ERP Software

ERP Software for the Service Industry

The history of ERP software is said to have started in the late 1940s, although the term "software" was not used until the 60s. Software can be explained as an amalgamation of computer programs that provide instructions to a computer. On the other hand, Software can also refer to one, specific computer program. ERP software is the latter.  It is an information system that gathers together all the applications of a business’s operations and all its departmental functions into a single system that can then be used by all the departments of the business. Prior to the arrival of ERP software, departments within a business all had to utilize separate applications to meet its needs. This meant it could take days for one department to get data from another. When data was compartmentalized, the built in delays equaled loss of profits.

Today, ERP Software has developed so there exists a special niche of ERP for many, varied industries.  Some of these are manufacturing, accounting firms, oil and gas, non-profits, apparel, food and beverage, etc. One niche which has recently caught the attention of ERP vendors is the Service Industry.
ERP Software for the Service Industry is definitely out there, being designed, developed, and marketed. The problem is that service companies fluctuate hugely in terms of what they deliver to their customers and the size of the scale on which they operate. For example, existing under the umbrella of the service industry is a small company providing legal or engineering services within an area of 200 miles. This type of business is going to vary widely from a large utility operating on a national scale, -also under that same umbrella.

Still, there are some similarities between all these companies. Each and every one of the service companies have comparable elements relating to their business model structures. To break it down, it can be said that all businesses under the umbrella of the service industry develop, market, sell, and deliver some type of service to customers, while at the same time managing an office made up of human and financial resources. In information technology (IT) this is called the "front office" and "back office" systems.

Businesses in the service industry should take careful note of this natural front office from back office split. Implementing ERP software for the Service Industry is the answer to combining these two necessary characteristics of a service company. ERP software for the back office will deliver a cost effective and scalable solution, as well as improve the rich functionality provided by the front office system.

Written by :

Amy Cruz