The ABCs of ERP and CRM

What’s the difference between ERP and CRM?

ERP stands for “Enterprise Resource Planning.” ERP software is a system that allows medium-to-large businesses to automate their distribution, financial, human resources, manufacturing, marketing, sales, and project management functions. When it comes to high-end corporate software, ERP is often about as ambitious as it can be.

CRM stands for “Customer Relationship Management.” CRM software focuses on the interaction a company maintains with its customers. In short, it’s all about the customers. The premise is simple: keep better track of your contacts and you’ll close more sales while maintaining a happy customer base. If you take care of those customers, they’ll keep coming back for more.

While CRM focuses squarely on the customer, ERP takes in a much broader view–it’s there to run the whole business, not just marketing and sales. Many software vendors will integrate CRM within a corporate-wide ERP system.