ERP vs. CRM: Difference, Benefits, Drawbacks, and Tips for Integration

After learning the high cost of hiring skilled professionals from the market, businesses have realized the importance of increasing productivity through existing employees, which can lead to upsurged revenue generation down the line. But the question comes, is that a viable option to implement? Well, if you listen to some industry experts out there, they will suggest choosing automation instead of pressuring your loyal workers to boost organizational productivity. Yes, CRM and ERP are two such applications that can help automate key workflows in your entity. But the query surfaces: what are they, and what is the difference between ERP and CRM? You will deeply learn about both these things in this prose today. So, let’s go further with:

What Is CRM?

CRM stands for Customer Relationship Management, which is an enterprise-oriented software, coming in handy in automating how a consumer interacts with your business. It is just a part of a massive set of customer experience applications that may feature solutions for:

Cloud ERP vs On-Premise ERP: Which Is Right for You?

One of the most critical considerations to make when selecting a new enterprise resource planning (ERP) system for your organization is whether to go with an on-premises ERP system or a cloud-based ERP solution.

Cloud ERP is growing more popular than ever before. Almost every ERP provider now has a cloud deployment option, and some have completely abandoned on-premise ERP services. “Hybrid Cloud Market Worth USD 173.33 Billion by 2025 and Growing at a 22.5 percent CAGR,” according to research published by Global Newswire in 2021.

3 Business Benefits of Custom ERP and Custom Software Development

Businesses have many needs, not the least of which is technology. Whether the organization is trying to satisfy internal business user requirements, senior executive requirements, internal IT requirements, customer technology requirements, or requirements related to collaboration and communication among suppliers, partners, or stakeholders, there are many opportunities to optimize performance and productivity and there are many out-of-the-box software products from which to choose. 

But, there are times when the business either wishes to develop a software product to release for customer use, and times when best-of-breed or out-of-the-box solutions do not meet the requirements of the business to manage workflow, provide business users with reporting tools, collaborative tools, or industry-specific functionality and features. 

Realizing the Full Potential of Automation Leveraging BPM + RPA

The lifespan of so-called ERP (Enterprise Resource Planning) systems has continuously been evolving and taking different dimensions. In the late 90s and early 2000s, there were close to a dozen ERP products ruling the business world. It catered many industries with their specific modules, such as Human Resource Management (HRM), Financial and Accounting Management, Supply Chain Management (SCM), Sales and Distribution Management (SDM), Manufacturing & Warehouse Management, Customer Relationship Management (CRM), and many more.

ERP and BPM Streamlining the Business Processes

The period 2000-2010, witnessed large acquisitions and mergers of ERP vendors and at the end of 2010, only a few ERP product companies existed in the market. JD Edwards, known for its strong Manufacturing modules (Plan-To-Build), was acquired by PeopleSoft, known for its HRMS (Hire-To-Retire) and Campus management solutions. Right after this acquisition, Oracle, which was known for its Oracle Financials and Budgets (Record-To-Receipt), acquired PeopleSoft and Siebel, known for its CRM (Acquire-To-Retain) capabilities. It finally became a strong ERP product, with a combination of Financials, Human Resources, Manufacturing, and Customer Relationship Management (CRM) besides its strong Database capabilities. The other big player has been SAP, still.

How to Complete a Successful ERP Implementation

ERP implementation is an immense undertaking. This central system is vital for growing businesses looking to scale their workflows, processes, and functionality. After all, as a business grows, there's more to manage.

And with that responsibility comes risk.

5 Best ERP Software for Businesses of All Sizes

Software abbreviations are typically easy to understand. CRM (customer relationship management), CMS (content management system), VPN (virtual private network), and the many other software available are fairly simple to dissect from their names. But what about best ERP software?

Helping CEOs Make Sense of the Modern IT ‘Acronym Soup’

The domain of enterprise software is littered with acronyms that may be intimidating even to seasoned managers. Things get even murkier for those seeking to develop their own mobile enterprise app and encountering design-specific terms. The fact that some of them are often used interchangeably also doesn’t help. So the best place to start figuring out these terms is to understand their similarities and differences and identify the areas where they overlap.

