Technology has given companies the ability to streamline processes, analyze data in real-time, foresee events and plan for the future. Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) software, are two of the most commonly used technologies companies use to gain a competitive advantage in today’s market.
While they both might seem similar, ERP and CRM software have distinct differences. Understanding these differences and knowing which system and features your business needs and at which point, may be critical to the success of your business. In this article, you will learn about both software solutions and their differences.
What is Customer Relationship Management (CRM) Software?
The primary job of CRM software is to help you manage and interact with your customers. It can store customer data, gather information and forecast customer trends. Since it manages customer information, CRM software is very useful for sales and marketing departments as it helps them build deeper relationships with the customer and in turn, helps increase customer loyalty and revenue.
Some of the benefits of using CRM software are that:
- They provide a unified view of customer information easily accessible by all departments in an organization.
- They help to automate some marketing tasks like report generation, which frees up time for your sales department to close leads.
- They help to improve customer service by keeping better track of customer preferences, purchase history, etc.
- They help to provide better analysis and reporting using customer data and customized reports.
What is Enterprise Resource Planning (ERP) Software?
ERPs are usually extensive software suites that allow you to better manage all other aspects of your business' operations. Integrated ERP software provides you with vital analytics and data in real-time for all departments. It can assist with:
- Manufacturing and Delivery
- Purchase Planning
- Inventory Management
- Warehouse Management
- Shipping and Billing
- Supply Chain Management
- Accounting
- Customer Relationship Management
Some of the benefits of ERP software include:
- Increased oversight of the business due to increased visibility across departments.
- The automation, streamlining and centralization of processes.
- Increased productivity due to improvements in the quality of the data available to complete tasks.
- The creation of a single point-of-contact through the integration of separate business functions .
- Easier allocation of resources for more efficient task completion.
CRM vs ERP: What’s the Difference? Which to Choose?
So, what are the actual differences between the two systems and how do you know which one you should choose? In general, CRM systems are more focused on optimizing front-end processes, while ERPs are more focused on streamlining back-end processes. ERP software helps to reduce cost by cutting overheads and decreasing the amount of investment required. While, CRM software helps you increase profits through larger sales volume. ERP software is often more extensive, and most contain modules for CRM components, or can integrate with third-party CRM systems.
The system you should select will depend on your business' requirements at the moment. If your goal is to improve sales and marketing, but you are happy with your other processes like accounting or HR, you should look for new CRM software. On the other hand, if you find that multiple processes and departments within your organization are in need of revitalization, and are looking for an overhaul to be more agile, ERP systems might be more suited for you.
ProV is an award-winning partner with IFS (Industrial and Financial Systems), a leading global provider of Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM) and Field Service Management (FSM) software. IFS Applications for Enterprise work by leveraging their state-of-the-art core technology- IFS Applications. By investing in a complete ERP suite like IFS ERP, you will be able to streamline all your departments from a single source instead of having to maintain disparate and incoherent systems.
ProV offers some of the best IFS Applications pricing and provides best-in-class services for IFS implementations, IFS software support, and IFS customizations. To learn about how we simplify technologies for businesses like yours, visit our Resource Library. To get started on your ERP journey, request a FREE Consultation today.
