Difference Between ERP and CRM

The crucial difference between ERP and CRM is that the ERP systems do not directly communicate with the customers but CRM systems require direct interaction with the customers. However these systems functioning may correspond, but they work in the different domain. The ERP contains a vast amount of structured data which can be handled easily while CRM can hold unstructured text. A CRM software can be considered as the subsystem of ERP.

Content: ERP Vs CRM

1. 1. Comparison Chart
   2. Definition
   3. Key Differences
   4. Conclusion

Comparison Chart

Basis for comparison	ERP	CRM
Stands for	Enterprise Resource Planning	Customer Relationship Management
Basic	Focuses on the business processes.	Focuses on the customers.
Example	SAP ERP	Microsoft Dynamics CRM
Appropriate for	Large business	Small business with few division
Implementation	Time-consuming and costlier	Installation requires less time and cost
Data migration	Quite difficult	Easy and Fast

Definition of ERP

The advancement in technology gave rise to the business environments where each day the companies and organizations are scaling up and making new customers. This also upsurged the requirements of the users or customers, employees working in different departments and levels, which must be fulfilled in order to gain customer satisfaction and proper functioning of an organization which ultimately results in higher market opportunities. So, for managing business activities such as accounting, inventory, human resources, supply chain, an ERP (Enterprise Resource Planning) software is developed.

ERP is said to be highly data driven as it integrates the data processes and of the entire organization to a combined system. ERP is a real-time multimodule application software, which enables the real-time monitoring of business specific processes, for example, production, planning, manufacturing, inventory management, etcetera. It is a cost-effective way for business management.

Benefits of the ERP

• Provides easy management.
• Assist strategic planning
• Automated data collection result in enhanced efficiency.
• Helps in reducing the overall cost and risk and enables business growth.

Definition of CRM

The CRM (Customer Relationship Management) software provides an interface for the interaction of business to the customers. The term customer relationship management signifies that how the interaction between customer and business is governed. CRM involves the accumulation of intelligence to provide improved services to the customer.

It facilitates automating and optimizing the customer-specific functions such as sales, marketing, support and service. The software is used to track down the customer information across different departments, tacking leads, building marketing campaigns and housing information for the new customers. CRM is a considered as front office work.

Benefits of the CRM

• It helps in creating a better relationship among customers.
• Enhance the ability to cross-sell and increases the profitability.
• Improves team collaboration.
• The clients are immediately served which results in greater customer and staff satisfaction.

Conclusion

The ERP and CRM softwares are mainly used as the integrated management system for all the departments and operations regarding the company. These software systems can be differentiated by the fact that the ERP software focuses on the logistics and processes. Conversely, the CRM manages the sales and customer related queries.