What is an ERP system?
Enterprise resource planning (ERP) comprises a set of integrated data-driven software that helps your business manage, track, and store data related to different business processes. ERP helps you improve efficiency of all processes through automation and reduction of manual reporting. Unlike the CRM system that manages the sales-side of a business, ERP is implemented and integrated across multiple departments. Eventually, you get standardized information across all departments in real time. You can focus on how to implement that data to scale your business rather than on operations. There are less errors, and you can make better decisions.
Take a quick detour to explore why Microsoft Dynamics 365 is better than other ERPs.
How does it work?
An ERP system helps you improve efficiency of business operations across all departments. Furthermore, it allows for the quick sharing of standardized information across multiple departments, eventually improving communication speeds and reducing communication gaps. Visually presented data always makes it easier to identify trends and discrepancies. Furthermore, you can automatically identify, intercept, and alleviate the damage done. Different departments within your organization can come up with a preventative plan for minor issues before they become a major problem. To sum up, ERP software helps your business to focus on data and how to apply that information to improve business operations. You don’t have to worry about buckling down to managing operation. The ERP software gives you an approach to streamline business processes across different departments.
Pros of Microsoft Dynamics 365 ERP
Let’s look at the primary benefits Dynamics 365 ERP brings to businesses:
Improved efficiency
Microsoft Dynamics 365 ERP can help you reduce the time and effort your team requires to carry out everyday business activities. Furthermore, ERP software can help you eliminate manual errors and processes and routine tasks completely if implemented properly. It also creates a smarter workflow by enabling collaboration with other departments in your organization. You can find all the information in one place instead of accessing ERP, CRM, data, and Office applications individually.
Enhanced business reporting
Implementing Microsoft Dynamics 365 ERP gives your business a unified reporting system for all its processes. Furthermore, Microsoft Dynamics 365 gives you the ability to analyze and compare different functions across departments.
Data security
One of the most significant benefits of Microsoft Dynamics 365 ERP system is that it guarantees complete data security. Since you are relying on a single platform for your entire data, it’s crucial you have a secure database. Cloud-based ERP systems offer a higher degree of security and provide regular backups to make sure your data is safe.
Lower costs in the long run
Though Dynamics 365 ERP requires you to make an initial investment, it will help you save costs in the future. You don’t have to empty your pockets on multiple systems requiring different infrastructure, management teams, Production Support, licenses, and more. You can use a single ERP software to reduce the overall cost. Other benefits that make Microsoft Dynamics 365 ERP a cut above others include Interactive UI and easy deployment, well Integrated with Microsoft products, customizable, increases productivity, and scalability.
What is CRM system?
Customer relation management (CRM), as the name implies, is used to manage all information related to your existing and potential customers. Microsoft Dynamics 365 CRM allows you to keep all the information in a centralized system, where your team can access it whenever they want. Furthermore, there’s a high chance of your business missing out on growth opportunities and losing potential customers without an integrated CRM system. It’s crucial your business optimizes operating processes and make the most of sales leads and customer relationships.
How does it work?
In recent years, CRM has evolved to accommodate all aspects of customer journeys and experiences. Eventually, it has offered a higher degree of benefits to business. CRM systems automatically collect a significant amount of information about your existing and prospective customers. The data includes phone numbers, email addresses, company websites, purchase histories, social media posts, and service and support tickets. CRM also helps you integrate the data and create consolidated profiles of potential customers to be shared with appropriate teams. More importantly, CRM systems also connect with other business tools, including online chat and document sharing apps. Additionally, they have built-in artificial intelligence (AI) and business intelligence functionalities that accelerate administrative operations and offer actionable insights. Simply put, CRM helps you in the process of identifying potential customers, nourishing them, and eventually leading them through the sales funnel towards closing the transaction.
Pros of Dynamics 365 CRM
Listed below are the primary benefits of Dynamics 365 CRM:
Monitor sales funnel
It helps you track potential customer-related data, keep your team organized, and more.
Real-time actionable data
It helps you link sales data into your CRM solution and get an immediate and accurate picture of sales. You will also be more aware of any bottlenecks and slowdowns.
