Configuration refers to the way parts of a system are arranged, set up, or customized so that the system works in a specific way for your business.

Simple definition:

Configuration is the collection of settings and options that determine how something operates.

More detail:

When you configure something, you are:

• Choosing how it should behave
• Setting parameters or values
• Enabling or disabling features
• Adjusting it to match requirements

In short:

Configuration is the process of setting up and tailoring a system so it works the way you need it to.