If any organization wants to automate its business activities, the two most popular options that come to mind are ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management).
ERP and CRM are two different software tools that most businesses use to ensure that their operations run smoothly. We use ERP for connecting their financial and operational systems to a central database, whereas CRM is used to manage communications between the customers and clients of the organization.
Both ERP and CRM play a dominant role, can perform on multiple platforms, and sometimes they are combinedly used for one single business. Based on the necessity, a few business establishments can integrate this two software on a single platform.
In this blog, we can clearly understand the difference between ERP and CRM and also know when to use one of them.
What is ERP?
ERP stands for Enterprise Resource Planning and is a software system that helps manage your organization completely and includes financial, human resources, manufacturing, supply chain, services, procurement, and other activities. This software serves as a centralized system for streamlining all of an organization’s operations and information flow. The most popular ERP systems in the current market are Oracle ERP, SAP ERP, ERPNext, etc.
What is CRM?
Customer Relationship Management (CRM) is a kind of software that allows a company to engage with existing and potential consumers. This CRM software manages customer support while also automating and synchronizing sales. The purpose of developing such software is to feed and engage potential leads, helping the business improve its sales and overall performance. The most popular CRM software in the current market is Salesforce CRM, Monday Sales CRM, Pipedrive, and so on.
ERP And CRM Differences
ERP and CRM are not interchangeable terms. Even though they overlap and have common features, they are different software programmes. The main feature that these two technologies have in common is that they both focus on generating revenue, automating processes, and increasing productivity. Let’s take a closer look at the differences between ERP and CRM.
Conclusion:
CRM helps organizations to maintain long-term customer relationships. It helps to understand the client’s preferences and build trust.
ERP brings together multiple organization functional units so that they can easily share information and communicate with one another in real-time through a single computerized system.
Apart from the above differences, both software have one thing in common: they both strive to boost the company’s profitability. As needed, some organizations integrate both of these ERP & CRM software into a single platform.
