Seek CRM Via ASPs

Computerworld - A constant debate rages among those who favor "best-of-breed" applications and those who turn to integrated applications to solve business problems. Maybe it's time to kiss and make up.
The emergence of application service provider-configured accounting tools from NetLedger, Oracle's small business division, combined with CRM and ERP packages, makes it possible to view best of breed as an integrated package.
Compared with a typical accounting package that has to be integrated into a stand-alone CRM or ERP application, such as Great Plains from Microsoft, a Web-based application possesses advantages in terms of price, functions and maintenance. Rather than a silo of high-priced applications (Great Plains can run about $43,000 for four users, plus maintenance fees of an additional 18% per year) and integration costs, ASP solutions can be as little as $6,000 per year. In addition, because the ASP model runs off of one database, integration issues are less complex.
Great Plains (of which there are several versions) is built on an Exchange database, while Microsoft's CRM offering uses Outlook -- so you're still left passing data between multiple data stores in a non-Web native environment.
Web applications are more reliable for online use than applications that have been tweaked for Internet access.
ASPs were once seen as aimed primarily at small businesses (such as the office that wants to move up from Intuit's QuickBooks), but the midmarket is beginning to appreciate their allure and simplicity for both back-office and front-end applications. A difficult economic climate also means the end of expensive consulting contracts -- and the demise of custom solutions.
Clearly, the ability to exchange data among sales, marketing and accounting departments while linking with inventory, shipping and invoicing functions makes sense. For individuals, time spent entering data into a system is cut and more IT power is placed in the hands of those who regularly use the application. Similarly, upgrades can be distributed and monitored, while quality assurance duties are assumed by the ASP vendor, freeing internal IT resources.
Companies with distributed operations (warehouses and sales reps) can get the benefits of a large-scale application without the cost of building a virtual private network or spending money to maintain disparate applications. Also, the time it takes to get up and running is usually far less than licensed implementations.
With tight budgets and ASP vendors eager to configure an application to your needs, you shouldn't feel the urge to hire a subcontractor to custom-build an integrated system for accounting, CRM and ERP.
It's still OK to have atleast some faith in the Net.
Pimm Fox is a freelance writer in San Francisco. Contact him at pimmfox@pacbell.net.

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