ERP vs CRM: A guide to choosing the right system for your company
Powerful software solutions are needed to increase productivity in the company. CRM and ERP can be used with this goal in mind. Both systems are used to optimize business processes, offer a uniform database and help to work more efficiently, and both CRM and ERP are complete solutions. They have a lot in common, but differ in some aspects. In our article, we compare ERP vs CRM and their strengths, describing common and different points.
ERP system for optimizing business processes
With this software, entire companies can manage their processes centrally. The main focus is on finance, sales, procurement, production, human resources and the supply chain. The main task of the solution is considered to be the connection and coordination of all areas of the company as well as cost reduction, whether small, medium-sized or large companies implement ERP. This solution is used for efficient planning, control and automation of business processes.
Definition of the term and detailed explanation
ERP refers to "Enterprise Resource Planning", the planning and control of operating resources. The software system is used in various industries because it helps companies to remain competitive, and companies of all sizes benefit from the introduction of an ERP system. This is evidenced by the data from the Statista survey. According to the data, it can be assessed that almost half of the respondents have significantly reduced costs through the use of ERP and over 40% have optimized their own processes and increased efficiency. With the help of ERP, well-founded decisions are made and business performance is constantly monitored. It enables the management of information and transactions from all departments of the company.
Overview of the most important functions of the ERP software
The solution can be used in all sectors. It ensures structured and efficient processes. Thanks to a standardized database, business processes are seamlessly integrated. As the software has a modular structure, customers can easily adapt it to their own needs and wishes. Let's take a closer look at the functions that ERP fulfills in different areas:In finance, the main functions are accounting, controlling, financial, accounts payable, accounts receivable and asset accounting. Payments, reminders, depreciation, cost calculations and analysis, annual financial statements are regarded as secondary functions.In the logistics area, purchasing and sales, materials management, warehouse management and distribution are among the core functions. The other features are management of material data, customers and contacts, processing of contracts, invoices, goods receipts and issues, invoicing as well as transportation and foreign trade.In the context of production, planning and control, capacity management, workshop control and production data acquisition are regarded as core functions. The management of work plans, work centers, parts lists and resources, planning of material requirements, sales and production, production orders, execution and release as well as confirmation and settlement of production orders are regarded as additional features, while employee management, recruitment of new employees, payroll accounting and career planning are the core functions in human resources. Other features include employee transfers and staffing, training and development, travel accounting and management, career planning, benefits, salary adjustments and company pensions.
The best-known ERP examples
ERP systems are introduced when companies want to optimize and digitalize the processes in their company. However, there is a large number of software available, making it difficult for customers to choose. To make this task easier, we have summarized the best ERP solutions. Here is the list:
- Oracle Fusion Cloud ERP provides the AI features to automate manual processes and perform real-time analysis. It is suitable for complex global processes.
- Sage Intact is a modern AI-driven tool for financial management. It offers a variety of accounting functions as well as cash management.
- SAP Business One offers great support for small and medium-sized companies. It can be used to monitor all aspects of day-to-day business. Information is always up to date because it is synchronized through integration with Microsoft Outlook.
- Microsoft Dynamics 365 can be seen as ERP and CRM software. It combines various modules that ensure business optimization and improvement of customer relationships.
- Pickware ERP offers extensive merchandise management functions, is specially developed for online stores and is used to optimize warehouse management, demand planning, accounting, purchasing and shipping.
CRM system for successful customer management
After the detailed definition of ERP, we will look at CRM. This software system is used to store and analyze customer data. It can be used to identify customer needs and goals and track all interactions. The software can be used for complete coverage of sales processes. This improves relationships with customers, employees, suppliers and partners.
Significance and benefits of use
The abbreviation CRM stands for Customer Relationship Management, which translates as customer relationship management. It is a powerful tool that helps companies to acquire, win and maintain customers, improve contact management, ensure collaboration across teams, increase productivity, strengthen sales management and customer loyalty, and achieve sales growth through marketing activities. By using a CRM, contact management is enhanced and accurate forecasts and reliable reports are generated. It is used to set up campaigns that are tailored to specific target groups.
