Does a business need ERP?
Enterprise resource planning as the name suggests is a very broad term and entails CRM (Customer relationship management) as well.Technically ERP is business management software—usually a suite of integrated applications—that a company can use to store and manage data from every stage of business.
ERP with the help of database management system provides a real time understanding of various processes and facilitates better decision on business statuses. Which in common parlance will be a mammoth task at the end of the entreprnuer if done manually and achieve error free transactions
Furthermore ERP facilitated better co-ordination among various departments. Say the accounts department had to co-ordinate with sales department to raise an invoice or voucher, this was better facilitated by ERP.
ERP helps business:
In many tangents. Considering sales department, while making a bigger marketing campaign, they will have to co-ordinate with other departments in the organization.Each department can pool their respective expertise and augment the internal business process.In the above example the sales team will have to interact with HR team, Finance team, Operations team etc which is better facilitated by ERP.
Are ERP & CRM synonyms?
Definitely not!, CRM is a specialised form of ERP.Specifically, CRM software is that part of ERP software that is designed almost exclusively for departments that communicate directly with prospects and customers. Hence ERP entails CRM and is a much more broader term!.When ERP enhances the overall business profitability, CRM betters the customer interaction and relationship.
CRM alone cannot solve critical business problems and that’s where ERP comes as the saviour.So ERP and CRM can work together or even independently in a business.Thus ERP & CRM coupled together will garner newer business as well generate better revenues from the existing ones.
Relating this to a classic household scenario, CRM could be like the husband who goes out and earns for the family and ERP like the wife who runs the entire household including the husband!