Is CRM a part of ERP?

Hi Kevin,

CRM has traditionally been developed independently from ERP, since it was about contact management, not manufacturing management. This is why most CRM products have almost nothing do to with ERP.

Later on, large ERP vendors understood that you need CRM functionality to make a robust business software and either developed CRM modules or acquired and integrated existing CRM products.

In conclusion, if you need to track inventory and manage production, CRM is usually part of the ERP product or suite. If it is more important to track sales, prospects, manage campaigns, customer service, etc, a standalone CRM would be a better choice.

Very obvious and interesting query.
These two terms are often get mixed with each other.
After working on these enterprise applications, I feel that there is the difference in the basic orientation of these two concepts itself.
ERP applications are the applications/concepts developed with the organization centric approach whereas CRM is developed with customer centric approach. In the other words ERP was developed keeping the seller's market in mind and CRM is developed keeping buyer's market in mind.
So in that way, ERP basically concentrates on the "cost centers" like Manufacturing, HR, Inventory, Admin, Procurement, Distribution etc. whereas CRM concentrates on "profit centers" like customer touch points, customer interaction management, sales, cross sell/up sell, loyalty management etc.

This is just a brief about what I wanted to say and hopefully it will be added with the thoughts of more members, who agree and disagree with the mentioned points.

Expecting a good debate on it, so that we all could enhance our understanding with these excellent enterprise concepts.

Best wishes
Chandan
...Yes Penguins may fly...

In very basic and conceptual answer:
CRM software are front office applications which work as interface between the organization's processes and parties outside the organization like customers (SRM Supplier Relation Management, ERM Employee Relation Management systems have the same functionality but with suppliers or employees instead of customers so we can consider them in the same category of CRM) So, they could be integrated with the back office system (ERP, SCM, BPM,..) or be standalone and their outputs will be treated and used manually.

ERP software are back office applications which manage the processes of the organization. It can takes some of its inputs from CRM or from the internal personnel.

Some ERP systems contain CRM module within its package like Dynamics AX2009. but that is not common.

The most critical questions normally comes out of such activities. This is a good way to begin and move forward. Having said so ERP at large is used keeping in mind the cost factor. Implementation of CRM takes a portion of IT Budget allocation. To be more precise it is expensive to adopt CRM and it is an add on to the ERP system.

Most of the ERP works on ECC model(Enterprise Central Component). If you see the SAP for example the following questions arises

Are you a SD/FICO/MM/WM/PP consultant or Siebel/Peoplesoft/Oracle?
What are the new modules people talk about CRM, SCM, APO?
Is my organization ready to accept the IT Investment?

One has to understand as users we get attracted by new applications or add on. End of Business what is required is a greater Return on Investment? How the application can break down tasks to reduce the turn around time. This reduces the pressure on an employee to prove his capability or provide results with a specific time frame.

CRM ultimately is designed to ease the Sales, Services and Marketing areas. Out of all its the Services space which is very unpredictable though high in demand. The needs of users are complex and increasing day by day. Thinking of an example Banking/Airline sector vs Manufacturing.

In Banking/Airlines its a services space where customers demands are more. Contact Center, Campaigning, Requests, the call list varies. CRM is a best bet.

In Manufacturing Product Planning, Product Schedules, Lead Time, Inventory, Roll Out, Delivery Schedule, etc. An ERP is just fine.

"Ultimately it is the users preference, the cost in mind, (CIM), and operability".

Thanks and Best Regards,
Chuck