Relationship Between ERP and CRM

ERP – ERP stands for “enterprise resource planning.” The definition of enterprise resource planning is, essentially, an integrated software solution used to manage a company’s resources. ERP software is designed to manage business transactions inside a company.

CRP – CRM means “customer relation management.” which is a software designed to manage all customer interactions in an organized way. It is totally focused on customer management – capturing information pertaining to customer accounts only.


For an entrepreneur who is planning to expand his business, it seems to require a great deal of software which benefits for the organization in terms of profits, expansion and accuracy. CRM and ERP are both business designed software’s , but for an

Entrepreneur it is a matter of trouble as to which software he should apply. ERP and CRM software both focuses on efficiently integrating the different business processes – production, finance, sales, marketing and customer relationships. From point of view

of managerial ideology, the ERP management idea is enhancing the planning and control of internal resources in an enterprise, whereas the primary motive behind the CRM concept is to establish, develop and maintain customer relationships. CRM and ERP solution integrated across your enterprise in real-time providing your company with the best workflow automation possible. These include CRM, Inventory Management, Product Management, Project Management, Accounting and Human Resources Management solutions. Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems are the two of the most popular business systems, sharing some common features but differing in most. Many software developers have also managed to build systems which can perform as CRM and ERP systems at a time because both are ultimately working to achieve the goals of the business organization.

ERP systems are enterprise-oriented systems which improve co-ordination between different company departments, not just limited to sales and marketing, help to gather key enterprise data and manage these data in an unified database , whereas, CRM systems are more customer-oriented which mainly improve co-ordination between sales and marketing departments, automate sales and marketing and customer service practices, enhances communication between sales persons, gather key information about customers and opportunities, and manage these information is a centralized database. Both software applications are different but both are even supporting same business technological fields.

CRM and ERP have a collaborative relationship. Imagine that CRM is the point of a large V that faces outward to your customer base, where it is used to track and predict sales. To back up that effort, information coordination with the sales department’s organizations — finance, manufacturing, product development and marketing — But how do these teams communicate with each other effectively? That’s where ERP comes in. ERP is an internal system that coordinates information between various departments and ensures the lifeblood flows through your enterprise to help profitability. Definitely CRM is a part of ERP, but both relatively performs for the company integrate.

From the view of the management concept and design, we can see that ERP and CRM are not completely different, but are also

very closely related. The important point lies in the fact that they want to maximize and prolong profit making for the enterprise, and to achieve a maximum return of investment (ROI) rate.