CRM examples at a glance
Entrepreneurs can choose from various CRM providers. The following software is the most popular:
- Salesforce is a cloud-based CRM platform. It offers multiple functions and integrations and enables efficient, intelligent and fast sales.
- Hubspot is a simple and customizable CRM. It has functions for marketing, sales and service. There are Starter, Professional and Enterprise versions. They differ in terms of their functions.
- Zoho CRM was developed for small and medium-sized companies, is characterized by its flexibility and has a wide range of functions.
- Pipedrive is a scalable, flexible all-in-one CRM platform. It contributes to the further development of the company and is sales-oriented. It helps to track customer communication and win hot leads.
- SugarCRM can be used by small, medium and large companies. It is adaptable. It can be used to create multi-channel marketing campaigns.
What are the differences between ERP and CRM systems?
Both solutions can be used to optimize and improve company processes. However, they have different focuses and functions. ERP focuses on merchandise management, administration of master data and transactions, personnel and project management. The CRM system concentrates on customer relationships. These are the main differences between the two solutions:
| Difference factor | CRM | ERP |
|---|---|---|
| Focus | Customer Relations | All Business Areas |
| Purpose | Strengthening customer loyalty, improving satisfaction | Increasing efficiency, reducing costs |
| Functions | Customer and marketing management | Administration of accounting, sales opportunities, warehouse, inventory and procurement management |
| Komplexität | Viel einfacher | Sehr schwer |
| Costs | Not very expensive (10-60 € per user) | More expensive due to extensive features (100 - 1000 €) |
| Alignment | Marketing, sales, customer acquisition | Internal business processes |
There are also CRM systems that have features for financial accounting and sales. It has interfaces to the ERP system and can be considered part of ERP, and an ERP system can also contain functions such as a CRM system as a module. It is a more comprehensive solution that can be used to monitor the entire company. There is no need to compare ERP system vs CRM software as alternative solutions. Both systems cannot replace each other, but complement each other. In order for your business to achieve great success, it is worth using both software in parallel.
What do CRM and ERP have in common?
The software solutions are complementary tools that are used synchronously. When comparing ERP vs CRM, it is not only possible to identify differences, but also several similarities. Here are the main similarities:
| Gemeinsame Züge | Prozess-optimierung | Gute Kontrolle | Benutzer-freundlichkeit | Einsatzsteigerung | Datenspeicherung und -analyse |
|---|---|---|---|---|---|
| CRM and ERP | Both systems are suitable for optimizing business processes. | The software offers a 360-degree view of processes and data. | The systems are easy to use and can be adapted to growing requirements. | Both solutions increase the productivity and efficiency of the company. | With ERP and CRM, data can be stored, analyzed and managed in one place. |
Which software is right: ERP or CRM system?
Not sure which tool is better for your business? Before you find the answer to this question, you need to correctly determine the current business requirements, future needs and your own IT capacity; if optimization of all business processes is required and the existing solution does not need to be replaced by an integrated application, the ERP system is the better choice. If only specific capabilities for customer management and marketing are required, CRM systems are used. Then the real-time data can be used to personalize customer interactions, and if you need expert advice or qualified help, contact Kenner Soft Service GmbH. Our team will help you to speed up and simplify your processes, reduce your expenditure and increase productivity. To achieve this goal, we connect Shopware to ERP system, make appropriate adjustments and develop the interfaces and connectors required for integration.our team helps you to speed up and simplify processes, reduce your expenses and increase productivity. In order to achieve this goal, we connect Shopware to ERP systems, make the necessary adjustments and develop the interfaces and connectors required for integration.Kenner Soft is also your reliable partner for CRM issues. We analyze customer needs, help with the selection of the right software and offer technical support. If you are interested in a CRM or ERP system, please contact us. We are at your disposal.
