The modern business world is complicated, and competition is fierce, so proactive organizational leaders can't afford to rely on ad hoc systems to manage their operations.

ERP and CRM systems are pivotal in today's operational environments. Both these solutions help enterprises share data smoothly among departments, facilitating greater collaboration and driving efficiency.

ERPs and CRMs might seem like they're similar at first glance. How do their functions overlap and diverge? How do they relate to each other, if at all? Is it better to combine these solutions under one house or use them separately?

What are ERP and CRM?

Let's first take a look at each application individually to see what it does and who it's primary users are.

ERP

ERP stands for enterprise resource planning. What does that mean? It means that this software solution typically helps its users manage the flow of information for back-office functions. This means that it has a broad impact on operations in the factory and warehouse. It also interacts with procurement functions, and it can connect to payroll and HR, too.

CRM

CRM stands for customer relationship management software. As you might infer, this is more of a front-office solution, focused on sales, customer service and interactions with clients, prospects and leads. It may be connected to marketing efforts as well.

How are ERP and CRM systems connected?

There are several different ways that ERP and CRM systems can work together within an organization.

ERP with CRM capabilities included

Many large ERP systems include some CRM capabilities within their baseline functions. ERPs are generally intended to be comprehensive, so they may provide more functionality than their users actually leverage. Typically, the CRM features included within an ERP are limited in scope and can feel unwieldy for their end users.

ERP with CRM module added on

Like the previous formation, some ERPs offer CRM add-ons or modules on top of what's built into the ERP. These solutions are typically a bit easier for the end user, and they integrate readily with the associated ERP.

Separate ERP and CRM solutions

Some businesses use an entirely separate CRM purchased through a third party instead of through the company that manages their ERP. These standalone CRMs are typically geared toward sales and customer service end users, and integration with an existing ERP can be more difficult.

What are the benefits of integrating ERP and CRM systems?

Regardless of which setup you use, it's usually possible to integrate your ERP and CRM solutions.

The possibilities opened up by fully syncing these two systems will depend on your business. In the retail world, e-commerce operations may find these integration efforts particularly useful, since their costumers crave insight into the kind of data that's housed in ERPs.

No matter what you do though, a well-maintained CRM could enable you to anticipate demand better on the supply side and to manage customer expectations more accurately on the front end.

If you're looking for the ERP system that's right for you and your CRM, and you need a trusted partner to help you implement it, Accent Software is here to help.