CRM or ERP

1/24/17 12:55 AM

Many prospective buyers ask for the difference between those two words. While either product can work well on its own, their true potential is realized only when full ERP and CRM integration is achieved. But since their core functionalities are completely different, it’s best for a business to first look at them as separate, stand-alone systems.

What is CRM?

Customer Relationship Management (CRM) is a strategy for managing all your company's relationships and interactions with your customers and potential customers. The other main functions of CRM include automating various workflow processes such as tasks, calendars and alerts, and giving managers the ability to track performance and productivity based on information logged within the system.

What is ERP?

ERP stands for Enterprise Resource Planning . Think about all the core processes needed to run a company: finance, HR, manufacturing, supply chain, services, procurement, and others. At its most basic level, ERP integrates these processes into a single system. But new ERP systems are anything but basic. They provide visibility, analytics, and efficiency across every aspect of a business. Using the latest technologies, ERP systems facilitate the flow of real-time information across departments, so businesses can make data-driven decisions and manage performance – live.

What’s the difference?

In general, most ERP systems will have CRM components, or the ability to integrate with a third-party CRM system. However, CRM components of ERP systems will not be as fully featured as best-of-breed or standalone CRM platforms.

Most CRM in ERP will offer marketing and sales force automation but these ERP systems might lack features such as call center support, community management or social media management.

CRM or ERP or Both?

If you’re just looking to improve your sales and marketing processes, and you’re happy with the software you’re using for things like accounting and human resources, then you probably just need a new CRM system.On the other hand, if you’re looking to overhaul all of the software your business is using, then you should consider investing a new ERP system.