ERP vs CRM: what is the difference?

What is ERP? 

ERP stands for Enterprise Resource Planning. It is a software solution that integrates the business processes of a company, including production, logistics, sales, marketing, finance, and human resources. 

The goal of ERP is to work efficiently, avoid double work, and give more insight and oversight across the business. It is a combination of processes and agreements. ERP touches everything inside a company: from production to sales, from purchasing to logistics, from HR to marketing. 

What is CRM? 

CRM stands for Customer Relationship Management. It is a software solution that helps companies manage their relationships with customers, covering processes like lead generation, sales, customer service, and aftersales. 

CRM maps customers and sales. It can sit as part of an ERP system, or it can run on its own. 

What is the difference between ERP and CRM? 

ERP and CRM are both important tools for companies, but they have different objectives. ERP is built to integrate business processes across the company. CRM is built to manage relationships with customers. 

The two systems are often complementary. When companies implement both, they integrate their business processes further and improve their customer relationships at the same time. 

When to choose ERP? 

Companies should consider ERP when they want to: 

• Integrate their business processes 

• Improve their efficiency and effectiveness 

• Lower their costs 

• Increase their profitability 

An ERP system makes work easier and gives insight and oversight, but it is not a must. Dynapps looks at the possible costs and benefits together with the client, because a good return on investment matters. 

What does an ERP system cost? 

The cost of an ERP system varies with the size and complexity of the company, the functions of the system, and the supplier. Every company has its own organisation, management culture, and unique selling points, so there is no single answer to what an ERP system costs. The categories of cost can be named.  

Direct costs, one-off: 

• Implementation 

• Setup costs 

Direct costs, recurring: 

• Licences 

• Hosting 

Indirect costs: 

• Hardware 

• Software 

About the Odoo ERP system 

Odoo is an open source ERP system available to both small and large companies. The platform is built modularly, so companies use only the modules they need. That keeps the system affordable and flexible, without paying for functionality that sits idle. 

The module catalogue covers a wide range of business functions, including production, logistics, sales, marketing, finance, and human resources. Companies can start with a few modules and add more as their needs grow. 

What sets the platform apart is the release cadence: new features and improvements ship continuously, so the system keeps up with how businesses actually evolve. For companies looking for an affordable, flexible, and evolving ERP, Odoo is a strong fit.