ERP, or enterprise resource planning, is a process used by companies to manage and integrate the important parts of their businesses, often via software to connect planning, purchasing inventory, sales, marketing, finance, human resources, and more. Many ERP software applications are important to companies because they help them implement resource planning by integrating all of the processes needed to run their companies with a single system. Customer relationship management (CRM) is the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions. The goal is to improve customer service relationships and with CRM software you can keep track of customer service issues, find sales opportunities, and store contact information for customers and prospects all in one place. What is the purpose of ERP? ERP provides a host of services for companies trying to improve how efficiently they operate. Tracking and managing things such as production, cash flows, raw materials, payroll, and purchase orders. What are some of the issues with legacy systems? Data breaches, ransomware attacks, and cybersecurity problems Legacy Systems Make Security Worse. Legacy Systems Are Not Cost-Effective to Manage – support for older systems are typically much more costly because it takes a lot more time for developers to provide continuous maintenance and updates.
o CRM
• Undertakes sales, customer service and experience
• Emphasizes customer management, and interactions to improve marketing presence
• Typical users: sales and support employees
o ERP
• Focusses on the company’s internal processes and management
• Cover the entire business, manages all major activities, improves back-office functionalities
• Strives to reduce overhead and cut costs via automation
• Typical users: decision-makers
https://www.techtarget.com/searcherp/feature/CRM-vs-ERP-Understand-differences-and-CRM-choices
Hi Ivan,
I enjoyed reading your post, as I found it to be very informative. You gave great explanations to a lot of important concepts that we have learned this past week. I know that for me personally, being able to fully describe the difference between an ERP and a CRM can become a little tricky. However, your post really helped me to be able to differentiate between the two! I’m glad that we are learning as much as we are about CRMs and ERPs, as I feel like they can be easily applied to a career one day. Personally, the labs have helped me understand CRMs and its importance so much more. Being able to actually apply what we’ve learned not only has helped in retaining the material, but it’s now a skill to add onto my resume! Overall, this is an awesome post with lots of useful information!
Hey Ivan,
I like how you laid out the similarities and differences between CRMs and ERPs in an easy readable format. That really helped me understand your points better. I thought your legacy system graphic was so cute and I depicted clearly how legacy systems compromise a system’s security. Do you think it is worth the extra money to convert all files into one same legacy system rather pay to up keep old systems on a case-by-case basis? I think that while converting all files into one system is the ideal method, the upfront cost may prove to be very overwhelming, especially if there are not too many older systems needing to be maintained.