If you are part of a developing company, you have probably wondered what the difference between ERP and CRM is and which one is more suitable for your business. Although they have identical aspects, they have different functionalities. Their most significant resemblance is that they are the perfect helping hand when you want to increase your company’s productivity and income. What are the other similarities and differences we share in the article below:
The role of the ERP system
Enterprise Resource Planning (ERP) is business management software that aims to improve the performance, profitability, and productivity of a company. It offers key features to help you run your organization efficiently. Some of the most useful modules of the ERP system are related to the management of financial operations, sales, orders, projects, inventory, service, as well as production and operational processes.
Through the ERP system, you can carry out other activities, such as invoicing, budgeting, forecasting, deliveries, distribution, etc. All the information that you will need to make quick and right decisions is easily accessible in real-time, giving a complete overview of each department.
The role of the CRM system
Customer Relationship Management software (CRM) provides tools and technologies for servicing, retaining, acquiring new clients, and establishing a personalized approach to them. The system stores a complete history of your customer interactions – from signing contracts through communications, feedback collection, and evaluation given by them. In addition, CRM features allow you to conduct marketing campaigns and sales activities, as well as upgrade your level of service. It helps your merchants to upgrade their performance and improve their relationships with customers, suppliers, and partners.
When working with CRM, you will have ready-to-use tools for automatic analyzing of models and work processes. Requests and data are processed faster and more efficiently with the Customer service module. Moreover, you can automate activities related to planning, routes, employee engagement, and preventive maintenance using the function Field service.
ERP and CRM systems cover different areas of the company to increase revenue. On the one hand, the first assists in reducing costs, managing business operations, and ensuring more efficient use of resources. On the other hand, CRM focuses on increasing income by boosting sales. Another valuable purpose of the system is to help in tracking any interactions with your customers.
ERP and CRM are software that shares a common infrastructure for database storage. They can be implemented on-premises or SaaS (cloud technology). In the second option, the provider maintains the software in its data center, and your company has access to its information through the cloud. This kind of service provides an elevated level of security, giving the ability to work seamlessly, regardless of location. Other benefits of the cloud are the reduction of server maintenance costs and the elimination of the need to purchase and install additional hardware and software.
Tip: Learn more in a blog post about the benefits of cloud technology and the challenges of deployment in Dynamics 365 Business Central.
Which one does my business need?
Most advanced SMEs recognize the benefits of integrating both ERP and CRM. Software solutions can be integrated into a single platform, as well as separately, depending on the business’ needs. For example, a company with few customers and complex financial operations would focus on an ERP system. On the other hand, CRM is suitable for organizations with a large customer base.
Every industry requires the software system to include different modules, and the business needs an expert look related to efficiency improvement. If you are considering ERP or CRM integration, check out industry-specific solutions, as well as case studies from Intelligent Systems, or contact us.