CRM Application Development & What this Means for Your ERP System

Thursday, August 19, 2010 by Jace Modavi

ERP

We’ve seen some amazing innovations in the development of customer relationship management (or CRM) systems over the past few years, and I’ve written about many of them here. Ignoring these changes could mean that your company gets left behind—in many areas.  Today, let’s talk about how these changes can help your enterprise resource planning (ERP) systems be as effective and profitable as possible.

Cloud computing removes the hardware and software barriers that have, until recently, hampered CRM applications. For instance, as sales and customer service teams are often working on different locations and using different systems to access customer information, there tends to be a duplication of efforts, potential for miscommunication, and other inefficiencies. Recent innovations have rendered these problems solved.

When CRM systems are run “in the cloud,” everyone is able to access the same information at the same time, and additionally, that information is constantly updated and refreshed. Those who access the data using their cloud-based CRM apps are able to alter that information on the fly. There’s no need for interdepartmental memos, the cumbersome duplication of e-mail attachments or other hindrances. There’s also no duplication of effort, since the whole CRM branch of the organization is, almost literally, on the same page.

Second, the nature of these applications is changing for the better, partly because of cloud computing, but also because of changes in customer expectations. The recent downturn in the economy has had a big impact on the way consumers think and what they demand, changing the dynamics of the customer relationship.

Consumers are now much less patient with a brand they perceive to be unresponsive to their needs. Many companies are finding that toll-free numbers which lead to labyrinthine menus just aren’t worth the hassle. Consumers either want to speak with a knowledgeable, competent human being who can solve their problem, or they want to get the information they need on their own. In other words, half-baked call centers just don’t cut it anymore.

To help offset the increase in costs here to meet demand, many organizations are turning to self-help solutions, including searchable knowledge bases that can be accessed online, video tutorials, live chat and other web-based solutions.

One of the many benefits of running your CRM systems in the cloud is that your CRM systems, along with your entire ERP architecture, can now grow with your business. CRM applications developed and run in the cloud can change according to your changing needs. This makes them ideal for small, startup and seasonal businesses who might struggle to have the necessary server capacity during peak times, but underutilize server capacity the rest of the year. With cloud computing, you can scale up or down as necessary without any hassle.

Software developers can update your systems as often as necessary, eliminating the necessity of installing patches or waiting for upgrades. Applications can be developed specifically in response to your company’s needs, too. Custom applications are more targeted and efficient, and they let your business run as efficiently as possible.

I’ve said it before, and I’m sure I’ll say it again: cloud computing is nothing less than a revolution in software architecture. Enterprise resource planning systems are only one area in which this revolution is manifesting itself.

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