Enterprise Resource Planning (ERP) is a concept that integrates two or more functions of a firm for smoother operations.

Almost every organization has several departments with individual responsibilities. The commonly encountered classifications are :

• Manufacturing
• Human Resources
• Inventory management
• Customer Relationship management
• Accounting

and others. Each of these has separate databases, the complexity of which increases with the scale of the organization.

ERP’s power lies in in its ability to integrate these multiple databases and processes into one coherent entity accessible by all departments, thereby improving cross-functionality, cutting time and escalating productivity.

For Example:

A shipping firm bags an order to deliver 100 crates of wine in 5 days. The departments engaged to accomplish the objective would be:

• Sales : the one that bagged the deal
• Inventory management : keeps an eye on the supply of necessary equipment(carts) for delivery.
• Finance : handles all the associated finances required, including payments from the customer.
• Logistics: takes care of the proper shipment and tracking of the crates.
• Customer relations : keeps in touch with the customer during and after the project.

It clearly calls for extensive coordination among all the departments for the project to be completed successfully. Any inter-departmental can have a crippling effect on the final delivery.

However, ERP systems are configured to smoothen such situations. Employing an ERP system for the above situation would bring about the following change :

The moment the sales team bags the order, it updates the order in the central database. From there it is instantly accessible to all other related departments. Inventory studies the order and checks its related stocks. In case it runs short, it notifies the in-house stock procurement dept. to make additional purchases.

Next, Finance steps in and estimates the costs to be borne by the firm for delivering the project. It also works on the billing details that will be sent to the customer(Billing dept.).

Logistics simultaneously checks transport availability to ports and also works on tracking the consignment till it is safely delivered.

Additionally, the Customer Management System keeps in touch with the customer and keeps him informed about the progress of his order, till it is delivered and beyond, for future projects that he might decide to entrust to the firm.

Thus, employing an ERP system greatly improves inter-department co-operation, and results in much better operational efficiency.

All the departments that ERP integrates and can be applied to are known as ERP Modules.

Advantages of ERP

1) Reduced Data entry and redundancy : this is the prime objective of ERP. It integrates all data under one centralized database that makes repeated data entry unnecessary, and facilitates easy access by all departments.

2) Easier Inter-department communication : which follows from a centralized database.

3) Reduction in time and cost

4) Security : ERP systems come with in-built computer security systems that are useful in preventing crimes like industrial espionage and intellectual property embezzlement.

Criticism against ERP and new developments

ERP has generated criticism due to its extensive integration costs. ERP costs can be roughly broken down into :

• Configuring(Revamping) existing system according to ERP requirements.
• Reconfiguration of hardware, work-flow, data transfers etc
• Training of personnel on ERP’s functional dynamics
• Expert ERP consultation for installation, training and post-installation maintenance and trouble shooting.

To avert this, two news trends that have witnessed encouraging responses are Online ERP and Custom ERP.

For Online ERP, any firm that wishes to avail the ERP services contacts an online vendor, who in turn provides the services for a pre-decided charge.

Custom ERP entails the integration of particular ERP modules that are relevant to the existing business’s needs, rather than revamping the business itself.

These two alternate approaches to ERP have found reasonable acceptance as they eliminate the much criticized stage of existing business revamp and the huge costs involved in on-site ERP installation.

Conclusion

ERP’s success can be gaged by the widespread popularity of firms like SAP AG, Ramco ERP, Oracle Applications and Microsoft Dynamics, that are the biggest players in this field. Having been introduced only a few years back, ERP systems have helped organizations both big and small integrate their functions for better productivity and profits.

With constant improvements being introduced and the scope of application widening to cover almost all industry sectors, ERP systems are here to stay and rule.

Introduction

A CRM system is more than a software package to manage a firm’s customer database. Its purpose is to help manage a firm capture customers, retain them, nurture them and serve them as best as possible. This aim is realized through operations classified under different heads, known as CRM Modules.

CRM system modules

Operational Module

• Campaign Planning : planning promotional campaigns as per the firm’s core competencies and the profile of the target customer.
• Campaign Execution: through channels like email marketing, online advertisements, phone marketing, print ads, television ads etc.
• Lead generation and classification: any prospective customer who responds to the firm’s campaign is a lead. He is then questioned and the information received (type of product/service wanted, price range, contact details etc) is analyzed and classified as Hot Lead (genuine prospect) or Cold Lead (false information/bogus interest).

Sales : All sales made are documented in the central database along with information like customer contact details, calls, emails, faxes, sales quotations etc.

Service : It deals with all the services a customer is entitled to as part of the firm’s contract. This includes :

• Warranty management
• Knowledge management (How To, tutorials, User manuals)
• Back end/ after sales support
• Installed Base Support (support for tools installed onsite) etc.

Collaborative Module
It handles direct interaction with the customers. Emails, phone calls, websites etc. are used for the purpose.

Analytical Module
It focuses on analyzing the database towards:

• Analysis of customer behavior patterns
• Emerging trends that may be profitably exploited
• Taking key decisions on developing new marketing strategies for better promotional opportunities etc.

All the information collected builds up an exhaustive customer profile with data ranging from bare essentials like contact nos., to analytical segments like patterns in purchase history, preferences, significant deviations from established patters, shift in trends etc.

