ERP vs CRM: How To Decide Between The TwoBoth ERP software & CRM software assist businesses with improving efficiency and workflows, but each type of software serves a different set of needs and requirements.
Businesses that want to automate their core processes generally look at two primary software solutions: enterprise resource planning (ERP) software and customer relationship management (CRM) software. With ERP, financial and operational systems are connected through a central database to help organizations improve processes and collaboration. CRM is used to help manage how businesses and customers interact. Both ERP and CRM play a direct role in improving business efficiency and boosting sales. To answer the question of how to decide between the two types of software, let’s compare ERP vs CRM software below.
What Is ERP?
Enterprise resource planning is commonly used by companies to manage and integrate critical components of their business. Custom ERP software has the capabilities to integrate all processes to smoothly run an organization, and with evolving techniques, many solutions are web-based and can be accessed remotely.
Benefits Of Custom ERP Software
Custom ERP software works by compiling information from all departments in a central database. This allows employees in manufacturing, accounting, sales, supply chain and human resources (HR) the ability to draw on the central database to make decisions or share information.
Custom ERP software can generate major financial and time savings by enhancing company-wide visibility and revealing potential opportunities for growth.
Many benefits come from utilizing custom ERP software, such as:
Real-Time, Up-To-Date Information
A custom ERP software solution is continually receiving information and updating its central database as inventory is pulled, emails are sent or payments are posted. This allows decision-makers to gain access to the most up-to-date business information.
Enhanced Collaboration Between Departments
Data silos make it difficult for individual departments to work together as each department has its own systems and data storage. With custom ERP software, there is a common database between departments, allowing staff across an organization to collaborate without confusion. In addition, decision-makers have access to the same information and do not face conflicting or duplicate sources of information.
Remote Access To Information
Advancements in technology have made it possible to store business information on the cloud. Instead of filing through stacks of paperwork, employees can access the cloud-based ERP to find the information they need quickly and efficiently. Access to the cloud can be acquired from any location where there is internet and an internet-enabled device.
What Is CRM?
Customer relationship management is a technology used to manage an organization’s interactions and relationships with customers and potential customers. The primary goal of using custom CRM software is to grow the business by staying connected with clients, improving profitability and streaming processes.
Benefits Of Custom CRM Software
A custom CRM solution can be highly effective for helping a business focus its relationships with individual people such as service users, customers, suppliers and colleagues.
Individuals in various departments, such as business development, customer service, sales, marketing recruiting and other areas can better manage the external interactions that help drive a business to success.
There are many benefits associated with implementing custom CRM software, including:
Access To Accurate Reports
Custom CRM platforms can be used to collect and organize business data that can later be used for decision-making. Reporting features allow businesses to see who interacts with the company and how. Organizations can also run reports to see what opportunities exist.
Using a spreadsheet to manage data can be a time-consuming and complex process that leaves plenty of room open for duplications and other errors. CRM technology uses dashboards that are user-friendly and can be set up for each individual in the company with login credentials. Dashboards can also be configured with charts, graphs and tables to make the data easier to interpret.
Personalized Customer Outreach
Custom CRM software enables businesses to set up a series of automated emails that target specific groups of customers in a personalized way. Instead of sending out masses of generic emails, organizations can draw in new customers that are actually interested in the information being sent.
ERP vs CRM Software: Which To Choose?
It can be challenging to decide between custom ERP software and custom CRM software. Custom ERP software can be useful for cutting costs and reducing the amount of investment required as the business grows. ERPs are more focused on back-end processes but tend to be more costly. Many custom ERP solutions contain modules for CRM components and can be integrated with third-party CRM systems.
Stand-alone CRM systems tend to be focused on optimizing front-end processes. Businesses with a goal of improving marketing and sales, but are satisfied with other processes like HR and accounting, may want to consider custom CRM software. However, if there are multiple departments within the business that require revitalization, custom ERP software may be the better choice.
Speak With An Experienced Custom Software Development Company
The development of custom software, tailored to the specific needs of a business, can help ensure that all processes are well managed. Although some businesses may be hesitant to make the investment, the ROI generally far exceeds the initial cost in the long-term.
Orases offers a wide array of services to growing businesses, including custom ERP software and custom CRM software design and development. Reach out to the experienced team at Orases today to learn more about these services or to get started by calling 301.756.5527 or by requesting a consultation online.