Analyzing The Various Aspects Of Customer Relationship Management

Every business
defines its level of failure or success according to the quality of customer relationship management it offers. While larger corporations can still get away with mediocre levels of customer service, small companies or startups need to ensure that their customer management is of top quality. Only then can the company hope to forge long lasting business relationships with the customers over a period.

Meeting Customer Demands
Any customer relationship management solution needs to have a provision whereby sales personnel can enter critical information pertaining to customer management. For example, the sales database can store vital information on specific requirements or preferences of the customer, which date and time callbacks are to be scheduled as well as when to notify customers on special deals, promotions, marketing initiatives etc. All of these details help the sales team to respond to customers in a timely manner with customized information as per individual customer preferences.


Marketing Promotions
With customer service software, it becomes easier to reach out to customers whenever there is a new marketing initiative or when a new deal is out in the market. The customer database contains all the critical information relevant to the customer right from basic information to information on preferences, demographics, which time of the year such customers are most likely to buy etc. Hence, depending on the demographics, companies can send out their marketing or promotional material to such customers at specific times of the year to attract more sales.

Post Sales Service
These days, the key differentiator of quality across companies lies in the level of post sales service provided by the organization. Customers tend to be more loyal to those brands, which show greater quality of service once the sale is closed. Hence, with a customer database, it is easier to keep track of customer issues, complaints and other aspects as well as respond to them in a timely manner. This raises the bar of customer service after the sale and helps the brand retain more customers and sustain brand loyalty.


More Automation
Gone are the days when businesses would manually enter customer information and have to spend many hours searching for specific information on customers. These days, with sophisticated customer relationship management solutions, all of this information is available at the click of a button. Sales teams can obtain all the information by sorting data across customer records according to specific criteria. All of the information is stored within the customer database in a centralized manner. Hence, not just sales teams but also other departments like accounts, finance etc. can access customer information to process information appropriately. With such a robust system in place, there is bound to be optimal amount of business automation and more efficiency across the teams within the company.

Numerous Opportunities
Many companies tend to take customer relationship management systems lightly to this day. However, fact is that such systems allow companies to not only take business automation to a new level but also attend to customer queries, provide incisive marketing and promotion, resolve complaints and retain customers like never before. As many marketing experts will agree, it is much tougher to retain existing customers as opposed to gaining new ones. With robust customer relationship management software, brand loyalty is very achievable and more customers


SOURCE:
http://www.articlealley.com/article_1639209_15.htmllikely to remain loyal to the brand.

Customer Relationship Management - 3 Common Mistakes and How to Avoid Them to Improve Sales

I often work with Clients to help them improve or implement their sales database, or what is often referred to as Customer Relationship Management (CRM). When doing this, it's become apparent that many companies do not take full advantage of their valuable sales data and are missing out on real sales opportunities. If you can avoid these three common CRM mistakes, you will be on your way to improving your overall sales process.

1. A spreadsheet equals CRM. Doesn't it? - I have seen so many companies (small and large!) use a list or simple spreadsheet in an attempt to manage their customer data. This is probably the easiest way to quickly lose control of your data. When I see this, I know there is no defined sales process in place because it's impossible to have an organized system when your sales data is not properly categorized, updated and managed. When companies use a list or spreadsheet to 'track' their customers and prospects, true relationships get lost in the shuffle, sales opportunities are frequently mishandled and revenues drop.

The CRM Solution: Implement a simple CRM system. In most cases, this is really just a very user-friendly database such as ACT!, Sugar, or Salesforce.com. By using one of these systems (or other similar products), it's easy to import existing data and view it in various ways depending upon the parameters that are set. Of course, then it's important to manage the data which happens to be Common Mistake #2.

