Integrating back office and online systems23 August 2005
Businesses of all sizes can gain a real competitive advantage by effectively integrating their electronic "shop front" with existing back office systems. In this way company data can be updated as and when online activity occurs. By doing so, management information on transactions such as customer orders and purchase requests will be more readily available thus increasing their efficiency and ultimately reducing cost.
What are back office and online systems?
Back office systems are the processes through which administrative tasks are organised. While some businesses may still manage company data - such as invoices, records, and stock inventories - though manual document filing, most utilise a computer software package.
Online systems are the web-based means through which business is conducted. This could be a company website though which internet users may place orders and make payments, and also extranets that are accessible by clients and customers using passwords to carry out business transactions and correspondence. BT's Internet Trader Pack is a good example of an online "shop front".
How will integration benefit a small business?
Any customer transactions carried out over the internet set in motion a process of administration that any business must maintain and update as quickly as possible to deliver efficient customer service. As the volume of sales of this nature increases, so more manpower is required to carry out the back office tasks. By integrating the system a small business will achieve:
- Improved staff productivity as less time is spent updating administrative back office data and records.
- Cost savings, through the need for fewer administration staff, reduced need for hard copy storage space, more accurate records reducing time spent tracking errors.
- Improved customer service through faster and more accurate response to orders and enquiries and a reduced margin for error.
- Increased profits as an organised and integrated system of administration allows a business to accept a higher volume of sales orders online.
- Business growth through maintained efficiency in a competitive and growing market.
What kind of integration solution is suitable?
The kind of integration software most suitable depends on the size and nature of the business, and what kind of online software is already in place. The easiest way to integrate back office and online systems is to install a ready-made software package. Products like this include IBM's Websphere and Microsoft's Biztalk packages among others, and these are particularly useful when establishing an online sales site from scratch.
If your business already has either a back office or online system in place that could be retained, individual solutions are available and can be implemented alongside some existing legacy software.
Small businesses looking at installing new software systems alongside old should check if the back office and web systems are based on open source protocols like XML and EDS or are based on proprietary products as different software will be required.
