Significant differences exist between ERP technology and CRM applications. ERP serves as a strong foundation with tightly integrated back office functions while CRM strives to link front and back office applications to maintain relationships and build customer loyalty. ERP systems promise to integrate all functional areas of the business with suppliers and customers.
CRM promises to improve front office applications and customer touch points to optimize customer satisfaction and profitability. While ERP systems address fragmented information systems, CRM addresses fragmented customer data.
CRM applications are Web-enabled and designed to extend the data mining capabilities of ERP throughout the supply chain to customers, distributors, and manufacturers (Scannell, 1999). Organizations can use CRM analytical capabilities to predict and answer key business questions on customer intelligence and share the results across channels. Although ERP is not required for CRM, providing customers, suppliers, and employees with Web-based access to systems through CRM will only be beneficial if the underlying infrastructure, such as data warehouses and/or ERP, exists (Solomon, 2000). Companies with an ERP system, however, need to understand where they are in the implementation process, as well as assess where other technologies, such as data warehouses, fit in before plunging into CRM applications (Saunders, 1999).
Significant differences exist between ERP technology and CRM applications. ERP serves as a strong foundation with tightly integrated back office functions while CRM strives to link front and back office applications to maintain relationships and build customer loyalty. ERP systems promise to integrate all functional areas of the business with suppliers and customers.
CRM promises to improve front office applications and customer touch points to optimize customer satisfaction and profitability. While ERP systems address fragmented information systems, CRM addresses fragmented customer data.
CRM applications are Web-enabled and designed to extend the data mining capabilities of ERP throughout the supply chain to customers, distributors, and manufacturers (Scannell, 1999). Organizations can use CRM analytical capabilities to predict and answer key business questions on customer intelligence and share the results across channels. Although ERP is not required for CRM, providing customers, suppliers, and employees with Web-based access to systems through CRM will only be beneficial if the underlying infrastructure, such as data warehouses and/or ERP, exists (Solomon, 2000). Companies with an ERP system, however, need to understand where they are in the implementation process, as well as assess where other technologies, such as data warehouses, fit in before plunging into CRM applications (Saunders, 1999).
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