Insight generation
You can focus on what matters most for your business. AI and built-in intelligence help you identify the top priorities and how your team can make the most of the budget and time.
Optimize and automate workflows
You can build sales quotes, send email campaigns with task automation, gather customer feedback, streamline marketing and sales efforts, customer service, and more. Eventually, it helps you eliminate repetitive tasks so your team can focus on high-impact processes.
Track customer interactions
It helps you tap into customer behavior and opportunities for optimization to help your business better understand customer engagement across multiple customer touchpoints.
Superior customer engagement
CRM solutions help you stay connected with customers wherever they are, building the trust and loyalty that keeps your customers coming back.
Other benefits Microsoft Dynamics 365 CRM delivers to your business include competitive advantage, increased engagement with the right customers, track customer journey, and improve team productivity.
How are ERP and CRM similar?
CRM and ERP are both business applications that help your business store and analyze data in unified database. Both software are either delivered through a conventional on-premise model or as a Software as a Service (SaaS). Furthermore, when the vendor or the solution provider provides the software as a SaaS, they manage the software in their data center, and you can access it through the cloud. Though these systems are similar in multiple ways, there remains a high degree of confusion in how one system connects with another. Furthermore, average users don’t understand how the core functionalities of ERP and CRM differ. Both CRM and ERP systems help you manage contacts, business operations, orders, demand predictions, and more. Moreover, both systems help you manage line-item configuration, delivery schedules, bundles, invoices, and more.
How do the features of Dynamics 365 ERP and CRM compare?
The table below highlights the features of Dynamics 365 ERP and CRM:
ERP |
CRM |
| Sales insights | Organize marketing |
| Customer insights | Manage the sales funnel |
| Virtual assistant | Analyze the time spent on generating leads to closing deals |
| Protection against fraud | Streamline the sales process |
| Financial analysis | Keep track of your customers’ journeys and interactions with your business |
| Remote assistant | Visualize data reports |
| Product visualization | Identify best-selling products and slow-moving products |
| Supply chain management | Determine which products sell best and when |
| Distribution process management | Manage inventory based on historical sales data |
| Improved accuracy of financial data | Get your employees to collaborate at one place |
| Facilitation of better project planning & execution | Manage your business leads and contacts |
| Standardize crucial business processes | Unified client interface |
| Automated life cycles of employees | Activity timeline |
| Reduce task redundancy | LinkedIn sales navigator |
| Accounting and financial application | Cloud and on-premise hosting options |
| Manage human resources and payroll | Integrate with other Microsoft products |
| Lower purchasing costs |
Benefits of integrating CRM and ERP software
Listed below are the primary benefits you can leverage with an integrated CRM and ERP solution:
- Deeper understanding of your customers’ buying behavior
- Predictions of the latest market trends, demand forecasts, and more
- Improved budgeting and forecasting
- More sales opportunities
- Improved data accuracy
- Personalized customer experience from the beginning of the sales funnel
- Better employee collaboration
- Improved customer relations
Key takeaways: ERP vs CRM
- ERP helps you manage all aspects of your business while CRM lets you focus on managing customer journeys, relationships, and experiences.
- ERP is more suitable for your businesses if you have a complex process while CRM is more flexible as it can be used by businesses of all sizes.
- ERP is generally deployed in a centralized location. However, CRM can be deployed either on-premises or on the cloud.
- Since ERP offers an extensive range of features as compared to CRM software only allowing you to manage the customer-side of business, ERP is relatively expensive than CRM.
Your all-in-one solution to CRM
CRM software is a great tool for managing customer relationships. However, it is crucial you understand that wouldn’t allow you to take advantage of a comprehensive solution to manage your business activities on a broader scale. It is ERP that can help you achieve that. We offer highly specialized solutions architecture and implementation for Microsoft Dynamics CRM. We help you plan and assist your team in drafting statements of work to include estimation of cost. Get HTML and JavaScript components to support CRM integrations with multiple interfaces. Furthermore, we extend services to support integrations of CRM with other applications. Click on the link to explore more about our Microsoft Dynamics 365 solutions.