CRM vs ERP vs SCM | Difference Between CRM vs ERP vs SCM | Intellipaat

Summary

This video script delves into the world of business information systems, focusing on CRM, ERP, and SCM. It explains the purpose of each system, their advantages and disadvantages, and how they differ. CRM strengthens business-client relationships, ERP integrates business functions for efficiency, and SCM manages the supply chain for responsive service. Top tools for each system are highlighted, and viewers are encouraged to subscribe for more insights.

Takeaways

• 📚 Business Information Systems integrate IT systems, people, and various disciplines to solve business problems and are divided into transaction processing systems, management information systems, and enterprise-wide systems.
• 🔍 CRM, or Customer Relationship Management, is a sales and marketing tool that manages customer interactions and relationships throughout the customer lifecycle.
• 📈 CRM systems offer benefits such as automation, integration with web and social media, scalability, and customizable dashboards but may require manual data entry and have subscription fees.
• 🛠️ ERP, or Enterprise Resource Planning, is a comprehensive management solution that integrates various business functions into a single database, providing actionable data for decision-making.
• 💰 ERP systems offer transparency and modular design but can be costly, complex to operate, and require proper planning for adoption.
• 🔄 SCM, or Supply Chain Management, controls the flow of materials, information, and finances from raw material acquisition to product delivery, focusing on responsiveness and customer experience.
• 🚀 SCM fosters data-driven decision-making and reduces logistical errors but can be expensive to implement and requires perfect coordination across departments.
• 🔑 The major differences between CRM, ERP, and SCM are their focus areas: CRM on customer relationships, ERP on business-wide integration, and SCM on supply chain coordination.
• 🛠️ Top CRM tools include Salesforce CRM, Zoho CRM, and HubSpot CRM, while top ERP tools include Oracle NetSuite, Microsoft Dynamics 365, and SAP ERP.
• 🔄 Top SCM tools involve SAP SCM, Blue Yonder SCM, and Oracle SCM, highlighting the importance of technology in managing supply chain operations.
• 🔗 The session provided a comprehensive overview of business information systems, highlighting the pros and cons of CRM, ERP, and SCM, and their applications in modern business.
• 📘 Intellipaat offers Salesforce online training mentored by industry experts, emphasizing the importance of professional development in business information systems.

Q & A

What are the three main components of an enterprise-wide system?

The three main components of an enterprise-wide system are CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), and SCM (Supply Chain Management).

What is the primary objective of CRM systems?

The primary objective of CRM systems is to strengthen business ties and expand the company by managing all interactions and relationships between the business and its clients.

How do CRM systems benefit sales and marketing teams?

CRM systems benefit sales and marketing teams by automating processes, saving research time, and turning soft touch moments into usable data, thus allowing the team to focus more on selling.

What are some of the cons of using a CRM system?

Some cons of using a CRM system include the potential for manual data entry to be time-consuming, expensive subscription fees, and the need for data to be checked, updated, and sorted by people before being entered into the system.

What is ERP and how does it differ from CRM?

ERP, or Enterprise Resource Planning, is a comprehensive corporate management solution that integrates various aspects of a business into a single database. It differs from CRM in that it focuses on internal business processes and resource management, rather than customer relationships.

What are the advantages of using an ERP system?

Advantages of using an ERP system include accurate and transparent information, modular design allowing for customization, and reduced manual operations, which can save time and increase efficiency.

What is SCM and how does it relate to business success?

SCM, or Supply Chain Management, is the control of the movement of materials, information, and money from raw material acquisition to the delivery of the final product. It is crucial for business success as it helps manage the supply chain effectively in a rapidly evolving business environment.

What are the key benefits of supply chain management?

Key benefits of supply chain management include data-driven decision-making, fostering partnerships, predictive risk assessments, and effective communication and collaboration to reduce logistical errors and production delays.

What are some challenges faced when implementing SCM?

Challenges faced when implementing SCM include the high cost of implementation, the extensive process covering multiple departments, and the need for perfect coordination between all departments for the system to succeed.

What are some top tools used for CRM, ERP, and SCM respectively?