Example: Call centers have records of previous purchases made by customers. So every time a profiled customers calls up, his information is available to any executive attending the call, no matter which department he is from. This slashes customer processing time and instead of starting from scratch each time, it sends out a favorable impression of the firm.

The shift in CRM systems implementation
Traditional CRM packages have been tricky into integrate into already existing systems, on account of hardware re-configurations, workforce training and establishment of back-ups.

However, On Demand CRM Systems have gained popularity by virtue of the following advantages :

Hosted, not installed : cuts costs due to lesser ownership of infrastructure on the user’s part, which is hosted by an outside firm, and the elimination of complicated installation procedures on-site.

No hassles of troubleshooting ad upgrades : The organization using the service does not have to bother with any glitches that the system might develop. It is taken care of by the service hosts themselves.

Going live is much faster : Hosted services obviate the need to install CRM systems on-site, thus drastically reducing “go-live” time.

Conclusion
CRM systems have greatly simplified customer handling across many industry sectors. That it enables all arms of an organization to access and analyze detailed information means better understanding of individual roles, and the customers too feel important when being catered to professionally.

In short, it’s a win-win for all involved. With the word spreading, CRM, especially On-Demand CRM will become the definitive tool for customer management in a matter of just a few years.

Business Software Development is essentially a branch of software development that concentrates on developing software applications primarily for commercial needs.

Being a part of the IT revolution that has redefined the way organizations functions and interact, Business Software is a huge resource for any firm that employs it. Over the past decade, this offshoot of Information Technology has dug itself in, so much so that it has established itself as the backbone of efficient functionality.

There is of course a difference in usual software development and developing business software.

• System software like an operating system (Windows, Linux) allows the user to interact with his system. Its features include system tools, utilities, drive management etc.

• Programming software helps the programmer write/create programs or software for various purposes. It includes tools like editors, compliers, debuggers, linkers, interpreters besides different programming languages to help the programmer achieve his target. er to write programs and software for varied needs. However,it is limited to developing software.

• Business software on the other hand is different in its field of application. It consists of several in-built modules like editing, accounting, resource management, inventory control et al that are meant to help the organization with the respective departments. It aims at synchronizing the operations of individual departments by bringing them under a centralized command.

Business software’s primary goal is to enhance productivity of an organization. Industries have come a long way from the days of rudimentary logistical requirements of trading agricultural produce. Up until the last century all businesses relied heavily on human control and supervision. Different divisions had individuals or trained groups looking over their operations. But just as the Industrial revolution changed the dynamics of the world forever, the coming of age of business software has been no less of a revolution.

Advantages of Business Software:

Although the possibility of absolute elimination of human inputs and supervision in business functions seems remote, what business software dies have to its credit is the immense increase in productivity and efficiency.

1) Reduced Time requirements : the ease of data creation and modification/editing/sharing/storage is phenomenally enhanced with the use of business software. Manual operations in comparison are time guzzlers.

2) Enhanced efficiency : The use of software is always preferred over manual work when it comes to commercial needs. This is simply because of the above mentioned time advantage and the numerous options that such software provide which make manual labor cumbersome in comparison.

3) Ease of Inter-departmental communication : many software meant for large scale business operations simplify inter-departmental communication and database management. This is a major advantage in large,complex corporate entities.

Types of Business Software:

• For small organizations/home users:

Many fledgling firms and/or individual entrepreneurs use software like Microsoft Office or OpenOffice.org or simple accounting software for their daily operations. These are developed and priced in a way that makes sense to purchase for regular low-key business needs.

• For medium scale business enterprises:

These include a broader range of operations like Customer Relations Management(CRM), Inventory Management, Human Resource Management, shopping carts etc. These arms call for extensive database management and coordination. Such enterprises use software like NetSuite, Sage Accpac, SAP Business One, Sage Abra HRMS,Taleo Business Edition, ABS Accounting Systems etc.

• For large Enterprises:

Software packages like SAP All-in-One have become extremely popular with large corporate entities for the advantages they bring into everyday operations and the time they save in activities that are usually lengthy and tiresome. More examples of this type of software are Microsoft Dynamics CRM 3.0, Onyx Software CRM, Microsoft Dynamics NAV etc.

The Major Players:
The skills required for developing software that can take on the needs of a business organization, small or large, are immense. Therefore, there aren’t many scattered development centers that work to churn out such software. Instead, there are development firms that employ professionals to identify potential business sectors and develop software for them.

A few such organizations are SAP, Microsoft, Google(OpenOffice), Sage Group PLC, Agresso Limited and CedarOpenAccounts(COA). Most firms around the world use software released by these firms. The popularity of Microsoft Office is a fine example. So is the advent of SAP systems that has found decent success with organizations and industries alike.

Conclusion:
Business software development is becoming the nerve-center of businesses all over the world. Understandably so, with the priceless advantages of time reduction, efficient documentation and smooth database record management. The present trend is however toward online business software use. This has been prompted out of the necessity to cut costs further and avail the same services as a marketed software would provide. The fact that developers and vendors are turning to the Internet to market their products, albeit at a much lower price, shows just how popular and how important business software has become for individuals and conglomerates alike.