Get Ahead of the Curve: Popular Trends in Back Office Software
Three areas for back-office software
Having efficient back-office software is essential for businesses of all sizes to succeed. It can help streamline operations, reduce costs and increase efficiency throughout the organization. The right back-office system also has the potential to improve customer service by providing real-time access to critical data. With so many options on the market, it can be difficult for customers to know what features they need and which solutions are best suited for their business needs.
For the purposes of this article, we are going to divide back-office systems into three departments.
- Finance
- Operations
- Marketing and Sales (including customer care)
Each of these departments has specific requirements and is staffed with different people. While there is an overlap between the tasks undertaken in each department and core objective is different. Typically the psyche of the people in the departments is also different.
Each department needs its own reports and measurement. The enterprise also requires higher-level reporting and cross-department reporting.
Requirements for the Finance Department
Fundamentally, the role of the finance department is to look after the flow of money. Take it in, pay it out, reconcile it is not going missing and make sure there is enough to cover all costs and produce a healthy profit for stakeholders.
This market tends to be well served by all sizes of businesses. Xero and QuickBooks are inexpensive and very effective for micro businesses and medium-sized enterprises. SAP, Netsuite, Oracle and many industry-specific finance systems support larger and multi-national enterprises well.
Requirements for the Operations Department
Most businesses, of any size, are aware of back-office systems that support their industry. These systems are designed to manage inventory, warehousing and customer service.
For example, a retail business will have an ERP system that supports its needs in terms of stock management, and orders being tracked through warehouses and into customers' hands. A manufacturing operation may use an MRP or MES-type system that is designed to track production. And a professional services organization may utilize a CRM system for managing customer information, and even project management or workflows.
Businesses usually prioritize making adjustments to their operational back-office systems, which they are familiar with and which form the core of their business. This is why it is important for resellers to have an understanding of the industry-specific back-office systems that are available. Resellers need to understand their customer's operational problems and needs.
Requirements for the Marketing and Sales Department
This is the department that is least well served. The functional requirements of back-office software vary quite significantly with enterprise size.
Marketing departments that are big in size want to manage expenses effectively and evaluate the outcome of their spending. Sales departments aim to monitor the progress of each opportunity at an individual level.
Although there are numerous CRM solutions, some businesses opt for vendors of operational systems to install a "marketing module". However, these modules are often inadequately designed since the developers lack expertise in marketing. It is not simply the functional efficiencies that marketers need. They also need inspiration, insights and innovation.
Many small to medium-sized businesses may be unaware of available technology and its potential benefits. For instance, using a CRM system with marketing automation can greatly enhance their marketing strategies, surpassing what can be achieved manually.
Giving a small sales team well-targeted leads generated from effective marketing strategies can significantly enhance their success rate.
It is in this area of a smaller business that the back-office system can have the most impact on a business.
Resellers who distribute marketing and sales systems must possess advanced marketing knowledge in addition to technological expertise.
Current and Future Trends
Currently, AI is a popular term. The implementation of technology based on AI will significantly affect all three departments.
AI has the ability to analyze financial data, create reports and generate sales and purchase orders that require approval, making it an ideal tool for those tasks.
AI is already used by many businesses in their operational departments. For instance, in healthcare, AI is used in diagnostic image processes and drug discovery. Similarly, manufacturing companies also use AI for tasks such as predictive maintenance, material forecasting, and robotics.
The marketing department is utilizing generative AI for creating content, images, and videos. Moreover, all the ad platforms rely on AI for their targeting models.
Overall, back-office software can be a great asset to any business. It is important for resellers to understand the needs of their customers and how they could benefit from such technology. AI has already made its mark in the operational departments of many businesses and is slowly expanding into marketing as well. With so much potential, it will be interesting to see what trends emerge over the next 12-18 months when it comes to using back-office software solutions. Resellers should stay informed on these developments if they want to provide their customers with an efficient system that meets all of their requirements now and in the future.