Desciphering the Differences Between an ERP System and a CRM: We Explain it in Detail.

Traditionally, companies have managed their business using various applications bundled in a single package such as Microsoft Office or, more recently, Google Drive.

Some even continue to rely on paper, especially in accounting and invoicing. Others, for example, keep their customers registered and "on hand" by their phone number but do not have a document or file with their most relevant data. However, the current context of digital transformation is generating new needs for companies, including the constant search for information integration.

As a solution to this problem, many organizations in recent years have turned to the installation of an ERP (Enterprise Resource Planning) or Enterprise Resource Planning System. Thanks to this, users can integrate information, departments, processes, and many more elements related to the day-to-day operations of the company; all in a single tool. This helps avoid duplications, minimize errors, and increase efficiency, among other benefits.

Simultaneously, with the trend of seeking to create value for the customer, interest in Customer Relationship Management (CRM) platforms has also grown. This application allows a myriad of interactions between the company and its customers. It not only increases agility and minimizes errors when registering and consulting customer data and history but also allows us to generate personalized quotes and opportunities. In this way, the ultimate goal of a CRM is to maximize company revenue while increasing customer satisfaction.

Last April, the press reported on the 2022 Digital Transformation Index, a survey in which more than 1000 leading technology companies in the United States and Europe participated, including 110 from Ireland. The data shows that, driven by the pandemic effect, 88% of Irish companies favor adopting new digital strategies, in line with the 80% that indeed accelerated their digital transformation plans in the last year. In addition, more than half of the surveyed Irish companies indicated "seeking to improve the customer experience" as the main objective in the transformation, and up to two-thirds plan to increase their technology budget by at least 10% in the next five years.

To improve their technological performance, many of these companies have installed an ERP recently, which has often been complemented by a CRM, precisely to fulfill its main objective in the digital transformation process.

Although ERP and CRM are not the same, they have a series of similarities that often lead to confusion. It is likely that many companies are hesitant to take the step of digital transformation due to insecurity or difficulties in understanding the differences between these two software tools. Therefore, it is advisable to know how to distinguish them. Here are some of the most illustrative contrasts:

In addition to the above, it is worth noting that, although we can find companies that operate with the same system to manage both ERP and CRM tasks indiscriminately, some use different programs. The latter is susceptible to generating difficulties since management can become more challenging if we have to duplicate information or synchronize it manually.

This is why the ideal (and most convenient) option is what we can achieve with Odoo: the total integration of all tools that can be useful for managing our company and the centralization of all information in a single database.

And what is Odoo? It is an integrated enterprise management software that contains a wide variety of modules to install, one of which is the CRM. In other words, in Odoo, the CRM is included within the ERP, eliminating the need for multiple programs.

Additionally, this system is known to have two options for implementation: Odoo Community and Odoo Enterprise. Regarding the Community version, its main advantage is the price: being open-source software, there is no need to pay for licenses. Additionally, in this version, developers and users themselves encourage modifications to the platform, as well as the creation of manuals for its proper use. In contrast, Odoo Enterprise does have a licensing cost.

If you ask for opinions about any version of Odoo, you will see that it is usually recommended to hire a specialized consulting service that takes care of temporarily installing the software and configuring it according to specific needs, and then train future users. This is because, being a highly customizable system, it requires additional configurations to become our ideal ERP.

If you want to have your entire company in one tool, don't hesitate! At Bakata Solutions, we specialize in the implementation and customization of Odoo Community. Contact us and tell us about your needs; we will be happy to help you.