Question

In: Economics

Discuss how CRM systems relate to ERP systems and if a company should ever have both.

Discuss how CRM systems relate to ERP systems and if a company should ever have both.

Solutions

Expert Solution

In business operations, both ERP and CRM programmes maximise efficiencies. But by making company operations more effective, an ERP framework works on decreasing costs. Central servers with consumer data are provided by all solutions. Today, as a facilitator of larger market volume and as an increase in customer experiences, a CRM method performs well. It is better to implement a CRM or an ERP system regardless of company size than to scan for customer data through email chains, handwritten notes, and instant chats.

A CRM aims to ensure consumers are happy and loyal, as any business wants to maximise customer relationships. Any department can understand the workflow of other departments with an ERP framework.

For companies who want to maximize their growth, they often wonder which system to implement first. It can be a difficult decision because they each have unique advantages. To scale, companies must increase sales and profit–so, that requires a CRM system.

On the other hand, an ERP system drives the business with precise and accurate inter-departmental data. Before organizations can cut costs, they must have profits. Moreover, a company can be extremely organized yet not make enough in sales to continue operating. Business processes are only possible with consistent sales revenue.


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