevents the "spaghetti" code that appears once a document must reach several systems.

Industry examples
  • Manufacturing: A vendor invoice lands in the ERP, document archive and BI in one go.
  • Healthcare: Patient data syncs safely between reception, lab and billing.

OCR

Optical Character Recognition

Optical Character Recognition turns images or PDFs into machine-readable text. It is only the first step of IDP: OCR recognises characters, while IDP understands the document's meaning.

Industry examples
  • Retail: Receipts are scanned for the returns process.
  • Manufacturing: Drawing title blocks are read into the PDM system.

Orchestrator

The component that drives the flow: where and when to route data, what to do on error, how to retry a failed step.

Industry examples
  • Logistics: If the customs system is down, the request is queued and retried in 10 min.

Platform Events

Salesforce

A Salesforce mechanism that lets other systems react in real time to changes inside the CRM (e.g., when a user corrects a field extracted by AI).

Industry examples
  • B2B sales: When a rep edits a deal amount, the forecast in the BI system refreshes automatically.

PoC

Proof of Concept

A limited initial project that proves an AI solution works with your real data. Typical duration: 4–8 weeks.

Industry examples
  • Finance: A PoC with 500 real invoices proves accuracy before company-wide rollout.

Queue

A component that buffers requests and releases them at a controlled pace so the receiving system's rate limit or load is not exceeded.

Industry examples
  • Retail (Black Friday): An order surge is released into the WMS at a controlled pace so the warehouse keeps up.

RAG

Retrieval-Augmented Generation

An architecture where the AI retrieves relevant documents from your internal knowledge base before generating an answer. Lets the AI rely on real company data instead of hallucinating.

Industry examples
  • Manufacturing: An engineer asks AI about a procedure — the answer cites the specific ISO instruction.
  • Finance: AI answers auditor questions grounded in the current internal policy versions.

Rate limit

A cap a system sets on how many requests per minute/hour it accepts. Exceed it and requests get rejected — that is why a queue is needed to smooth the stream.

Industry examples
  • B2B SaaS: HubSpot only allows 100 requests per 10 sec — beyond that you need a middleware layer.

REST API

The most widely used API style on the web. Works with simple HTTP requests. In pull mode your system asks for data on its own schedule.

Industry examples
  • Finance: Accounting pulls the day's processed invoices from the IDP platform overnight.

ROI

Return on Investment

Return on investment — how many € come back per € invested. In AI projects measured in hours saved, errors reduced and faster closing cycles.

Industry examples
  • Finance: Month-end close shortens from 8 to 3 days — a measurable value for the board.
  • Retail: Returns from wrong orders drop — direct margin impact.

RPA

Robotic Process Automation

Software bots that follow rules and mimic clicks on a screen (e.g., UiPath, Power Automate). Often paired with IDP: IDP reads the document, RPA enters the result into systems that lack an API.

Industry examples
  • Logistics: A bot re-keys data into an older customs system that has no API.
  • Accounting: A bot moves data between a bank portal and a legacy ERP.

SAP Integration Suite

SAP's official integration layer. Without it, third-party systems cannot safely write into SAP S/4HANA — which is why SAP integrations are always pricier than other ERPs.

Industry examples
  • Enterprise manufacturing: An IDP platform posts vendor invoices into S/4HANA through SAP Integration Suite, not directly.

SLA

Service Level Agreement

A service-level agreement fixing incident response times, resolution deadlines and system availability. Without an SLA a vendor has no formal commitment.

Industry examples
  • E-commerce: 99.9% uptime is guaranteed — otherwise peak-hour orders break.
  • Manufacturing: An MES incident must be picked up within 1 hour so production keeps running.

Vendor lock-in

A situation where company data, processes and integrations are so tied to one vendor's platform that switching becomes technically or commercially prohibitive.

Industry examples
  • Retail: All loyalty logic lives in one CRM — switching would be a 6–12 month project.

Webhook

An automatic notification one system pushes to another the moment an event happens (e.g., an invoice has been processed). No waiting, no polling.

Industry examples
  • Logistics: When the carrier marks a delivery, the customer instantly receives an email.
  • Retail: A Stripe payment instantly reserves stock in the WMS.

Webhook signature (HMAC)

A cryptographic signature added to a webhook by the sending system. Lets the receiver verify the message came from the expected source and was not modified in transit.

Industry examples
  • Payments: Stripe webhooks without a valid signature are rejected — protecting against forged notifications.

WMS

Warehouse Management System

Warehouse management software handling receiving, locations, picking and dispatch. Typically integrated with the ERP and e-commerce platform.

Industry examples
  • E-commerce: A Shopify order becomes a pick task in the warehouse within seconds.
  • 3PL logistics: Goods of different clients are managed in one WMS with separate accounting.

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