ERP and CRM systems: Main differences

ERP and CRM systems: Main differences

Working under business automation starts from choice between ERP and CRM types of software. The main differences are in the assigned tasks. CRM mostly directed on interaction with client while ERP’s field of work is much wider. Lets define the main features of each type so that you could choose what exactly needed in certain case.

Key features

The main purposes of CRM software are:

  • collecting customer information;

  • creating of databases with all necessary for further work data;

  • automating of part of sales process;

  • improvement of communication between company and customer.

ERP systems have much wider field of usage. Mostly with such soft allows higher efficiency of different divisions of company and reach higher sales.
Enterprise can use standard program settings to adjust it for certain specificity.
ERP system could be implemented on of three ways:

  • accept business processes which are pre-build in software;

  • adapt software for current business processes;

  • set up software for specificity of current business processes.

Differences and mutual work

It is impossible to compare those two systems directly because of such different approach. In fact, ERP and CRM do not intersect at all. First one does’t work with clients at all as it’s main task is about internal resources management. If we are talking about CRM, you should know that CRM is optimizing internal links of enterprise.

If to look on ERP systems evolution, it is possible to talk about globalization. With time, such software become universal and multi-functional. Sometimes then can have some functions that are beyond traditional concept of ERP.
For any enterprise such question as marketing is vital so it is necessary pay attention to work with clients. That is why modern ERP systems contain CRM as a sub-system.

Nowadays each ERP is devoted to first of all industrial companies. For this reason, CRM sub-systems are devoted to organize efficient contacts and clients management. It is necessary to organize the process of marketing of finished products.
Mostly ERP systems are used by large companies with many divisions. But smaller business in most cases do not need such sophisticated software. Usually simple CRM system would be enough to help grow sales and increase income.

Advantages of ERP

There’s a line of nuances which could be reason to choose ERP system. First of all, it’s an easier way to manage different departments thus improving their mutual work. Its reporting system allows full monitoring of enterprise in real-time.
One system is used for whole company so that there is not more any necessity to buy a separate software for each department. Also, such system offers an e-commerce integration that allows a web-based tracking and processing.

Another one advantage is a presence of many particular modules that help and manage work with some certain process. Moreover, you can add your own modules designed to solve specific tasks of current enterprise.
ERP systems have much better protect against different cyber-attacks. Also, it have an ability to create and storage backups.

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