ERP, SAP and CRM: What are they and what are they for? Get updated with digital transformation

They are the buzzwords in the business ecosystem, but do you know what they mean? And what are they for? If not, you found the post you need to read.

“Thanks” to the pandemic, many companies that had not yet modernized took the opportunity to catch up with the digital transformation: a pending and indispensable subject today. In this article we clarify the concepts.

What does ERP mean and how is it different from SAP?

An ERP (Enterprise Resource Planning) is an enterprise resource planning system, while SAP is one of the market leaders, along with Sage 200 and Microsoft Dynamics 365.

In an ERP, all the applications that compose it share the same database and talk to each other, using the latest technologies, such as machine learning and artificial intelligence (AI).

Each application or ERP module focuses on a business area, so the different modules that the organization needs can be combined. The most popular are finance, human resources, sales, and logistics, but there are also industry-specific ones, such as manufacturing or retail.

Let’s go now with CRM: what is it and what is it for?

CRM (Customer Relationship Management) is a customer service management software necessary for any company that wants to optimize its marketing and sales actions. Thus, it is possible to manage customer relationships from the same place, get to know them better and communicate with them more efficiently.

There are three types of CRM: operational, analytical, and collaborative. Each one is focused on different objectives, although the current trend is to unify them on the same platform, since all the benefits they offer are very valuable.

How is an ERP different from a CRM?

Now that we know what each concept means, we can differentiate between ERP and CRM. The main difference is that CRM is more focused on sales and ERP towards optimizing costs and increasing profitability. Many companies find it difficult to choose between the two, but the reality is that the ideal would be to integrate both to maximize the benefit of the company.

To summarize, let’s say that CRM is a type of ERP focused on sales.

Finally, there is another concept to explain: the SRM.

An SRM (Supplier Relationship Management) is software designed to manage a company’s relationships with its suppliers, both current and potential. It is responsible for applying the technologies, processes, policies and procedures to support the purchasing process. In the following articles we will delve into this topic: Inversa could be integrated into an ERP.

SaaS model

Most of these programs are already distributed with the SaaS (Software as a Service) model, that is, they are hosted in the cloud and pay per use. Thus, large investments in licenses, installations and maintenance are avoided. They are scalable models that adapt to the growth of the company and can be used from anywhere, compatible for remote collaborative work, from an SME to a multinational.

Now that you understand the best-known acronyms of digital transformation, it’s time to put it into practice. Do not get left behind in digitization, it is no longer a “luxury”, it is a necessity. In addition, there are more and more financial aids and incentives to help you achieve it, take advantage of them!

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