Digital technologies have transformed the way organizations operate, with 65 percent of the global GDP expected to be digitized by the end of 2022. Between 2020 and 2023, investment in digital transformation will amount to $6.8 trillion.

But why do so many businesses want to accelerate their adoption of IT? Because these solutions work. In fact, 75% of small businesses say they relied on digital technologies to stay afloat throughout 2020.

Two of the most useful digital solutions used today are ERP and CRM systems. Given these platforms’ popularity, the ERP vs CRM debate is nothing new. In today’s blog post, we’ll look at both ERP and CRM to see which one is right for your company’s needs.

What Is an ERP System?

ERP systems are enterprise resource planning platforms that help businesses manage various aspects of their operations, including finance, accounting, manufacturing, and supply chain.

ERP platforms can be deployed on-premise or in the cloud, and they typically come with a suite of modules that can be customized to meet the specific needs of a business.

An ERP system can offer numerous benefits to businesses, including improved efficiency, better decision-making, and enhanced visibility into all facets of the operation. However, ERP systems can also be complex and costly to implement, and they often require ongoing maintenance and support.

What Is a CRM System?

A CRM system is a software platform that helps businesses manage customer relationships.

CRM systems help businesses track and manage customer data, including contact information, purchase history, and communication records. CRM systems also provide tools for managing customer interactions, such as sales and marketing campaigns.

CRM systems can be used to improve customer service, increase sales, and boost customer retention. But CRM systems can sometimes create privacy concerns, as they collect and store a lot of personal data about customers.

Be sure to choose the most reliable CRM software you can find, such as Handshake B2B sales automation or a good Handshake Sales Automation alternative.

How Do ERP Systems Differ From CRM Platforms?

The ERP system vs CRM system conversation is often confusing to beginners business owners. While both an ERP platform and a CRM system can help improve your company, the two solutions have important differences. These CRM vs ERP differences are mainly in terms of:

  • Functionality
  • Data
  • Users

Functionality wise, ERP systems are focused on streamlining back-end processes such as:

  • Accounting
  • Inventory management
  • Supply chain management

CRM platforms, on the other hand, are designed to help businesses manage customer relationships more effectively.

In terms of data, ERP systems typically house transactional data while CRM platforms store customer data. As for users, ERP systems are used primarily by employees in back-end departments such as finance and operations.

CRM platforms are used by front-line employees who deal directly with customers, such as sales and customer service.

ERP Vs CRM: Which Should You Choose?

The answer depends on your specific needs. If you’re looking for a solution to help streamline back-end operations, then an ERP system is likely the better choice. However, if you’re looking for a solution to help improve customer relationships, then a CRM system is probably a better fit.

Choose the Right Software for Your Business

Selecting the right software solution can have a big impact on your company’s bottom line, especially when it comes to the ERP vs CRM scenario. Be sure to carefully consider your needs before making a decision.

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