Acronyms in Enterprise Systems Context

ERP

ERP stands for enterprise resource planning – the process of managing business-related data. In the modern business context, the term refers specifically to software solutions that collect, process, store, and interpret data. The idea of ERP was introduced in the domain of manufacturing but has since expanded to cover:

AutoQuotes Launches AQ Products API

AutoQuotes, a provider of solutions for the foodservice equipment and supplies (FES) industry, announces the availability of the AQ Products API, giving manufacturers and dealers access to AQ's product data to power eCommerce, ERP systems, and online sales channels simplifying product data management and ensuring accuracy across multiple platforms through one API.

Rapidops Announces API Accelerator for Enterprise Resource Planning

Rapidops Inc. today announced its innovative new API Accelerator to rejuvenate legacy ERP systems. Changing ERP systems is not necessary today, and not viable in most cases due to the high switching costs and the time-consuming endeavor that is fraught with business risks. The ERP becomes a piece of the technology platform, not the platform itself. Rapidops has deployed API/ERP solutions in many middle-market companies allowing maximum innovation to occur without business disruption.

Elevated Signals Shows How Technology Provides Great Benefits to Agriculture

When you think of agricultural technology (agtech), it seems something of a contradiction. Agriculture involves growing crops. There’s no real-world shortcut or fast track in that plants require planting in appropriate seasons with access to light, water, nutrients, and time to grow. By comparison, tech is about speed, rapid prototyping, and timely deployment. But today's cannabis farmers are using technological innovation to improve the health of their crops, effectively monitor their yield, and comply with government regulations. Today's crop grower is more likely to carry an iPad than a pitchfork and consult a data platform instead of an almanac.

One company leading the way is Canada's Elevated Signals. The company has created a digital production management platform that leverages wireless IoT (Internet of Things) sensors and modern software tools to help optimize crop production and manage complex compliance requirements. 

Assessing Legacy ERP Systems With Wardley Maps

Let's talk about today's Swiss army knife software systems called "Enterprise Resource Planning Systems" (ERP systems). These are really powerful tools, no question, but in some situations, they can cause more harm than good — especially when they are really old and called "legacy systems." So, I want to tell a fictive story that shows how an organization can get deep into trouble. For this, I’ll try to use Nick Tune’s brand new Core Domain Patterns and Wardley Mapping (if you aren't familar with Wardley Maps, I recommend watching the YouTube video "Investing in innovation").

For understanding the context around ERP systems better, we first take a brief look at the role of IT systems in the past decades:

Relational vs NoSQL and RDBMS to NoSQL Migration

Overview

Given the choice of a Relational Database (RDBMS) vs a NoSQL database, it has become more important to select the right type of database for storing data. Not all the requirements fit in a NoSQL database or an RDBMS. RDBMSs are mainly related to managing, storing, and manipulating structured data where the data format, columns, data type, attributes, and schema are fixed, and the relationship between entities needs to be consistently maintained.

SQL is a common query language used when dealing with an RDBMS. Using an RDBMS is a choice for storing transactional data or records where the ACID (Atomicity, Consistency, Isolation, Durability) proprieties of transactions must be provided by an underlying database. An RDBMS is also a choice where the security and accessibility of data are of utmost importance. Typical use cases are financial records, financial transactions, OLTP, ERP, CRM systems, e-commerce applications, etc.

How Cloud Services Modernize ERP

Combining cloud and ERP

Today’s business environments are comparable to the old spinning plate trick on the Ed Sullivan Show from the 1960s. We all remember the famous scene: Erich Brenn running back and forth frantically keeping the plates spinning on each pole as the “Saber Dance” music plays in the background to enhance the drama. These plates in today’s parlance are the vast amounts of data that a business creates every day and keeping the entire engine running smoothly in terms of data analysis and security. ERP (Enterprise Resource Planning) tools and methods were devised in recent years to tackle the running of day-to-day operations in the office in terms of data, hardware, and software used by team members.

API Use Cases

To gather insights on the current and future state of API management, we asked IT professionals from 18 companies to share their thoughts. We asked them, "What are some real-world problems APIs are solving?" Here's what they told us:

Applications

  • Our main focus has been using APIs to integrate across applications and with business partners. Organizations are modernizing IT systems by replacing legacy systems with SaaS applications. These new applications need to integrate with other enterprise systems whether modern or legacy. For instance, we frequently work with customers who are modernizing their ERP system, and they need to integrate that new ERP with other systems.

