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MS Dynamics – Difference between Microsoft Dynamics CRM and ERP

by admin / May 04, 2021

Difference between Microsoft Dynamics CRM and ERP – Microsoft Dynamics is a all-in-one business solution for everyone. It is composed of two main branches namely CRM or Customer Relationship Management and ERP or Enterprise Resources Planning which are both profitable and can increase the overall business success.

Although these two have similar aim, they still differs with functionality. CRM is described as a system that stores and records everything that is related to customer interactions to improve the business profit. It has a method of gathering and sharing data that will help the marketing team to analyze the needs and wants of the customer. The software also help you interact more efficiently with the customer. While, ERP create processes that reduce costs while enhancing profits. It focuses on the inside operation of the business and the system improves everything. It benefits from presidents, executives, directors, managers up to employees. Also, ERP allows them to transmit data gathered by the software from time to time.

The end point is still on how to make profit and how to have a successful business but still, they have a big difference on how they will end up with the main goal. As stated above, CRM focuses and works on customer relation which is outside the company. Customer is the main source of success, therefore, businesses must offer high quality of customer care. While, ERP works on the core of the business. It includes process cutting costs, giving information to employees to keep them working on their task and completing a certain process or production at the shortest possible period.

Now you know the difference about the two main solutions of Microsoft Dynamics, the next thing you consider is the solution to settle with. Both large and small businesses requires CRM since customer is the main source of your success. Small business usually do not have large number of employees which requires minimal handling within the core of the business. Thus, the demand for ERP is less. But, if you have a large number of employees working on different divisions or branches, then both CRM and ERP is recommended.

Choosing which of the two solutions will be used is complicated but you can compare it with a steering wheel or an engine in a car. CRM will be your engine and it will drive your business as it increase sales and improves profits. ERP will be the steering wheel which will guide you with precision. CRM and ERP works together not just for the owners but also for the employees.

The growth of the company can be acquired by increasing the capital which comes in two different ways such as fewer expenses and more sales. CRM for sales and ERP for expenses. Most of the company that went to bankruptcy is either because of lack or sales or improper management. Having these two solutions working together will help you get rid of the risk of being at the bottom but to increase the company’s stability status.