Do you know that automation is key to productivity and efficiency? Thanks to the automation technology, organizations can reduce the time spent on administrative and repetitive tasks while cutting back errors, such that business leaders can focus on strategic goals that truly matter. Now, when it comes to choosing automation solutions that improve operations, there are two biggest systems in the business world today: enterprise resource planning (ERP) and customer relationship management (CRM).
In general, ERP assists businesses in establishing and running businesses by linking their financial and operational systems to a centralized database. Meanwhile, CRM assists businesses in managing how consumers engage with the company. Both serve as key data storage facilities and cover a wide range of sectors. Although both are occasionally created on the same platform, they are often purchased separately and merged as needed later on. Considering their basic capabilities are different, it is recommended for a company to begin to consider them as distinct, stand-alone systems.
ERP and CRM often overlap on several aspects, but they are different and can be integrated to reach their highest potential in aiding your business. Here is a more thorough look of how ERP and CRM contribute to increased productivity and sales for your company.
What is an ERP?
Enterprise resource planning (ERP) acts as a shared database for all departments inside a company. In most cases, ERP is generally utilized for financial data and the finance department. This includes finances, the general ledger (GL), accounts payable, accounts receivable, payroll and financial reporting. ERP helps companies streamline their business models by coordinating resources and processes in ways that seem to be previously unavailable in traditionally segmented data ecosystems. It is the key method of removing silos that impede productivity that can drive up costs for a company.
ERP also includes inventory management, order management, supply chain management, and data for service companies. It can also help with sourcing, production, and distribution. Human Resources Management Systems (HRMS), CRM, and ecommerce are all available in some ERP systems.
Benefits of ERP
The benefits of an ERP system derive from the fact that all financial and operational data is stored in a central, shared database. This has a significant influence on reporting, both static monthly reports and ad hoc reports needed by management. With a centralized system and role-based permissions, only those with the right job responsibilities have access to sensitive data, which improves audit trails and reduces financial risk.
Employees may also drill down into reports to find financial insights when there is a single source of financial and operational data, reducing the necessity for IT or finance teams to conduct the analysis and reporting. This enables companies to make faster, data-driven choices that affect everything from profitability to new development potential to overall efficiency. Additionally, ERP systems can also incorporate far more financial controls into a company.
What is a CRM?
Customer Relationship Management (CRM) is a set of systems and procedures for managing a company’s interaction with existing and future customers. CRM software organizes, automates, and synchronizes sales, marketing, and service and support. This system is utilized for customer data by the sales and customer care departments.
CRM has broadened to cover all aspects of the customer experience, with the goal of keeping customers happy and, as a result, loyal and valuable to your company. It is the process of discovering potential leads/clients, maintaining them, and moving them through the sales cycle in order to seal the deal. Some CRM systems incorporate sales performance monitoring and sales incentive compensation, although due to their complexity, they are frequently marketed separately. CRM software achieves these objectives through managing customer and other business data, interaction channels, and associated business processes.
Benefits or CRM
The primary benefit of CRM is that it provides companies with a centralized repository for all customer data, as well as the ability to track all client interactions. Companies may make better informed judgments about which customers to pursue for more income, how sales teams are doing, how to serve customers effectively and appropriately, and more using this information and analytics. With a centralized CRM system, sales representatives will be able to determine whether the clients they are visiting have great customer support tickets and respond accordingly. Customer service, on the other hand, can rapidly determine if a caller is a high-value customer or a prospective high-value customer and send them to the appropriate service level.
Which one do you need?
The business model of a company can determine whether to use just one or both of them at the same time. Companies with a small number of high-value customers and extensive financials may be more likely to invest in an ERP system first. On the other hand, companies with fairly basic financials and a larger customer base that requires frequent interaction can utilize CRM. Both can be accessed either via a conventional on-premises approach or via software as a service (SaaS). In doing this, a vendor controls the program in its own data center and customers access this via cloud.
If you find choosing between ERP or CRM complicated to understand, TechGrid is here to help. We combine strategic insights with highly skilled, hands-on Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) resources. Kindly contact us and we will gladly assist you to find the best option for the anticipated growth of your business.