As the business landscape becomes more competitive, companies are increasingly using tools to optimise their operations. Two of these tools that are commonly used are Systems, Applications and Products (SAP) and Customer Relationship Management (CRM) softwares.
While both are useful in their own right for businesses to optimise workflows, each of these systems are used for different purposes. Both have various functionalities and areas of the business process that they cover.
This guide will explore the distinct differences between the two when it comes to their roles and features, as well as how to determine which solution will work for your business.
SAP Vs CRM
SAP is a software application that is used to integrate all aspects of an organisation into one information system. This means that all of the applications needed to manage finances, supply chain, human resources and manufacturing management can be found on one platform.
It has proven to be useful across a range of industries, especially for enterprises who operate on a large scale. Probably one of the most common SAP solutions is S/4HANA which has the ability to process data in real-time for added efficiency.
On the other hand, CRM is a software that assists with building and improving customer interactions. CRM systems allow a company to store, manage, and track every detail about customer information ranging from contact information to sales pipelines, service requests, and marketing campaigns.
The ultimate goal of a CRM system is to enhance customer satisfaction for expanded sales and better customer retention by providing a channel through which the relationship with a customer can be managed.
Some of the best CRM providers include:
How Do These Softwares Differ?
Both SAP and CRM systems play a significant role in business success and are not only essential, but much-needed tools for growing a business. However, they offer different unique features that are fitted to different aspects of organisational processes.
Complexity Of Software Implementation
The implementation of SAP is an extremely time-consuming process. Setting up the system requires considerable time, effort, and resources for customisation and training due to the fact that it integrates so many different business processes. It generally involves the need for consultants and can take several months or even years to implement it fully.
CRM systems are typically easier to implement. Most CRM solutions offer cloud-based solutions that can be implemented fairly quickly and cause little disruption to business operations. Of course, customisation and integrations will likely be required, but generally, the process is quicker and less complex.
Pricing Considerations
SAP systems have a wider range of functionality which can come with a heftier price tag. It requires a much higher initial investment in software licenses, infrastructures, and further maintenance and support once implemented.
CRM systems are more affordable, especially the ones that are cloud-based. Most offer subscriptions where you can pay either on a monthly or yearly basis, depending on your business needs and budget. In this respect, CRM systems are much more accessible, particularly to small and mid-sized businesses.
Industry Focus
Due to its functionality, SAP systems can serve a wider range of industries from finance and healthcare to manufacturing and even retail. It provides a comprehensive solution for large-scale enterprises who have a diverse range of operations and require a streamlined process.
CRM systems can be used across almost any industry. This is due to the fact that it focuses on customer relationships, which is crucial irrespective of industry.
Scope Of Systems
SAP offers a solution that combines various business functions across multiple departments. It includes, but is not limited to, finance, purchasing, logistics, staffing, production and so on. Essentially, SAP provides an all-in-one solution for an enterprise, optimising almost all of its operational activities.
CRM systems are dedicated to all activities that involve customers. Their scope is more limited, aimed primarily at enhancing customer interaction and managing sales, marketing efforts, and after-sales service.
Suitability To Business Sizes
The SAP software applications are designed for large corporations where multi-departmental activities are very intricate. This system is suited for firms that require dependable and expandable measures to streamline their operations.
CRM systems can be used by businesses of all sizes, whether it be a small startup or a large corporation. While small businesses may only need basic customer relationship management tools, bigger organisations benefit from the more advanced customer relationship management tools to handle their clients and sales activities.
Which Solution Is Right For Your Business?
SAP systems are incredibly beneficial to large businesses who have multiple departments. For these businesses, operations need to be centralised and it’s helpful to have the majority of tasks automated.
For those who want to focus on building customer relationships, CRM is the option to go for. It can assist with personalised marketing efforts and drive sales, especially if the business is customer-facing.
It’s also fairly common for businesses to use both systems simultaneously. This way, information can flow seamlessly across departments while growing customer relationships.