2. We have a database - it's where we store our clients' phone numbers. While storing contact information is an important feature of a CRM system, the real value to your organization is how well the data is managed. Upon implementation (or if you already have one in place), if a protocol is established for how data is entered, it will make everything run smoothly. For example, if you have a company in your system called "The ABC Company," is the information entered and searchable as "The ABC Company" or "ABC Company?" Or is it entered in your CRM under both names? If so, that will get VERY confusing as the system is updated and users try to determine which information is current. If there is a company-wide rule established to avoid these types of confusing data entries, it will help keep your CRM system working smoothly for you.


The CRM Solution: Establish rules for how data is entered into the database. What information is required to create a new contact? Also determine what information is added to the contact profile and where it is stored. Most CRM products have various sections of Notes, Updates, Most Recent Action, etc. and it's important that all users understand where specific data and updates will be stored. Do this to avoid confusion and make it simple for sales people (and customer service team members) to enter and retrieve information quickly while they are talking with a prospect or customer.


3. We keep it simple. All of our contacts are listed as prospects. Most of the CRM products available today are very robust and offer more features than most companies will use at any one time. However, it's important to use the system to your full advantage and weave the functionality of the CRM into your sales process. For example, do not simply designate a contact as either a prospect or a client. There are so many other ways to define the hundreds or thousands (millions?) of names in your system. The more specific and accurate, the more control you maintain over your sales process.


The CRM Solution: Your defined sales process should have 'stages' of prospects and define the difference between a lead, a suspect, a prospect, a customer/client and most importantly a non-prospect. Once this is completed, you can create specific action items for each stage in your defined sales process. For example, if a lead is generated from your contact page on your company web site, that person gets an email and a phone call within 24 hours. If it is established that the contact meets your criteria as a viable suspect or prospect, that information will be added to the CRM system. Or, if your business sells supplies to restaurants, but there is a contact in the system for an online restaurant reservations service, that contact would be designated as a non-prospect instead of deleted.


The contact designations help your sales and marketing personnel to create a plan for each step in the sales process. This can be a large project to manage - especially if you are attempting to gain control over a CRM system that has been neglected or mismanaged for a length of time. However, once the proper rules are in place and all of your system users are trained and on-board with how to use your system, it is easier to develop accurate sales forecasts, manage the marketing activities and create sales success on an increasingly larger scale.


SOURCE:
http://ezinearticles.com/?Customer-Relationship-Management---3-Common-Mistakes-and-How-to-Avoid-Them-to-Improve-Sales&id=1888703

Svp Customer Service - the First Customer Communications Management Sponsors Meeting

You will need cross-functional sponsorship at executive level to ensure the successful delivery of a customer communications management infrastructure. We'll talk about all the SVP roles within the business over time but for today, lets talk about the SVP of customer service and lets talk about outbound communications in this article. (I'll cover inbound benefits in another post).



The Senior Vice President (SVP) of customer service within your business may be one of the biggest benefactors from customer communications management. In a full scale roll-out you are almost certainly going to need to enlist the SVP of Customer Services support.



Customer Communications Management will have a significant impact upon the call centre and the way that call centre operatives will work. Below I set out some of the items of discussion that you should table with the SVP of Customer Service.



Customer Correspondence and Communications (Outbound Communications)



In your first meeting with the SVP of customer service you will need to make her aware of the likely impacts of the following:




* Ability to deliver ad-hoc messages to the customer via a range of channels - not just voice and not just email.

* Ability for the company to control and manage the content. Standard paragraphs, greetings, thank you's and so on. Standards of quality can be met.

* The need to develop and design communication authorisation workflows.

* The need to develop standard, compliant texts for insertion into letters.



The ability to give customer service centre users the ability to construct customer communications, to provide standard paragraphs and texts to suit particular situations and to have them authorised for quality and compliance prior to sending will impact key performance indicators.



The most benefits to be impacted through correspondence applications are: [More...]




* The customer is assured of quality, meaningful, relevant content that addresses his needs. This will impact customer satisfaction and customer loyalty. Sending relevant correspondence that resolves customers issues will likely reduce further follow up call backs to the call centre.

