ERP vs CRM What is the difference?

Two of the main technology systems in a company are an ERP and a CRM, as both can contribute greatly to increasing profitability and optimizing your financial and operational processes. In some areas, these systems may overlap, but in others, they can function as a complement and be integrated. Therefore, it is important for you to know the qualities and benefits of an ERP vs a CRM so you can analyze their differences and what role they play in the efficiency of your business.

Definition of ERP

An ERP, Enterprise Resource Planning, is a system that is in charge of improving the efficiency of accounting and financial processes of a company. It works with a shared database so employees can exchange important information quickly and easily. 

Definition of CRM

A CRM, Customer Relationship Management, is a system designed for managing and administrating the interactions that occur between current and potential customers, and the company.

Differences between an ERP and a CRM

When analyzing an ERP system vs a CRM system you will find some key differences.  The main one is that the CRM is used to manage customer relationships, with the objective of producing a higher volume of sales or service transactions and thus increase profits. The ERP, on the other hand, focuses primarily on the management of accounting data and financial processes, therefore an essential system for the finance and accounting department. With this in mind, each software is used to meet different objectives in the company.



The CRM is ideal for: 

  • Managing the marketing, sales, and service department.
  • Automating customer service.
  • Creating data reports on customers, suppliers, partners, prospects and leads.
  • Prioritizing and managing potential customers

The ERP is ideal for:

  • Improving management of financial data.
  • Facilitating project planning.
  • Standardizing critical accounting procedures and reducing redundant tasks.
  • Managing the supply chain.
  • Automating the life cycle of employees and managing their payroll.

It is important to know that there are ERP systems that include a CRM module, but CRM systems do not include ERP components. The similarity between both tools is that both store and analyze information in a relational database. However, their field of action is different. 


When analyzing the characteristics of an ERP and a CRM you will realize that both systems are important for any company. Every growing business will eventually need both, because they are tools that will allow you to have better control of your finances, have more efficient business processes, reduce expenses, gain customers, improve sales, etc. 

At Fusionworks we can help you implement ERP and/or CRM systems in your company. Contact us! and we will help you choose the right tool for your business.

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