The software world, IT contracts, and marketing are full of abbreviations.
To make things a bit easier, we’ve prepared this glossary for you.
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AGBs – General Terms and Conditions
Standardized contractual terms that companies use for their business with customers. They govern topics such as liability, payment, or returns.
AI – Artificial Intelligence
Technologies where computers learn independently, recognize patterns, and make decisions—e.g., in chatbots or image analysis.
ANBU – Fixed Asset Accounting
Part of accounting that manages and depreciates all long-term assets of a company (machinery, buildings, vehicles).
APP – Application (Software Solution)
A program developed for a specific task—e.g., a smartphone app or a web application.
API – Application Programming Interface
Connects different software systems so they can exchange data and share functions.
APQP – Advanced Product Quality Planning
Methodology for early planning and assurance of product quality—especially in the automotive industry.
APS – Advanced Planning & Scheduling
Software for precise production planning, taking into account resources, capacities, and delivery dates.
ASP – Application Service Providing
Provision of software via a data center—users access it via the internet (similar to today’s cloud services).
ATP – Available to Promise
Function in ERP systems that checks whether products or materials can be delivered at a specific time.
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B2B – Business to Business
Business relationships between two companies, e.g., manufacturer ↔ wholesaler.
B2C – Business to Customer
Business model where companies sell directly to end customers.
BC – Business Central (Microsoft)
ERP system from Microsoft for small and medium-sized businesses.
BDE – Production Data Acquisition
Capture of production data such as quantities, run times, or machine states directly on the shop floor.
BI – Business Intelligence
Tools and methods for collecting and analyzing business data to support better decisions.
BPEL – Business Process Execution Language
XML-based language for automating and controlling business processes in IT systems.
BPM – Business Process Management
Holistic approach to analyzing, designing, and optimizing business processes.
BPMN – Business Process Modeling Notation
Standardized graphical representation of business processes (e.g., as a diagram).
BPO – Business Process Optimization
Measures to improve the efficiency of existing processes in a company.
BVD – Excise Tax
Tax levied on the consumption of certain goods, e.g., fuel or tobacco tax.
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CAD – Computer Aided Design
Software-supported design of technical products or blueprints on a computer.
CAQ – Computer Aided Quality Management
IT-supported quality assurance—e.g., through test plans, error analyses, and documentation.
CCU – Concurrent User
Indicates how many users are allowed to use a software system simultaneously.
CMS – Content Management System
Software for creating, managing, and publishing website content (e.g., WordPress, TYPO3).
CNC – Computer Numerical Control
Control of machines (e.g., milling machines) through numerical, computer-based commands.
COGS – Cost of Goods Sold
Term for the production costs of sold products—an important metric in accounting.
CRM – Customer Relationship Management
Strategy and software for managing customer relationships, e.g., contact management, sales, and service.
CRP – Capacity Requirements Planning
Planning of required production capacities in a company.
CSV – Comma Separated Values
Simple text format for data exchange, where values are separated by commas.
CTI – Computer Telephone Integration
Integration of telephony into computer systems—e.g., initiating calls directly from software or displaying customer data when the phone rings.
CTP – Capable to Promise
Advanced availability check that also considers production capacities.
CV – Curriculum Vitae (Resume)
Overview of a person’s professional career, education, and qualifications.
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DevSys – Development System
System environment where new software features are developed and tested before being transferred to the production environment.
DMS – Document Management System
Software for structured storage, management, and versioning of digital documents.
DRP – Distribution Requirements Planning
Planning method for the demand for goods and their distribution within supply chains.
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EDV – Electronic Data Processing
General term for the processing of information using electronic systems (computers).
EAI – Enterprise Application Integration
Integration of various enterprise applications to connect data and processes across systems.
EDM – Electronic Data Management
Management of electronic data—often synonymous with document management.
ECM – Enterprise Content Management
Holistic strategy and software for managing all corporate information and documents.
ERP / ERP II – Enterprise Resource Planning
Comprehensive enterprise software for planning and controlling finance, production, inventory, and personnel.
EDI – Electronic Data Interchange
Electronic data exchange between companies, e.g., orders or invoices.
EPK – Event-Driven Process Chain
Representation method for business processes, where workflows are described through events and functions.
ERM – Electronic Resource Management
System for managing digital resources—frequently used in libraries or IT environments.
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FDA – Food and Drug Administration
U.S. agency responsible for the approval and oversight of food, drugs, and medical products. Often relevant in IT projects for validation requirements in medical technology.