* That by integrating into an overall enterprise customer communications management system, in the case of mail, the cost of postage will be reduced due to participation in the overall mail discount program that the document production centre will be executing.

* That by integrating into the CCM system, there will be much higher levels of assurance that the mail item will leave the building - so when a customer calls and says "you didn't send a letter" you can validate that this is not the case - perhaps important in late payment scenarios. Customer Service centre agents will be able to drill down to visual data within the Automated Document Factory reporting system and identify the individual mail piece, when it was sent and by what class of mail.

* When using electronic communication channels, query resolution may be faster in fact, almost immediate. Whether a simple message, questionnaire or a short response to say something has been done such as "Your address details have been updated", or, "Your subscription has been upgraded". These all add to the levels of service and care that the customer gets.

* All correspondence whether physical, electronic or voice can be automatically stored in the electronic document vault. The document vault will allow instant recall of documents and indeed if desired can make documents available to customers across the web. Should a customer call back, all communications whether inbound our outbound are available to the customer service agent. This will improve query resolution hugely, reducing overall call duration and it will also reduce callbacks and time and resource spent searching for documents meaning that the agent can handle more calls in a day.


SOURCE:
http://www.articlesbase.com/corporate-articles/svp-customer-service-the-first-customer-communications-management-sponsors-meeting-621771.html

Explore the Advantages of Custom Software Development!

The rapid growth in the IT industry has made lives so easier for both common man and businesses. Whether they are software
development agencies or application development firms – all are now equipped with the latest tools and platforms thus offering you best software solutions catering to all your business needs. As a client, you just need to let them know what you want, they will surely provide you with everything at rates that also make you smile.



Ecommerce, as the name suggests, is all about letting business happen at the speed of thought with the help of Internet. There are so many Ecommerce websites today which are specializing in so many products. The best thing with these websites is that they not only give you the freedom to browse through them as you do in the real world, but also offer you the fun of making payments against them all online. And if payments are made instantly, there is nothing to stop you from buying the products/services you like.



As an increasing number of Ecommerce websites have joined the online platform, the need for Ecommerce software development programs has also increased. Just consider any Ecommerce website by going into the depth of its different functional processes. You will just be amazed to know about the number of software applications which are used for the smooth functioning of the entire site. Well, product and customer management, shopping cart solution, payment gateway integration are some of the common software programs used in Ecommerce sites. You would surely find many programs like these just by going to the roots of the different Ecommerce sites operating.



A custom software development company can play a significant role to your business by providing you with the most impressive range of customized programs. These programs are appropriate to use in Ecommerce sites that demand personalized process handling advantage. With an increasing number of custom software developers joining the Ecommerce software design and development league, it has really become easy for you to enjoy the best custom software development services at budget rates. All you need to do is give out the task of custom software development
for your Ecommerce website to these companies.

SOURCE:
http://www.articlealley.com/article_1632461_11.html

Business strategies that improve customer satisfaction

In order to stay competitive and remain profitable, businesses have to focus on the quality of their customer service. Companies that invest time, energy and money into developing and nurturing quality so customers can have a satisfactory experience are going to be more profitable and better likely to experience more sustained growth over the long-term.

Companies who ignore their customer service approaches will quickly find themselves losing out to their competitors. To avoid falling into this pitfall, it is of value for companies to develop business strategies to improve customer service.

This shouldn't be a one time deal, but rather part of a long-term strategy that is immersed in the company's organizational philosophy. Even a company that has good customer service should engage in ongoing evaluation to ensure their customers are happy with products or services they've bought.

Satisfaction is paramount because customers, even though they may have had a good experience, who don't walk away completely pleased with their purchase may not be a repeat customer.

Customer satisfaction strategies can range from simple to complex; from pricey to free. Not all strategies have to be expensive, with proper training and organizational approaches established, many of the strategies won't cost you a cent.

Here are a few business strategies that can help develop and continuously improve on customer satisfaction:

*Customer-Centric Attitude.

