Differences Between ERP and CRM

Differences Between ERP and CRM

ERP and CRM are two of the most important business software solutions. They help companies manage their operations, customer relationships, and other aspects of daily operations.

ERP stands for Enterprise Resource Planning and refers to a system that integrates all aspects of your organization’s business processes into one platform. CRM stands for Customer Relationship Management and refers to software designed specifically for managing customer interactions across channels like phone calls, emails, etc.

ERP and CRM: What is the Difference?

Differences in Functionality

Now that you know what ERP and CRM are, let’s take a look at some of the key differences between them.

ERP v/s CRM Functionality

The main difference between ERP and CRM is their functionality. While both systems help companies manage customer data, they do so in different ways. For example, while an ERP system is designed to handle all aspects of a business’s operations (from accounting to inventory management), a CRM system focuses solely on customer relationships and interactions with customers.

Data Storage

Another key difference between these two platforms lies in how they store information about your customers or clients–and this has major implications for how well each one can serve your needs over time as your business grows or changes direction. With an ERP system like Salesforce Commerce Cloud (SCC), all data related to sales orders must be stored within SCC itself; however with Sage 100cx Cloud Edition (SCxCE) from Sage Intacct Inc., some parts of this information can be stored outside SCxCE itself because it integrates with other applications such as Microsoft Dynamics AX (Dynamics AX).

ERP -CRM: Key Benefits

ERP benefits

  • Streamlined processes. ERP systems automate many of the manual steps involved in running a business, allowing you to focus on higher-level tasks like strategy and growth.
  • Better visibility into your data, which helps you make better decisions about how your business is performing. This includes seeing the full picture of what’s happening across all departments and locations, so you can spot trends early on before they become problems–and take action before it’s too late.
  • Improved collaboration between teams that may be located in different offices or countries (or even planets), as well as between internal departments like sales and marketing or accounting and human resources.

CRM Benefits

  • Improved Customer Relationships
  • Increased Efficiency
  • More Effective Sales Strategies Differences in Cost

ERP and CRM software solutions can be used for different purposes. ERP is designed for managing all of your business processes and operations in one place, while CRM focuses on customer relationship management (CRM).
ERP is generally more expensive than CRM because it offers more functionality. However, if you only need a small amount of functionality or don’t want to pay for extra features that aren’t necessary for your business model then it may be better to go with a less expensive option like a CRM system instead.

Integration of ERP and CRM

Integration of ERP and CRM is a very important part of the business process. It will help you to achieve the following benefits:

  • A seamless flow of information between sales, marketing, service, and finance departments.
  • Better customer service through better understanding of their needs and requirements.
  • Improved efficiency in the company’s operations by eliminating duplicate efforts among different departments

Choosing the Right System

Choosing the right system for your business can be a daunting task. But with some research and planning, you can ensure that your company is set up for success.
There are many different types of ERP systems available on the market today, so it’s important to choose one that meets all of your needs. The first step in this process should be assessing what those needs are and how they differ from those of other companies in similar industries. After all, not every company has the same resources or goals.
Once you’ve identified these factors (and others), it’s time to evaluate which software solutions will work best for them based on their budget and timeline constraints

Implementing the Right System

When you’re ready to implement your new ERP or CRM system, there are a few things you can do to make sure that the transition goes smoothly. First, create a plan. You’ll want to identify any potential issues and decide how you’ll address them before they become problems. Next, train your staff on how best to use the new software, this will help ensure that everyone understands how it works and can take advantage of its features as soon as possible. Finally, test out all aspects of your new system during its first few weeks in operation so that any bugs or glitches are caught early on before they become major problems later down the road.


ERP systems are great for managing your supply chain and financials, but they don’t have all the features you need to run a successful sales team. CRM software, on the other hand, is designed specifically for managing customer relationships–but it doesn’t have any tools for inventory management or accounting tasks that might be important to you as an entrepreneur.

If you’re thinking about implementing an ERP system or upgrading your existing one then consider integrating it with a CRM solution so you can get all of those benefits in one place.