MIS 2101 Chapter 6: CRM & ERP – What’s the difference
24 May 2018
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CRM & ERP – What’s the difference?
• Both used to increase overall profitability of a business
• CRM focused on the customer, ERP focused on the business
• ERP focuses on reducing overhead and cutting costs
• CRM works to increase profits by producing greater sales volume
• Whether a business needs both systems largely depends on the size and complexity of
the business
• CRM exists to keep customer relations in tact
• ERP is for streamlining complex business processes
• Assigning Importance
o CRM is like the engine of a car; it drives the business
o ERP is like the steering wheel; it allows a business to be guided with precisions
and to steer around obstacles well in advance
• Which comes first?
o CRM is best for the first investment
• Maximizing Growth
o More sales or less expenses
o CRM brings in revenue while ERP reduces overall operating expenses
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