Differene between CRM and ERP

CRM and ERP are two terms for anyone they are not easy to grasp at first. It is for this reason that in the following article, you detailed information about the difference between what it means to CRM and ERP.

Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are two sides of the same coin profitability. ERP and CRM are similar in many respects, since both are used to increase the overall profitability of a company.

These systems in some areas overlap and can be fully integrated into other. However, as its main functions are completely different, the best thing for a business is to first look at them as separate, independent systems. When viewed separately, it is easier to see how ERP and CRM each play a role in improving efficiency and increase sales.

What is CRM?
In short, the CRM is a system for recording and storing all information related to customer interactions. CRM systems like Salesforce and Microsoft Dynamics CRM provides a standardized method for collecting and sharing customer data and documentation of customer interaction method. Since all data is standardized, it is easily shared across the enterprise. CRM can be used by executives to create sales projections for sales representatives to maintain contact with customers, vendors Shipping to verify addresses, and the billing department to create invoices. The goal of CRM is to provide a complete store customer data that can be used to increase sales, improve customer retention, and make more efficient relations with customers.

What is ERP?
When CRM focuses on the client, ERP focuses on the business. ERP is a system to improve the efficiency of business processes. As CRM, ERP allows the rapid exchange of information consistent across all departments. Executives, managers and employees from all entering information into the ERP system, creating a real-time snapshot of the entire company. The problems in any area created automatically alerts in other affected areas. This allows departments to begin planning problems before they become a problem in that department. In short, by allowing the business to focus on data rather than operations, ERP provides a method for streamlining business processes across the board. Popular sellers as Epicor ERP, SAP and Microsoft, either also make CRM software, or ERP solutions integrate directly with other CRM vendors.

A distinction with a difference

Although similar in effect, ERP and CRM systems use different approaches to increase profits. ERP focuses on reducing overhead and cost reduction. By making more efficient business processes, ERP reduces the amount of equity invested in these processes. CRM works to increase profits by producing higher sales volume. With a standardized customer data repository, it is easier for everyone from executives to sales representatives to improve customer relations. In turn, these improved relations translate into greater brand loyalty and profits.

CRM or ERP or both?

If a company needs both systems depends largely on the size and complexity of the business. Even for a small business, a CRM system is better than a haphazard collection of customer data stored in handwritten notes in numerous emails, or worse, appearing only in the head of a sales representative. Customer relations are there lifeblood of any business-CRM to keep the blood pumping freely.
ERP is an invaluable tool for streamlining complex business processes tool. Many small businesses start in a single room or small office. All "departments" may be within earshot of each other. At that time, a software that can provide a real-time snapshot of each department may be excessive. As the business grows, the need for and benefits of ERP become clearer. If, at any time, a manager or executive does not know what is happening in departments that are responsible, ERP time has come for a long time.

Assigning importance

The decision on which system is more important is how to decide between having one engine or have a steering wheel in a car. CRM is the engine that drives a business. Improved sales and increase profits. ERP is the steering wheel-that allows a company to be guided accurately, and to steer around obstacles well in advance. ERP and CRM working together make it much easier for a company to increase profits and reduce costs.

What comes first?

A business must have processes before they need to worry about rationalizing them. And it has to make a profit before worrying about cost reduction. The more agile, efficient in the world is still in bankruptcy business without sales. That's why CRM is often the best choice for the first investment in a company. Build and maintain sales is usually what makes everything else possible. To help maximize sales figures, CRM can enable a company to grow to the point that the ERP becomes a necessity.

Maximize growth

The capital increase comes in two ways: more sales or minus expenses. The use of ERP and CRM systems allows a company to pursue these avenues. The CRM system provides more revenue through improved sales figures, while the ERP system reduces overall operating expenses. Together these systems can help a business pursued through growth efficiency and simultaneous expansion. Used separately, ERP and CRM can still be very useful, but could potentially limit business to a narrow avenue of growth.