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GIS – Geographic Information System
Software for capturing, analyzing, and displaying geographic data—e.g., for site planning, logistics, or environmental management.
GDPdU – Principles for Data Access and Auditability of Digital Documents
Tax authority guideline requiring companies to maintain tax-relevant data digitally and make it auditable.
GoBS – Principles of Proper Computer-Aided Accounting Systems
Rules ensuring that digital accounting systems are traceable, complete, and accurate.
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HXML – Hypertext Markup Language (HTML)
Standard markup language for structuring and displaying web page content.
HRM – Human Resource Management
System or approach for managing HR processes—e.g., personnel administration, payroll, recruiting.
HACCP – Hazard Analysis and Critical Control Points
System for identifying and preventing risks in food production. Often part of quality management modules in IT systems.
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IMAP – Internet Message Access Protocol
Protocol for retrieving and synchronizing emails directly on the server. Allows access from multiple devices simultaneously.
IP – Internet Protocol
Fundamental network protocol responsible for addressing and transmitting data on the internet.
IS – Information System
IT system that captures, stores, processes, and provides information—e.g., an ERP or CRM.
IT – Information Technology
General term for all technologies that process, store, and transmit information—i.e., hardware, software, networks, and data.
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JDBC – Java Database Connectivity
Programming interface that allows Java applications to access databases and execute SQL queries.
JSON – JavaScript Object Notation
JSON is a lightweight data format used to exchange structured data between systems.
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KI – Artificial Intelligence
Technologies that enable machines to perform tasks requiring human intelligence—e.g., speech recognition, image analysis, decision-making.
KMU – Small and Medium-Sized Enterprises (SMEs)
Companies with limited employee numbers and revenue size that form the backbone of the economy. Many IT solutions are specifically tailored to SMEs.
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LAN – Local Area Network
A network that connects computers and devices within a limited area (e.g., office, building).
LIMS – Laboratory Information System
Software for managing, documenting, and analyzing laboratory processes and measurement results.
LLM – Large Language Model
An AI model that processes large amounts of text data to understand and generate human-like language (e.g., ChatGPT).
LVS – Warehouse Management System
Software for managing inventory, goods movements, and picking processes.
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MDA – Model Driven Architecture
Approach in software development where programs are designed model-based to increase reusability and maintainability.
MDE – Machine Data Acquisition
System for automatic capture of machine states and production data (e.g., run times, downtimes).
MES – Manufacturing Execution System
Software that controls and monitors production and links it in real time with ERP systems.
MIS – Management Information System
System for preparing data for company management—e.g., KPI reports or dashboards.
MRP / MRP II – Material Requirements Planning
System for planning material requirements to ensure all needed parts are available on time for production.
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NC – Numeric Control
Numerical control of machine tools through computer commands.
NDA – Non-Disclosure Agreement
Contract that obligates parties to maintain confidentiality of certain information.
NU – Named User
Designation for a software license tied to a specific person (as opposed to a concurrent user license).
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OCR – Optical Character Recognition
Technology for recognizing and converting text in scanned documents or images into digital, searchable text.
ODBC – Open Database Connectivity
Standardized interface that enables access to various databases regardless of vendor.
OLAP – Online Analytical Processing
Technology for fast, multidimensional data analysis—e.g., in controlling or reporting.
OLTP – Online Transaction Processing
Technology for fast, parallel processing of many small transactions, e.g., in booking or point-of-sale systems.
OOTB – Out of the Box
Designation for software that is ready to use immediately after installation—without major customization effort.
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PACS – Picture Archiving and Communication System
System for storing, managing, and transmitting medical image data (e.g., X-rays).
PDA – Personal Digital Assistant
Early form of mobile handheld computers; now replaced by smartphones.
PDM – Product Data Management
Management of all product-related data and documents throughout the entire lifecycle.
PEP – Workforce Scheduling
Software-supported planning of when and where employees are deployed.
PLM – Product Lifecycle Management
A holistic approach to managing the entire lifecycle of a product – from the initial idea through production to disposal.
PMS – Project Management System
Software for planning, controlling, and monitoring projects, tasks, and resources.
PPS – Production Planning and Control System
Software that plans, steers, and monitors manufacturing – usually in conjunction with ERP and MES.
ProdSys – Production System
A system used in live operations – the live environment that users work with on a daily basis.
WBS – Work Breakdown Structure
A hierarchical representation of all sub-tasks and work packages within a project.
PZE – Time and Attendance
A system for recording and evaluating employee working hours.
