ERP VS CRM – Comprehensive Comparison


Last Updated on July 15, 2024 by Team Experts

Difference between ERP and CRM is what everyone wants to know. Check out the ERP vs CRM features comparison here.  

Businesses nowadays are looking around for intelligent software solutions to automate core business processes. They typically look for two types of software.

1. Enterprise resource planning (ERP) and
2. Customer relationship management (CRM).

As we all know, ERP helps a company to run a successful organization by collaborating their financial and operational business systems with a central database, while on the other hand, CRM helps to manage and monitor how the customers are interacting with their business.

Both store all the vital data in a stockroom which can be accessed whenever needed. Also, both the software touch on multiple departments and whereas,  they are at times built on the same platform, the software is most of the time bought separately or can be integrated where needed.

In this article, we will help you to identify the key differences between ERP and CRM applications. 

So, let’s start with the Customer Relationship Management application.

What is Customer Relationship Management or CRM ?

In brief, CRM software is a B2C application that manages the customer interaction with the organization. In the initial stage, the CRM was designed purely for the sales departments and was also referred to as sales force automation (SFA). Other software systems were gradually developed to manage all the customer marketing and services, especially in the call center — or as it was believed that at a  contact center telephone slowly became just another channel type for all customer services.

Through in depth research and development, software vendors started to combine all of these under one umbrella and called it ‘customer relationship management’. Sales performance management and sales incentive compensation are sometimes also included in some of the CRM systems presented in the market, but most of the time they’re often sold separately because of their complexity.

Customer Relationship Management Application Benefits

The central promise of the CRM is to give your business a central repository of all the customer data and track of all customer interactions. Surrounded with this information and analytics, businesses can make favorable informed decisions for the customers to add revenue, and take an in depth knowledge on how sales teams are performing, how to provide service to the customers efficiently and appropriately, and many more.

For example, with a centralized CRM system in the house. You can track all the sales reps and know whether your customers are visiting and having outstanding customer tickets and that can respond accordingly. Also, customer service executives can quickly take a look at whether a caller is grabbing a high-value customer or potentially high-value customer, and reroute them to all of the appropriate service and support tiers.

What is Enterprise Resource Planning or ERP?

ERP – Enterprise resource planning is basically evolved out of the material requirements planning (MRP) application, it was a way for manufacturers to manage all the resources needed to operate the growing business. ERP software serves just like a shared database for all the parts of a company. The core of the software contains features like finance, which includes all the general ledger (GL), accounts receivable, accounts payable, payroll, and financial reporting.

But do you know?

ERP also extends to the limit of inventory management, supply chain management, order management, and data related to services for the organizations. ERP even touches the stand of procurement, distribution,  production, and fulfillment as well. Some smart ERPs like SAP & Oracle systems also offer Human Resources Management Systems (HRMS), CRM, and eCommerce in just one single software.

Advantages of Enterprise Resource Planning

An ERP system comes with a single, shared database for all your financial and operational data. The single source of financial and operational data means that all employees can get an insight into the reports and uncover all the financial data without the need of IT professionals or the finance teams to conduct the analysis. This software truly allows businesses to make decisions faster with data-backed data that impacts everything for the profitability of new growth opportunities by creating efficiency across the whole organization.

Another benefit of transferring your business to the ERP system is that companies frequently experience faster financial closing years. With an intelligent ERP now close the books by using spreadsheets or the entry-level accounting systems that typically require extensive manual work, data entry, and an increase in errors. With a centralized platform, an ERP system automates many of those tasks. The companies with ERP software have reported reductions in their monthly close times in just some days. 

ERP VS CRM – Major Differences

Customer Relationship Management SoftwareEnterprise Resource Planning Application

Use the CRM Software to manage all of the following office activities:

Organize all marketing efforts
Manage your sales pipeline
Calculate the time spent on converting those leads to deals
Streamline all your sales processes
Automates the customer service
Track the customer’s interactions
Share marketing and sales reports
Create better data reports
Lead prioritization
Collaborate to sell as a team
Manage your business contacts
Monitor your business leads
Share customer profiles with all the co-workers
See the source of all the leads
Use ERP Software to manage all your back-office activities and tasks that include the following:

Distribution process management
Supply chain management
Services knowledge base
Improve accuracy of financial data
Facilitate better project planning
Automate employee life-cycle
Standardize critical business procedures
Reduce redundant tasks
Assess business needs
Accounting and financial applications
Lower purchasing costs
Manage human resources

What Say – Who Wins the Race?

ERP and CRM are both great and intelligent tools for optimizing your revenue. Therefore, all the actual purposes they serve vary — ERP is an amazing comprehensive solution that centralizes both front- and back-office processes, whereas CRM deals with the sales, marketing, and customer relationships. The program that suits the best for your company depends on the scope of your business needs and the amount of investment you’re willing to make.

In a CRM vs ERP match-up, are you confused to get yours from, and getting both might cost you pockets. Don’t worry,  Cinntra Infotech is the #1 leading ERP implementer and also provides customization just like integrating your CRM with your ERP software. Just call us at  +91 8882709959 or email us at

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Anil is an enthusiastic, self-motivated, reliable person who is a Technology evangelist. He's always been fascinated at work especially at innovation that causes benefit to the students, working professionals or the companies. Being unique and thinking Innovative is what he loves the most, supporting his thoughts he will be ahead for any change valuing social responsibility with a reprising innovation. His interest in various fields and the urge to explore, led him to find places to put himself to work and design things than just learning. Follow him on LinkedIn

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