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
|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.
Key Differences Between ERP and CRM
- In ERP software the emphasis is on business processes while CRM software concentrates on the customer and sales related processes.
- The SAP is an example of ERP. As against, Microsoft Dynamics CRM and Salesforce are examples of CRM.
- ERP is implemented in a large business organisation. In contrast, CRM is suitable for small businesses having fewer divisions.
- Among both software, the ERP is time-consuming and expensive whereas CRM requires less cost and time.
- Data migration in ERP is quite difficult because of a huge amount of data. On the contrary, in CRM it is fast and simple.
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.
Jitendra Raulo says
awesome article. It helped me a lot..!