We will describe the differences between ERP vs CRM before defining ERP and CRM. ERP or Enterprise Resource Planning is a software system consisting of different business management modules. ERP vs CRM is used to increase profitability. You can think of it as one extensive database comprising financial management, accounting, purchase management, human capital management, Customer relationship management, project management, warehouse management, business intelligence, and sales management, among other modules. A business selects the modules to add to the ERP software to boost productivity, profitability, and efficiency.
CRM refers to Customer Relationship Management. It is a type of software program that businesses use to scrutinize and manage customer interactions and data all over a customer lifecycle. They use this tool to enhance customer service relationships. A CRM software program can collect customers’ data across various contact points between a business and a customer. Concerning ERP vs CRM, all business departments require ERP, while the sales and marketing team mainly needs?CRM. Each communication between a business and a customer enters into the CRM database for future retrieval. Besides capturing details of every customer, A CRM program can help a business design or identify the most desirable products and services.
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After defining ERP vs CRM, next, we will describe the differences between ERP software vs CRM. These two are essential business management software tools but are they different? ERP vs CRM is used to increase profitability. ERP vs CRM integration so crucial The following are the main differences between them:
An ERP system can have as many functions and modules as a client wants. However, some of these are critical and commonly included during ERP implementation. Features of an ERP vs CRM are more holistic in terms of the business as a whole. As you will see in the functions indexed below.
As you can see, you should not confuse ERP vs CRM software because CRM can be a part of ERP.
A single Customer Relationship Management program can have as many as 30 features. All businesses don’t need all of these features. The most important and common ones are:
These ERP and CRM systems have several benefits in the way they help manage company processes.
Let’s take a look at ERP vs CRM benefits:
By implementing ERP, a company can note some advantages. These are:
A cloud CRM is a customer relationship software program that exists in the cloud. Therefore you can access it anytime as long as you have an internet connection and a browser. ERP or CRM can be on the cloud; it is your choice. Advantages of using a CRM cloud system include:
When deciding between CRM vs ERP applications, it can be easy to determine the one you want based on if it is in the cloud or not. First, if you can afford to install cloud ERP, then do it and ensure that you include a CRM module. A standalone CRM is fine, but it cannot compare to an ERP already in the cloud in terms of benefits.
Your sales team can access this type of CRM at the office only. This is not the case for a team that is using Cloud ERP with a CRM module. They will always access it no matter where they are as long you have an active Wi-Fi hotspot.
In this section, we want to describe the similarities between the ERP & CRM systems. Are they even related to each other? The answer is yes. The main similarity between the systems is that CRM is a common component of ERP. While a separate CRM module in a whole ERP system can’t be as robust as a standalone CRM software tool, it still works. It will generally lack some standard features found in a standalone CRM system. If present, the features might be brief.
Yes, ERP and CRM integration is possible. This can allow you to have a single software system that can manage every other business process plus sales. What we mean by integration is that standalone CRM software is connected to an ERP to ensure that they work together as one system.
Customer Relationship Management is a unique business function that deals with sales activities. As software, CRM can stand alone or be merged with ERP. When integrated with ERP, CRM is one of the five most important features of an Enterprise Resource planning system.
So far, you understand the meaning of ERP and CRM. When these are combined with SCM, do they even work? SCM refers to Supply Chain Management. This is a critical business function, especially for distributors and wholesalers. It is possible to have ERP systems that have a Customer Relationship Management module and a Supply Chain Management module. Each component will enhance your employee’s work. You can hire an ERP CRM SCM software company to help you carry out the complicated integration task.
As a distributor, you want activities per distribution channel to be quick and error-free. You can do so by obtaining CRM software. This can be a separate tool, or it can be a part of your ERP. If you already have distributor ERP software, the easiest way to have CRM is to add it as a module. If you don’t have ERP and cannot afford it right now, you may be best buying the CRM software alone.
The choice to invest in a CRM, ERP, or both will depend on the requirement of your company. A business with a small number of high-value customers and complex financials should invest in ERP Software.
You don’t need both software systems if you have a customizable ERP and your sales function is manageable. However, if you run a large business with global networks, your sales activities might require a Standalone CRM software program for robust management. If you cannot afford either, there are ERP CRM open source tools for you.
When making ERP CRM cloud decisions, you have to be careful. Will you deploy ERP or CRM software? If you want both, then you can either have software run separately or add CRM to ERP. When it comes to cloud CRM vs. Cloud ERP, you should know the best option based on your needs and financial ability. As a small business, you should probably postpone ERP installation and implement the cheaper cloud CRM. As a medium-size or large-scale business, you should either integrate ERP and CRM or run each software tool separately. Considering all things, running an ERP on the cloud will be more beneficial because it includes several business functions.
So far, you know the difference between CRM and ERP systems and the similarities as well. You also understand that you can either use an ERP system with a CRM module or use CRM independently. If you are a distributor, you can have ERP with supply chain management and customer relationship management modules. What you require to succeed is an ERP CRM consultant to help you select and install the best software for your organization.