Distinguishing ERP from CRM: An In-Depth Analysis of Business Software Solutions

March 25, 2022 Distinguishing ERP from CRM: An In-Depth Analysis of Business Software Solutions By admin

Businesses looking to automate their business operations go for two leading ERP software solutions. One is enterprise resource planning [ERP], and the other is Customer resource management [CRM]. ERP is used to manage the inventory and financial operations of a company. CRM ERP system, focuses on customer relations. Both are important for the smooth functioning of an organization. In this article, we will discuss both this software in detail.


CRM is based on the interaction between the company and the business. It was developed for the usage of sales departments. Later, other systems also emerged, such as marketing through call centers. As years passed, software providers decided to combine everything under one umbrella. It led to the emergence of the CRM ERP system. The most significant advantage of CRM software is that it works like a repository of all customer data. Also, it tracks all customer interactions, and businesses can make informed decisions based on customer data. They can understand their target audience and prepare the right marketing strategies to boost their sales. The customers also benefit from the CRM system. They get better and more efficient service.


The enterprise resource planning software works excellently in managing the whole business operation. From managing the employees to tracking the supply chain, ERP caters to a wide range of needs. In simple words, it handles the financial management of the company. The core function of the ERP is finance. It involves general ledger, payroll, and financial reporting. ERP also touches upon procurement, distribution, and customer fulfillment.

The most significant benefit of the ERP is the single database that contains financial and operational data. It helps the employees uncover the company’s financial record to conduct analysis. Due to such a vast database, companies make faster and more efficient decisions.

Another advantage of moving to a CRM ERP system is a quicker financial close. Finance teams calculate all estimates and tabulate the results at a specific period. It is known as closing the books, which is quite complicated. Many companies still maintain financial records on excel sheets or entry-level software systems. But it demands extensive manual work. Therefore, an ERP system can automate such tasks and present the report in just a few days. Hence, it is cost-effective and increases the productivity of the company.

Understanding the Differences Between CRM ERP System

The most important difference between ERP and CRM is that ERP is used for financial and operational management. In contrast, CRM is used for extracting customer data which is then used by the sales team for marketing. The former is the back-office work, and the latter is the front-office work. Some ERP systems include a CRM component, but this is not the case for CRM systems. There are few high-quality software that provides a well-functioned CRM ERP system.

There are some similarities between CRM and ERP software as well. Both of these applications store and analyze data. Users can access them through a typical on-premises model or cloud-based models.

Which One Should You Go For?

All the emerging companies utilize both the ERP and CRM software for their growth. Companies running their financial operations through entry-level software are turning towards ERP management system. It is because they realize the importance of streamlining processes, and they are looking for more robust options. The same can be said about the management of customer relationships. CRM software is a great system to manage customer relations and understand their requirement without any paperwork.

A company with a complex financial system should firstly opt for ERP system integration. While the organization having relatively straightforward finances and an extensive customer base should do the opposite. One standard process that requires integrating both methods is configured, price, quote [CPQ]. CPQ needs information from both CRM ERP system.

We recommend the integration of CRM ERP system. Purchasing an integrated ERP CRM system is cheaper than separate purchases. Financing and customer management are the pillars of a successful business. Hence, combining both can ensure that the companies get updated information on the real-time interaction.

Autus Cybertech provides CRM and cloud based ERP software at affordable rates. You will get the best CRM software for small businesses as well as big businesses. Contact us via our website or directly at 74288 24488 to book our software.

Related Posts