While "the customer is always right" has been the traditional motto when it comes to doing business, today's companies must strive even harder than abiding by this golden rule of customer service.

Operations should be customer-centric meaning that the customer's best interests should always be foremost. Service should be offered in a helpful way and with a smile. Both management and employees should show interest towards the customer and strive to give them a good experience.

Businesses who understand that customers are the bread and butter of their company and focus on their wants and needs are going to be the businesses that stand above the rest.


SOURCE:
http://wwww.helium.com/items/1524563-business-strategies-that-improve-customer-satisfaction

Turn your Customer Relationship Management (CRM) into Customer Managed Relations (CMR)

CRM Customer Relationship Management
A CRM strategy is called for to both buy time before new product offerings could be sourced and offered and to move significantly ahead of the competition. What is needed is a strategy involving all aspects of the company, including database structure, creative work and staff training that would ultimately reduce potential defections, quickly increase footfall term and build a database for future activity. The aim is to recognize existing customers, to reward those customers, to react swiftly to customer needs and to turn Customer Relationship Management (CRM) into Customer Managed Relations (CMR).
The power of what customers want. It looks at the saving from a company's point of view, not the empowerment from customer's perspective.

CMR is three things:
An ability to rethink, to reshape your organization and its knowledge so that it is at the disposal of your customers
Internet enabled management tools which customers use to get what they want
An ability to react to the information being generated and used by customers in order to increase profitability
A 4 stage approach can be created with the objective to:
Discover the customer via a questionnaire
Incentives and Reward the customer to return
Find more "best customers" through new customer acquisition
Data mine the customer case to make relevant product offerings
Creating a questionnaire based upon proven and successful models. In addition to standard demographic and the lifestyle questions customers can be asked about which products they would like to purchase at which time over the following months.

The response will give the company a cutting advantage as it will be possible to more accurately forecast and respond to customer needs, which no other retailer can match. With introducing "reverse retailing", instead of offering products and then finding the customers to purchase them, company can make purchase decisions together with the customer and source the right products in the right quantity resulting in advantageous pricing for volume purchase.
Secondly, we will be able to data mine the base and communicate with customers at the time they said they would be interested in making the purchase. From the questionnaire information a relational database can be built that can be segmented by demographics, products owned, products desired and new products customers would like to see offered.
At time of purchase customers can also be rewarded with that is called "Customer Money" This could be as simple as a cash back voucher valued at E.g. 1% of purchase value. 'Prospect Money' is also similar to Customer Money but has a different value, E.g. 10% of a product price when goods over $50 are purchased. We are also able to use this Prospect money as an incentive to existing customers to further encourage them to invest at a larger scale or purchase price - Up sell.
We can change out selling/stocking policy because of what customers tell us and can launch products in response to their needs. As for the future, we would have utilized the technology to create customer value and generate a strong return on investment. Creating and developing a strategy of increasing customer retention and value against rising competition in the market.
If executed well CMR generates three major benefits over CRM:
1. It is easier to implement because the customer is doing the complex stuff
2. It creates lock in since customers having invested their data with you will not move easily
3. It allows you to move faster than your competitor since you are in a trusted relationship with your customer
Companies need to understand CMR and then change accordingly. You need a well developed view of the future, whether or not it is true. You have to invest in the competencies to make that future come true. You need to experiment and learn to see which parts of your view are developing. CMR would mean that the customer is in control, that the customer would manage the relationship. Think about it. Customer managed. They do it to you. You do not do anything to control them. You have to start thinking and behaving differently.
It used to be hard to envisage but with internet enabled platforms it is perfectly feasible to imagine how whole industry processes can be reconstructed putting the customer in charge of their own needs by giving them the internet based management tools and data they require. This is what a customer managed relationship is about.
At every customer touch point we should provide customized interaction that manages and shapes each customer's expectations. By thoroughly examining and planning out our customer relationships, we can provide a level of personalized service that integrates elements designed to enhance the lifetime of relationships with customers.


