ERP and CRM

Enterprise resource planning is an accounting-oriented information system for locating and scheduling the resources needed throughout the entire organization to produce, ship, and account for client orders. An enterprise planning system is an integrated computer-based application used to manage internal and external resources, including material resources, human resources, financial resources, and tangible assets.

The modules and submodules that make up an ERP system each reflect a different aspect of a business. When information is input in a module like receiving, it automatically updates other connected modules like accounts payable and inventories. This update happens in real-time, or at the exact moment, a transaction takes place. The requirement for multiple entries of the same data is eliminated because data only needs to be input once at the transaction's beginning. As a result, the likelihood of duplicate or incorrect data is reduced. Better management and security features are also made possible by the database's centralized structure, which reduces the risk of losing crucial data.

Types of ERP:-

• Tier I
• Upper Tier II
• Lower Tier II
• Tier III

CRM

These customer relationship management (CRM) systems, which were sometimes based on complicated software packages, promised to enable businesses to react quickly and effectively to changing client demands, increasing sales and customer retention while lowering marketing expenses. However, most businesses did not see the anticipated advantages, and CRM sales fell as a result of executives drastically cutting IT spending in the following years. CRM revenues decreased by 5% in 2001, 25% in 2002, and 17% in 2003, according to the technology industry research firm Gartner, after increasing by 28% between 1999 and 2000. CRM was widely perceived to be destined to follow enterprise resource planning (ERP) as another overhyped IT investment whose first unfulfilled promise almost led to the demise of the strategy.

CRM Types:-

• Operational CRM
• Analytical CRM
• Collaborative CRM

A CRM entails challenging technological and business concerns and necessitates considerable time and financial commitments. CRM should only be used for competitively essential procedures that can set a company apart from its rivals or maintain a function (like call center response time) on par with the rest of the industry when parity matters. CRM is not a tool for polishing a company's performance at the margins. The organization will struggle to muster the enthusiasm required to attack ingrained business processes or rework its organizational structure and achieve desired results if the aim is not truly strategic. Therefore, executives need to be certain they have the proper goals in mind before investing any money in CRM.