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ERP Vs CRM – Difference Between ERP and CRM


ERP and CRM are among the most widely used systems in organizations. Do you want to know about these systems? How can it help your organization? Find out the answer in this article about ERP vs CRM.                  

What’s The Difference Between CRM And ERP And Their Respective Benefits

CRM And Its Benefits 

CRM or Customer Relationship Management system is used by customer service and sales departments. It is considered as the front office. CRM software systems can be your best tool to offer the best customer experience, boost customer retention, and loyalty. If you want to make a customer happy, integrating CRM into your business is the best decision. 

Your customers are a big part of the growth of your business. With that, you must develop strong customer relationships to gain their trust and loyalty to your brand. The CRM system can be your efficient partner for customer management. It manages customer interactions to help you provide your customers with a consistent and personalized experience.

With this business software, you can streamline your business’ workflows and processes to avoid redundant tasks. Another benefit between ERP vs CRM, using a full-fledged CRM system and CRM analytics, you can enhance productivity and collaboration in your marketing and sales teams. It allows you to track customer activity and record customer preferences.

It also helps increase your business sales and profitability by enhancing the experience of your customers. With that, they trust your business and be your loyal customers. CRM manages and keeps data from different touchpoints and sources like company websites, email, telephone, live chat, social media, and more.

CRM system is a repository of customers and stores real-time data like specific needs and wants, buying history, financial demographics, purchasing preferences, making a view of the customers, and promoting consistent and more engaging interactions. Different business departments may need a CRM system, including the teams for marketing efforts, sales team, and customer service team.

Benefits of CRM

ERP and its benefits 

The ERP or Enterprise Resource Planning system is also an essential software for streamlining business operations. With a full-fledged ERP system, you can focus on data more instead of processes. You can also use it on financial applications, processing orders, tracking supply chains and manufacturing, and more. It is referred to as the back office. 

It can be a central repository where you can manage payroll, benefits, finance, and employee information. The system can help you develop enterprise-wide strategies, manage hiring initiatives, update accounts, and receive alerts about issues.

Between ERP vs CRM, implementing ERP in your organization can give you a competitive advantage. It enables you to view improvements in different departments like the sales and finance departments. So, you can stay ahead of the competition in your industry. The system can also enhance process efficiency. You can have real-time insights that will help to improve your sales processes and supply chain types. You can track every detail of your business and make processes more efficient and easier. 

It also helps to lower operation and administrative costs. With this, you can use your money on other important aspects of your business. The system can be a reliable central database since it enhances data consistency and accuracy. You have an assurance that all analytics and data are safe to use without the risk of errors. 

Enterprise Resource Planning Software is beneficial to improve your marketing campaigns and project planning. You can access contact center software and marketing automation to improve service management. It also features customized reporting and department collaboration to meet your business needs, also improving overall marketing processes and functions.


Here is chart for comparing benefits between ERP vs CRM

CRM BenefitsERP Benefits
Dashboards and reporting Accounting/ financial management
Sales management Master Production Scheduler
Service managementOrder management 
Marketing campaign management Supply chain management
Insights generationProcurement 
Cross-departmental alignment Warehouse management and fulfillment 

What is the Difference of ERP and CRM

The ERP can manage different areas of business processes to enhance productivity. On the other hand, CRM simplifies and focuses on sales processes. In CRM, it is easier to transfer company data like delivery notes, deliveries, invoices, payments, and others compared to ERP. 

Implementing ERP can be time-consuming and costlier than CRM implementation. Additionally, ERP is usually used by medium and big companies rather than CRM. Meanwhile, CRM is usually used among SMEs because they can adapt quickly to them. 

What is the Role of ERP and CRM in Business Process Automation

Business Process Automation helps businesses to save time and effort in performing repetitive tasks. The CRM and ERP integrated systems have a core functionalities role in business process automation.

ERP automates record-keeping activities and other business functions. The software comes with integrated applications like human resources, financial, ERP inventory management, and Distribution process management. Among comparison between ERP vs CRM, ERP can lower routine errors and data duplication. More importantly, it can also save more of your time and reduce operational costs. 

The system features a Business Central database, which allows you to improve data analytics. It helps to provide valuable information to enhance decision-making in the different departments of your business. ERP also has roles in records-keeping, enhancing workflows, and forecasting abilities. 

The good thing is that ERP can also incorporate new technologies like AI or artificial intelligence. So, there will be increased automation in your business processes. ERP automation can help your team to stop performing repetitive tasks. It can also increase their engagement and motivation to enhance their skills and performance. With this, they can be more productive, which may contribute to the success of your organization. 

On the other hand, CRM also has a role in business process automation. CRM system reduces human errors, especially on repetitive tasks. It is also beneficial to improve productivity by increasing basic integration. CRM workflow automation enables your teams and departments to collaborate effectively.

Benefits of CRM

While comparing ERP vs CRM, it is evident that CRM helps to save labor costs. It enhances scalability since the system is a low-cost alternative for your business processes. The software can provide automated data monitoring to motivate marketing and sales teams to complete their tasks on time.

How do ERP and CRM improve Business Process Management?

Both CRM and ERP can enhance business process management. ERP can reduce redundancy in business processes. It reduces delays and errors, which can result in more satisfied customers. ERP systems can automate manual tasks that will save your time. 

