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Differences between ERP and CRM. What do you need?

dynamicssquare by dynamicssquare
April 5, 2022
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Clarify your doubts about the two main business management solutions

ERP, CRM, BI… The  strong business competitiveness  and the rise of business management technologies is causing more and more organizations to seek to implement some of these management solutions.

But not all companies are clear about all the uses and benefits that implementing some of these management software in their businesses can bring them, and they have  doubts about which option is the one that best suits  the needs of their company.

Each solution is designed with different purposes, so it is necessary to  be very clear about the objectives  that are intended to be achieved when implementing any of these systems. For this reason, in this post we are going to talk about the two main management solutions, clarifying the  differences between ERP and CRM .

Comprehensive vision of the company vs. vision of customers and sales

A  CRM (Customer Relationship Management) , is a tool that is responsible for managing  sales ,  customer relations  and the development of  marketing campaigns . For its part, an  ERP (Enterprise Resource Planning)  is an  enterprise resource planning software . This goes far beyond customer relationship management, since it allows us to have a  comprehensive vision of the company , by managing production, logistics, inventory, distribution, invoices and accounting.

Having clear what is an ERP and what is a CRM, we are going to see what are the main differences between both management systems:

different purposes

As you can see, both have different purposes. While the ERP is more oriented to the  administration and management of the business , and the objective is to control the costs of a business; a CRM is more focused on  increasing and managing sales  and customers.

Implementation

By focusing on almost all areas of a company. The implementation process of an ERP is usually  longer than that of a CRM. Since it covers fewer areas and its implementation is easier and more agile.

modules

 Having different purposes, the modules that make up both systems are also different. An ERP is made up of various modules related to the various areas of a company. (logistics, production, distribution, billing, accounting…); while a CRM consists of modules for managing  customer service , Dynamics 365 Sales and  marketing .

costs

Being easier to implement and controlling fewer areas of the company, the  cost of a CRM is lower . In addition, the cost of an ERP is also higher because it is used by more people within a company. The more licenses purchased (both ERP and CRM), the higher the price.

company size

An ERP is ideal for the management of  medium or large companies. Since a company that is too small is not going to be able to take advantage of the full potential of the system. On the other hand, a  CRM can be adapted to smaller companies .

That they are different solutions does not mean that they are incompatible,  both can be integrated with each other . The most important thing is that you are clear about the needs of your business, the size and the price when choosing the best option to control and grow your organization.

Post Views: 562
Tags: CRMERPERP and CRM
dynamicssquare

dynamicssquare

John Smith is a Marketing Manager for an UK & USA leading Microsoft Dynamics Partner, Dynamics Square. The company help enterprises seamlessly manage, and drive their operations with Microsoft Dynamics 365 Business Central, Power BI Services, Dynamics 365 Finance, Supply Chain, Sales, Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Power Apps, and Microsoft Dynamics GP.

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