SOURCE:
http://www.articlealley.com/article_51515_15.html

Management Tip: Measuring Success

How do you measure success? After years of trial, error, training and research I have a management tip for you: the four top level measurements that I recommend everyone have in place across their business or team. They should be built into everyone's goals and objectives each year. Every department head should have improvements to one of them as a goal each year. They are:

1. Production: what did the business get from this department? Generally this measurement should be in dollars.
2. Cost: what did it cost the business to have this department? Generally this measurement should be in dollars.
3. Success Rate: how often do they succeed at their top objectives? This can often be measured as a variance to expectations.
4. Cost of Failure: what does it cost when this team fails to achieve a top objective? This can be dollars, but you can also use other soft measurements like satisfaction levels.

Production and Cost metrics are the big dollars and cents measurements needed to determine what's happening to the money. Success Rate and Cost of Failure are softer measurements. Success Rate should be used primarily to highlight the great things that every department does each year, and look for opportunities for future improvement. Do not forget to use this metric to celebrate success. Cost of Failure is the money lost because we didn't do what we said we would do. This measurement helps us understand whether to stay the course, or try something new.

In general Production and Cost metrics don't change that much over time, but Success Rate and Cost of Failure metrics may change yearly to measure the specific top initiative(s) for that year.

Let's look at a very practical example of measuring a business as a whole. Let's say your business is organized into four departments each with a specific objective and starting place.

The Sales team's goal is to get a decision to purchase from the customer
The Orders team's goal is to sign a win-win contract with the customer
The Delivery team's goal is to collect the money by delivering our side of the contract
The Customer Service team's goal is to get repeat orders by creating satisfied users

Based on these expectations, the following is an example of some good top level metrics. The details will vary from company to company, but every company should measure the production of each team, the cost of each team, the success rate of each team on key initiatives, and the cost of failure of each team on key initiatives.

Sales Team:
Production = Total Sell Price
Cost = Department Costs
Success Rate = Number of New Qualified Leads
Cost of Failure = Unsuccessful Lead Generation Costs

Orders Team:
Production = Profit Margin on Invoiced Amount
Cost = Department Costs
Success Rate = Number of Qualified Leads who Bought
Cost of Failure = Time Spent on Orders that we Lost

Delivery Team:
Production = Profit Margin on Invoiced Amounts
Cost = Department Costs
Success Rate = On Time Deliveries
Cost of Failure = Cost of Rework, Late Shipments and Returns

Customer Service
Production = Value of Repeat Orders
Cost = Department Costs
Success Rate = Issue Resolution and Customer Contacts
Cost of Failure = Lost Revenue from Lost Customers

Summary

Metrics are an important part of all businesses. They are how we know whether we are doing well, or need to make some serious changes. There are a lot more metrics you can and should apply to your team, but it is important to always keep the big picture in mind. All too often team leaders go off measuring small things that don't matter and lose sight of the big picture. All of your small metrics must be there to gain a better understanding of these big metrics. Otherwise they are of very little use. Clearly define the goal of each team, what it starts with, and what it is supposed to produce. Then build measurements to understand the level of success at producing the desires result.


SOURCE:
http://www.articleclick.com/Article/Management-Tip-Measuring-Success/971328

Inventory Management And Control In A Pharmaceutical Company

The pharmaceutical industry is a very important one in the industrial world because of its major role in sustaining a healthy nation. Within the industry, there are various firms or companies engaging in one form of trade or the other. While some specialize on research and development in respect to drugs or medicine for curing one existing or new infection or disease, some are into manufacturing drugs and others are into prescribing drugs, marketing drugs and the likes. This scene, as if it were stage drama, is been watched, assessed and controlled by reputation organizations, associations, bodies, commissions and special committee to ensure that things do not go beyond normal.