Top CRM tools include Salesforce CRM, Zoho CRM, and HubSpot CRM. Top ERP tools include Oracle NetSuite, Microsoft Dynamics 365, and SAP ERP. Top SCM tools include SAP SCM, Blue Yonder SCM, and Oracle SCM.

How does Intellipaat provide training for these business information systems?

Intellipaat provides online training for platforms like Salesforce, mentored by industry experts. The course link for Salesforce training is provided in the description of the video.

Outlines

00:00

📚 Introduction to Business Information Systems

This paragraph introduces the concept of business information systems, emphasizing the integration of information technology systems and people to solve business problems. It outlines the different types of systems, such as transaction processing systems, management information systems, and enterprise-wide systems, which include functions like HR, sales, and inventory management. The paragraph also highlights the evolution from manual to automated systems, particularly the role of CRM, ERP, and SCM as components of enterprise-wide systems.

05:01

💼 CRM: Customer Relationship Management

The second paragraph delves into CRM, explaining its role in managing customer interactions and relationships throughout the customer lifecycle. CRM is described as a sales and marketing tool that turns soft touch moments into usable data. The paragraph discusses the benefits of CRM systems, such as saving sales staff time, easy scalability, and customizable interfaces. However, it also points out the cons, including the potential for manual data entry, high subscription fees, and the need for data verification to ensure accuracy and relevance.

10:02

🏢 ERP: Enterprise Resource Planning

This paragraph explains ERP as a comprehensive management solution that provides actionable data for various tasks, including product development, sales, and customer services. It discusses the modular architecture of ERP systems, allowing businesses to tailor the system to their needs. The paragraph outlines the pros of ERP, such as accurate and transparent information, modular design, and reduced manual operations. The cons include high costs, complexity, and the need for proper planning for effective adoption.

15:02

🔄 SCM: Supply Chain Management

The fourth paragraph focuses on SCM, detailing its role in controlling the movement of materials, information, and finances from raw material acquisition to product delivery. It emphasizes the importance of SCM in adapting to the evolving business environment and the shift towards network models. The paragraph lists the pros of SCM, such as inventory management, data-driven decision-making, and reducing logistical errors. The cons include high implementation costs, the extensive process covering multiple departments, and the need for perfect coordination for the system to function effectively.

Keywords

💡Business Information Systems

Business Information Systems refer to the integration of information technology systems and people within a business context. They are crucial for finding solutions to various business problems and are composed of tools, techniques, and concepts from multiple disciplines. In the video, Business Information Systems are highlighted as essential for automating enterprise-wide functions such as HR, sales, and inventory management, with CRM, ERP, and SCM being key components.

💡CRM (Customer Relationship Management)

CRM is a technology that manages and controls the customer relationship cycle, providing insights into how a company interacts with its clients, from leads to repeat customers. It is a sales and marketing tool that turns soft touch moments into usable data. The script emphasizes the role of CRM in maintaining contact with clients, streamlining procedures, and boosting profitability, while also discussing its pros and cons.

💡ERP (Enterprise Resource Planning)

ERP is a comprehensive management solution that integrates various business functions into a single database, allowing for better coordination and efficiency. It originated from MRP (Materials Requirement Planning) and has evolved to include a wide range of business processes. The video explains how ERP systems provide actionable data and modular design, enabling businesses to customize their solutions according to their needs.

💡SCM (Supply Chain Management)

SCM involves the control and management of the flow of materials, information, and money from raw material acquisition to the delivery of finished goods. It is highlighted as a cornerstone of business success, especially in the context of rapidly evolving business environments. The video discusses how effective SCM can foster data-driven decision-making and reduce logistical errors and production delays.

💡Pros and Cons

The script provides a balanced view of each system by discussing their pros and cons. For CRM, the pros include automation and integration with web and social media, while cons involve potential manual data entry and subscription fees. For ERP, the pros are the accuracy and transparency of information, but the cons include high costs and complexity. SCM's pros are related to inventory management and data-driven decision-making, but its cons involve high implementation costs and the need for perfect coordination between departments.

💡Automation

Automation is a key theme in the video, as it discusses how Business Information Systems, particularly CRM, ERP, and SCM, have automated processes that were previously done manually. Automation is presented as a means to increase efficiency, save time, and allow sales staff to focus more on selling rather than on administrative tasks.

