Enterprise resource management (ERM) is an essential tool that integrates all the individual department functions into a single software application. It provides an automatic workflow from one department to another, to ensure a smooth transition and quicker completion of processes. Similarly, customer relationship management, or CRM, offers workflow automation replaces repetitive manual processes to cut admin work and eliminate duplication so teams can focus on profitable activity. While these two are mutually exclusive, according to ITWeb, integrating ERM and CRM can reap huge benefits for many of the same reasons, but together as opposed to two separate units.
"ERP and CRM each deliver enormous benefits to a business, but to unleash their full potential, they should be integrated," said Jeremy Waterman, MD of Sage ERP Africa and Middle East, according to ITWeb.
“ERP systems provide much-needed internal information that can be shared with new stakeholders. CRM systems provide the entry point for stakeholders to engage with an organization. You can't really have one without the other and be successful in the marketplace," he says.
Essentially, CRM’s main goal is to help grow the bottom line through sales, whereas ERP can help increase efficiency while reducing costs, thus keeping the sales money in the coffers.
ERP systems provide better company-wide visibility and hence enable better/faster collaboration across all the departments. Much of the inefficiency in operational work stems from improper reporting. With an ERP system, various departments can access information seamlessly. Combining this with CRM, which gives users access to all the relationship detail they need through multiple channels to engage with clients and deliver great service, sales efforts can increase exponentially.
Of course, the challenge is making sure there are no gaps. That’s why ERP/CRM integration is once more beneficial; it eliminates data silos, which can compromise operations. With a complete view of the customer, departments can work cohesively together, from sales to finance to support.
A well-implemented CRM system can replace manual processes that create significant organizational inefficiencies. But CRM systems don't just create efficiency by reducing the use of inefficient processes; with ERP, companies can interact with customers in ways that they wouldn't have the resources to otherwise.
Edited by Maurice Nagle