Using ERP software, you can automate tasks like making sales orders, coordinating cross-department workflows, emailing notifications or invoices to your customers, allocating inventory to sales orders, and replenishing stock as it gets low, and more. ERP integration can help to gain valuable insights to make more effective decisions. You also have access to data visualization and advanced reports.

With ERP integration, you can improve communication among the different teams in your company. It can offer data visibility in real-time. You can enhance collaboration among contact management, accounting, inventory and warehousing management, order entry, and order processing. Between ERP vs CRM, ERP system can be a central repository for essential data in your organization. 

CRM system is also helpful for business process management. It is even beneficial for social media management. The software can manage marketing functions and sales interactions with your customers. By creating strong relationships with your customers, you can provide them with a more personalized experience to satisfy them. In this case, they can be your loyal customers who can increase your business sales and profits.

Role of ERP in (Financial Resource Management, Human Resource Management, Inventory Management, Supply Chain Management)

ERP can help to grow your business. It has a significant role in the different aspects of your business. Let us discuss it below.

Financial Resource Management

ERP software can help to manage your financial matters. It helps to lower operation and administrative costs. If you want to develop an effective strategy in spending and saving money with your business, ERP can be the right solution. The system can help to increase your profits.

Human Resource Management

The ERP can also help to improve human resource management. It can develop the best way to schedule and plan resources to enhance productivity. You can streamline business processes, analyze results and monitor the performance of your employees. With this, you can observe what needs to be improved in your team.

Inventory Management 

The ERP system is helpful for your business’ inventory management. You can track the availability of supplies for your business model processes. It is a important feature to consider while doing comparing ERP vs CRM.

Supply Chain Management 

You can also use ERP in improving your supply chain management. Aside from offering data on stock levels, it can provide you specific details like expiration dates, inventory usage, and accurate demand forecasting.

Benefits of ERP System

Role of CRM in (Client Management, Lead Interaction Management, Database Management, Customer Service, Lead Management and Campaign Management)

Client Management

CRM system can be your efficient tool in client management. You can use the software in automating a call center, Offering a fast response to loan and credit card applications, or managing complaints from your customers. With this, you can establish good relationships with your clients.

Lead Interaction Management

Using the CRM software enables you to have better lead interaction management. In return, you can increase your customer base, which can also help make your business more profitable.

Database Management

The system can improve your database management. You have peace of mind because you can keep accurate data with security. As you gain reliable data, you can have insights on how to improve your business processes. 

Customer Service

CRM system includes customer-related features that can assist you in enhancing your customers’ experience which in turn enhances customer loyalty. You can improve your business’s customer service by meeting the needs of your clients. It can help to win their trust and loyalty to your brand.

Lead Management

CRM also has tools you can use for generating more leads for the business opportunity. You can base the match on the industry, sales region, product, and other criteria. The more leads you have, the more potential customers you can have.

Campaign Management 

If you want to increase your customer base, then you need to improve campaign management. Luckily, CRM can help you make better campaigns to increase your brand recognition. You can deliver the best campaign efforts to your target audience to produce the best results.

You can check out the Microsoft CRM price.

How to choose between ERP and CRM on Organizational Needs


Do you find it hard to decide on choosing between ERP vs CRM on your organizational needs? Well, to know the answer, it is essential to consider first the needs of your company. CRM system can be the right system for your organization if you want to increase your marketing and sales. 

ERP and CRM can also help business leaders to streamline complex business processes. These tools don’t require business skills but can still be a valuable business solution for your organization.

If you want to enhance different aspects of your business, you can opt for an ERP system. It can provide you with real-time data that helps you make more effective decisions for your business’s success. Meanwhile, both ERP and CRM can offer lots of benefits for your organization. So, you can choose based on the specific needs of your organization. 

Integration of CRM and ERP for an integrated business approach

CRM integration for an integrated business approach can improve your business processes. These integrations may include connector integrations, calendar integrations, email integrations, social media integrations, customer success integrations, and more. 

On the other side, ERP integration is also beneficial for the growth of your business. You can integrate the software with different business systems. So, you can enhance the accuracy of your business operations. With ERP integration, you can automate business processes, improve workflow, and save more of your time and money.

Some ERP integrations include eCommerce ERP integration, CRM ERP integration, project management integration, business intelligence integration, and more. Both CRM and ERP integration can help to increase the profits of your business. 

EPC Group Approach for Business Process Automation using Microsoft Dynamics 365 CRM and ERP

EPC Group has a more holistic approach to business process automation using Microsoft Dynamics 365 CRM and ERP. We use the correct implementation methods to help businesses acquire more customers. They always use the best strategies to give the best satisfaction to their clients. They also make sure that duplicate data entries are removed to offer reliable data in different applications. You can contact us if you are looking for Microsoft Dynamics 365 Consulting

EPC Group Microsoft Gold Partners


To sum it up, between ERP vs CRM, both can be among the most efficient tools you can use to grow your business benefits. They come with innovative features to improve your business operations. With that, you can make your business more profitable and successful. Are you ready to level up your business’ success? Then, you can integrate ERP or CRM with your business now.

Errin OConnor

Errin OConnor

With over 25 years of experience in Information Technology and Management Consulting, Errin O’Connor has led hundreds of large-scale enterprise implementations from Business Intelligence, Power BI, Office 365, SharePoint, Exchange, IT Security, Azure and Hybrid Cloud efforts for over 165 Fortune 500 companies.

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