Do Businesses Enterprises Need Both ERP and CRM Systems?

Before starting a business, someone – probably an expert or a friend of yours who is also an entrepreneur – advised you to use systems called ERP and CRM. These systems are basic tools for businesses. It can help new enterprises grow and let well-established companies prosper in their venture.

ERP and CRM are two terms you will encounter often in the business industry, especially when it comes to enterprise operations. If you are still new to this, familiarize yourself with these terms below. Check out this guide to understanding ERP vs. CRM.

Understanding ERP

  • Definition

The ERP system is an acronym for Enterprise Resource Planning. It is an integrated pre-packaged computer softer that integrates all the different business units into a single database that all employees could access. Hence, this system controls business processes in the enterprise, including marketing and sales, administration, and manufacturing.

  • Function

Enterprises utilize ERP system for back-office activities. Its primary purpose is to reduce the cost of various business processes. Consequently, the orientation of this system is geared towards the overall success of the business.

Using the ERP system, it is easier and faster for the different business units to communicate and exchange data. It promotes optimal employee productivity and performance. Thus, using the ERP system will help an enterprise reach success.

Understanding CRM

  • Definition

CRM stands for Customer Relationship Management. Similar to the former, CRM is computer software. But instead of aiding the enterprise in effective and strategic processes, it centers on recording transactions and interaction with the customers. CRM is a subset of ERP.

In a nutshell, the CRM manages the relationship with customers and potential clients of the business. It has a more specific function compared to ERP that encompasses various business units.

  • Function

The function of CRM involves customer-centric processes that focus on increasing sales profitability. These include creating effective social media and marketing campaigns, overseeing sales processes and pipeline management, and managing customer interactions.

Are these Systems Important?

Both CRM and ERP are essential in a business. These systems support an enterprise’s profitability.

As a beginner, you might find the two systems confusing. For instance, you might question why there is a need for a CRM system when the ERP also covers some of its functions. Indeed, one of the functions of ERP is to manage the marketing and sales of the enterprise. However, it does not provide customer functionalities that only a CRM system can render.

Take note that ERP and CRM are only tools for a business to survive, grow, and succeed. The wrong implementation of these systems will only have an opposite effect on the business. Instead of helping the enterprise to move forward, it might only cause the company to take a step back.

Thus, before implementing CRM and ERP systems on your company make sure to ask professionals for help and assistance. Educate yourself about these systems using online sources like the ERP Informer. This source is an informative website that guides beginners in getting started with ERP and CRM systems.

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