Companies that want to automate the basic processes usually examine two main software solutions, planning of corporate resources (ERP) and management of relationships with customers (CRM).
ERP helps companies to success by connecting their financial and operational systems to a central database, while CRM helps to manage the way customers interact with their business.
Both act as a vital database. Both also help multiple departments and, although sometimes they are built on the same platform, the software is often purchased separately and integrated where necessary.
What is a CRM?
In short, a CRM is a software that manages all the ways in which a customer interacts with a company. Initially, the CRM features were developed for the first time for the sales departments and were sometimes known as Sales Automation (SF).
Through the purchase and development, software suppliers have started to combine more and more under the same umbrella, called Customer Relationship Management. The management of sales performance and the compensation of sales incentives are also included in some CRM systems, but are often sold separately due to their complexity.
Advantages CRM
The central promise of a CRM system is to provide the company with a central storage solution of all customer data, following all interactions with customers.
Arming this information and using analysis, companies can make more informed decisions on what customers must follow for further income, how the sales teams work, how to serve customers effectively and adequately and others.
What is Erp?
The planning of corporate resources (ERP) has evolved from the planning of the material requirements (MRP), which was a way for producers to understand and manage all the resources necessary to manage a successful activity. Erp acts from shared database for all the departments of an organization.
Advantages of ERP”
The advantages of an ERP system derive from the existence of a unique database, shared for all financial and operational data. This has a significant impact on reporting both on the monthly relationships and on the ad hoc relationships required by the Management.
This allows companies to make faster decisions, supported by data, which can influence everything, from profitability, to new growth opportunities and increase efficiency throughout the organization.
What is the difference between CRM and ERP?
While the entire organization will be based on both ERP and CRM systems, the fundamental difference between ERP and CRM is that Erp is mainly for financial data and the financial department, while CRM is used by sales and services for customers.
Some ERP systems include a CRM component, while others don’t, but CRM software systems do not include ERP components.
How similar CRM and ERP are?
ERP and CRM are both company applications that archive and analyze data from a relational database. Both are delivered by a traditional local or software model as a service, in which the developer manages the software in its data center and customers access through the cloud.
The CRM systems were developed faster in the cloud, since the systems proved to be easier to build and the companies initially avoided putting the financial data in the cloud.
Do I need CRM or ERP or both?
Almost all growing companies, from small and medium -sized enterprises (SMEs) to businesses, in the end they will need both an ERP and a CRM system.
If a company invests for the first time in CRM or ERP it will depend on its business model. A company with a small series of customers with a high and complex financial value could be more appropriate to invest first in an ERP system, while a company with relatively simple financial information and a basis of large customers that requires frequent contact could make the opposite.
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