How different is CRM from ERP?

Use Cases 
April 18, 2022
How different is CRM from ERP?

Investing in ERP or CRM software for your business requires a solid foundation of knowledge about how the systems work, how they integrate, and how they can improve productivity tremendously. 

All ERP or CRM systems are designed to improve your operational productivity, precision, and communication. Keeping your information in a single system rather than scattered across multiple platforms provides an additional layer of security.

Additionally, ERP and CRM tools free up a significant amount of time for your sales staff when it comes to data reporting. In terms of financial data as well as sales performance measures, both systems produce timely and accurate reports. But how are they different and which one is the best for your business? 

What is a CRM?

CRM systems collect and centralize information about all of a customer's interactions with a business. So, is CRM an ERP system? It's a lot like the other one, but it serves different purposes.

CRM systems focus on front-end processes and customer service. CRM is built on the automation of the sales force, just as ERP relies on financial and production planning as its foundation . Despite the fact that both systems rely on contacts, companies, and orders, they operate in various contexts. 

Building customer profiles, automating marketing campaigns, building out self-service features, and tracking sales are just a few of the CRM software benefits. CRMs also make it simple to integrate departments that have direct contact with your customers.

Concrete data from "done deals" such as customer addresses, orders placed, and contracts signed are all that ERP users care about. The SFA user, on the other hand, focuses primarily on things that aren't yet true: potential customers, potential customers' companies, potential customers' orders.

Because this software is integrated, the amount of data redundancy is reduced, making it a significant advantage. Standardized processes, procedures, and documenting are all provided by the software, which is common in the industry.

Defining ERP

When it comes to improving the profitability, productivity, and performance of an organization, enterprise resource planning (ERP) is a fully-compact business management software solution. ERP software gathers data from various company departments, including financial reporting, production, brand management, revenues, supply-chain management, and human resources, and stores it in a single database. 

Sharing data and improving intrinsic processes and systems is made easier by this tool. As a whole, ERP systems look at the company. Order processing, tracking of production and distribution networks, inventory management, and a host of other tasks can be made easier with ERP software. 

Data from different parts of the organization is gathered, integrated, and communicated both internally and externally through the use of computerized software. Purchasing, sales, production, HR, services, and inventory management are just a few of the aspects of the business that ERP can help integrate to make things run more smoothly and efficiently.

Which software is the right one for your business?

Customers, companies, and orders are all handled by both ERP and CRM systems, which have a lot of overlap in terms of their scope and scope of work. CRM systems are used primarily by sales and support organizations, which are customer-centric but do not actually produce or fulfill orders. 

ERP users, on the other hand, are factory supervisors, production coordinators, purchasers, supply chain and finance managers who are concerned with the logistics of generating the widgets. 

For the uninitiated, CRM and ERP are two different types of software programs that manage various aspects of an organization's business processes. In order to maximize efficiency, effectiveness, and economy, an enterprise's resources must be carefully planned.

Because they work at different speeds, the ERP and CRM users don't get to know each other and don't see each other's products as useful to them. People who are responsible for data processing, integration, or predictive analysis are the only ones who should have access to both the CRM and ERP systems.

Many businesses are unsure of which system to integrate first in order to achieve maximum growth. Choosing between them can be difficult due to the fact that each has distinct advantages. Increasing sales and profit necessitates the use of a CRM system in order to grow.

However, ERP systems drive the business with inter-departmental data that is precise and accurate. Organizations need to be profitable before they can start cutting costs. Furthermore, a company may be extremely well-run but still be unable to sustain itself financially. Consistent sales revenue is required to support business operations.

Conclusion: Maintaining a long-term relationship with customers is made easier with Customer Relationship Management. Knowing your customers' preferences and building trust are also important aspects of your business.

Meanwhile, in an ERP system, the diverse operational units of an organization are brought together in a solitary computerized system so that they can readily share information and interact with each other in real time. 

Deciding which system out of these will depend on your requirement. However, businesses looking to manage prospective and existing customers, CRM systems like OneHash CRM do just that and more. With the World’s 1st FaaS (Foss-as-a-service), boost your sales unlike any other.