ERP vs. CRM

Difference Between ERP and CRM

Knowing the difference between ERP and CRM

ERP and CRM are two types of software that serve different purposes in an organization but they are equally important. By using either of these, the employees of an organization can share information so that they can work together to coordinate the activities. Executives can also use the software to make decisions based on reports they receive and the forecasts that the software can generate for them. Even for those who use ERP and CRM on a regular basis often have difficulty distinguishing between the two.

About ERP

ERP is an acronym for Enterprise Resource Planning. This software is instrumental in streamlining the internal operation of an organization. Information about accounts, human resources, administration and production can be easily shared among the employees who need this data. Employees can be kept aware of facts and information about specific departments that can affect the whole organization. These include chain management, productive management and account management.

It is much more difficult for an organization to increase their revenue than it is to cut expenses. ERP is very useful in helping to accomplish this because it can streamline the process and be able to identify areas where there is waste that can be eliminated.

At one time ERP was only used by large companies because it was so expensive. However, different versions have been released and it is now quite affordable. It deals with the operation of the business and it provides employees with a way in which they can share essential information about the organization with each other. It helps an organization to run smoothly and efficiently with a minimum of errors. The management of a company can also benefit from the software because it provides an insight into the health of the company and this allows them to make better decisions.

About CRM

CRM is the acronym for Customer Relationship Management. This marketing and sales department of a company manages this program that is oriented towards the customer. It connects the company with the outside world. Through this software, customer service personnel can manage the data in the system about the current and potential customers. It enables the company to build a better relationship with its customers. CRM software makes information available about customers, such as the frequency of purchases and where they live. The company can analyze this information to develop ways of serving their customers in a better way.

Difference between ERP and CRM

It is possible to sum up the difference between ERP and CRM by saying that ERP is used for the internal operations and CRM is for external use. There is some overlap between the two and they can be integrated with the central database.

A very important part of the work of CRM is to generate leads for the website. By integrating it with ERP, the employees can see at a glance if a particular product is available and prompt delivery can be promised to the customers. Many organizations are purchasing both ERP and CRM software and are using them in conjunction with each other.