Enterprise resource planning technically is a type of software, the only difference between ERP and other simple software is that ERP is not for one module or section of organization but for whole, it integrates the entire functioning of the organization to make it work as a unit. ERP software integrates all the aspects of business by one single application with single data repository and allows communication and transfer of information from one module to another in real time. This software also comes equipped with latest analytical tools to workout the meaning hidden in the data. It cuts down the need of manual interference in most of the repetitive tasks to bring down cost of working and speed up the processes, eliminating chances of mistakes to a large extent.
It has inbuilt functionality for core business processes with all the features and facilities required, but can be customized to exactly suit to the requirements of the user. Basically ERP software’s job is to facilitate the flow of information from one process to another within the boundaries of the organization and establish close connection with other business partners like suppliers and customers.
Present ERP has evolved itself from MRP, material requirement planning. MRP and MRP II were developed for resolving the problems of material requirement and production and planning of manufacturing units. Later when need for integration of other departments for better functioning and requirement of capacity planning of the organizations became a part of software activity, it gave rise to enterprise resource planning. The software capable of handling basic activities of five main aspects of businesses like financial management, supply chain management, manufacturing, customer relationship management and sales and marketing through a single application or set of applications integrated together to transfer information in real time and using single database for data retrieval and storage, providing flexible reporting tools and analytical tools with facilities to view data in consolidated form, qualifies as ERP software.
Enterprise resource planning software is a robust application as it has facilities to support many industries, different processes in those industries and provide industry specific solutions. It standardize processes to match international and industry standards but since no two organizations work exactly in the same way even if they are in same industry hence no ERP software can fit in every company’s requirements as it is. This calls for some changes in the present system of working of the organization and customization of ERP to meet at a point where they can compliment each other perfectly. This process is done during the implementation of the ERP and because of this implementation of ERP becomes very important and time and money consuming.
Just managing the requirements through ERP is not the only step that is taken in its implementation, training of staff to make them able to use the software and carry out their daily tasks independently and making the top management aware about all the features of the software for better working is also an important step of the implementation process of ERP. ERP software integrates the whole system in other words it brings all the departments under one roof, it redefines boundaries within the organization of all the departments and allows transparent working throughout the organization. Provide real time updates of the inputs from every point of entry to help in smooth and easy management.
Know What Is ERP and its fundamental concept. Also know about Web Based ERP.
Saturday, December 18, 2010
Difference Between ERP Software and CRM
Enterprise resource planning is fully integrated software that has functionality for all the core aspects of business and integrates all the departments of the organization while customer relationship management application or software focuses on the activities related to customers like, quotes, contracts, service, reminders, service reminders etc. ERP ensures better and real time integration and communication between all the departments of the organization for increasing profitability while CRM enhances customer relationship management, acts as a front desk of the organization and an information center for sales people. Some critical information which can be very useful for the sales people but may not be available at the right time due to slow processing of the data is avoided with the use of CRM software.
CRM software alone may not be the solution for all the problems necessary to be resolved for better business. That is where ERP comes in, its capability to bring the other modules of the organization like manufacturing, product development, marketing, warehouse, inventory etc under one umbrella provides the link to CRM application to look into the organization for updated information to provide it to its user. If an organization uses CRM with ERP, for every new order the CRM application can communicate with the warehouse for the availability of the required stocks and if ready stocks are not available then with the production module to check its availability at the earliest and can provide its customer the exact shipping date of the product at one instance. Whole of this activity can be done without any manual interference which not only saves valuable man hours but organizations can be assured of 24 hours working and support to their valuable customers.
ERP and CRM software can work independently too but together they provide the edge which an organization needs to increase its business. The enhanced and proper working within the organization and real time complete information to the sales people can help them in generating the new business. Not only for new business these two software together also help in better customer retention for regular business. CRM can help in making customer aware about new products, its qualities and comparisons which can make the task of sales people easier. For service based industries CRM can be more than simple software as it can ensure prompt and timely services with regular reminders and can provide to staff the necessary details of previous calls and support given to a particular customer.
Customer feedbacks, inquiries and complaints are always in the form of unstructured data but it can be an extremely valuable source of information and basis of the organization’s new strategy and planning to have more and more satisfied customers. CRM software can transform this data into valuable information without any manual interference and time wastage. This information supplied to the management can be used to make changes in the organizations working and can be easily implemented with the help of ERP software.
CRM and ERP software are complimentary to each other and can work together for better business management of the organization in any industry. Some ERP software come with inbuilt CRM module in the main application while most of the ERP software provide this software as separate module which can communicate with different ERP software. Read about CRM Trends In India. Also read CRM Best Practices.
CRM software alone may not be the solution for all the problems necessary to be resolved for better business. That is where ERP comes in, its capability to bring the other modules of the organization like manufacturing, product development, marketing, warehouse, inventory etc under one umbrella provides the link to CRM application to look into the organization for updated information to provide it to its user. If an organization uses CRM with ERP, for every new order the CRM application can communicate with the warehouse for the availability of the required stocks and if ready stocks are not available then with the production module to check its availability at the earliest and can provide its customer the exact shipping date of the product at one instance. Whole of this activity can be done without any manual interference which not only saves valuable man hours but organizations can be assured of 24 hours working and support to their valuable customers.
ERP and CRM software can work independently too but together they provide the edge which an organization needs to increase its business. The enhanced and proper working within the organization and real time complete information to the sales people can help them in generating the new business. Not only for new business these two software together also help in better customer retention for regular business. CRM can help in making customer aware about new products, its qualities and comparisons which can make the task of sales people easier. For service based industries CRM can be more than simple software as it can ensure prompt and timely services with regular reminders and can provide to staff the necessary details of previous calls and support given to a particular customer.
Customer feedbacks, inquiries and complaints are always in the form of unstructured data but it can be an extremely valuable source of information and basis of the organization’s new strategy and planning to have more and more satisfied customers. CRM software can transform this data into valuable information without any manual interference and time wastage. This information supplied to the management can be used to make changes in the organizations working and can be easily implemented with the help of ERP software.
CRM and ERP software are complimentary to each other and can work together for better business management of the organization in any industry. Some ERP software come with inbuilt CRM module in the main application while most of the ERP software provide this software as separate module which can communicate with different ERP software. Read about CRM Trends In India. Also read CRM Best Practices.
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