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QMS – Quality Management System
A systematic concept for ensuring and improving product and process quality within a company.
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RFID – Radio Frequency Identification
Technology for contactless identification and tracking of objects using radio chips.
ROI – Return on Investment
A key figure describing the ratio of profit to invested capital – essentially the profitability of an investment.
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SaaS – Software as a Service
A delivery model where software is used over the internet instead of being installed locally. The provider handles maintenance, updates, and operation.
SCPM – Supply Chain Performance Measurement
Measuring and evaluating supply chain performance using key metrics such as delivery time, costs, or inventory levels.
SCEM – Supply Chain Event Management
A system for monitoring and controlling events in the supply chain, e.g., in the case of delivery delays or transport problems.
SCM – Supply Chain Management
The entirety of all processes concerning the planning, control, and optimization of supply chains – from raw material procurement to final delivery.
SKU – Stock Keeping Unit
An individual storage or sales unit of a product – each variant (e.g., size, color) has its own SKU.
SLA – Service Level Agreement
A contractual agreement regarding the quality and availability of a service, such as response times or system uptime.
SMS – Service Management System
A software or process landscape for managing IT services according to defined standards.
SOA – Service Oriented Architecture
An IT architecture where software components communicate with each other as loosely coupled, reusable services.
SOAP – Simple Object Access Protocol
A standardized network protocol for exchanging structured information between systems over the internet.
SOX – Sarbanes-Oxley Act
A US law that establishes strict rules for financial reporting and IT controls in corporations.
SPC – Statistical Process Control
A method for monitoring and controlling production processes using statistical methods.
SQL – Structured Query Language
A standardized database language for querying, modifying, and managing data in relational databases.
SRM – Supplier Relationship Management
A system for managing and optimizing relationships with suppliers.
SWAP – Device Exchange
A procedure where defective devices are replaced with identical replacement units – often regulated in service contracts.
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TAPI – Telephone Application Programming Interface
An interface for integrating telephony functions into software applications.
TCO – Total Cost of Ownership
The total costs incurred over the entire useful life of an IT solution – including acquisition, operation, maintenance, and training.
TestSys – Test System
A system environment where new software or adjustments are tested before they go into production.
TOM – Transport Optimization and Management
Software for planning and controlling transport; often used synonymously with TMS.
TMS – Transport Management System
A system for managing, planning, and optimizing transport processes in logistics.
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EIS – Environmental Information System
An IT system for recording, analyzing, and reporting environmentally relevant data (e.g., emissions, waste management).
UML – Unified Modeling Language
A standardized modeling language for representing and planning software architectures and processes.
User – End User
The person who actually uses a software or system.
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VAR – Value Added Reseller
A company that distributes software or hardware while providing additional services or customizations.
VMI – Vendor Managed Inventory
Supplier-driven inventory management – the supplier independently monitors and manages the customer’s stock levels.
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WFM – Workflow Management
A system for planning, controlling, and automating workflows within a company.
WFO – Wharfage Origin
A logistics term; describes the origin or fee in connection with port handling costs.
WiFi – Wireless Fidelity (WLAN)
Wireless network technology that connects devices to the internet or to each other.
WAN – Wide Area Network
A wide-area network that connects computers and networks over large geographical distances.
WMS – Warehouse Management System
Software for controlling and optimizing warehouse processes and material flows.
WYSIWYG – What You See Is What You Get
A principle in editors: what you see during editing corresponds exactly to the final result (e.g., in website or form design).
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XPDL – XML Process Definition Language
A standard format for describing business processes for workflow management systems.
XML – Extensible Markup Language
A flexible markup language for the structured representation and transmission of data.
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EC Sales List – Recapitulative Statement
A report to the tax office regarding intra-Community supplies and services within the EU.
IT Job Titles – Explained Simply
CIO – Chief Information Officer
Responsible for the entire IT strategy and infrastructure of a company.
CTO – Chief Technology Officer
Leads technical development and innovation, e.g., in the area of software or product development.
COO – Chief Operating Officer
Responsible for the daily operational business of a company.
CFO – Chief Financial Officer
Leads finance, accounting, and controlling.
CEO – Chief Executive Officer
Managing Director or Chairman of the Board of a company.
EVP – Executive Vice President
Executive with high responsibility, usually directly below the board level.
VP – Vice President
Senior position, often responsible for a specific business area.
GM – General Manager
Managing director or head of a department or branch.
MD – Managing Director
Managing director or executive director, especially in an international context.