Business Software Applications for Your Firm

The main purpose of business software, is to automate or eliminate standard paper driven tasks in order to increase productivity and better measure business performance. In turn, this cuts costs and speeds up management decision-making capability. The continued fall in the cost of personal computing applications, means that even the smallest of start-up businesses can access a broad array of enterprise software applications. Typically most small firms use PC business software, to manage their financial accounting and bookkeeping processes. Business software helps to improve a firm's output, security, information management and sales management.

In the 1960's only multinational companies could afford to access mainframe driven applications, to automate their accounting and manufacturing practices. It was not until the 1980's when small firms could access the benefits of business software automation following the birth of low-cost personal computers. Today, hardware has become commoditised and valued less and less by businesses. So the real costs and benefits of computing, now derive from business software and software management. There are literally thousands of software programs being developed for PCs, laptops, mobile phones, PDA's (and a growing number of other handheld wireless devices).

By volume of units, the business software market is the largest sector. It is predominately made up of low-cost desktop software and 'off-the-shelf' accounting software and office suites. These 'bundled' packages, provide the bulk of the common functions required by most small firms in today's electronic business environment. OpenOffice, Microsoft office and online equivalents can be purchased at most computer stores or downloaded online. For larger and more established or small or medium enterprises (SME), there are literally thousands of software application solutions on the market. This range from applications designed to automate human resources, accounting, customer relationship management, e-commerce, field sales, production and manufacturing and shared work groups (groupware). These types of packages tend to have devoted online user communities, who openly share questions and answers to common 'how to' technical challenges and problems. These communities also develop ideas and suggestions for future upgrades.

In the corporate area, integrated business software applications have evolved as a result of competitive markets, complex organisational structures and falling computer costs. These software solutions can be broken down by content management software, business planning software, help desk software, retail software, product development lifecycle, compliance, business process re-engineering and outsourcing. Corporate software is highly strategic and costly. Major software vendors have large in house development teams. Their product development programs are overseen by powerful user groups and key customer 'steering' committees. They define the business software market, and drive smaller less powerful internet software houses, to develop their own software to meet industry standards created by OEM's, software associations and world leaders like Google.

Traditionally, software has been designed to be installed on users PC's instead. Increasingly, software intelligence is being moving online via cloud based services. The main advantages of this business model, are that it allows the software supplier to check the latest security flaws are quickly fixed for the user community. At the same time, it eliminates its own traditional manufacturing, production and retail distribution costs. Global players such as Google have already started to develop free online spreadsheet and word processing software services. Users are choosing to adopt these free services (as opposed to paying for the traditional CD-ROM equivalent). The main disadvantage of an online only model, is that it relies on the speed and accessibility of the uses local broadband connection, as well as the software supplier's ability to keep the service running continuously. The Internet has also created peer-to-peer software applications, that allow users to share data across any geographic boundary. This has opened up legal disputes, regarding the copyright of content and users rights to share information between file sharing applications.

Most off-the-shelf proprietary software is self installable by the user by inserting a CD-ROM into a PC. This is usually on a per user licence. Some small businesses share applications on a local area network connected to a server computer. This 'per site' licence approach, simplifies management control of the licence, and helps keep the software up-to-date. Most software needs to be activated by the user once it has been installed. This usually involves entering a specific licence ID after connecting to the Internet. This helps the vendor identify the user, to ensure their software is legitimate and to release bug fixes via electronic update downloads. If users fail to activate their software it may become unusable. If users fail to upgrade their software on a regular basis, their system may become vulnerable to attack from hackers. Some business software is free as it is delivered using an open source licence. This usually restricts firm's ability to copy, resell or redistribute the software. Open source solutions provide low-cost flexibility to develop in-house applications. The main downside is that the level of support may be more erratic and difficult to obtain.

When choosing which business software to buy, the quality and availability of technical support should be a significant factor. It is necessary to know what level of expertise the support provider can deliver. In addition, try and find out whether the vendors call centre is based overseas, (thus creating unnecessary time variances). There may be a free one-year support deal with new business software. After that period has finished, check the maintenance costs in the small print (including service levels and the cost of on site fixes). Check the vendor's website, to see the level of detail in their support forums to decide how seriously they view post sales support. The Internet is now the primary mechanism for users to upgrade their existing licensed business software, as well as download the latest patch fixes to deal with bugs and security flaws.

When off-the-shelf shrink wrapped software packages no longer meet business needs, the only option is to develop a bespoke business application in-house (or via a third party developer). Undertaking this task can be expensive, time-consuming and even counter-productive if handled poorly. To develop a bespoke application, it is necessary to describe the business needs and requirements, via a formal systems design specification document. This sounds simple enough, yet many IT projects fail or end up being delivered late and over budget, because not enough thought was given to the design specification.

The plan should outline the business objectives of the proposed software design, a description of the step-by-step business processes, and all relevant information flows the bespoke program would be created to control. A system specification should also explain the key measures of success, the boundaries and limitations of the software functionality proposed, and the roles responsibilities of both the external supplier (if third-party assistance is required) and the in-house skills and resources available. Most critically users must be part of the design specification from its very inception, to ensure their personal commitment to its success and buy-in to use the system. Their knowledge of everyday manual problems is crucial, in determining the appropriate solution to the problem. The specification should size up the existing IT infrastructure, and determine whether any hardware upgrades are required to support the new software. It is necessary to determine what supplier support capabilities will be provided, if bugs are found or if users require additional training, advice and guidance.

Choosing between suppliers that provide off-the-shelf software, is relatively straightforward. Users can self-install most business software from a CD-ROM and submit a licence key which activates their product by connecting to the internet to the vendors support website. Most powerful suppliers also provide forums for users to share their own questions and answers with each other. Choosing between industry specific applications can become much more difficult as the choice of suppliers is enormous. It is prudent to look for an established track record in their distinct industrial market segment, and check what blogs and forums for any negative publicity regarding the company. Most SME business software is sold online (as opposed to physical CD-ROM). So do not be dazzled by the demo version. Check the forums to find opinions and answers to common questions, to determine whether the sales claims are valid. Likewise, check the minimum system PC or local server requirements, to ensure the software is compatible. This should include checking the operating system compatibility, RAM and storage needs and whether any conflicting PC applications may render the software useless.

Good luck implementing business software solutions in your small business!