Application needs refer primarily to how you want your SCRM to actually look and operate in your small business. This will include desirable features that will provide you with more advanced capabilities.
Think of a dashboard as the home page for your SCRM. Ideally, your dashboard should give you a quick view of what is happening now and what needs to happen now. Examples might include your scheduled tasks and meetings for the day, as well as your hottest deals and social-engagement opportunities. A manager's dashboard will include team views. Your SCRM might have no dashboard, or it might have one that comes standard with the system or one that you can configure for your own needs.