What is an ERP system? 

When it comes to comparing ERPs and CRMs, it’s best to begin with ERP benefits and features because you can choose to have CRM integration into your ERP system. But we’re jumping ahead. 

What is an Enterprise Resource Planning (ERP) system? 

An Enterprise Resource Planning, or ERP, solution is a type of software that will improve the efficiency of your internal business processes by automating and integrating tasks such as finance management, inventory management, expense management, order management, warehouse management, Human Resources (HR) and other essential business functions. You may already be running all or some of these functions with various software systems that have been previously integrated somewhere along the line. As with all digital technology, that was okay when it was the only thing available but software systems have advanced so that full ERP integration within a single suite is now possible. 

An ERP allows your company to operate all core functions seamlessly from a shared business management ERP software package.  

Once you’ve run through the pros and cons of ERP platforms and answered the CRM vs ERP question as it relates to your business operations, the next step is to successfully implement the software. To do this, you need support from every area of the business. Your new ERP software will likely revolutionise the way your business is managed and operated, so you will want everyone on board.  

ERP features 

While the features that will most benefit your business will depend on your actual business, some key ERP software features are: 

• The connection and integration of all areas of your business.  
• Real time business and operational information – including accounts payable and procurement and the sharing data between departments. 
• Real time business assessment. 
• Supply chain management – purchasing orders, distribution, order management and warehouse management.  
• Central services knowledge base – including HR and payroll. 
• Human resources – manage your people including rosters, wage and leave requests. 
• Inventory management – never hold too much or too little stock again with an automated re-ordering system and notifications when stock runs low.  
• Manage payroll, employee info and superannuation. 
• Financial management – keep track of spending and budgets across the business from a single software system.  
• The ability to create business-wide marketing and sales campaigns and strategies. 
• Reduce or even dispense with redundant and inefficient processes, tasks and procedures. 
• CRM management – CRM integration into your ERP. 

ERP software benefits 

The benefits an ERP is going to bring to your business will depend largely on what you’re looking to achieve. But some of the main benefits include:  

Data security – did you know the Australian the Government’s Australian Cyber Security Centre (ACSC) receives 144 cybercrime reports every day with businesses losing an estimated $300M each year due to cybercrime? With sobering statistics like this, it’s no wonder data security is at the top of any business wish list. Data collection and storage is critical to the success of any business and data collected across multiple systems is a breach just waiting to happen. Not to mention spreadsheets or sensitive information being emailed between colleagues. It makes sense that data collected and stored within a single ERP and CRM system, with access limited to those who actually need to view or edit the information, is going to be more secure. 

Real-time data and reporting - ERP software lets you collect, save, and analyse data from every area and department across your business in a single, central location in the cloud. This real-time access to all your business or customer data means real-time reporting, allowing you to make strategic decisions and streamline operations at any time the business requires it.  

Increased efficiency – the ability to automate routine and mundane tasks, such as data input or stock control, will free up employee’s time to focus on things that will make the business money. Increased efficiency will also drive profits, reduce human error, make reporting more transparent, and help your business grow. 

Increased productivity – it goes without saying that if the tools an employee is given to do their job makes their working day easier, they’re going to be more productive. At the click of a few buttons they can access the real-time information they need to do their job and, with a few more click, can share and collaborate with others.  

Easy collaboration – with everyone across your business connected, communication is improved and collaboration is now easy. With access to real-time to data, multi-department collaborations can help pave the way for more efficient workflows and cost reductions.  

Customer service – if using the CRM, you can access real time customer information. This can improve customer satisfaction exponentially with faster response times across all business areas. Sales and marketing teams can collaborate on campaigns focused on building stronger customer relations.  

Mobility – in a post-pandemic world, remote working is here to stay. People and businesses are becoming more comfortable with working from home for some, or all, of the working week and the centralised ERP is playing a huge part in this shift from office-based working. As ERPs are cloud based, an employee can work anywhere they have access to the internet and a browser, giving even the smallest of businesses the flexibility to hire and retain the talent they want and need for this business to succeed.   

The difference between ERP and financials 

During your research, you may have noticed financials and ERP software being used somewhat interchangeably, but they’re not the same thing. Financials are modules within an ERP and relate to the financial business functions with a business or company. They include things like accounting, payables and receivables, invoicing and credit control, revenue management, billing, expense management, project management, asset management etc. 

The financials focus on just one area of the business, while ERP covers a range of business processes, including financials. 

What is a CRM system? 

A Customer Relationship Management, or CRM, system is entirely customer focused. It may incorporate many sub-systems and manages all customer interactions – existing as well as potential customers – for a business. The CRM was initially developed as a sales tool but has grown over the years to collect and store all customer related data and interactions making it quick and easy to focus sales and marketing efforts on specific customers or demographics as the business requires.  