    The legacy system was likely a tangle of file-based integrations. With the new ERP, a published API set is the integration point of choice for connecting to all of the other enterprise systems such as general ledger and warehouse management solutions. Additionally, these modernized ERP solutions are able to provide real-time access to enterprise information through their APIs.

    We also work with our customers to take advantage of publishing APIs to their partners that provide limited access to this information. For example, a partner wanting to check inventory or check the status of their order can use an API that provides a view into their data directly from the ERP. This can augment the traditional EDI process with API queries for certain transactions that benefit from real-time responses. 
  • Put APIs on top of legacy systems built without APIs in mind. Write code and put API on top to make it easier for customers to interact with them like a CSV file. APIs automatically determine what the file has inside. 
  • Six use cases: 1) Mobile, 2) IoT devices, 3) building out ecosystems – SaaS offering or partner, 4) content or transaction offering (media or ecommerce), 5) APIs as a business (tend to be smaller, the value of the company is monetized via the API), 6) internal agility (80% of API use is internal by large companies how to reuse code more effectively, this is the new SOA, using web APIs to improve internal reuse to achieve agility).

Industries

  • One client building applications owning the development of the API is Hawaiian Airlines. They build APIs for complex legacy systems that are not API-friendly. Creating APIs required thinking about how to expose and secure the data in the most efficient way. Another good example is in the automotive industry in Europe and U.S. challenge is fragmentation of systems to maintain and new car owners have to go through those systems of onboard and connect cars that are more connected than ever. Register all seven new services at once. Create APIs for systems that did not expose APIs before and also contains PII. 
  • Schiphol Airport started on one use case, improve passenger experience of going through the airport. Thought holistically to make the experience better. There is so much data that’s useful, it became an integration problem. Expanded boarding pass, tracking flights, arrival departure information, flier alerts, to achieve internal agility, they decided to make an API-focused effort to enable the integration of different applications. Opened internal APIs to build a partner ecosystem. Start with the mindset APIs will be open and control access rights.

Other

  • As a company, we try to be cloud-neutral. On the backend, we can store content in different public object stores. Customers want to maintain their own keys. With key management services from large cloud providers, we can integrate with them as well and give customers a choice of what data they want where.
    • 1) Capital One, one of the world’s largest banking institutions, offers a variety of online financial services including API products. Third-party developers and partners can provide a first-class digital experience for their customers as well as create new revenue streams by using Capital One’s external APIs to open bank accounts, generate personalized credit card offers, and track customer rewards. NGINX technology has enabled Capital One to scale its applications to 12 billion operations per day with peaks of 2 million operations per second at latencies of just 10-30 milliseconds.

      2) Adobe, a large software company that develops multimedia and creativity software solutions, uses internal APIs as the primary means of data exchange and communication across various software applications used within the enterprise. Adobe uses NGINX as an API gateway for managing API traffic across all these internal systems.

      3) A large technology-focused market research company uses an internal API hub so that its analysts can easily use internal applications to compile, submit, and manage all content they produce. The company is transforming its internal application profile to be more services based and NGINX is providing the required resilience and performance given the mission-critical nature of the applications.
    • Northwoods need to integrate customer data sources. API-led development and API-led integration are about the more SaaS applications being launched still need to take their data and connect with them. Still an integration use case there, APIs aren’t standard, there’s a variety of ways to connect and integrate. Take advantage of Business Works to consume, connect to a data source and connect to a more common set of services to use with applications.

      More easily access information and reduce time to market by 25%. My favorite use case is Netflix. They need to connect with more than 500 client devices, iPhone, Android, X-Box, etc. They have well-normalized APIs that serves metadata from movies, handles search requests, image serving, actual streaming of the movies. But constrained devices over tight networks. They created a middleware backend for front end (BFF) to consume base APIs, contains the majority of the business logic the client needs to use and then opens interface to their own APIs that just serves that client.

