A business application software or application software can be defined as a collection of programs, that are developed to be licensed to other third-party groups. These tools are loaded with features, that address the common business functions. Application software can be used by multiple categories of businesses or users. Although this package may be tailored as per the specific requirements of the users through suitable tables and parameters, the software does not come custom-designed or custom-coded. Some examples of this type of packages include ERP (enterprise resource planning) software, human resources software and accounting systems. In this context, the application does not include tools like Word, Quicken or Excel, that are used as all-purpose tools.
Types of business application software
Here are the earliest types of business application software, which were used in the industry:
ERP software: ERP is an enterprise-wide and cross-department package, that provides the user organizations with an integrated functionality set. This type of tool is extensively used for various purposes.- HRM (human resource management) software: This kind of tool is used to manage the internal benefits, insurance, payroll or other functions in an organization, which might be related to the inhouse staff administration. A survey revealed that around 45% of the business firms use this kind of software.
- CRM (customer relationship management) software: CRM software primarily deals with customer management functionality and this is primarily used by departments that deal with customers. Over the years, the popularity of CRM software has increased. Presently, over 40% of companies use CRM software packages.
- SCM (supply chain management) software: This kind of software is used to manage complicated functions like supply chain management. Manufacturing companies and other organizations commonly use this kind of tool. Other groups, dependent on third-party services and goods also deploy SCM software.
Benefits of using business application software
Business firms can benefit significantly from application development software. The core expectations of these firms from business application software include strategic advantages, customer satisfaction, generation and collection of revenue, resource allocation and cost reduction. Business firms that deploy such packages benefit extensively through the proper implementation and usage of the application software.
Here are some of the benefits, that organizations using business application software can gain:
- Enhancing internal operations
- Integration and automation of business processes
- Facilitating collaborations across organizations
- Enhancing customer resource management
- Improving strategic management of data and its use
- Leveraging distribution or supply chain management
- Improving production and management knowledge
The above benefits are delivered by using the business application software. At the same time, it is necessary to get the packages customized, according to the specific needs of business. The budget and time are two of the major determinants of what type of business application software a company would be using. Accordingly, the organizations collaborate with reputed software developers to get them customized.
Impact of business application software
Presently, a large number of organizations are using ERP and CRM systems. Besides, most of the firms are choosing to use a mix of various business application software. Particularly, SCM and HRM packages have gained popularity in various industries.
There has been a rapid growth in new categories of business application software that have been developed, deployed and proved their worth in the market. Not only are there new categories of software, these software also talk to each other to further improve the automation, information flow and benefits to the businesses.