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How ERP and CRM are different from each other ?

  • Last Updated : 17 Jun, 2021

Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) sounds same in terms of customer satisfaction, but actually they are different in terms of their purpose and actions. So, in this article we will see some points about ERP and CRM to clear our confusion about these two.

1. Enterprise Resource Planning :
Many businesses are opening up day by day and the business environment is growing so faster. So in the current market strategy it is important to be in the business race by providing customer satisfaction and proper functioning of the organization to be the best in the current competitive business environment.

Enterprise Resource Planning (ERP) software has been developed in an aim to manage to the various business activities like human resources, accounting, inventory, supply chain etc.  Where the main motto of Enterprise Resource Planning is to manage the business and to improve the efficiency of business process. With this it also focuses on how overhead can be reduced and costs can be cut and to increase visibility of the business.

It is developed in 1960-1970. Example of ERP includes SAP.
Important points about ERP :

  1. Enterprise Resource Planning focuses on business.
  2. ERP manages the business and improves the efficiency of business process.
  3. ERP includes the business activities like accounting, inventory, human resources, supply chain etc.
  4. ERP software automates business activities.
  5. It is considered as the superset of the CRM.
  6. Enterprise Resource Planning manages the back office activities.
  7. ERP is more oriented towards Enterprise.
  8. It focuses on reducing cost.
  9. It helps to manage key operations like accounting, payable, invoice, inventory, manufacturing activities.
  10. It is time-consuming and expensive.

2. Customer Relationship Management :
In the competitive business environment, to grow the business depends on the demand of services of the business or the selling of products of the business. But everything depends on the customer. So to maintain a good customer relationship with current and potential customers is a great way of achieving the business target.



So Customer Relationship Management (CRM) is a system which focuses on the customers rather than the business which is focused by the Enterprise Resource Planning (ERP). It provides a way of interaction of business to its customer. It main motto is to maintain the relationship with customer and to provide the best services, so that customer satisfaction can be maintained. CRM automates and optimizes the customer specific functions such as sales and marketing, customer support and service, customer experience etc.

It is developed in 1990. Example of CRM includes Salesforce.
Important points about CRM :

  1. Customer Relationship Management focuses on customer.
  2. CRM manages the customer relationship with current and potential customer.
  3. CRM includes the customer specific functions like maintaining customer relationship,  sales and marketing, customer support and service, customer experience etc.
  4. CRM software automates sales activities.
  5. It is considered as the subset of the ERP.
  6. Customer Relationship Management manages the front office activities.
  7. CRM is more oriented towards Customer.
  8. It focuses on increasing sale.
  9. It helps to manage contacts, appointments, sales opportunities, marketing and customer support activities.
  10. It manages the supply chain.
  11. It manages the sales pipeline.
  12. It requires less time and also less cost.

 

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