What Is The Main Difference Between CRM And ERP?

Nov 3


James Burns

James Burns

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Find out the latest trending main difference between CRM and ERP in Microsoft dynamics solutions. Check out if which is the best between CRM vs ERP software.


In simple language,What Is The Main Difference Between CRM And ERP? Articles CRM software establishes and manages your business relationship with customers and clients. On the other hand, ERP software program creates and manages the business processes.If ERP emphasis on the resource planning of an enterprise to increase business efficiency, effectiveness, and economic growth, then CRM strengthens your business relations with the outside world.Therefore, CRM and ERP systems are highly valuable for business growth.Whenever you shop for software solutions, CRM and ERP software come first in the software lists. Though the difference between CRM and ERP lies in their work functionality, a common thing between both is their focus on increasing productivity, automation, and revenue generation.The top class Microsoft Solution provider companies in USA increasingly works on both. However, the question remains the same which should be used first!If we talk in terms of Microsoft Dynamics solutions, then both systems overlap and can be integrated into one another. But, as their functionalities are different, businesses must look at them separate, standalone systems. Both CRM and ERP were first the part of Microsoft software development, but now many custom software development companies around the world are delivering their own business software and system based on Cloud and Microsoft!In fact, ERP and CRM have become so common that if you don’t keep track of each minute detail, then distinguishing them becomes difficult. Hence, in this article, we are going to lay out all the differences between both. Also, we would check which to be used first from CRM vs ERP software.But, before that first, let’s check out their definition.

What Is ERP?

ERP - Enterprise Resource Planning software handles multiple business processes like finance, inventory management, HR, and distribution. IT & Software companies integrate all these processes, streamline all these operations for centralizing the information, and put them under one software.Large enterprises, MNCs, government organizations use enterprise resource planning software. ERP software contains tools related to both front and back-office works, has scope for internal communication & data exchange. Automation is also a smart feature of ERP.

Common Functions of ERP Software Solutions

  •  Financial Management
  •  Customer Relationship Management
  •  Human Capital Management
  •  Inventory Management
  •  Supply Chain Management

“Many software are customizable, let the users add modules or extra functions for adhering to business needs. Popular vendors like Epicor, SAP, and Microsoft make ERP solutions.”

What Is CRM?CRM - Customer Relationship Management software’s only purpose is to make customers happy. CRM improves ad targeting, sales communications, and customer interaction.CRM software is a front-office tool majorly used by employees in the sales department, marketing department, customer support department, etc. CRM always helps in making a solid customer base for increasing your business growth.Some software development companies of Microsoft Dynamics CRM solutions Raleigh, NC, USA enable the users to use standalone CRM systems with beneficial advanced technologies like blockchain, artificial intelligence, etc. for developing their own solutions.

Common Functions of CRM Software Solutions

  • Contact Management
  • Database Management
  • Client Interaction Tracking
  • Marketing and Campaign Management
  • Lead Management

“CRM systems like Salesforce development services and CRM Microsoft dynamics online collect and share customer data.” Most of the organizations who make software like CRM and ERP values the businesses to improve revenue and productivity. But, the differences in both makes them completely opposite of each other.Let’s compare and contrast the ERP vs CRM!

CRM vs ERP: Key Differences

Since both the business software solutions have different usage, the major distinction comes at the user purpose.For example, to facilitate your business processes in a more easy manner, you can use ERP while for customer satisfaction and tailored customer solutions, you can use CRM.This is the main difference between CRM and ERP!Though many ERP solutions include a few CRM functionality, ERP software cannot perform all CRM related works. Ultimately, the main difference of CRM vs ERP lies in their scope!Thus, your organization has to comprehensively determine what kind of functionalities you specifically need between CRM vs ERP. There are many Microsoft software development companies in USA who can correctly fulfill your needs and give you the best business solution.

Other CRM vs ERP Differences

Both software use different kinds of approaches to give profitability to businesses. If ERP focuses on cutting the costs, then CRM emphasis on profit by increasing sales volume.Like this, there are many other differences between CRM and ERP software. We will trail out each one by one here in this section as follows.

  •  CRM organizes marketing efforts while ERP manages the distribution process.
  •  CRM manages the sales pipeline while ERP is for the supply chain management.
  •  CRM streamlines your sales process while ERP improves the accuracy of financial data.
  •  CRM automates customer services, while ERP facilitates better project planning.
  •  CRM is for customers, but ERP is for employees of your business.
  •  CRM prioritizes the leads and ERP prioritizes accounting and financial operations.
  •  CRM learns the product selling and ERP assesses your business needs.
  •  CRM manages business contact while ERP manages payroll.
  •  CRM solutions collaborate to sell as a team while ERP manages human resources.

All of these differences between CRM and ERP make them away part out of each’s area!With fixed functionalities and work profiles, it is quite challenging to choose out the best one in ERP vs CRM! Moreover, the next question is a bit more unanswering!“Before we step on to the other question, le’me tell you that Microsoft dynamics solutions use both CRM and ERP!”

Should I Use CRM or An Integrated ERP Solution In My Business?

Choosing one among CRM and ERP entirely depends upon the robustness of your lead management, sales tracking, and business process management needs are. Both are helpful business software solutions capable to the specific works.Therefore, the usage of CRM and ERP is dependent upon the fulfillment of your business needs. However, if you are going to be implementing a solution to facilitate workflows aside from CRM in the near future, you might consider an ERP because it contains a centralized data source and connected business processes.Microsoft CRM customization with ERP functions is possible but isn’t a cup of tea for everyone. There are only a few custom software development companies in USA capable of doing such a daunting task. Otherwise, if you have specific complex needs which can be easily fulfilled by using one software at a time, then don’t hesitate to use. CRM and ERP are boon to automate business in the fastest digitally growing century - the 21st century.In the case of optimizing revenue, CRM and ERP are the most excellent tools ever made to support the business more effectively and efficiently. However, the actual purposes they serve varies a lot!“ERP centralizes front- and back-office processes, whereas CRM deals with sales, marketing, and customer relationships.”To understand both of them more deeply, you can refer to ERP and CRM Microsoft dynamics online guides, which brief out their advantages, disadvantages, tutorials, working methods, and many more.The software that suits your business depends on the scope of your needs, investment capability, and your decision making.What we personally can assure you is that CRM vs ERP comparison is a waste of time as both are needed in all kinds of businesses. Take your time and decide soon when you will come back to us to know more about them!