What is a business system and how does it differ from ERP and CRM?
System names can put people off before the conversation about a company's needs has even started. I explain in plain language how ERP, CRM and a business system built for a specific company differ.
Business system: the simplest definition
A business system is the software a company's day-to-day work runs on: handling orders, documents, resources, teams and reports. The most important feature of a good system is that it reflects how the company really works instead of forcing it to change its processes.
ERP: a system for managing resources
ERP usually covers finance, warehouse, production, purchasing and HR. These are extensive, off-the-shelf solutions designed with many industries in mind at once. Their strength is broad scope, their weakness is rigidity: adapting an ERP to an unusual process can be difficult.
CRM: a system for customer relationships
A CRM organizes customer contacts, sales opportunities and conversation history. It works very well in the sales department, but rarely covers what happens after the contract is signed: delivery, orders, documents and settlements.
Custom system: tailored to the company
A custom business system is built for a specific company. It covers exactly the processes the company needs, and it can connect to the ERP, CRM or accounting software the company already has.
Comparison at a glance
- Fit with the process: with ERP and CRM, the company adapts to the software, while a custom system is adapted to the company.
- Time to start: off-the-shelf software is up and running faster, while a custom system requires planning and building.
- Scope: ERP and CRM have a broad but standard scope, while a custom system has exactly the scope you need.
- Development: in off-the-shelf software it depends on the vendor, in a custom system on the company's needs.
You do not have to choose just one
In many companies, a combination works best: proven accounting software or an ERP for finance, and a custom system for the processes that set the company apart. The key is for the programs to exchange data automatically instead of making people retype it.
How to find out what your company needs
Start with a list of your processes and the tools they are handled in today. Where off-the-shelf software works without workarounds, keep it. Where work happens in spreadsheets and emails alongside the software, those are candidates for a custom system. I will be happy to help you assess this: book a consultation.
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