As an experienced store/warehouse manager and later as logistics and warehouse manager, I have always desired to put some things together for future individual who may eventual find themselves working in such firm as pharmaceutical company. Many find it difficult to work as one and those who had actually worked as one had lots of difficulty times such as lost which could not be accountable for and they have to pay for, lots of query to answer on why drugs expired without knowing, damages, supplying wrong strength or SKU for another, lost in transit if saddled with a bit of logistics responsibilities and so on.

As soon as I got on the job, I rolled out what I want to achieve which every store manager is expected to do if he must achieve success on the job. Take a look at mine.

The store/warehouse is committed to:

i. serving you better via prompt delivery or dispatch of stocks,
ii. enhancing effective communication,
iii. handling your complaints with courtesy, absolute care and prompt response,
iv. proper and accurate documentation(s) for effectiveness and efficiency, and
v. due process for in-coming, out-going and out-sourcing of stocks.

This is mine and you need something similar to this, not exactly. It all depends on your organization and what you want to do or achieve. Inventory management and control thus is a very vital knowledge at a store or warehouse manager must have in order to perform well on the job.

Practically, inventory management is all about ensuring that everything about your stock is well planned and organized such that there is easy flow of stock within and outside the firm. This means that you must have enough stocks to satisfy all orders and ensure that customers continue to have stocks at all time. It is a complex things and quite challenging. However, some programs have helped in reducing the stress of using varieties of formulas in getting reorder level, maximum and minimum stock level, warning level, annual demand, etc. This is about INVENTORY OR STOCK CONTROL.

In managing you stocks in a pharmaceutical company, you must learn first how to keep proper records. You must be very versatile in this and like figures especially when you handle over 100 different types of drugs and some have different strengths e.g. 10mg, 25mg, 50mg, 100mg, 500mg, 1g, 4000iu, 10000iu, 20000iu, etc. Some of the documents you must have and make use of are:

DELIVERY NOTE (DN): This records all drugs and materials leaving the store to the customers, REPs, office workers and donations to institutions. It must have Date, Particular (for drug name, expiry date, batch number and strength), packaging details (e.g. bottles, vial, PC, etc), Name and Address of the consignee, serial number, signature space for the store manager and the receiver. It could be duplicated in pink or be in triplicate.

GOODS RETURN FORM (GRF): It records all goods return and in good condition.

GOOD RECEIVE NOTE (GRN): It records all imported stocks as they enter the store i.e. stocks imported from manufacturer and being received into the store or stocks received from the production department into the store and ready to be issued out.

PRODUCT REQUSITION NOTE (PRN): It records all requests for order placement forwarded to the purchasing manager or procurement department when stocks reach reorder level. It should specify which stock needs to be replenished and the quantity to be ordered (though the procurement manager may know the right quantity to procure within the financial constraint of the organization).

WAYBILL: This is a store document that accompanies stocks being moved out of the organization which must be presented when stopped on the way either by the organization's security men or force on the way to the customer's warehouse or store.

BIN CARD: This is a document showing daily incoming and outgoing of stocks in and out of the store or warehouse. It must show the consignee's name and address, batch number, expiry date, quantity, signature and the balance (on continuous basis). FIFO should be strictly applied so as to avoid loss due to expiration of drugs.

INVENTORY SOFTWARE: Inventory management and control software could be installed on the office system for daily posting and accurate report as generated by the tested and tried program. Good ones include inflow inventory program, Chronos eStock Card, Inventoria Manager Stock etc.

In managing stock or inventory in a pharmaceutical company, the following must be put into consideration:

1. The stocks expiry date must be checked and documented. It must be written on the bin card.
MANAGEMENT ACTION: Ensure that there is proper surveillance on the expiry date of each drug to avoid loss due to expiration.

2. The Batch number must be noted and document as their may be many batches of the same class of drug
MANAGEMENT ACTION: FEFO (First Expiry, First Out) should be used here. The first expiring batch should go out first.