A CRM system offers deep insight into your customers and everything is in one place. It can be integrated with an ERP, or used as an individual business tool. Many ERP software systems will come with an inbuilt CRM, but they’re unlikely to have as many features as a separate CRM system.  

CRM features  

As a CRM system is customer focused, it doesn’t have the range of applications an ERP does, but some features and benefits will overlap. If you want more from your management software, it may be time to revisit the CRM vs ERP question but if you’re all about the customer, here’s some CRM features that will keep making it easy for your sales and marketing teams to connect with your customers. 

• Keep marketing campaigns and seasonal strategies organised  
• Automate sales and marketing campaigns 
• Create business-wide marketing and sales campaigns and strategies 
• Create real time reporting  
• Data management  
• Manage: 
  • the sales pipeline 
  • lead generation 
  • contacts and suppliers 
  • the ROI of sales/lead conversions 
  • inventory  
• Streamline sales processes  
• Analyse buy/spend patterns 
• Reduce or even dispense with redundant and inefficient processes, tasks and procedures. 

CRM benefits  

Similar to the benefits an ERP, CRM benefits will depend mainly on what you’re looking to achieve, but some main advantages include:  

Database management – one of the greatest benefits of the CRM is the ability to centralise all customer and business information. Real time reporting and analytics allows the business to make strategic decisions about the business itself and the customers. Employees across the business can be given the same access to general information because the sales and marketing teams don’t operate in a bubble. Other areas of the business may be able to offer deep insight when they can access all the customer information and not just some.   

Lead generation – leads can come from anywhere and every one should be kept on record because you never know when the prospect is ready to become a customer. Leads can come from referrals, landing pages, social media or word of mouth. Keep track of where your leads are originating and how many convert to sales can tell a business a lot about where they should be focusing their marketing or sales efforts.  

Client interaction – keep track of where and when customers are buying your product or using your services. Tracking can be broken down into any number of sub-groups such as age, buying intention, season, interests, previous purchases and spend.  

Customer management – update and edit customer information. Depending on your business, you may even choose to assign customers to different employees. 

What’s the difference between CRM and ERP? 

The main difference between CRM and ERP is, ERP is used for internal or back office processes, with CRM being used for customer or front office purposes.  

However both the CRM and ERP are implemented to increase the profitability of your business. The ERP does this by working to streamline processes and reduce costs while the CRM focuses on making sales to generate business profit. As any business knows, without customers, there is no business, so the CRM software has an important job in keeping customers happy, satisfied and coming back for more.  

Some ERP software will include a CRM but there are generally less features compared to an individual CRM system.  

ERP vs CRM solutions: Which is best for your business? 

Back to the CRM vs ERP question and which one is going to be more beneficial to your business. Do you need and ERP with a built in CRM or will a CRM suit your business just fine and what are your expectations for the software? The answers to these questions will greatly depend on your circumstances. 

What are you trying to achieve with an ERP or CRM? 

Do you need more structure and automation around internal business processes or are you more focused on customer awareness and just want to improve your sales and marketing approach? Perhaps you’re spending more time on your processes and need to streamline. 

However, if your business is in a strong growth phase, it might be worth considering what it will look like a year or two into the future and buy software for the business you plan to be rather than the business you are now.  

Buy now, save later 

As noted above, with 50% of businesses already planning to either buy, update or upgrade their ERP systems, it’s only a matter of time before your business will need either an ERP, CRM or both, to stay competitive. It’s not unusual for a business to start small and use what tools they have available, for example, a spreadsheet. Then once the business becomes more successful and automation is needed to keep the business growing and profitable, they upgrade to an ERM that has the capabilities to continue flourishing with the business.  

Automation and profitability 

How much sophistication do you need from your automation and what level of functionality will suit your business? It’s important to remember an ERP is about reducing costs while a CRM is about making money. Both impact profits but from opposite angles. Will reducing internal costs have as much of an impact on your business bottom line as increasing sales?  

Integration of ERP software and CRM systems 

CRM management via CRM integration is possible for some ERP systems. While it’s unlikely an integrated system will have the scope of a standalone CRM, many businesses only require a basic CRM so it will be ideal for this type of business. As both systems will need to share data, it might be worth considering whether it’s worth implementing and maintaining two systems when you could just utilise one.  

If you need the customer-focused CRM solutions while your backend office processes are pretty standard and not really in need of an urgent upgrade, perhaps a CRM is your best option. And the opposite is true if your business has more complex needs. 

As your organisation grows, outdated processes and disconnected systems can cause inefficiencies which add unnecessary costs, risks and delays to your business bottom line. When you switch to a smarter, more integrated financial management software system, you’ll have greater financial control and the power to grow with confidence. 

Access Financials is rich in functionality, delivering a full suite of financial management modules and core accounting performance. The modular design allows you to build an integrated financial system, capable of managing the unique needs of your organisation to prepare for business growth.  

---

To learn more about how you can bring all your financial management and accounting functions into one centralised system, book a demo today.