      When a new client comes on, all they have to do is create a new BFF in the client code and they’re good to go. If the client for one device is no longer needed, they just kill that code off and it doesn’t break anything.
    • The fundamental problem APIs solves, is answering technical needs with the absolute best solution, in the smallest amount of time, for the smallest cost possible. We provide the best in class Search Experience in the form of APIs. In a matter of minutes — registration time included — customers can answer their Search Experience needs in the best possible way. Doing search right is actually a daunting task; yes, it is possible to spawn up a Solr instance, tune it to best fit a use case, install it on dedicated servers, deal with multi-cluster issues, monitor/operate them...

      But at what upfront cost? At what cost in the long run? How many experts will be required for this — how many site reliability engineers, natural language processing engineers? How much time will be necessary for even starting up? For what level of quality? Our customers can just discard these questions. That is what APIs solve in the real world; that is what we do for Search Experience.
    • Stoplight provides a suite of products to help organizations manage their API design workflows at scale. A critical part of this is building on top of the development workflows that already exist at most organizations. This means integrating with existing tools like GitHub. To do this, we integrate against the APIs that these tools expose.

      This allows us to do things like automatically pull information from GitHub into our product, and push information from our products into GitHub. The end result is a much better experience for our customers, and it's made possible because of the rich APIs that GitHub exposes.
    • Customers are powering use cases from orchestrating real-time integration between endpoints to composing entire business solutions using the Jitterbit Harmony API Integration platform.

      1) For example, Odyssey Logistics has orchestrated WIN Logistics — a no-cost, no-fee web-based transportation management solution, powered by Jitterbit to automate the on-boarding of new clients. So when a client registers with WIN, all of their customized configurations are migrated over automatically through an order send and receive API. This means that product lists, shipping origins/destinations, and equipment types are all brought into WIN in real-time.

      If a client makes a change in their ERP system, that change is automatically reflected in their WIN environment, in real-time. Additionally, Jitterbit’s API integrations streamline the broker-shipper relationship. So when brokers submit quotes, WIN automatically alerts those shippers without them having to constantly monitor their email. This allows brokers to quickly respond to requests and shippers to easily react to the quote of their choosing.

      2) Intellifo, a UK-based company that offers business management software to financial advisers and wealth managers, has connected to over 30 REST APIs of popular endpoints such as Salesforce, NetSuite, JIRA, Aha, Eventbrite, etc. via Jitterbit. One use case they have powered is the Salesforce-JIRA integration through RESTful APIs and webhooks that automatically raises defect tickets from Salesforce and updates bug tracking within JIRA.

      Keeping both systems up to date enables easy communication between Dev and Support and has enabled Intellifo to provide multi-channel support to their customer base. Intellifo has also designed a Production Incident slackbot powered by Jitterbit Harmony API Integration platform that consolidates information from systems such as JIRA, Confluence, Salesforce and NewVoiceMedia as it sends appropriate Slack notifications.
    • 1) Most of my customers are security first and foremost.
      2) Second is observability to know what’s going on. Now the state of the application is all spread around.
      3) People are paying for rate-limiting to prevent hacker from loading your app with requests.
      4) The canary deployment releasing update every day.
    • We built our Mass Customization Platform to allow all Cimpress businesses to leverage the best technologies developed in each.  For example, Vistaprint has spent over 20 years building market-leading technologies to solve all the problems involved in sending user uploads to printing presses (from obvious stuff like “is this image high enough resolution?” to more inside baseball like “will the ink in this image bleed together if printed on a particularly glossy surface?”).

      Over the past decade, we’ve turned this functionality into a fleet of microservices we call our Prepress APIs. No longer the sole possession of Vistaprint, they are now used millions of times a day across a dozen Cimpress businesses.
    • Most banks have figured that they have to have APIs. No one really challenges that, and they are in a state of either planning API programs, implementing them or even launching first API products. What we found our clients to struggle with — how do they monetize their API efforts? So FI.SPAN’s approach to that problem is — figure out your client’s use case first and then see what APIs would be needed to solve it.

