Technology today has given businesses a strong push to move ahead at an extremely fast pace. It enables companies to streamline their processes, monitor data in near real-time changes and analyze it. ERP and CRM software are one of the many tools which allow businesses to manage their organizations better and in turn increase their operational efficiency. For businesses leveraging CRM and ERP software or planning to invest in one or another, it is important for them to understand the benefit these two platforms provide.
For a better understanding of their functionalities, let us have a look at CRM and ERP separately.
CRM Software
When the concept of CRM first gained traction in the early 90s it was looked upon as a mechanism to engage with consumers and was an evolution of an earlier generation of Sales Force Automation tool. CRM has now evolved into a tool which captures, saves and secures data and manages all the interactions which the company has with it is clients. Basically, CRM gives an overall view of the customer and an organizations’ relationship with them. It synchronizes all the activities of the company, beginning from organizing the data received from the customers to streamlining the sales, marketing, and customer service activities which the company performs.
The cataloging of customer data permits the company to share the information easily across the business and analyze that data. Although quite a few aspects of a CRM are dependent on technology, it is one of the most effective tools which helps in retaining customers and formulating and executing business strategies.
CRM helps in making sure that the customer expectations are met. Some market leaders in this domain are Salesforce, SAP, Oracle, and Microsoft, with Oracle acquisition of Eloqua and Salesforce acquiring Pardot these upgraded CRMs also have automation facility for Marketing, which helps the company in reaching out to customers at a larger scale.
ERP Software
As highlighted earlier, CRM has a focused approach toward the customer related practices in an organization, whereas the ERP software is used to manage and organize the business, in general. Enhancing the effectiveness and efficiency of the business is the prime focus of any business venture, and an ERP software facilitates the same.
ERP software helps in standardizing the back-end processes like supply chain management, financial data, manufacturing etc. ERP systems can enable a corporation to move from a siloed operational structure to become a well-knit entity that collaborates seamlessly internally. Issues that are identified in these areas of operations can be addressed more effectively with an ERP system in place. The number of firms operating in the ERP software domain is quite high including the early movers in this domain like SAP to new age players like Acumatica. The information derived from the different business units from an ERP system acts as crucial data which guides the firm in the strategic decision-making process.
How do CRM and ERP stack up
The main objective behind employing both CRM and ERP software is the same, increasing efficiency and profitability of the system. However, CRM and ERP systems target different areas of a business to reach the end goal. Customer Relationship Management tool helps an organization in consolidating client facing data for a business.
A major role executed by a CRM helps an organization grow its revenue by identifying new channels of sales along with up-selling and cross-selling. Sales are the revenue generating a function of any business and increasing the sales volume is one of the key focus areas of an organization.
It becomes extremely complicated for employees to comprehend data if it is not well organized. It is essential to make appropriate use of the customer related information and employ that in making strategies. A CRM software creates data reports, assists in the automation of the marketing efforts of the company, using customer history and prioritizing leads. All of these features of the CRM help in delivering a better customer experience and in turn increasing customer loyalty.
It is often highlighted ERP software is an evolution of yesteryear Manufacturing Resource Planning solution. Once the processes of the company have been put in place, it is important to optimize them.
ERP Software automates and integrates business functions within an organization. Cutting down on business overheads streamlining processes and increasing operational efficiency are the primary function of the ERP. Creating a knowledge base, maintaining the accuracy of the finances and streamlining the projects of the firm, makes ERP an indispensable tool for any business. There are multiple complex processes which need to be put in line with the success of any business and the ERP standardizes these critical procedures of the company.
Integrating CRM and ERP
Not all business needs both the solution, for example, a financial services firm will typically not need the traditional ERP modules. This deployment is also dependent on the size of the business and the complexity of their tasks, it can be determined whether they would need both the solutions.
In case a firm implements both CRM and ERP in their firm, integrating both this software is essential to get an optimum return on the company’s investments. Integration helps the firm in avoiding any gaps in information and processes. The company goals and the expectations of the customers can be better met if both these tools are used together. Understanding the needs of your company, and the focal points will help you better understand the requirements of the CRM and ERP tools.
