Differences between ERP and CRM. What do you need?

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ERP, CRM, BI…Strong business competition and the rise of business management technologies are causing more and more organizations to seek to implement one of these management solutions.

However, not all companies are clear about all the uses fantuan database and benefits that implementing one of these management softwares can bring to their businesses, and they have doubts about which option is best suited to the needs of their company.

Each solution is designed for different purposes, so you have to be very clear about the objectives you want to achieve when implementing one of these systems. Therefore, in this post we are going to talk about the two main management solutions, clarifying the differences between ERP and CRM .

What is a CRM?
A CRM (Customer Relationship Management) is a tool that is responsible for managing sales , customer relations and the development of marketing campaigns .

What is an ERP?
An ERP (Enterprise Resource Planning) is a business resource planning software . It goes far beyond customer relationship management, as it allows us to have a comprehensive view of the company by managing production, logistics, inventory, distribution, invoices and accounting.

Having clarified what an ERP is and what a CRM is , let's see what the main differences are between both management systems:

Difference 1: Different purposes
As you can see, ERP and CRM systems have different purposes. While ERP is more oriented towards business administration and management , and the goal is to control the costs of a business, CRM is more focused on increasing and managing sales and customers.

Difference 2: Implementation
By focusing on almost all areas of a company, the implementation process of an ERP is usually longer than that of a CRM , since it covers fewer areas and its implementation is easier and more agile.

Difference 3: Modules
As they have different purposes, the modules that make up both CRM and ERP systems are also different. An ERP is made up of several modules related to the different areas of a company (logistics, production, distribution, billing, accounting, etc.); while a CRM consists of modules for customer service management, sales and marketing.

Difference 4: Costs
Because it is easier to implement and control fewer areas of the company, the cost of a CRM is lower . In addition, the cost of an ERP is also higher because it is used by more people within a company. The more licenses you buy (both ERP and CRM), the higher the price.

Difference 5: Company size
An ERP is ideal for managing medium-sized or large companies , since a company that is too small will not be able to take full advantage of the system's potential. However, a CRM can be adapted to smaller companies .