BIS 219 Week 3 DQ 3 - 7452

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·         What are the differences between ERP and customer relationship management (CRM) software? In what ways do they complement each other? What is the best use of each?


ERP (Enterprise Resource Planning) is a general term for software that is used to coordinate a large amount of the data needed to run a business. It usually handles things like inventory, purchasing, order entry, manufacturing, financials, etc. CRM is a system used to handle the data related to contacts with current and perspective customers. An ERP system may contain CRM functions.

Enterprise resource planning (ERP) systems integrate the planning, management, and use of all of an organization’s resources. The major objectives of ERP systems are to tightly integrate the functional areas of the organization and to enable information to flow seamlessly across the functional areas. Where else, Customer relationship management (CRM) is an enterprise wide effort to acquire and retain customers. CRM recognizes that customers are the core of a business and that a company’s success depends on effectively managing its relationships with them. CRM focuses on building long-term and sustainable customer relationships that add value for both the customer and the company.

An example of ERP is to calculate sales commissions by accessing a web service, in human resources for example. CRM software is used from airlines or insurance companies.

In the sales business ERP and CRM can work together.  For example, if a company gets an order in, it comes through the CRM system. This can check in the ERP Warehouse module if it is available.

CRM is software is designed to manage all customer interactions and allow each member to access information. ERP is great to interact with suppliers, track orders, and do inventory, for example.



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