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CRM, ERP - What's the difference?
If I buy an ERP system, do I have to purchase a separate CRM system? Is that a module that can be included in an ERP system?
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5 Answers
These terms are becoming blurred so the answer depends upon which ERP or CRM system you buy.
There are a lot of CRM systems that include a lot of ERP functionality, for example NetSuite, EnterpriseWizard and Siebel.
There are also ERP systems with CRM modules such as SAP.
Incidentally, I just posted an article on choosing a CRM system and the recommendations apply equally to choosing an ERP system: http://www.focus.com/ugr/research/crm/how-pick-right-crm-helpdesk-bpm-vendor
Bottom line - ERP formerly called MRP is about bringing stand alone databases together. From a financial perspective it would be bringing Accounting & Finance and pulling in Payroll. More of a back end vs. CRM has back end but with front end visuals.
Historically MRP was built for Manufacturing to track projects.
As Simon talked about - many companies are blending the CRM & ERM solutions. Microsoft/SAP/Oracle have blended suites.
Traditionally, ERP systems are transactional systems to administrate your order management, purchasing, inventory management, etc and they were not focussed on customer relationship management. However, most (large) ERP systems have included CRM modules these days, because that's a logical add-on.
However, you should always check whether those modules fit with your needs.
Charlie - what business question(s) are you trying to answer, even if hypothetical at tis stage? CRM systems often provide "pre-sales to order" type capabilities to help land the sale/contract that then is processed and fulfilled in the ERP system modules. CRM also can help with after sales service management and improved company wide views of customer activity. I help people "choose and use" business software so if you'd like to chat further, please contact me at lgreen@transforming.com
Normally CRM is not included as part of ERP. An ERP (Enterprise Resource Planning) system allows you to integrate engineering, customer service, planning, materials, manufacturing, finance, and human resources across a single facility or across multiple locations. However CRM (Customer Relationship Management) systems helps you track and manage your customer relations.
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