Difference Between ERP And CRM (Business Operations And Impact In Efficiency)

Scope of Functionality:

ERP: Encompasses internal processes including finance, HR, manufacturing, and supply chain management.

CRM: Centers on external processes like sales, marketing campaigns, and customer service interactions.

Data Management:

ERP: Centralizes internal data, providing a comprehensive view of business operations.

CRM: Organizes customer-related data, offering insights into customer behaviours and preferences.

User Base:

ERP: Utilized by finance, HR, manufacturing, and operations teams to manage internal workflows.

CRM: Employed by sales, marketing, and customer service teams to enhance customer interactions.

Process Focus:

ERP: Aims to streamline and automate back-end processes to reduce costs and improve efficiency. Like, accounting, procurement, HR, and compliance.

CRM: Focuses on front-end tasks like increasing sales and customer satisfaction by managing relationships and interactions.

How Are ERP And CRM Similar?

Despite ERP and CRM differences, systems share commonalities:

Supports Data-Driven Decision-Making: Both systems provide analytics and reporting tools that aid in informed decision-making.

Come with Integration Capabilities: When integrated, ERP and CRM systems can offer a holistic view of business operations, enhancing both internal efficiency and customer satisfaction.

What Is The Connection Between ERP And CRM?

ERP provides financial data and CRM works its way to manage customer data. By integrating them, business owners can:

Optimize business operations.

Save time and money resources with reduced errors.

Ensure easy flow between sales, finance, supply chain and other pipelines.

Delight customers and increase market share.

Can ERP Replace CRM?

The short answer is NO. While ERP systems manage overall business operations, they cannot completely replace CRM systems. Because CRM software focuses deeply on customer management, sales processes, and marketing efforts—areas where ERP excels less.

Though some RP systems include basic CRM functionalities, such as:

Sales order processing

Customer data management

However, these features are often limited compared to dedicated CRM solutions.

How Do You Choose Between ERP And CRM Software?

The following are the factors to consider when selecting between ERP and CRM:

Business needs - What are your primary business objectives? Want to capture the market and build a customer base? Go for CRM. For operational efficiency, you should select ERP.

Customization needs - For deeper customization for processes, go for ERP. Otherwise, for sales and marketing customization, CRM can work well.

Budget considerations - ERP solves various functions such as HR, recruitment, finance, etc. So, the upfront investment will be high. Check if you have the budget. CRM has generally lower initial costs.

Implementation complexity - May take weeks and months to set up an ERP management software. CRM is usually simpler and quicker to implement.

When Should Businesses Use ERP Vs CRM?

ERP and CRM are the two wheels of business - one works the front end and the other works backstage. But, when to use ERP and when to go for CRM software?

Signs Its Time to Get a CRM

Here are eight clear signs that your business may benefit from implementing a CRM solution:

1. Sales Is a Struggle

If your sales team is consistently missing targets or struggling to close deals, it may be time to consider a CRM.

2. Customer Profiles Are Difficult to Build

Without a centralized system, gathering and managing customer data can be chaotic. CRM software can help you document data, track interactions, and analyze purchasing behaviour.

3. Customer Service Is Not Good

If customer complaints are rising or feedback indicates dissatisfaction, a CRM can help.

4. Marketing and Sales Departments Aren't Collaborating

When marketing and sales teams operate in silos, opportunities can be missed. A CRM fosters collaboration by providing shared access to customer data, enabling both teams to align their strategies and improve lead nurturing.

5. High-Value Accounts Are Unknown

If you’re unaware of which customers contribute the most to your bottom line, it’s time for a CRM.

Signs To Implement ERP

Just as recognizing the need for a CRM system is essential, knowing when to implement an Enterprise Resource Planning (ERP) system can significantly enhance operational efficiency and support growth.

1. Complex Finances

When managing day-to-day finances is getting tough, you must get ERP software for finance management.

2. Data Silos

When different departments maintain separate systems for their data, it can lead to double work, missed collaborations and unnecessary time wastage. This is when you should install ERP automation software in your business.

3. Difficulty Managing Inventory

If you struggle to track inventory levels, orders, and deliveries, an ERP can help.

4. Compliance Challenges

For businesses in regulated industries, compliance can be a complex task. An ERP system can help automate compliance processes, maintain accurate records, and ensure that your business adheres to industry regulations.

5. Scaling Issues

When your business is growing, your operations will grow - that’s the right time to get ERP.

6. Lack of Real-Time Reporting

If you're unable to generate real-time reports or insights into your business performance, it may be time for an ERP. With built-in analytics and reporting features, an ERP allows you to make informed decisions based on accurate, up-to-date information.

Use Cases of ERP +CRM Integration

Symbiosis Group of Institutes opted for Ekklavya’s ERP software - eHRX for HR and Payroll processes.

Focus: increasing the role of human resources by fixing accountability for work distributed.

Results:

Smooth Data migration from 75+ institutes

Increased work efficiency of HR professionals.

Generation of instant MIS Reports.

Coca-Cola adopted Salesforce CRM to manage customer interactions and improve services. Results:

30% increase in sales productivity.

25% increase in customer satisfaction

How Can Businesses Integrate ERP And CRM?

Imagine running a retail business. Your sales team is busy closing deals in the CRM, but your finance and warehouse teams, working in the ERP, are struggling to keep up with stock updates and invoicing. Orders are delayed, customers are frustrated, and your employees are stuck fixing errors instead of focusing on growth.

This is what happens when ERP and CRM don’t talk to each other. You face issues like:

Duplicate data entry – Sales teams manually send order details to the finance team.

Mismatched inventory – A product shows "in stock" in the CRM, but the ERP says it's out.

Delayed invoicing – Customers receive invoices late because data isn’t flowing between systems.

The solution?

Integrating ERP and CRM. There are the following ways to integrate them:

API interfaces for direct integration

iPaaS (Integration Platform as a Service)

Using intermediary Software

Using Modules and Plugins

However, integration isn’t always easy. Employee resistance, incompatibility, heavy data migration work etc can get you caught up. Here are some tips for a smooth integration:

Clean Your Data First – Standardize how customer, product, and financial data is stored before integration.

Start with Small Automations – Begin by integrating basic processes like order syncing before handling complex workflows.

Train Employees – Show teams how the integration helps them work faster and with fewer mistakes.

eAIMS by Ekklavya is a unified ERP software that can be used for asset, inventory and sales management. Our software has integrated all the manual requisitions and procurement processes into one solution.