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What sets apart the Customer Relationship Management System (CRM) from the Enterprise Resource Planning System (ERP)? While both softwares aim to improve business operations and increase return on investments, their core functionalities are distinct. Despite similarities, these systems serve different purposes and work in tandem to elevate your business to the next level.
In essence, CRM and ERP are business applications that store and analyze data using a relational database. They are accessible to users through software as a service, which can be managed in-house, while customers can access it through the cloud. While implementing these systems may not be mandatory, it can be crucial for staying competitive in today’s business world. Learning their fundamental differences can exponentially enhance your organization’s productivity and profitability.
At its core, ERP and CRM are fundamentally different. ERP is primarily used by the finance department to manage data and is commonly known as the “back office” as it focuses on the entire organization. On the other hand, CRM systems are used by the sales force, customer service departments, and other teams and are commonly referred to as the “front office” as they collect data on the customer-facing side of the business.
Here are some crucial functions that highlight the fundamental differences between CRM and ERP systems.
The ERP system comprises various modules, but the top five modules are:
In general, CRM consists of the following five core modules: –
It’s evident that ERP emphasizes the back-end process, while CRM emphasizes the front-end process of business and customer management. While both systems function best in their respective departments, it’s recommended to search for an all-in-one solution to meet your business needs.
Any organization that interacts with customers can benefit from using CRM software systems. The industries that commonly use CRM tools include hotels, retailers, real estate companies, banks, and other businesses that handle customer data extensively. If you have a vast customer database and focus on building long-term customer relations, consider using a CRM tool.
Likewise, if you operate in industries such as manufacturing, construction, distribution, healthcare, and professional services, consider using ERP systems. ERP is vital for keeping all complex operations and processes aligned.
CRM systems cannot handle finance and budget inventory, while ERP systems cannot provide the best customer information. Before investing in either software type, ask yourself the following questions.
To sum up, the decision between using ERP or CRM systems depends on the unique needs of your business. Take sufficient time to evaluate your business requirements carefully. If your business has a complex financial structure and a smaller customer base, integrating ERP into your business model may be more beneficial. Conversely, if your business has an extensive customer base and relatively simple financial management, starting with CRM may be the ideal choice.
If you’re seeking assistance in automating your business process to achieve desired financial outcomes and provide superior customer service, Hansei Solutions can help. We are dedicated to setting the bar for excellence in these areas and offer the latest revenue tech innovations and business-building opportunities. Whether you want to schedule a demo or download our eBook, we encourage you to get in touch to learn more about how we can help you take your business to the next level.
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