CRM vs ERP: What’s the difference that you must know?
by A. Waqas
Primarily known as different sides of the same coin, it would be vital defining both the CRM and ERP first. CRM is derived from Customer Relationship Management and it includes various aspects of creating a better relationship with the clientele. These aspects involve the collection of data, analyzing the data, examining the clients’ wishes, creating marketing and sales strategies. Globally known services like 24/7 online customer support, voice response phone application and automated chat services are the products of the same approach.
ERP focuses on the Enterprise part of the business and it has nothing to do with the client side. It emphasizes upon enhancing the productivity of the profit-making processes inside the Enterprise. It deals with interconnecting different units and their duties to bring the best possible results for the organization. As the employees can update all the information on the ERP the company gets a heads up whenever a problem occurs. Not only the problem can be identified swiftly with this approach but the information regarding the department having an issue is also available instantly.
Practical Differences between CRM & ERP
Although the key difference has already been discussed above it is not the only one when it comes to CRM vs ERP. There are multiple dissimilarities observed after the practical implementation of both the solutions which are explained below:
- CRM deals with all the data regarding clientele to provide better customer relationship guidance. On the other hand, ERP deals with various transactions within the enterprise.
- CRM can be a part of ERP as the latter deals with data accumulated from multiple resources inside the enterprise that includes CRM, SCM, and HRM.
- ERP primarily provides cost reduction while CRM deals with sales enhancement.
- You can automate customer service with CRM and ERP would aid you in automation of employee life cycle.
- CRM helps you to sell as one team while ERP provides you better handling of payroll and better project planning.
CRM or ERP
Well if you are concerned about just improving sales and marketing procedures in your organization you should go with a CRM solution. While if you want to streamline your HR, accounting, inventory and supply chain procedures ERP could be the answer. The choice depends whether you need more help on the customer side or the business side.
CRM & ERP
Every business needs streamlined process and constant flow of cash through sales in order to thrive. The CRM attracts more profit with the help of better sales figure while the ERP aims to reduce the overall cost of the operational process. Dealing with CRM vs ERP as CRM & ERP would be much beneficial for an organization. The integration of CRM and ERP is a popular trend these days. Both of them are necessary for an organization to flourish through expansion and efficiency.
The integration would maximize the output on both the client and enterprise side. The information present on both the platforms is vital for the employees to make better decisions based on actual data. A sales representative could miss important sales information without the CRM and if the sales information is not directed to the accounts or production department without the ERP it could lead to a mess. The integration ensures a proper channel for data distribution between all the departments of the enterprise. If you have any confusion regarding CRM, ERP or their integration we would be delighted to help at Tech Implement where we are working for our customers’ satisfaction throughout the day. Let’s have a chat to cater your needs.
June 6, 2018