Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) share common characteristics. As a result, these two are also sometimes interchangeably used.
The same software interface houses both of them and hosts in the cloud. You don’t have to pick between CRM and ERP.
What is CRM?
Customer relationship management software serves as an interface between a company and its customers. It combines formerly independent sales, marketing, and customer service roles. Salesforce is a household name in this area, but alternative CRM’s options have developed.
What is ERP?
Internal systems are allocated via enterprise resource planning software to facilitate a seamless workflow. It is the use of technology to perform critical business operations. ERP systems collect data from all areas of the business, from accounting to supply chain management. SAP S/4HANA and Oracle Netsuite ERP are two major contenders in this space.
CRM’S and ERP complement each other. CRM’S is the system that interfaces with customers, whereas ERP is concerned with the organization’s internal processes.
Why Your Business Needs CRM and ERP both?
All enterprises ultimately require both types of software solutions. You must monitor your company’s internal operations, such as finances and procedures, and its exterior processes, such as customer acquisition and retention.
Because they deal with similar data, several companies combine CRM’S and ERP features into a single comprehensive platform.
The Difference Between the Two!
CRM’S and ERP employ various ways to reach the same ultimate goal, which is to increase revenues. CRM’s primary goal is to increase profitability as a result of increased sales volume. ERP focuses on lowering overhead and lowering costs, and by making business processes more valuable, ERP reduces the amount of money invested in those processes.
Companies are still debating which system to deploy first to maximize their growth. Both have distinct advantages, but most businesses need to grow sales and profits, leading to a CRM’S system. On the other hand, an ERP Software drives business by providing specific and accurate data across departments.
Businesses must profit to minimize costs, and business procedures are only viable when sales revenue is stable. Finally, most enterprises require both CRM’S and ERP. Why? A CRM’S system promotes sales, but an ERP system fosters business growth.
As a final observation,
ERP is a multifunctional tool, whereas CRM’S is solely a sales automation tool. CRM’S can be integrated into the ERP as a module or sold separately by the same vendor.
Contact Connected IT if you require a turnkey CRM or ERP solution for your company. We will put together a team of top specialists who can do the assignment quickly and easily. We will create you a personalized CRM or ERP utilizing the most recent ERP implementation technique.