eCommerce May 11, 2021

ERP vs CRM: What Is the Difference Between ERP and CRM?

Jane Vyshnova

CEO

Author

Content

  1. What Is an ERP System?
  2. What Is a CRM System?
  3. What Is the Difference Between ERP and CRM?
  4. Conclusion
Content

Business automation systems are becoming more and more popular, simplifying planning, synchronizing tasks between different departments, reducing human factor risks, and increasing the task completion time.

ERP vs CRM
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Our experts have overviewed the nuances of ERP and CRM systems to help you to decide what kind of software to choose. So, let's start with finding out the answer to the first question: what are ERP and CRM?

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What Is an ERP System?

ERP System
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What is ERP (Enterprise Resource Planning)? According to the ERP meaning, this is a software solution for managing:

If you imagine a standard workflow at an average enterprise, all departments keep records through special software. At the same time, business communication between them usually takes place either orally or in messenger apps. Due to human factors, some of this data may contain errors or get lost. And the managers are not able to understand what exactly is happening in each department.

And this is where ERP can help by integrating all data about business processes into one system. Typically, an ERP system consists of the following parts:

ERPs can differ in structure, depending on their scope of application.

For example, a large factory can’t function without a production module, but for a hotel chain, it is useless. As the company grows, you can increase the number of modules. ERP can also be integrated with other systems via API.

What are the keys to successfully implementing an ERP system? First of all, note that such a system is complex and not self-configuring. Only a team of specialists can implement it, build ERP implementation phases correctly, and select the modules for a particular company’s needs. You can also configure additional options, such as warehouse management, sales funnel stages, etc. Specialists can also provide CRM integration.

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All in all, ERP allows you to:

The five most popular suppliers of ERP systems are:

But if you want to get the best CRM & ERP software implementation plan, contact the Dinarys experts.

What Is a CRM System?

CRM System
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Let’s answer the next question: what is CRM? Customer Relationship Management, or CRM, is the software that automates work processes and stores data about customers, tasks, transactions, and correspondence. Usually, CRM offers a GUI, reports templates, and some analytical tools. It also helps to track the transaction progress along the sales funnel and determine the manager’s effectiveness.

If a company operates without CRM, there is a high probability of human error.

CRM systems can be presented in two versions: cloud or out-of-the-box. When you are working with a cloud system, data is stored in the network and the user interacts with it through a browser. This product cannot be purchased as a one-time service; instead, the user pays a monthly fee.

As for the out-of-the-box solutions, here users pay once and install the software on the company's servers. In this case, configuration and support are performed independently, and users work directly in the program window.

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CRM can be flexibly integrated with other systems via API - with a website, mail or call tracking tool. For example, in conjunction with telephony, the system can record incoming and outgoing calls. In this case, deals and tasks are created automatically.

Let's summarize the main CRM features:

Here are some of the most commonly used CRM systems:

In one of our blog posts, we reviewed clear CRM advantages for ecommerce.

What Is the Difference Between ERP and CRM?

So what is the difference between ERP and CRM? In general, it is impossible to say that one of these software types is better or worse - it depends on the needs and size of the business.

If you are not sure how to choose a system for your enterprise, focus on the following:

If your business is growing and changing, sooner or later this hybrid will stop satisfying your needs, but at the same time, it will be more difficult to modify it. Therefore, it is better to use the best tips for a successful ERP implementation.

Conclusion

ERP is a multitasking tool, and CRM is exclusively a tool for automating sales. CRM can be included in the ERP as a module or provided as a separate product from the same vendor.

If you need a turnkey CRM or ERP system for your business, contact us at Dinarys. We will assemble a team of the best specialists who can quickly and easily cope with the task and build you a personalized CRM or ERP using the latest ERP implementation methodology.

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