      We spend a lot of time and research effort figuring that out. To give you an example — while some banks were trying out that new API thing via some harmless and non-critical “/GET ATM-locations” kind of APIs we were looking into their most profitable corporate customers’ need and found plenty of use cases which require fairly sophisticated APIs to support account payables as well as receivables, data reconciliation and numerous business automation scenarios. Almost every API we have today is powering some customer facing product.
    • For data access, we improve security and utility over traditional APIs by supporting newer protocols like GraphQL and SPARQL. Security is improved by embedded the data security rules with the data itself, so any data consumer or other apps don’t need to duplicate security rules and keep them maintained.
    • Our main customers are marketers and Marketing Technology companies, who used to build software solutions completely in-house. However, the main problem is that getting the data you’d need to build a marketable product would require awfully a lot of time and money.

      Marketing requires vast amounts of data in order to be effective, but the costs of collecting and analyzing all this data on own capacities are ridiculously high. And because obviously not every company is able to allocate the required amount of resources to get the software project off the ground, the technological threshold to entering the market was unreasonable.

      When the first APIs became available for the marketing community, it was a major game-changer. You can now build a simple keyword research tool in a matter of weeks.

Here's who shared their insights:

APIs = Access

To gather insights on the current and future state of API management, we asked IT professionals from 18 companies to share their thoughts. We asked them, "How does your company use APIs?" Here's what they told us:

Data Access

  • More data sources are being accessed through APIs. Communicating with APIs for reading and writing data back to those systems. At the core how we develop applications, manage DevOps and communicate with source systems.
  • APIs are quickly becoming the de facto way organizations deliver value in a digital world. Companies create discrete applications and data sets and expose them as a series of API-enabled services. The customer experience is then highly dependent on the strength of the underlying API architecture. We’ve seen this trend before. Web apps exploded in the early 2000s and then mobile apps earlier this decade. Now, APIs are following suit.

    The organizations that master this wave of API development, and deliver compelling experiences via those APIs, will drive a decade of competitive advantage. And as with all new emerging trends, the key to success is part people and process — hiring for API skills and adopting an API-first development practice — and part technology that provides a secure, fast, and scalable API infrastructure.
  • APIs provide access to data, software, and applications to enable the business to run and applications to provide a better user experience and customer experience. 
  • Our platform is a publisher of hundreds of business banking API endpoints as well as a heavy consumer of other industry and utility APIs ourselves. It’s safe to say that without APIs there would be no platform. We’re in the business of connecting businesses and corporate clients with banks, which is only possible over rich API data exchange. The problem is — every bank today has its own way of offering services to clients, so we had to create that layer to enables the delivery of services to many, in many ways.

    In our case — connecting any business application to any bank without the hustle of re-implementing the whole product for every bank and client combination. The current state for many is a file-based exchange with banks over a variety of protocols and formats, which in most cases means a custom project for each client to establish a connection between their ERP and bank services or data. 
  • We use APIs to request permissioned data and perform transactional capabilities. 
  • As the Data-as-a-Service company, we use APIs in two directions: first, for obtaining data from vendors such as Google and Amazon, and second — supplying it to our customers, who, for the most part, represent the Marketing Technology industry.

Internal and External Development

  • Primarily mobile development and quite a bit of web. There would be no apps or websites without APIs. Integration is a big issue.
  • We have a cloud-based integration platform that makes extensive use of APIs. Integration historically started with files, then moved to databases and service buses and now rely heavily on APIs. Many modern software applications provide a set of published REST APIs. These provide the perfect integration point as they provide both the transport (HTTPS) and data format (JSON), while the past with files, integration required two distinct sets of technology, a file transport, and a file format. Since many modern software applications publish their APIs, we have built connectors to these applications. The connectors encapsulate the API definition into an easy-to-use package on our integration platform.

    A user wishing to build an integration can select two connectors (for example Salesforce and Microsoft Dynamics Finance and Operations) and easily map customer information from Salesforce to Dynamics Finance. For users wishing to connect to APIs that we do not have a connector available, they can set up their own definitions and have our integration platform connect to any API. In addition to these API consumer use cases, we also have API provider capability in our integration platform. This allows a user to define a set of APIs on our platform (for example, to check order status) that they can then make public.

