- 1 What is Enterprise Resource Planning (ERP)?
- 2 What is Customer Relationship Management (CRM)?
- 3 What is Human Resource Management (HRM)?
- 4 What is accounting?
- 5 Roles of ERP, CRM, HRM and accounting as a solution
- 6 Which of the systems is ideal for business?
What is Enterprise Resource Planning (ERP)?
In any company, the ERP solution works as a business management package application, which is mainly used to improve the productivity, efficiency and profit growth of the company.
In essence, it is a solution that collects data and information from different departments of an enterprise. Moreover, when it comes to integrating and interpreting key external and internal areas of the company’s management.
The ERP system is combined with significant areas such as sales, purchasing, customer relations, human resources, manufacturing, accounting, inventory, etc., to simplify the business processes in the enterprise.
Examples of ERP systems: Odoo, IT.ua, IFS Applications.
What is Customer Relationship Management (CRM)?
This is a specialized software responsible for customer relationship management.
It is a tool that is used by marketing and sales departments to grow a business in order to increase the company’s profits by improving the customer experience.
This is done either through advanced targeted advertising, or through a personalized approach to transactions using customer information obtained from the database of the CRM system.
Read the examples in the article: TOP CRM systems for Ukraine.
What is Human Resource Management (HRM)?
This system, in fact, takes care of all aspects of human resource management, such as recruiting (recruiting), retaining and training qualified personnel in the company, etc. using separate assigned modules. The main task is to work as a single employee management system.
HRM Example: Peopleforce
What is accounting?
This business solution refers to the financial aspect of the company, which must be managed with the help of special computer software. The main goal for a business is to have a transparent, understandable financial accounting system.
This gives the company complete control over the financial component of the business, which plays an important role in making important decisions for the future. The solution includes accounts receivable and accounts payable, balance sheet, payroll and more.
Many solution providers also bundle accounting software with additional service modules such as sales order, purchase, invoices, electronic payments, expenses and other payment information.
Examples of accounting systems: ITFin.io, Bimp, Quincefin, Finmap, Bookkeeper, IT-Enterprise, A2v10, Fintellect, Torgsoft, Ukrsklad, Dilovod, MASTER:Accounting, Fit-Budget, ISpro, AB OFIS, Debit Plus, GMS Office Tools, Happy Buh, BJet ERP, H-profit, UIS.WMS, Competitor
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Roles of ERP, CRM, HRM and accounting as a solution
ERP, CRM, HRM and accounting features may vary between solution providers. But there are some common features that remain the same in all.
As a comprehensive version of a complete business solution, ERP is responsible for the simultaneous management of multiple company divisions. There is inventory and supply chain management, customer relations, financial assets and finally human capital management.
In terms of stock management, ERP has the ability to produce an automated ordering process as well as advance notification of low stock levels. While for supply chain management, ERP mainly has the ability to control quality, compliance, etc.
Although the only standalone CRM solution contains more advanced features for customer management, there is a CRM module in ERP that provides many rich features for effective customer interaction.
Starting from customer contact management and ending with a detailed report on customers, growth and activity. A powerful end-to-end ERP solution now covers all basic customer administration needs. The ERP system also allows integration with several email marketing applications.
ERP basically allows you to manage fixed assets, payments, general ledger, as well as financial forecasting, company budget and tax calculation.
Effective employee management is an important part of ERP solutions. It helps to manage all the necessary elements related to personnel in the company. This includes vacation management, payroll distribution, employee data, attendance and working hours.
Moreover, ERP also allows you to integrate project management tools (Project Management).
CRM deals with the advanced features of handling customer data. This mainly includes contact management, engagement tracking, and marketing campaign management.
This allows you to effectively edit, update and track any information on the client. You can also assign contacts to different team members and include them in different accounts.
The marketing team can also understand the psychology of customers and break them down into segments to plan a remarketing program based on purchase history. Moreover, you can easily calculate the effectiveness of marketing campaigns by analyzing their effectiveness.
The functionality of this solution includes everything related to employee management. This also includes job description and performance profile creation.
Job site management along with automatic keyword search for qualifications is another functionality that HRMS uses.
This solution works as a basic financial accounting system for a company that provides information related to accounting, mainly useful for future business development strategy.
The solution also helps in creating a ledger, tracking accounts payable and receivable, and managing the company’s fixed assets. Also, the decision plays a role in updating data on acquisitions, depreciation, etc.
Which of the systems is ideal for business?
Both ERP and standalone CRM, HRM and accounting solutions have their own goals for running a business. But it is also important to understand when and why to choose one of these solutions. Otherwise, you can just regret the decision in the long run.
Thus, in case there is a problem with understanding the feasibility of choosing between purchasing an ERP system or its solutions separately, then the following pointers should be used, which will probably help to make a better decision.
Choose ERP when
- it is necessary to reduce the cost of the entire business process, and optimize income;
- you need access to information about customers, employees, finances in one place;
- you need a solution that centralizes business processes for both the front office and the back office.
Choose CRM, HRM or accounting as a standalone solution when:
- you need to use any solution separately to manage small and medium-sized businesses;
- it is necessary to increase sales, employee satisfaction;
- the company needs to collect data from any single functional HR, CRM or accounting module.