This is what happens in the video
An ERP system has clear boundaries. Some business processes belong inside the system, while others are better handled by dedicated software. Knowing where those boundaries lie helps you avoid forcing the ERP system to do something it isn’t built for.
Business Central is weak in HR and Human Resource Management, so you shouldn’t use it for those processes. CRM and marketing are normally handled by dedicated systems like Microsoft’s CRM solution, even though Business Central has built-in CRM functionality. We often recommend you don’t use the CRM features in Business Central.
Internal company processes typically belong inside the ERP system. Webshop handling and POS solutions sit partly inside and partly outside, depending on the setup.
Every ERP System Shares the Same Core Functionality
The ERP systems on the market have different boundaries, but they all share the same core functionality that makes them an ERP system in the first place. When you map out the basic processes a business needs, you find that some processes are covered by certain ERP systems and not by others.
That means the question isn’t only whether a process is important. It’s whether the ERP system is the right place to handle it.
Where Business Central Is Strong and Where It Is Not
Using Business Central as the example, the picture becomes concrete.
In administration and Human Resource Management, the ERP system is not very strong. We normally wouldn’t suggest that a customer try to handle those processes in the ERP system. There are better tools for HR.
The same applies to CRM and marketing. Many of those processes are normally handled by a CRM system, whether that’s Microsoft’s CRM solution or another product. Marketing teams use many different pieces of software for their various activities and purposes. Business Central does have CRM functionality, but we often recommend that you don’t use it and instead rely on a dedicated CRM system.
Mapping What Is Inside and Outside the ERP System
A useful exercise is to walk the boundaries of the ERP system and decide what belongs inside and what belongs outside.
Internal company processes belong within the ERP system. Webshop handling and POS solutions are a different matter. Sometimes they sit inside the system, sometimes outside, and often part of the process is inside while part of it is outside.
CRM is worth showing alongside the ERP system because it’s so closely related. Even when CRM lives in a separate system, it works in tandem with the ERP processes, so the two need to be considered together when you draw the boundaries.
Q&A
Should you use Business Central for HR and Human Resource Management?
No. Business Central is not very strong in HR and Human Resource Management, so it’s better to handle those processes in dedicated software rather than in the ERP system.
Can you use Business Central for CRM and marketing?
Business Central has CRM functionality, but we often recommend you don’t use it. CRM and marketing processes are normally handled by a dedicated CRM system, such as Microsoft’s CRM solution, and marketing teams typically use several specialised tools for their activities.
Are webshop and POS solutions part of the ERP system?
It depends on the setup. Webshop handling and POS solutions sometimes sit inside the ERP system and sometimes outside it. Often part of the process is inside the ERP system while another part is handled externally.
Do all ERP systems have the same functionality?
All ERP systems share the same core functionality that defines them as ERP systems, but they have different boundaries. Some processes are covered by certain ERP systems and not by others.