Can CRM be ERP?

There is a growing suspicion that some of the larger players within the Customer Relationship Management (CRM) space want to redefine it as the new Enterprise Resource Planning (ERP) application. What are the boundaries that define CRM? In 2001, this is a question that many would argue does not have a simple answer. CRM should focus on providing organizations with high-quality information about their customers in a sales, marketing, and service environment. CRM should also provide added value through increased levels of customer service. However, the CRM marketplace is full of products that appear to push the technology into other enterprise-level areas. 

CRM has a definable place in both the B2C and B2B space, but how far up the supply chain should CRM go? Is the thin client delivery of CRM information via portals really CRM? In addition, where do Business Intelligence (BI) and Knowledge Management (KM) fit into the picture? 

The big picture

The CRM vendor community is desperately attempting to add value to a technology that has so far failed to live up to its high-profile image. Understandably, they are looking to take it forward as a solution to support the general requirements of all customer-facing enterprises. However, in doing so, there is a danger that the extended CRM model could become the new ERP. Siebel is currently championing the merits of supporting the needs of the employee within the CRM environment; while other CRM vendors are suggesting that the large ‘E’ is really about all users that operate within the Enterprise space. This would effectively make CRM into ERM, and with extended enterprise-level and vertical functionality move it closer to the ERP model.

Butler Group’s opinion

It is understandable that the big players operating within the CRM space, companies such as Oracle, Siebel, and PeopleSoft with Vantive, would wish to extend the range of their CRM offerings in order to provide fully functional and fully integrated solutions. However, what seems to get forgotten is that CRM should be about putting the needs of the customer first, and secondly providing organizations with valuable information about their customers’ trading needs. It is the Butler Group’s view that many CRM solutions have under performed within these core areas. Consequently, there is an undeniable need to get the basics right, and provide products that add value to both the end users and the companies. 

The use of BI and KM within CRM should be seen as the key drivers for taking the technology forward, and providing added value for all, but they will only be valuable if CRM remains as a definable product, and is not diluted as a subset of

ERP.

Extract from Butler Group OpinionWire

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