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The two comprehensive systems most often chosen by our clients are CRM and ERP applications. Although both of these share certain functionality, they also differ in some areas, which determines the choice of one or the other.
What is ERP?
The ERP stands for Enterprise Resource Planning. The system serves to help you manage all kinds of resources that your company has. Within one application, you are able to manage multiples processes taking place in your business – some say that even all of them. Some of the areas it can cover are sales and marketing, customer database, manufacture, and warehouses. The number of modules of the system depends on od the individual needs of a certain company and the types of processes taking place in it. This improves information sharing between departments and employees within the business. Each of your employees has their profile within the system, which allows them e.g. to edit, view or delete data. In this way, we ensure data exchange and data security. By entering data as you acquire it, you are creating an up-to-date database containing all the relevant information about your business, which will be a useful tool for each of your departments. A bespoke ERP will also leave space for further development and integration, depending on your needs.
What does ERP do for your business?
1. Provides tools precisely tailored to your needs.
2. Gathers a lot of different types of data within one application.
3. Ensures data security
4. Allows for integration with external software and further development.
What is CRM?
CRM stands for Customer Relationship Management. That means an application of this type is a part of an ERP. It holds all the customer and sales data. You will find that many solutions of this type offer some additional modules taken from an ERP – e.g. warehouse, invoices or documents. In this way, CRM turns out to be a great solution for smaller businesses. You can choose from off-the-shelf software – with a set range of functions, usually available in a subscription-based model; and bespoke software – built in accordance with the requirements of an individual client, tailored to their needs. A CRM system can then be of different sizes, but still, it will never offer the functionality of an ERP, e.g. it will not help you manage the production processes.
What does CRM do for your business?
1. Helps to manage customer relations as well as sales and marketing.
2. Provides tools for scaling sales and accurate assessment of sales opportunities.
3. Allows for further development as your needs grow.
4. Allows for integration with external systems.
ERP vs CRM
ERPs are unique for their size and complexity. For this reason, those are mostly chosen by larger businesses aiming at better coordination of manufacturing processes, acquiring new customers and improving sales. Smaller businesses usually opt for CRM, although it is not a strict rule. The decision to invest in a certain type of software is determined by the branch of industry and the individual needs of a company. If you are thinking which would be best for you and your team, feel free to get in touch.
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