Learn the differences between ERP and CRM software for SMEs

The following sections answer important questions about the differences between ERP and CRM software for SMEs. We show you what is behind the acronyms, what they are used for, what tools are included in each of the systems, and why it's crucial to have both to improve business productivity. Are you with us? Don't miss out on this event!

What are the differences between ERP and CRM software in SMEs?

Let's start by addressing the main question that concerns us in this publication, namely: What are the differences between ERP and CRM software, especially for SMEs.

What is ERP?

It is an acronym for Enterprise Resource Planning. Kind of self-explanatory. What is ERP for? It's a business management solution. Without getting too technical, it is a tool that helps to manage all the resources of a company. How does it do this?

Initially, this kind of software was intended for companies working with industrial manufacturing processes. They helped industries to improve the entire chain behind the creation of mostly physical products to be completed. Operations include inventory management, orders, supply chain and distribution.

But of course, there are many more resources besides those mentioned. That is why, over time, ERP systems evolved to cover virtually any process in a company, facilitating human resources management or financial control, for example. ERP systems have been adapted to all types of industries and companies.

What is a CRM?

Let's now talk about CRM. This is also an acronym, in this case standing for Customer Relationship Management. You'll have noticed that, leaving aside business processes, CRMs focus on managing customer relationships. But there's more to it.

This type of software aims to make customer interactions more efficient. This increases the profitability of SMEs and helps launch marketing campaigns that give better results. The brand image is also strengthened, as existing customer care and after-sales are all managed more efficiently.

Finally, a CRM helps SMEs centralise all their customers' data so that the different departments all have access to it. As with the ERP, the CRM concept has evolved to include a large number of tasks in a business.

What distinguishes a CRM from an ERP?

You'll have probably already noticed the main distinction between the two systems. CRMs and ERPs have very different aims.

The first is responsible for managing all data relating to customers and improving the efficiency of sales processes. Meanwhile, an ERP is focused on the company's internal processes, those that are required to make all the gears fit together perfectly.

At the risk of oversimplifying, we might say that the ERP is in charge of managing all the internal and private resources of the company, while the CRM focuses on the external and public part, i.e. the customers and the relationships that are maintained with them.

The benefits of an ERP and a CRM working in complete harmony

It is clear, therefore, that ERP and CRM do not serve the same purpose. However, they do have something in common: they manage critical data for an organisation. That's why you might wonder if there's a way of integrating both tools into one. And the answer is a resounding yes.

Perhaps the best thing about this idea is that such integration brings enormous benefits to companies. Let's look at some of them:

• Increased productivity. Information is shared between the CRM and the ERP. While they remain independent, duplicate data must be entered into both systems. Integration avoids unproductive practices such as those described.
• Enhanced customer service experience. Sales teams, customer service and other departments will be able to unify their various processes and provide a better customer experience by having all the necessary information in one place.
• Improved decision-making. Reports and statistics generated with a joint system are more comprehensive and help make for better decisions.
• Higher return. All of the above leads inevitably to higher profitability for the business.

SEIDOR and SAP Business One: eliminating the differences between ERP and CRM software for SMEs

Throughout this article, we've shown you what an ERP and CRM are for. But we've also made sure to stress the need for both applications to work in unison within a company. Is it possible to combine two such complex tools? Yes, provided your SME has the right partners.

Now that you know what business management software can bring to your business, let us tell you that at SEIDOR we are experts in the implementation of the leading ERP in the sector, SAP Business One. This is a solution that more than 70,000 companies have adopted around the world. It is the most reliable and secure option available to your business.

Contact us now so that our team of specialists can advise you on the implementation of SAP Business One: CRM management, a solution that offers you a 360º vision to interact with your customers and manage all your company's processes. The difference between ERP and CRM for SMEs is a thing of the past. It's time to advance to the next level!