CRM vs. ERP- What an organization needs to know
Technology today has given businesses a strong push to move ahead at an extremely fast pace. It enables companies to streamline their processes, monitor data in near real-time changes and analyze it. ERP and CRM software are one of the many tools which allow businesses to manage their organizations better and in turn increase their operational efficiency. For businesses leveraging CRM and ERP software or planning to invest in one or another, it is important for them to understand the benefit these two platforms provide.
For a better understanding of their functionalities, let us have a look at CRM and ERP separately.
CRM Software
When the concept of CRM first gained traction in the early 90s it was looked upon as a mechanism to engage with consumers and was an evolution of an earlier generation of Sales Force Automation tool. CRM has now evolved into a tool which captures, saves and secures data and manages all the interactions which the company has with it is clients. Basically, CRM gives an overall view of the customer and an organizations’ relationship with them. It synchronizes all the activities of the company, beginning from organizing the data received from the customers to streamlining the sales, marketing, and customer service activities which the company performs.
The cataloging of customer data permits the company to share the information easily across the business and analyze that data. Although quite a few aspects of a CRM are dependent on technology, it is one of the most effective tools which helps in retaining customers and formulating and executing business strategies.
CRM helps in making sure that the customer expectations are met. Some market leaders in this domain are Salesforce, SAP, Oracle, and Microsoft, with Oracle acquisition of Eloqua and Salesforce acquiring Pardot these upgraded CRMs also have automation facility for Marketing, which helps the company in reaching out to customers at a larger scale.
ERP Software
As highlighted earlier, CRM has a focused approach toward the customer related practices in an organization, whereas the ERP software is used to manage and organize the business, in general. Enhancing the effectiveness and efficiency of the business is the prime focus of any business venture, and an ERP software facilitates the same.
ERP software helps in standardizing the back-end processes like supply chain management, financial data, manufacturing etc. ERP systems can enable a corporation to move from a siloed operational structure to become a well-knit entity that collaborates seamlessly internally. Issues that are identified in these areas of operations can be addressed more effectively with an ERP system in place. The number of firms operating in the ERP software domain is quite high including the early movers in this domain like SAP to new age players like Acumatica. The information derived from the different business units from an ERP system acts as crucial data which guides the firm in the strategic decision-making process.
How do CRM and ERP stack up
The main objective behind employing both CRM and ERP software is the same, increasing efficiency and profitability of the system. However, CRM and ERP systems target different areas of a business to reach the end goal. Customer Relationship Management tool helps an organization in consolidating client facing data for a business.
A major role executed by a CRM helps an organization grow its revenue by identifying new channels of sales along with up-selling and cross-selling. Sales are the revenue generating a function of any business and increasing the sales volume is one of the key focus areas of an organization.
It becomes extremely complicated for employees to comprehend data if it is not well organized. It is essential to make appropriate use of the customer related information and employ that in making strategies. A CRM software creates data reports, assists in the automation of the marketing efforts of the company, using customer history and prioritizing leads. All of these features of the CRM help in delivering a better customer experience and in turn increasing customer loyalty.
It is often highlighted ERP software is an evolution of yesteryear Manufacturing Resource Planning solution. Once the processes of the company have been put in place, it is important to optimize them.
ERP Software automates and integrates business functions within an organization. Cutting down on business overheads streamlining processes and increasing operational efficiency are the primary function of the ERP. Creating a knowledge base, maintaining the accuracy of the finances and streamlining the projects of the firm, makes ERP an indispensable tool for any business. There are multiple complex processes which need to be put in line with the success of any business and the ERP standardizes these critical procedures of the company.
Integrating CRM and ERP
Not all business needs both the solution, for example, a financial services firm will typically not need the traditional ERP modules. This deployment is also dependent on the size of the business and the complexity of their tasks, it can be determined whether they would need both the solutions.
In case a firm implements both CRM and ERP in their firm, integrating both this software is essential to get an optimum return on the company’s investments. Integration helps the firm in avoiding any gaps in information and processes. The company goals and the expectations of the customers can be better met if both these tools are used together. Understanding the needs of your company, and the focal points will help you better understand the requirements of the CRM and ERP tools.
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