ERP AND CRM WHAT IS THE DIFFERENCE
An enterprise resource planning (ERP) is a set of software modules primarily used to help companies manage their finances and resources to control costs and meet company goals. A customer relationship management (CRM) software helps companies manage the sales cycle and customer experience. In this guide, we will go over each system, including their definitions, costs, key features, differences, and when companies should ideally use them.
Customer relationship management (CRM) and Enterprise Resource Planning (ERP) are two options for companies looking to simplify and improve their business processes. Both are enterprise software solutions that connect data across multiple departments and automate manual, time-consuming tasks. CRM systems support and connect front-office business functions, such as marketing, sales, advertising, and customer service. ERP systems, on the other hand, primarily support and connect back-office functions, such as finance, supply chain operations, and HR.
Key Takeaways CRM and ERP are both software solutions that drive business value by centralizing and connecting data and automating processes.
CRM automates customer interactions and insights, while ERP automates business processes and operations. CRM and ERP systems deliver improved business efficiency and productivity when integrated.
CRM vs. ERP: Understanding Key Differences
CRM and ERP systems both help businesses increase productivity, improve automation, and boost revenue generation. The main difference between the two is that ERP software is primarily used for financial data and operations, and CRM software is used on the sales and customer service sides of the business. Whereas ERP systems primarily support back-office functions (such as accounting, procurement, HR, and compliance), CRM supports front-office functions (think marketing, sales, and service).
Many ERPs contain CRM features, but CRMs do not contain ERP features or handle transactional data. Both CRM and ERP are critical components of a successful business IT system, and one cannot replace the other.
How To Decide if You Need an ERP or a CRM
If your company goals center around streamlining your production, financial and inventory management, an ERP system is your strongest choice. If, however, you need to close more sales by locating, attracting, evaluating and engaging leads while also building positive customer relationships that induce repeat purchases, of the two, a CRM is the best solution.
Clearly, deciding whether you need an ERP or a CRM comes down to the primary goals of your company. In the end, however, you may find that you need both. Oftentimes, companies must manage financials and streamline operations while also having a full suite of tools to close first and repeat sales. If this is the case for your company, it is best to implement an ERP and a CRM system, then integrate the two to work together.
