ERP – CRM – HRM … what?
We’ve all heard about ERP, CRM and HRM before, but do we really know what those three very different technologies are all about? And how they can benefit our company? This short overview will help you understand the difference between ERP, CRM and HRM.
Enterprise Resource Planning (ERP) is a software application that coordinates and automates a smooth flow of information between various departments of an organization. ERP houses all information from the finance, manufacturing and marketing department to the sales and human resources department. ERP helps standardize business processes, making information between the different departments structured and useful, it ensures a more efficient workflow and it gives executives and management a clear insight into the state of the organization, allowing them to work on a true corporate strategy.
Customer Relationship Management (CRM) is an application that takes care of sales activities, customer interactions, marketing products and customer service. It is a company-wide business strategy designed to strengthen the sales. Its 360 degree vision on customers and its increased visibility allow companies to make real-time decisions that will improve profitability. If used appropriately, CRM can reduce costs in the organization.
Human Resource Management (HRM) is a software solution designed to capture all employee information, ranaging from contact information to employee benefits and performance indicators. HRM helps businesses reduce their workload and conduct their human resource tasks more efficiently. It allows HR managers to identify skill gaps and determine employee development plans.
In brief, CRM will track the marketing related activities, individual sales performances and customer services while HRM captures all employee information, allowing you to spend less time on administrative tasks and more time on strategic initiatives. ERP on the other hand will help you integrate all internal business processes (including those related to CRM and HRM), making it possible for every department in your company to access all information and to communicate with other departments.