Evolution of Business Software: "Making Natural Selections"
Published in Business Brief, December 2000

by Chris Tostevin-Hall

Increased computing power has been a significant selective pressure driving the "Evolution of Business Software". With the huge diversity of software now available, one of the biggest challenges facing businesses today is to seed their "business ecosystems" with the right "gene-pool".

Two decades ago computing power was expensive and centralised, software systems were targeted and highly strategic. By today's standards the software was limited in its functionality, generally expensive, but it was by design extremely effective.

The dawn of the PC era has brought enormous computing power to everyone's desktop and with it a raft of business software in the guise of affordable personal productivity tools such as Microsoft Office, Lotus SmartSuite etc. These are generally elegant creatures, cute and bristling with helpful functionality. For very small companies these tools can, even in novice hands, provide all that is necessary for the business; well formatted documents, mail-merge, accounts etc. To get the most out of such software requires a high degree of user training which must be regularly updated due to the rapid mutation rate experienced with each generation. All too often, PCs and software are deployed without a planned and comprehensive user-training program, the result being very low return on investment and staff disaffection.

One step further up the evolutionary ladder in terms of specialisation is industry-specific software. PC packages designed to help run a certain business, for example an Estate Agency package, will offer greater ease-of-use, with target functionality and simple workflows. However, there may be environmental impact to consider; it is unlikely that all the characteristics will perfectly fit your way of working, therefore you may need to compromise and adjust your business practices to live harmoniously. Furthermore, total integration with other software systems e.g. your accounts package is likely to be nonexistent, although some providers are now paying greater attention to this area by supporting open interface standards.

Integration and compatibility of software systems becomes increasingly important as the size of the business grows. In the small business it is possible to implement manual procedures to bridge the gap between software systems, however in large organisations a more strategic approach is required. Enterprise Resource Planning (ERP) solutions are highly evolved, intelligent and flexible. ERP is about analysing your business problems, finding solutions and implementing them. From internal communications and real-time management reporting to dealing with suppliers and customers directly through automated channels. ERP package providers e.g. SAP, PeopleSoft and Baan can e-enable your business, but the consultancy, capital and customisation costs are enormous; hence only large multi-national corporations can consider such an approach.

So if you can't find suitable software off-the-shelf, what choice is there for the medium-sized company? While the ubiquitous Microsoft applications and their-like have their place in every business you should remember that they are, despite their colourful plumage, mere tools and not solutions. Real efficiencies will only come through the streamlining and automation of your business processes. Of course the question is how? I believe that we have reached a point where bespoke business information systems present a viable adjunct.

Bespoke software, to take my biological theme to its conclusion, represents the "designer babies" of the software world. With the help of a software provider the business specifies exactly what it wants, this results in the birth of a new highly specialised species. Crucial to this process is the clear communication of requirements. Collaboration and joint responsibilities between parties must be taken seriously otherwise the project will fail.

The bespoke option can be viewed as expensive and high-risk, therefore should not be undertaken lightly. However, these points can be mitigated by sponsorship deals and building a strong and lasting partnership with the right solution provider. As long as a strategy is clear, to automate your business in a managed way, I believe that bespoke software offers greater operational security relative to a proliferation of un-integrated software tools.