Enterprise Software: Key Things You Need to Know About It in 5 W’s
«IT is no longer just a platform that enables organizations to run their business on. It is becoming the engine that moves the business». These are the words of John-David Lovelock, research vice president at Gartner, and we cannot disagree with him.
It is unlikely that we will surprise anyone by saying that in 2020 organizations will continue to increase software spending. Nevertheless, it’s worth emphasizing that a special place here is occupied by corporate investments in software. Worldwide Enterprise Software spending will continue to increase significantly, and will reach $ 560 billion by 2021, according to Statista. You can see the dynamics of its growth in the illustration below.
So what exactly is Enterprise Software, and what is it about? Why does your business need it? All you need to know about this, read in our article.
WHAT is Enterprise Software?
Enterprise Software is a software that helps companies meet the various business needs, as well as achieve their corporate goals. For example, it allows you to track and improve supply chains, manage resources, and interact with customers. This software is designed to solve a corporate, not an intra-departmental problem. It provides additional technical capabilities to support business logic, thereby increasing the efficiency of the enterprise.
WHAT is the difference between Enterprise Software and other types of software?
The key difference here is that Enterprise Software is used to meet the needs of the organization, not individual users. Such organizations include enterprises, schools, various establishments and even governments. Given the large number of people involved in the activities of such organizations, it is obvious that single-user PC applications are not enough. That is why usually Enterprise Software is hosted on servers, providing simultaneous access for a large number of users.
WHERE Enterprise Software can be used?
The areas of use of Enterprise Software are so diverse that they could be listed until morning. Nevertheless, according to the BusinessWire, among them are:
- Banking & Securities Industry
- Communications, Media and Services Industry
- Manufacturing and Natural Resources
- Insurance Industry
- Retail Industry
- Automobile Industry
WHAT are the main types of Enterprise Software?
Enterprise Software involves a wide range of applications and can be classified by business function. In fact, many computer business tools refer to Enterprise Software:
But we would like to focus in more detail on the most commonly used tools:
BPM - Business Process Management Software
If you are looking for a tool to automate enterprise processes, this is just what you need. The operation principle of this software is based on four main methodologies:
Modeling + Automation + Management + Optimization
You may think that these are the next empty beautiful names, but believe: there is a real benefit to your company behind them.
BPM Software enables your enterprise to:
- effectively plan processes by measuring the time and resources that are required for their execution;
- transform the manual process into electronic process;
- get a picture of the processes, their business data, as well as the effectiveness of their participants;
- increase the efficiency of the daily business process, control data entry and application errors;
- minimize costs, ensure growth, embody an integrated business strategy;
- manage changes as requirements, laws, rules and processes transform;
- provide integration between enterprises to scale and expand the means of control of the entire technology.
BI - Business Intelligence Software
The reality is that without quality analytics, there is no way for enterprises to work efficiently. It is critical for business owners to always “keep their eyes on the ball” and strive to analyze where their business is now, how it got there and where it is moving on.
The best assistant here is Business Intelligence - a software for extracting, analyzing, harmonizing, transforming and presenting data for business analytics.
Important: When choosing a BI platform, you should make sure that it allows users who don't have technical skills, independently, without the help of IT specialists, to manipulate dashboards and make data requests without losing the necessary detail.
CRM - Customer Relationship Management
It is a Software, which is deservedly in demand in both large and small enterprises.
The whole charm of CRM is that it provides an invaluable overview of where you are working with each client, collects their contact information and data on when and how you contacted them. The main goal of all this is not to lose sight of a valuable client.
Customer Relationship Management Software is a specific system that allows you to:
- automate work processes;
- set up reporting;
- manage marketing campaigns;
- track information and interact with customers for the purpose of sales, marketing, and service;
- create personalized dashboards that show sales analytics and customer activity;
- effectively manage regular customers (standing, loyal) and capture potential customers from websites;
- maintain an up-to-date contact list;
- predict sales;
- track the sites of enterprise social networks;
- integrate and track email, dedicated document libraries, role-based user access.
