How to Improve Business Ops

Small business customers often wonder how technology can make a difference to

their bottomline. Most of them already have computers running in their

businesses, and many have built web sites to extend their market reach and

improve customer service.

Two questions that I´m often asked about are how to go about improving

internal processes with core business applications, and how to improve customer

relationships.

CORE BUSINESS APPLICATIONS

Q. How can I cut down on all the paperwork and help increase the

productivity of my business? How can technology enhance my business processes?



A. Core business applications

This

is where you introduce technology into your business to automate various

day-to-day processes. The key benefits of this approach include:

l Provides automation of manual and

repetitive processes, saving time and money and improving accuracy

l Provides your business with greater

capacity for profitable growth

l Provides tools for your staff to

work more effectively

We call the technology that does this as "business application

software". This software can be as simple as an order entry system, or as

complex as a fully interactive inventory management system. There are a myriad

of business application softwares to help your business improve your processes

and subsequently, overall business performance.

BUSINESS APPLICATION SOFTWARE



Your business generates a lot of paperwork. Each piece of paper is actually

part of a process in your business. And each process is linked in some way. For

example, the outcome of taking an order is the delivery docket; then the

invoice; then the recording of that invoice against the customer’s account,

and so forth. Chances are your employees are spending a great amount of time

recording this information.

Business application software adapts these processes into an electronic

format, linked together so that your business can create a data flow that makes

sense. Any business rules that apply to any of these processes are applied as

you go.

Software is available in the form of accounting packages; industry specific

packages or custom-built applications for specialist use. The off-the-shelf,

third party financial and accounting programs can be implemented with a minimum

amount of fuss.

This software is often called "general ledger applications" and

includes programs to manage all parts of your business like: Customer and

supplier database; product catalogue; profit and loss / general ledger; accounts

receivable and accounts payable; management reports, stock management and

procurement.

THE BENEFITS



Your business can enjoy many improvements as a result of adopting this

technology. For example, let’s look at the benefits that result from an order

entry system:

Orders can be entered directly into the system against the customer account.

The picking slip can be generated automatically, and customer service can be

alerted to know which items can and cannot be supplied. The invoice can be

generated and a journal entry is made in accounts payable against that customer.

Orders not supplied are placed on back order, and purchase orders can be

automatically raised to the supplier of these goods. Your customer service

people can advise the customer of the estimated date of arrival.

This order entry system works as long as you also have an effective stock

management system established. You can install all these applications in a

staged format to minimize the impact on your business.

CUSTOMER RELATIONSHIP MANAGEMENT EXPLAINED

Q. How do I attract, manage and keep my customers?



A. Customer relationship management (CRM) solutions

Independent reports show that it costs your business five times more to win a

new customer than to keep an existing one. CRM solutions help improve your

ability to manage, attract and keep the kind of customers you want.

By implementing a CRM solution, your business can help improve your customer

relationships and save you time and money. In addition, you can help your

employees achieve more, produce more and serve your customers better.

CRM means different things to different people, and the technology in this

area is constantly evolving. But in essence, CRM is about improving and

automating those business processes that touch the customer. CRM involves the

automation and linking of various customer service processes to develop a clear

picture of your customers and help you tailor your offerings to their needs, in

order to nurture them, retain their loyalty and grow your business.

To achieve the competitive edge required for greater profitability, your

business needs to actively manage all customer relationships. Maintaining

customer loyalty is a function of continuous improvements in customer contact

and service management.

By introducing CRM applications into your business, you can address many

inefficient business processes and prepare your business to deliver enhanced

customer service electronically.

Here are some areas where CRM can improve your business:

Sales–complete contact management of your customers, with profiles,

history, subscriptions and orders.

Telesales/telemarketing– capturing all call lists by customer and employee,

with call scripting, order taking and performance measurement.

Customer service–track responsiveness to customer enquiries, incident

tracking and resolution, order management and resolution, contract management

and control.

Marketing–manage promotional campaigns, market segmentation by customer or

products, opportunity management and margin management.

Logistics–order process management, dispatch tracking, real-time inventory

information and delivery.

WHAT CAN CRM DO?



CRM can deliver measurable performance improvements, which in turn help with
producing happier, long-term customers, motivated employees and improved

business success.

Benefits can be classified into the following categories:

1. Cost savings–Achieved by efficient customer service and account

management. By centralizing common activities and reducing uncoordinated

actions, many redundant processes and errors may be eliminated.

You can effectively increase your sales productivity and your business can

reduce general sales and marketing costs associated with poorly targeted

marketing programs or sales offerings.

2. Revenue enhancement– Can be done by increasing productivity, sales and

margins. Increased sales results may be gained from spending more time with your

customers, rather than chasing after information. Increased margins can be a

result of understanding your customers, providing better value and discounting

less. You may also improve cross-sell and up-sell opportunities.

3. Strategic impact–Win rates can improve as a result of better referrals.

If customers find your company responsive and in touch with their needs they are

more likely to be satisfied with your service, continue to do business with you

and refer others to you.

Retaining your current customers is just as important for your business as

winning new ones, and your competitors will find it harder to win away a

satisfied customer.

Forecasting future sales, marketing and service activities based on your past

business performance also becomes easier if you have a satisfied, loyal customer

base.

Your business can improve customer service levels and help improve the

customer experience by automating many processes involving customer service and

customer management.

R DHAMODARAN is Country Manager,

Sales, IBM India Ltd