23 Jun Business software. What is it and how to choose?
I have written about BPMS systems, i.e. business management software, before. I have also looked in detail at what CRM systems are and how to choose them correctly. And now I want to talk about business software in general. What programs fall into this category, and which do not, how to distinguish them, and what to look for when choosing.
What is business software?
There’s probably no clear definition of business software. So let’s try to create one ourselves.
Business software is any program and services which allow the company using them to make a profit.
A business is created first and foremost to make a profit. And any software product that is created for solving a business issue and directly or indirectly contributes to increasing the profit is a business product. And also, if the program does not affect the company’s profits in any way, it would fall into any category other than business software. I will demonstrate this difference with examples below.
Increased profits can be achieved in two ways:
- Increase turnover at the same cost. Such software includes, first and foremost, various CRM systems, but also ERP programs. As a result of a competent CRM implementation, the sales department starts working more efficiently, requests and enquiries from customers are not lost, the average bill grows simply by increasing the quality control of each manager. And the introduction of software helps managers to identify bottlenecks in the construction of business processes, to eliminate duplication of functions, to optimize work, to increase the efficiency of all processes and eventually increase profits at constant cost.
- Reduce costs while maintaining turnover. Here, the brightest example would be helpdesk systems, the introduction of which allows you to work more effectively with customers and partners, automate the processes of applications, creating a package of documents, etc. As a result, fewer employees can cope with the same amount of work as before. And even with an increase in sales, additional jobs will not have to be created.
Now let’s look at the rules of business selection in more detail, based on what kind of situations you might encounter.
What is NOT business software?
Obviously, various game and entertainment programs, computer maintenance utilities, screensavers, optimisers, widgets are not business software.
It’s a little more complicated with other types of software. For example, electronic dailies for personal use, all sorts of messengers and many other software products can directly or indirectly contribute to increasing profits, but in fact, they have nothing to do with programs for business, because they are designed for other purposes.
What programs are most often “disguised” as business products but are not?
Usefulness for your business, or what happens if you don’t use software for your business?
There are software products which are designed to really make profit, but their operation is efficient in a completely different segment.
For example, various specialized helpdesk and project management systems designed for IT companies sometimes try to be adapted for sales support in completely different economic sectors.
I have seen many people trying to use Microsoft Project software to control sales of all sorts of goods from B2B to FMCG sectors. It would seem that everything is very similar: the beginning and the end of the deal, the customer, the responsible manager, etc. But while for project management it is perfectly suited to the purpose for which it was created, for sales it reveals a significant list of shortcomings. For example, in Microsoft Project you will not be able to fix the price and amount of the deal, nor the different steps and interactions that take place during the sales transaction.
The result of such misuse:
- Control of the sales department is inadequate, as management cannot obtain and track complete information on each transaction in a timely manner. There are no proper reports and some important information is missing.
- The manager (salesperson) has to manually enter important information into the system or write it down separately. Lack of automation leads to inefficient use of working time and various problems related to human factors.
Assessing the extent to which such a system can improve business efficiency is also extremely difficult. In addition to the advantages, there are many disadvantages, so it is impossible to call such an application a business programme.
Products that position themselves as business software but are not
A wide variety of systems designed for task management, file storage and many others now offer business tariffs. That’s how they position their product: tariffs for individuals and businesses.
In reality, this business model is built on a common misconception rooted in everyday life.
Remember how an ordinary meat grinder differs from an industrial one? Size, capacity, use of stronger materials etc. The same rule applies to household and professional power tools and many other applications.
The same familiar rule is carried over by software developers to tariffs in their products. For example, if you purchase a business rate from a password storage service, you will be able to save more sites and connect other users to your account. And if you choose the business rate for storing files, you get more disk space “in the clouds”, no limitations on the maximum size of files, and a higher data transfer rate.
In reality, this is all nothing more than a marketing ploy to draw attention to the extended packages. In reality, it would be more appropriate to call it a Premium plan, because it has very little to do with business and all of these features simply allow for more efficient use of the product.
For example, many organizers and schedulers, the free versions of which are used for personal purposes, write that if you buy the business planner, you will be able to manage your team.
How to choose business software?
When choosing any software you need to be very clear about what tasks it must solve, what criteria it must meet, and what parameters are key for you.
Let’s find out on the basis of what parameters the choice of software is most often made, and what pitfalls may await you when choosing by one or another parameter.
Here is a suggestion for
When choosing such a planner, you have to realise that any business is first and foremost about money. And any activities involving cash flow must be clearly regulated, logged and monitored.
The scheduler should have a high degree of data protection, a system of access rights for different users, control and reporting tools etc. If all this is not in place, the software is not suitable for business, it is just a toy which is fine for a team of friends, a student group and other similar purposes.
Here are instructions on how to choose the right software for your business:
- Define the problem to be solved by the software.
- Choose the class of system that is best suited to your needs.
- Select the software product from the list you have made in advance.
- Identify the vendor or company that sells the software for your business.
These simple steps will help you make the right choice of software that will make it easier for your team to work and bring growth to your company.