ERP - Enterprise Resource Planning
It is just a mega-useful business management software. Planning, customer service, development, human resource management, procurement, accounting, marketing, sales, - we already wrote too much in one sentence (thanks, if you are still reading it until the end), and a list of enterprise functions that ERP covers, still does not end here. ;)
Moreover, ERP perfectly integrates with other Enterprise Software tools: Business Intelligence, CRM, Supply Chain Management technologies, Asset Management technologies, financial information, material management, etc.
Using Enterprise Resource Planning Software helps enterprises:
- to enhance efficiency
This type of Enterprise Software automates and simplifies access to everyday tasks, like reporting or data entry. Using it, decision makers can quickly check both key performance indicators throughout the enterprise, as well as more detailed data.
- to improve cooperation
SaaS ERP expands cooperation between headquarters and remote teams over the Internet, helping enterprises become more competitive.
- to comply with industry standards
Many ERPs have built-in regulatory standards and compliance reports that help enterprises meet different business requirements.
- to enhance the flexibility of operations
With the business grow most ERPs allow you to add more modules, which benefits company a lot - it will not have to do the replacement of the system with new software.
- to make accurate predictions
Data integrity in ERP makes possible the creation reports with realistic predictions. Moreover, this corporate software uses advanced filters and analytics, updates data and checks for inconsistencies, and also ensures that there are no duplicates.
- to improve data security
Thanks to careful control of access points and the single data warehouse presence, ERP software is well protected from data hacking. This software allow quick access to new employees and deactivate former ones, as well as detect suspicious patterns of actions in the system.
- to reduce operating costs
ERP allows all enterprise departments to work closely using real-time data. This contributes to the fact that sudden problems are resolved faster. In this case, usually ERP Software vendors regularly provide updates and troubleshoot in case of technical issues.
SCM - Supply Chain Management
It is Enterprise Software designed for successful collaboration of various parts of the supply chain, from manufacturer to end user. Its goal is to automate and manage all stages of the enterprise’s supply, as well as to exercise a complete control over the goods movement: from the materials procurement to the production and products distribution. It’s a perfect tool for enhancing cooperation between manufacturers, retailers and wholesalers. SCM systems can be independent, can be a part of an ERP-system, as well as custom-developed, designed according to the needs of a particular enterprise.
Typically, SCM systems are divided into two large blocks:
- Supply chain planning - schedules planning and creating, solutions for developing forecasts, designing supply chains, various situations modeling, analyzing the level of operations fulfilling.
- Supply chain execution - tracking and verifying the implementation of logistics operations.
Supply Chain Management Software has the following features:
- sales forecast - allows the prediction of the sales of goods per day and week;
- inventory management - allows the planning warranty and current stocks, as well as reserves;
- replenishment management - includes optimizative supply planning within the company's logistics network. At the same time, planned sales, deliveries from the manufacturer, balances, transportation capacities, restrictions and business rules are taken into account;
- building a short-term (up to a month) and long-term (up to six months) forecast;
- building a report on the necessary purchases in manual and automatic modes;
- conducting ABC-XYZ analysis and cross-ABC analysis according to arbitrary criteria;
- visualization of sales data, balances, prices, profits and demand forecasts for goods and product groups;
- the ability to group products, set and create new properties in an interactive mode;
- calculation of the optimal stock for each position, taking into account safety stock and the forecast of demand.
Why does your company need Enterprise Software?
Organization management is not an easy task, there is nothing to argue about. This requires special clarity, careful planning, smooth business processes, effective control, automation and much more. Of course, all this can be done manually. The only question is whether it is worth spending so much efforts / nerves / resources if there is a ready-made solution to these problems in the form of Enterprise Software? Its types are so diverse that you can definitely choose something suitable based on the needs of your business. Its advantages are so obvious and numerous that the game is worth the candle.
Moreover, in addition to ready-made Enterprise Software applications, there is the opportunity to develop a custom software solution. So you get a complete individual development process, which includes a wide range of IT services: from IT consulting, design, to the very development of software, testing and further product support. As a result, you get an Enterprise Software product that takes into account all the functions and tailored to business processes. This is something that will help to save in the long run, since there is no need to pay for each user, as well for the integration of the system. In addition, the product will belong to you.
We hope that after reading the article, the topic Enterprise Software is now much clearer for you and you have got answers to questions that interest you. Their benefits in improving enterprise performance are impressive, aren't they? So, we wish you to choose the right software that will make your company thrive.