3. The temperature must be well noted and likewise the storage conditions. Some of such instructions are: store between 2oC and 5oC, store between 15oC and 25oC, protect from sunlight, keep in deep freezer, etc. Adhere to these instructions.
MANAGEMENT ACTION: The temperature should be properly monitored to avoid damaged due to over/under temperature.

Others include:

4. Stocks should not be jam-packed in the stock. There should be enough space and the store should be well organized to allow for easily location and free movement.

5. Computer data should exist for all stocks in the store which will be updated daily or almost immediately as the stocks are going out or coming in to enable the manager to know quantity left for each stock at a glance on the system in case of urgent demand.

6. Cleanliness is part of proper management of the warehouse.

7. Proper documentation and record updating is also necessary here from source document to Bin Card.

The stock control strategy is also necessary for effective and efficient management of the warehouse. Lots of software now exists to remove difficulties in this area. In controlling the warehouse stocks, the control measure/software/program should be able to determine the following upon which right decision should/could be taken:

1. MAXIMUM STOCK LEVEL
2. MINIMUM STOCK LEVEL
3. RE0RDER LEVEL OF STOCK
4. REORDER QUANTITY
5. WARNING LEVEL FOR STOCKS
6. NORMAL CONSUMPTION
7. NORMAL REORDER PERIOD
8. ANNUAL DEMAND OR QUANTITY

The manual method of stock control is fast fading out though some organizations still make use of it. However, daily check is needed to ensure efficiency. Computers these days have helped to save such time because alert props up when stocks need to be reorder, below minimum level, when over stock, etc.

In all, stock management and control is an important aspect of warehouse manager's responsibility which must handled effectively and efficient if he/she must stay on the job since all what is demanded from him or her is this function. Therefore, the warehouse manager must endeavour to keep abreast of development via training and development in the form of further schooling, workshops, seminars, internet research, etc.

ntegrated Enterprise Resource Management Helps Control Information Flow

Any business operating today, in the age of the Internet and advanced communications technology has to deal with an overwhelming amount of information. This information concerns both internal and external factors, such as the functions of different departments, the inquiries generated by customers, inventory and/or service data, etc. All of this information needs to be processed, integrated and interpreted correctly in order to build a correct picture of the business. Then management can properly assess the best direction for the business.

Fortunately, there is a system for businesses that can satisfy this requirement, even to the level of tangible assets. The system is known as enterprise resource planning software, or ERP. Actually, ERP is partially a misnomer; the software does no planning, and 'resource' is largely a negligible term. The key term to focus on is 'enterprise'. ERP software is designed to take all of the information flows from departments and the functions of those departments in a given enterprise and integrate them onto a single computer system. This computer system is then meant to aid those department's different needs from the same software program.

As many business commentators have noted, ERP is very ambitious. It seeks to create a single program that can serve the needs of finance as well as human resources and inventory. Before ERP came along, each of those departments typically had their own computer software systems that were designed specifically for those departments. It is easy to imagine the kind of effect a system like ERP would have on a business that recently implemented it.

If installed and integrated correctly, the business would experience a stupendous increase in efficiency. Take the journey of a single customer service inquiry, for example, such as an email. Under the old system, the email would typically be printed out and mailed to various departments using the "in-basket/out-basket" method. This method results in delays, lost inquiries and the introduction of errors as the inquiry is keyed into different computer systems. With customer orders, this problem is even worse: eventually, no one in the company knows where the order went, which leads to the familiar refrain "You'll have to call the warehouse."

An integrated ERP system puts an end to this madness. Instead, a single software system is created that has modules roughly corresponding to the old standalone computer systems. This lets someone in human resources, for example, look into the financial part of the software in order to see if a particular employee was raised to a higher salary, or alternately fired.

Obviously this represents a huge increase in efficiency and a decrease in the time it takes to fulfil customer orders and inquiries. As every business knows, the faster a customer order can be turned into an invoice, the faster it will turn into revenue. Thus, ERP offers faster profits with little to no errors or delays, which makes the customers happy. It represents a great step forward for business information technology and the private sector as a whole.