💡Data-Driven Decision Making

Data-driven decision making is emphasized as a significant advantage of SCM, but it is also implied as a benefit of CRM and ERP systems. It refers to the practice of using data and analytics to inform business decisions, which can lead to more accurate and effective outcomes. The video suggests that these systems enable businesses to make more informed decisions by providing actionable data.

💡Integration

Integration is a core concept in the video, especially in the context of ERP systems, which integrate various business processes into a single database. CRM systems are also mentioned as integrating with web and social media, which allows for a more comprehensive view of customer interactions. Integration is presented as a way to streamline operations and improve communication within an organization.

💡Modular Architecture

Modular architecture is a design approach that allows for flexibility and customization in ERP systems. The video explains that modern ERP systems offer a variety of applications that can be combined based on organizational requirements, allowing businesses to select components that best meet their needs without being locked into a one-size-fits-all solution.

💡ROI (Return on Investment)

ROI is a financial metric that measures the benefit an investor receives in relation to the investment's cost. In the context of the video, ROI is discussed as a critical consideration when implementing ERP systems. The script notes that a significant return on investment may not be realized unless the system is properly understood and effectively utilized.

💡Customer Lifecycle

The customer lifecycle refers to the stages a customer goes through when interacting with a company, from initial contact to post-purchase support. The video mentions that CRM systems can manage customer connections throughout this lifecycle, including marketing, sales, digital commerce, and customer service interactions.

Highlights

Business Information Systems involve IT systems and people to solve a variety of business problems.

Enterprise-wide systems are automated and include functions like HR, sales, manufacturing, accounting, and inventory.

CRM, ERP, and SCM are components of the enterprise-wide system, each serving different business needs.

CRM systems manage customer relationships throughout the customer lifecycle, from leads to repeat clients.

Pros of CRM include automation, integration with web and social media, and customizable dashboards and reports.

Cons of CRM include manual data entry, expensive subscription fees, and potential data errors.

ERP systems provide a comprehensive management solution with connected applications for various business tasks.

ERP's modular architecture allows businesses to customize the system to fit their specific needs.

Pros of ERP include accurate and transparent information, and the ability to access crucial processes in the business.

Cons of ERP include high costs, complexity, and the need for proper planning for adoption.

SCM involves the control of the movement of materials, information, and money in the supply chain.

SCM focuses on responsiveness and managing customer experiences through networks rather than linear models.

Pros of SCM include inventory management software, data-driven decision-making, and effective communication.

Cons of SCM include high implementation costs, extensive processes, and the need for perfect coordination between departments.

CRM, ERP, and SCM have distinct functions and differences, with CRM focusing on customer communication, ERP integrating business facets, and SCM managing supply chain movements.

Top CRM tools include Salesforce, Zoho CRM, and HubSpot CRM, while top ERP tools include Oracle NetSuite and Microsoft Dynamics 365.

Top SCM tools include SAP SCM, Blue Yonder SCM, and Oracle SCM, highlighting the range of options available for businesses.

Intellipaat provides Salesforce online training mentored by industry experts, offering a course link in the description.

