ERP/CRM for Small Businesses

ERP or CRM or blend of both

Advantages of ERP/CRM for Small Businesses

If an organization decides to implement enterprise resource planning to integrate all of its internal business processes or departments, there are multiple benefits of ERP to be harvested. Whereas Customer Relationship Management focuses only on Company's Relationship with customer.

Company-wide integration or improving customer relationship:

Streamlining all internal applications into one platform can go a long way in making collaboration more manageable and efficient and ERP can be integrated with CRM. Different departments can easily share data and collaborate on projects together, having Customer data would be plus.

Consistent processes:

Since platform integrates all operations, the tools and interfaces are all uniform in nature, making it easy to navigate across. Pre-integrated CRM will be consistent which other integrated CRM may not offer.

Business insights:

With all business information in one place, it is easy to run reports and gain a complete picture of the business’s processes. These insights can identify strengths and weaknesses, production bottlenecks, and supply chain issues to help you tailor a business strategy effectively.

Improved efficiency:

Integration of ERP software can be slow then CRM as it is larger software, but once done, business functions are more efficient and effective than ever before. As the applications work on one platform and all data is funnelled into one database, employees can quickly find what they need and share information with the whole company to improve productivity levels overall.

Comprehensive workflow:

The system creates an unobstructed workflow within and between departments, streamlining tasks from one department to another without the hangup of shifting data to a different application.

Scalable software:

As a business grows, their ERP/CRM system can grow with them, taking on high activity levels and more users without overloading or malfunctioning. The advantages of ERP are immense when the system is integrated smoothly and applied correctly within a company. That being said, some applications work better than others when integrated into one enterprise solution, and certain functionalities are left out altogether.

Disadvantages of ERP for Small Businesses

Even with the extensive capabilities and power of ERP technology, there are still some downsides to this software that companies should be aware of. Such disadvantages include:

Slow integration:

Since ERP systems touch every aspect of a business, the time it takes to integrate all applications into one central system reflects that, whereas CRM is little bit faster to start. You will also need to integrate the use of the software into your team’s daily activities. This onboarding of software also requires a large amount of time and effort.

Expensive to implement:

Integrating a new ERP/CRM system into a business is an extensive undertaking. On top of the software’s cost, employees must relearn their internal processes causing lower productivity and output, costing the business further.

Slow data migration:

The software takes information from all data sources of your business; finding and implementing that information into the system can take a long time, especially for larger companies that use multiple software systems for their processes.

Customization is time taking and expensive:

Even though ERPs/CRMs are customizable and can be tailored to suit whatever a business needs, highly customized integration is expensive and time-consuming. Not only does it cost more to implement, but ongoing management and data security is also tougher, as any issues reported to the vendor of the software must be uniquely addressed, and upgrading the system can be just as painful.

Even ERP and CRM can be integrated reporting part may not share data across the applications / modules, unless this integration will take full advantage of CRM data for ERP

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