A system & process which manage a Company’s interface with its Customer is identified as relationship management (CRM). These systems are basically known as CRM software. Whereas Enterprise Resource Planning (ERP) is all about managing a business. There are lots of similarities in every aspect, like they both contributes to increase the overall profitability of a business. However their core functionalities are completely different. CRM is used to generate sales projection, maintain contact with clients, make customer relations more competent and perk up customer retention. ERP focuses on business procedure and sharing of standardized information at different departments, contributing in better planning and decision making.
Size and complexity of business determines which software you need or whether you need both the software for your business. CRM takes a business at great heights by improving sales and increasing profit. ERP allows business to be guided with precision and in reducing the cost. But a business needs to have profit before worrying about reducing the cost. A recommended read to better understand the difference & your perfect requirement https://twm.com.sg/crm-vs-erp.
Now, before purchasing an EPR system, we can overview whether cloud ERP or on premise ERP? Comparing both in various respects:
Cost of ownership: Cloud EPR consist of hosting, server, maintenance & software updates which is usually based on subscription pricing model, listed as an operating expenses whereas On Premise ERP user is responsible all maintenance & updates and also listed as capital expense.
About Deployment and Implementation: Cloud ERP is hosted by seller and accessed through internet browsers & mobile apps, which is much faster to deploy. But in case of other it is locally installed on own computers and is slower to deploy.
Integration: API Connections are used through which Cloud are easily integrated to third party, but the later requires heavy customization.
Security: Strict security measures are found in Cloud ERP than On premise ERP as it is locally installed.
We have a recommended read at- https://twm.com.sg/cloud-erp-vs-on-premise-erp where you can decide which one suits your business.