Transcripts

i.t infrastructure to produce and

distribute required information and when

it comes to business information systems

three terms project out crm erp and scm

but what are they are they similar how

are they different in this session we

will cover all that is relevant to crm

versus erp versus scm

but before we move on to the session

make sure you're subscribing to our

youtube channel and enabling that bell

icon so that you will never miss any

insightful updates from intellipaat so

without any further ado let's go to

today's agenda what are business

information systems

what is crm

pros and cons of crm

what is erp

pros and cons of erp

what is sem pros and cons of sem

major differences

major applications

finally a quick recap of the entire

session so without any more further wait

let's get on to the first topic

what are business information systems

information technology systems and

people are all involved in the field of

business information systems the tools

the techniques and the concepts of

several disciplines are used in this

applied managerial profession to find

solutions to a variety of business

problems

the business information system is

further divided into the likes of

transaction processing system

management information system and

enterprise-wide system

among these the enterprise-wide system

consists of the functions of the

department such as hr sales

manufacturing accounting inventory etc

earlier all these systems were done

manually or without automation whereas

today all of them especially the

enterprise-wide system are all automated

and that is where the crm erp and sem

comes into picture

they are the three components of the

enterprise-wide system now let's dive

deeper into each one of them which

brings us to our next topic which is

what is crm

crm or customer relationship management

tools control the customer relationship

cycle and offer important information

into how a company interacts with

everyone from leads to dedicated repeat

clients

it is the ultimate sales and the

marketing tool

and turns many of the soft touch moments

that occurs in the sales and marketing

into usable data

a tool known as the customer

relationship management or crm is used

to handle all the interactions and

relationships between your business and

its clients the objective is

straightforward

strengthen the business ties to expand

your company crm systems assist

businesses in maintaining contact with

clients streamlining procedures and

boosting profitability

a crm system a technology that aids in

contact management sales management

agent productivity and other tasks is

what most people mean when they mention

crm today the customer relationship

management or crm systems can be used to

manage customer connections throughout

the customer life cycle including the

interactions in marketing sales digital

commerce and customer service as well

the pros and cons of crm

let's see the pros and cons of customer

relationship management

the pros

there are numerous top of the field crms

that automate as much as possible

despite the fact that many crms heavily

rely on the manual data entry these

tools can save your sales staff many

hours of research time so they can spend

more time selling integrating with web

and social media search

your crm can expand as your business

does

as your customer base grows adding new

customers and functionalities is simple

you can begin with as few seats as

necessary and increase the number as

necessary

the majority of the crm lets you arrange

the information's appearance on the

screen so that most of the crucial data

is at the top

where a sales representative wants it to

be

additionally custom dashboards reports

and pipelines can greatly simplify a

number of responsibilities for both the

sales representative and the sales

manager

now let's see the cons

depending on the crm you select your

sales team might have to manually

catalog a significant amount of data

over the course of a week month quarter

and the year this can definitely build

up ultimately leading to less time spent

actually selling

the crms can have expensive subscription

fees which are often determined by how

many years our seats are needed

additionally

you might have to pay for outside advice

or employ an internal administrator

larger firms typically don't have a

problem with this but small and

medium-sized businesses may experience

significant setbacks

crm is unable to identify errors in the

data or when the data is no longer

relevant before the data is entered into

the crm it must be checked updated and

sorted by a person or a group of people

otherwise the outcomes may be

unpredictable

now let's move to our next topic

what is erp

erp or enterprise resource planning is

intended to act as a comprehensive

corporate management solution

it is a collection of connected

applications decision makers at a firm

now have access to actionable data on

variety of tasks it is a collection of

connected applications decision makers

at a firm now have access to actionable

data on a variety of tasks such as

product development sales and customer

services

due to its modular architecture it can

be anything or adopt a more minimalistic

style

business can design an erp specifically

for their needs

the erp uses hardware and software

resources to compute a variety of things

hence it is related to computing in

accordance with the requirements of the

organization an erp system saves

retrieves updates cleans and converts

the data

some of the technologies related with

the erp are

data warehousing crm and sem data mining

and bpr

now let us go through the pros and cons

of erp

initially let's go through the pros

main advantage of using an erp system

are accurate and transparent information

these benefits are important selling

aspects as well

by making data from every department

accessible for you and your senior

management erp software enables complete

access to every crucial process in your

business

the modular design of modern erp is

among its most important benefits

most erp providers offer a variety of

applications that can be combined based

on organizational requirements

each program can be used independently

or in conjunction with a larger package

your business will be able to pick and

choose the components that function best

