The smorgasbord of business software available on the market gives businesses more choice, but companies still need to examine how its implimentation will benefit their operations

All good things come in threes," or so it seems in the world of business software and the Internet, with three-letter abbreviations such as MRP, ERP, CRM, B2C and B2B -- and as one witty source commented "R2R" (return to reality) -- regularly punctuating IT discussions.

But while the business software industry's love affair with acronyms grows, it only heightens the confusion for laymen. This may explain why many companies in Hong Kong are putting off implementing new software solutions. Tales of software installation nightmares also scare a few people off the idea.

According to Raymond Wong, CEO at 8LAYER, "Installing major new software at a company has always been perceived in the past as a big 凐eadache' consuming a lot of management and staff time through the planning, installation, testing and training. But how difficult is it now to install an accounting module for example, or a complete suite of packages for the whole company?"

Basic accounting software, for many SMEs, is the only acknowledgement that business software has any role to play in their company. Others see automating the accounting function as the first necessary step, before embarking on a journey of discovery to see how other types of software can help their business.

The big "headache" of installing software arises when software solutions need heavy customisation to adapt to the customer's business process, Mr Wong said. However, as more vertical applications are available on the market, the time and effort is substantially to install lower e-business applications.

When considering purchasing business software, companies must have a strategic plan in place, and not just implement what the company down the road has implemented or just go "e-enabled" because "everyone" is doing it.

"Companies must ask: Why they are doing it? What value it adds to the organisation? Does it reduce costs or increase profitability? Will it eventually enhance shareholders' value? And does it enhance customer intimacy?" Mr Wong suggests.

Businesses must also consider the capabilities of the new software and whether it can integrate with their existing IT infrastructure and can staff work with new technology and applications.

"Inappropriate software could damage a company's reputation, workflow in how they work internally or servicing their customers," he said.

But the absence of certain software could also inhibit a company's growth. In today's environment, where organisations create business Webs or B-Webs, it is strategically critical for back-office and front-office applications to be integrated to create a seamless environment whereby organisations become customer-centric as well as have efficient and effective demand and supply chain management, he said.

While accounting software is often the launch pad for businesses' exploration into software solutions, such packages often incorporate more than mere accounting functions.

One such local company is Flexsystem, which has been engaged in the development of enterprise software products for over 13 years. Sales of its flagship product, "Flex-Account," have been growing by approximately 20 per cent a year, according to Flexsystem Vice-president K Y Wong.

ERP (Enterprise Resource Planning) solutions offer much more than accounting functions, such as integrating the sales and management of the front office operations with the back office, such as accounting, manufacturing administration/human resources and supply chain management.

Another three letters, and oft quoted, feature within this solution is CRM (Customer Relationship Management), which is part technology and part management philo-sophy. CRM has taken on increasing importance to companies actively pursuing e- business relationships with customers resulting in different methods of customer interaction.

According to Calvin So, marketing manager at Data World, "Our CRM solution, by improving response time for support work and more efficient tracking of customer records, ensures better relationships with customers which, in turn, encourages re-purchases."

Being able to offer flexible and real time reports also helps management make the right decisions and respond quickly to market changes, he added.

Both K Y Wong at Flexsystem and Calvin So at Data World are adamant that such software packages give companies a competitive advantage and the opportunity to grow geographically. This is particularly important for Hong Kong companies with offices in China, because it allows applications and data to be accessed over the Internet by remote offices. Flexsystem, for example, have designed their software to also work in the narrow bandwidth of countries, such as China, to ensure information can still be easily accessed.