Back-office software concentrates on the processes required to run a business successfully, making it more efficient and processes faster. What are the latest trends and what do customers need – and how can resellers ensure that customers get the right solution for their needs?
With costs in many industries continuing to trend upwards, and inflation, while perhaps past its peak, is still running at levels rarely seen in a generation, businesses are looking for ways to save money and improve efficiency like never before. One area many businesses should be looking into is the back-office software they use – and this is where resellers can come in.
Back-office software is something that can be overlooked as businesses, especially smaller ones, focus on the day-to-day running and making sales to generate a profit. Indeed, Paul Day, technical director of Filestream, a document management specialist, notes that not all businesses have an appreciation of the savings that can result from having efficient back-office software.
“When it comes to document management, which is my specialist area, many reports find that it takes the average employee 18 minutes to find a document but with good back-office software it can be located in seconds and also give the company many bonuses such as data security for GDPR,” he says. “It is an investment which saves a lot of time, and therefore money, over time.”
Paul adds that the return on investing in a back-office software can be measured in many ways. “Such as the speed of finding documents meaning employees are utilising their time better and are available to do more work,” he says. “Better data protection protecting business from breaches and their reputation and negative exposure should they have a breach, data management such as setting up document retention policies. Workflow and AI are a huge saving as well on employees’ time. Therefore, as with much back-office software the greatest benefit is in using time more effectively.
“For many businesses it’s about assessing which tasks waste time in the business and then don’t create anything productive. This could be answering the same questions over and over again or spending time searching for things online and offline because there is no system or structure. With documents, it’s about the ease of locating data and making sure it’s the latest version and that its secure. If a company is still very reliant on paper files, including masses of historical date or an archive, then think of the time wasted for an employee having to search through thousands of pieces of paper.”
Finding the right solution
David Holland of Exela adds that efficient back-office software has the potential to improve customer service by providing real-time access to critical data, but finding the right solution can be tricky. “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,” he says.
Different business departments can require different sorts of back-office software too. For instance, the financial department, which is there to look after the flow of money – take it in, pay it out, reconcile it and ensure there is enough to cover costs and produce a healthy profit – is well served, no matter what the size of businesses, David says. “Xero and QuickBooks are inexpensive and very effective for micro businesses and medium-sized enterprises. Meanwhile, SAP, Netsuite, Oracle and many industry-specific finance systems support larger and multi-national enterprises well.”
David adds that 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,” he says. “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. Whereas a manufacturing operation may use an MRP or MES-type system that is designed to track production. A professional services organisation may utilise a CRM system for managing customer information, and even project management or workflows.
“Businesses usually prioritise adjusting 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 understand the industry-specific back-office systems that are available. Resellers need to understand their customer’s operational problems and needs.”
David adds that not all areas of business are well served by back-office software, such as marketing and sales departments. “The functional requirements of back-office software vary quite significantly with enterprise size,” he notes.
“Big marketing departments 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.
Selling the benefits
Paul adds that resellers should approach conversations on back-office software with customers by identifying the benefits of having that software – as not all businesses appreciate the effects that can have on a business. “Often this will be about being more efficient, saving time, being more secure and therefore more responsive to customers,” he says. “However, it’s also important that the software actually works well. It’s not great when someone decides to invest and the software doesn’t work, isn’t compatible or the company investing doesn’t want to invest in any relevant training to educate staff.
“For us particularly, we flex our message depending on a customer’s requirements; such as document security and GDPR for HR, AI and processing with workflow for finance, and version control and speed of locating documents for legal and compliance.”
Future trends
There are also trends that resellers need to be aware of, which can help them to maximise their sales. In the next 12-18 months. Paul says there are several trends in back-office software to look out for. “I see an increase in the update of software which allows for secure and safe hybrid working,” he says. “For many businesses this is now the normal yet with documents they can be easily lost as users keep local copies and version control and document security is a high risk to all companies of any size.
“The time saved using back-office software in this context can give companies a return on investment once it’s installed. Cloud access to data is also on the increase as companies downsize offices therefore saving money on property expenses.”
Another trend to be aware of is the implementation of technology based on artificial intelligence (AI), David adds. “AI can analyse financial data, create reports and generate sales and purchase orders that require approval, making it an ideal tool for those tasks,” he says.
“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 utilising 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.”