    This published API could then be connected to a backend system such as an ERP system. When a customer used the public-facing API published on our integration platform, the API could be connected to the backend ERP including translation and security to provide an update on their order.
  • We generally don't use the provided kits by the main providers but rather an HTTP library available in our programming language. For us, it's "requests" in Python. We then read the API documentation for each service and implement the calls needed to make it work. We have developed internal libraries to handle our main usage for our frequent library, which includes Stripe, Mailgun, and Intercom.
  • All the products and services we provide can be accessed via APIs. While we understand the value of web applications to convey meaning in a visual way or to engage with a broad audience, it is in our DNA to first and foremost engage with developers — and we do that by providing them with carefully built and documented APIs to interface their own products with ours. 
  • APIs power every piece of our product ecosystem. We have internal APIs that our web and desktop applications use, as well as public-facing APIs that our customers use to automate and customize their workflows. Beyond our own APIs, we integrate against a number of third-party APIs — from version control systems like GitHub to API gateways like Axway. 
  • We use APIs in two high-level categories: Internal and public APIs for our product offering and front-end applications are backed by a powerful set of APIs. We follow a three-layer API design pattern, including 1) Experience APIs used by our front end to give the experience to our customers. 2) Process APIs where our processing and business logic resides. 3) Systems APIs that use our datastores to access the data.  API for our internal IT projects to integrate the systems we use. For internal IT projects, we use the same design pattern as above. However, for these projects, we build the pattern using our own integration and our API manager product, both of which are part of our platform.

Microservices

  • In the last 10 years, APIs have become the universal language to integrate applications.  Monolithic applications kill innovation, it's too slow to integrate new things via the ESB. It's important to have: 1) distributed integration; 2) container-friendly solutions; and, 3) APIs are key to integration. Customers are moving away from choosing point solutions to solve one problem at a time looking for full-service pre-integrated solutions that work. 
  • Enterprises have built monolithic applications with a lot of APIs in one binary. When microservices come along, these are cut into small pieces. Instead of 50 APIs, you will have five. With serverless, it's an API call and then running a piece of code. One API code to call one function. Find the smallest unit of compute shared across monolithic, microservices, and serverless – that’s the APIs. 
  • There are two broad ways: we build (and share and consume) differentiating APIs related to our core business, and for everything non-core, we prefer API-first SaaS vendors. In our domain, we maintain an ecosystem of almost 500 microservices that comprise our mass customization platform. These microservices are used by our portfolio businesses — and third-parties fulfilling orders on our behalf – for everything from artwork preparation to shop-floor optimization to shipping rate calculations.

    We’re big believers in providing composable building blocks that our businesses can use to solve problems in novel ways, and we look for the same discipline when buying solutions outside of our domain.  Traditional vendors with monolithic solutions expect you to conform to their platform; API-first vendors allow you to integrate their functionality into yours.

Other

  • Support different types of file services. We use them to manage the content lifecycle, write from ingest to inter archiving, data governance, and so forth. Every platform has to expose APIs to build custom applications and integrations. Within the platform itself, there are many services that use APIs.

Here's who shared their insights:

TransferMate Introduces Global Payment API

TransferMate, a B2B payment provider, has introduced itsTransferMate Payment API. The API allows users to integrate TransferMate's globally regulated payment technology with third-party apps and systems (e.g. ERP systems, accounting platforms, etc.). The API can facilitate thousands of payments concurrently, greatly reducing administrative workload, payment time, and account reconciliation.

On Microservices and Containers

Microservices

Modern-day enterprises are largely dependent on software applications to facilitate numerous business requirements. In most enterprises, a software application offers hundreds of functionalities — all piled into one single monolithic application. For instance, ERP and CRM platforms have monolithic architecture and serve hundreds of functionalities efficiently. But, with multiple dependencies overlapping and creating a cluster, the tasks of troubleshooting, scaling, and upgrading them become a nightmare. At times, enterprises try tweaking such monolith applications for their convenience to the point that they cease to serve any real purpose. This is when enterprises start to look for ways of modernizing applications and adopting an architecture that offers flexibility.

The Rise of Microservices

There is a growing demand for microservices architectures amongst enterprises to make the transition to modern delivery. In this architecture, functionalities are designed as independent microservices that are loosely coupled to create one application that can multitask. This method facilitates building applications at scale, where making changes at the component level becomes easy without disturbing other parts of the application.