while omitting the ones you don't

require

on the market erp has a wide range of

benefits and drawbacks

fortunately one of those many benefits

of erp is that it takes less time and

effort to do daily tasks when deployed

properly an erp solution can

dramatically reduce or eliminate tedious

manual operations

freeing up the team members to

concentrate on activities that have

direct impact on income

now let's go through the cons

if you decide to invest in a typical erp

system such as sap business one

the cost of a single license may easily

reach five figures the biggest drawback

of erp software is unquestionably its

cost

particularly for small to medium-sized

firms the upfront cost of the software

alone can be unaffordable

erp software systems offer a wide range

of functions making the program complex

and difficult to operate it happens

frequently that businesses get caught up

with the possibilities of erp solution

but neglect on property plan for its

adoption

when it comes to erp installation you

won't get a significant return on

investment or roi

unless you understand the system's ins

and outs and how to use it effectively

your firm will eventually prosper and

the appropriate solution to that meets

your needs as an organization here there

are no shortcuts

what is scm

at its most basic level supply chain

management or scm is the control of the

movement of materials information and

the money associated with the goods or

service from the acquisition of raw

materials to the delivery of the kurds

at the final location

although sem has always been a

cornerstone of the business the supply

chain is now more important than ever as

a gorge of company success

can successfully manage their supply

chains to change with the rapidly

evolving turbulent and technologically

driven business environment of today

will survive and prosper

in the future supply chains will focus

more on the responsiveness and the

managing client experiences through

networks than through their linear

models

every node in the network needs to be

responsive and adaptable to the needs of

the user while also being able to manage

issues like sourcing trade regulations

shipping methods and other issues

now let's go through the pros and cons

of scm

initially let's go through the pros

supply chain management provides

inventories software for managing

project management to benefit from an

on-demand or optimizing the outcome with

a lean inventory model

and internal inventory

one of the key benefits of supply chain

management is that it fosters

data-driven decision-making and fruitful

partnerships in order to do predictive

risk assessments and successfully manage

changes and disruptions there are also

methods and technologies in place

one of the most important advantages of

supply chain management is that it via

effective communication and

collaboration decreases the distribution

disparities logistical errors and

production and shipping delays

now let's go through the cons

the method of supply chain management

has a significant flaw in that it is

highly expensive to implement small

businesses are unable to afford the

large time financial and other resource

commitment that is necessary

due to the fact that it involves

numerous corporate departments the

supply chain management process is

extensive

because it covers several departments it

can work occasionally be difficult

making the workers and employees feel

uneasy and demotivated

the biggest problem with the sem is that

it depends on perfect coordination

between every department in the

organization

otherwise the system would fail

now let us look at the major differences

a crm or a customer relationship

management controls how the customers

and the business communicate with one

another

this includes everything from acquiring

a contact to a proposal the purchasing

process the scale and the after sales

support

building buyer personas and customer

segments generating insights and even

obtaining data from the other digital

sources like social media are all made

easier by it for sales and marketing in

order to resolve product issues that

arise after a sale and enhance the

customer support experience service

teams are given the ability to generate

cases

whereas materials requirement planning

or mrp which is the planning and

scheduling of inventory for the

pre-production process

gave rise to the erp systems and erp

however goes beyond mrp by fusing and

integrating all the various facets of a

business into a single database

this enables manufacturers to arrange

activities and procedures to communicate

production data with entire company

and finally

the businesses are better equipped to

coordinate operations increase

efficiency and estimate demand more

accurately plan better and guarantee

that the consumers receive their orders

in whole and on schedule when they have

data about materials and goods as they

move through the supply chain now let's

move on to our next topic

top tools

now let us go through some of the most

widely used tools across the globe for

crm erp and scm respectively

top crm tools includes the salesforce

crm the zoho crm

the sap crm

monday.com crm service and the hubspot

crm

whereas the top erp tools include

oracle netsuite

microsoft dynamic 365

the saps erp service and finally the

acumatica

the top sem tools involves sap sem the

blue yonder sem

oracle scm

manhattan associates sem and finally the

discartes sem

now let's have a quick recap of the

entire session initially we went through

what are the business information

systems then we went on to see what is

the crm and then its pros and cons

and then we saw what is erp

and then we saw the pros and cons of erp

after which we saw what is scm and then

we went on to see its pros and cons

after which we mentioned a lot of major

differences between the sem erp and crm

and finally we went through the top

tools used for each of these

that's all for the session thanks for

watching make sure you're subscribing to

our youtube channel and enabling that

bell icon so that you will never miss

any insightful updates from intellipaat

just a quick info guys intellipaat

provides salesforce online training

mentored by industry experts

the course link is given in the

description below

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