ERP VS CRM; How They Are Similar and How They Are Different

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People in the business community often speculate about the difference in ERP vs CRM due to the way both systems help them achieve better productivity and efficiency in carrying out their businesses. Both ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems are indeed used in a very similar way because they provide a standardized report that is shareable among all of the business shareholders. The report that they provide allows them to make better business plans and business decisions that make their business more productive and more efficient. 
Despite their similarly perceived nature and functions, however, there are actually some differences that you need to understand between both systems. Here we will dig into the factors that make them similar and those that become the key differences in the ERP vs CRM comparison.


The Similarities of ERP VS CRM
As already suggested above, the ERP vs CRM comparison is actually a comparison between two data management and reporting systems that are very much similar. There are several key factors that make them similar to each other.
  • 1.Both systems centralize data management.
Both ERP and CRM systems perform the centralization of data management under one roof. In a company where business data is decentralized among its departments, access to specific data is often difficult because before you try to access the data, you need to determine first in which department the data are located. Data management in a decentralized environment is also more prone to errors and inaccuracies. The absence of standardization further exacerbates the problem.
  • 2. Both systems automate many back-office duties.
Another similarity in the ERP vs CRM is that both systems automate many back-office duties, especially the ones related to data management and reporting. Both systems use a software application that is ready to provide a brief, intuitive, and comprehensive report that will be helpful to plan business strategies and to make business decisions.

The Differences in ERP VS CRM
In terms of their function as a data integrator, ERP vs CRM is a comparison between two similar things; however, there are many differences that make them two completely different systems.
  • 1. ERP and CRM Have a Different Focus.
Focus is the most obvious difference in the ERP vs CRM comparison. ERP has a wider focus because it encompasses all business processes that occur in the company, including—in fact—a portion of CRM. CRM, on the other hand, focuses on the customers, especially their loyalty and satisfaction. Although an ERP system also includes CRM, the portion of the CRM it encompasses is so trivial that a dedicated CRM system will perform much better in an effort to attract customers and to ensure their loyalty.
  • 2.ERP and CRM Have a Different Goal.
Because the focus is different in the ERP vs CRM comparison, their goal is also different. An ERP system monitors and streamlines the workflow of business processes to make sure that the company can run its business more efficiently and cost-effectively. CRM, on the other hand, aims at improving the company’s profit by improving customer satisfaction and subsequently increasing sales volume.

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