Difference between ERP & CRM

05 Jul


Difference between ERP & CRM


Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are similar in many ways, as they are both used to increase the overall profitability of a business.


These systems overlap in certain areas, and can be completely integrated in others. However, as their core functionalities are completely different, it’s best for a business to first look at them as separate, stand-alone systems. When viewed separately, it’s easier to see how ERP and CRM each play a role in improving efficiency and increasing sales.

What is CRM?

CRM are software that are designed to serve for managing a company’s interactions with current and potential customers. CRM software is used to organise, automate and synchronise sales, marketing and customer service. CRM has developed to include all areas of the customer experience, keeping the customer happy and in turn keeping them loyal and more valuable to your business. It is the process of identifying potential leads/prospects, nurturing them and guiding them through the sales process to close the deals. Once they are a customer it is ensuring that you maintain that relationship and encourage them to repeat the business.

What is ERP?

ERP is a system for improving the efficiency of complete business and all of it’s processes. ERP allows for the rapid sharing of standardised information throughout all departments. All Employees enter information into the ERP system, creating a real-time, enterprise-wide exposure. Problems in any area will automatically create alerts in other affected areas. This allows departments to begin planning for issues before they become a problem in that department. ERP provides a method for streamlining business processes across the organization.

What’s the difference between CRM & ERP?

Where CRM manages the customer, ERP is used to manage the business. ERP and CRM systems use different approaches to increase profitability. ERP focuses on reducing overheads and cutting costs. By making business processes more efficient, ERP reduces the amount of capital spent on those processes. CRM works to increase profits by producing greater sales volume.



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