The Difference Between CRM and ERP
CRM and ERP are two important technology acronyms that businesses need to know about. Both are valuable business software solutions but they are used to manage and achieve very different business goals. In this Webopedia article we'll explain the role of CRM and ERP in business today.
What Exactly is CRM?
CRM is an abbreviation for customer relationship management and is a phrase used to describe all aspects of interaction that a company has with its customer, whether it is sales or service-related. It's a business strategy that helps your business to better understand your customer, retain customers, provide excellent customer service, win new clients and increase profitably.
Many aspects of CRM relies heavily on technology. CRM software will collect, manage and link information about the customer. You can use CRM software to create marketing campaigns, view a customer's entire of history of interactions with your business and use it to streamline daily business and sales tasks.
Recommended Reading: Enterprise Apps Today: CRM Software -- Good, But Not Good Enough.
What is ERP?
ERP is an abbreviation for enterprise resource planning. ERP software is used to manage the business. It integrates all facets of an operation, including product planning, development, manufacturing processes, human resources, financials and sales and marketing.
Today's ERP solutions are designed to help you to improve the operational efficiency of business resources. Businesses use ERP systems to integrate all its business processes into a single system to efficiently and effectively manage business goals.
Recommended Reading: Enterprise Apps Today: How to Evaluate ERP Software.
The Differences Between CRM and ERP
While specific features and capabilities differ between platforms and vendors, here's a quick list of some of the many activities each type of business software can help you improve:
Use CRM Software to manage any of the following front-office activities:
Organize marketing efforts, manage the sales pipeline, calculate time spent on converting leads to closing deals, streamline your sales processes, automates customer service, track a customer's interactions with your business, share marketing and sales collateral, create data reports, learn which products sell best and when, prioritize leads, manage inventory based on historical sales data, collaborate to sell as a team, manage your business contacts, manage your business leads, share customer profiles with co-workers and See where leads come from.
Use ERP Software to manage back-office activities and tasks including the following:
Distribution process management, supply chain management, services knowledge base, configure, prices, improve accuracy of financial data, facilitate better project planning, automate employee life-cycle, Standardize critical business procedures, reduce redundant tasks, assess business needs, accounting and financial applications, lower purchasing costs, manage human resources and payroll.
Integrating CRM and ERP Systems
There are many solutions available today that integrate ERP and CRM solutions to combine financial, operational, customer relations and business intelligence in one management system. Typically, CRM and ERP solutions are data silos in an organization, but when you integrate the systems to share data it can further improve operations management.
20 CRM & ERP Definitions
The following Webopedia.com tech term definitions will help you to better understand customer relationship management and enterprise resource planning software and solutions.
Enterprise Applications Definitions
Enterprise Resource Planning Definitions
Keeping track of big data trends, research and statistics gives IT professionals a solid foundation to plan big data projects. Here are 15... Read More »Enterprise Storage Vendors
There's a number of vendors that sell enterprise storage hardware or offer cloud-based enterprise storage. View Webopedia's Enterprise storage... Read More »50 Cloud Computing Terms Defined
From planning a private cloud project to finding an online cloud storage provider, Webopedia's A-Z Cloud Computing Glossary will help you... Read More »
- Enterprise Mobility Exchange results show continued growth and emphasis on mobility. CIOInsight breaks down the numbers here. »
- Watch Datamation's editor James Maguire moderate roundtable discussions with tech experts from companies such as Accenture, Dell, Blue Jeans Network, Microsoft and more »
From the widest view, everything that we include under the heading of mobile has irrevocably changed IT's relationship with the rest of the... Read More »Choosing an Enterprise Storage Implementation
When you deploy a new enterprise storage system, you must decide whether to design and build your own storage system or to utilize a cloud-based... Read More »Big Data Analytics Expert Predictions
In this Webopedia Did You Know...? article we look at three big data expert predictions for 2014. Read More »