The rapid adoption of technology has significantly altered modern businesses. With various apps, software, and equipment being utilized, it can be challenging to monitor business processes rigorously. As a result, many businesses have performed a systems integration to let these different systems hum in unison.
The shift from manual to digital could be a daunting, albeit necessary, task. Digitization plays a vital role in staying updated and ahead of the competition. However, not every business knows where to start.
Numbers show that 19% of small- and medium-sized businesses did not have a clear idea of how to start with their digitization efforts. A survey regarding local SMEs’ digitization initiatives also concluded that 55% of Philippine-based SMEs were at the very early stages of their digital transformation.
Digitization could be expedited by using business systems integration processes to unify software and tools and ensure that they are interoperable. Let this article serve as your in-depth guide on the telltale signs your business needs a systems integration.
8 Signs Your Business Needs a Systems Integration
While digitization is a good step for businesses, it can produce unintended consequences when too much software is in play. The following examples are the common signs your business should look out for to start system integration.
1. Your processes are complicated
If your system patchwork still includes on-premises, legacy business software, it may do you good in the long run. These may still need some manual inputs from your employees to be interoperable with other systems.
For example, you may need to manually download and filter data from your sales management software, then import them to a different accounting software. Not only does this take time, but it is also prone to costly mistakes, as well.
Integrating these different systems eliminates the need for manual input and essentially automates the process, thus reducing a layer of complexity from your business.
2. You make costly errors due to confusion
If left unattended, businesses may isolate their departments from one another, each having its own systems and processes. It’s vital to reinforce clear communication in every department, no matter the job function, to avoid the risk of data transfer errors, which can be costly.
System integration’s most significant benefit is it centralizes data and ensures accessibility, therefore ensuring that there is only one source of truth within the organization. As a result, this minimizes the occurrence of confusion within the system.
3. Your processes take too long to complete
Managing databases and cross-checking information seem like rudimentary tasks. However, for businesses with big operations, this could cost time and money, primarily if they utilize spreadsheets and account software and share information on a need-to-know basis.
System integration provides different teams in one company with unified information. Having “one source of truth” can improve productivity. Additionally, it can establish a consistent user experience. Additionally, it can drastically improve processes and communication between departments by enabling authentic, real-time connectivity.
4. You use multiple datasets from various sources
If your business runs separate specific marketing, sales, and finance systems, keeping them up-to-date can take a lot of work. For instance, a simple process like creating a new consumer profile needs to be done in multiple systems to keep everything accurately updated.
System integration unifying all critical data creates a consistent source for all departments.
5. Your employees still manually enter data
Observing your accounting department is one way to know if your business needs system integration. If your employees still rely on paper invoices and sales orders or manually enter volumes of information into different sales and accounting systems, then it’s time to scale up.
Business systems integration helps consolidate financial information across company systems and spreadsheets. For instance, your teams won’t have to spend hours cross-checking information, rekeying data, or reconciling data manually.
6. You see discrepancies in reports
If your business still operates with older legacy systems and your workers have to reconcile two versions to update information, it’s time to integrate business systems.
Critical information should be as accurate as possible and readily available to line staff and to key decision-makers above all, and business systems integration aids on that front. System integration provides business intelligence, thus creating KPIs that can be tracked and defined quickly based on high-integrity data.
7. You have a lot of data, but no insights
There is so much software in today’s business landscape, and it can be challenging to gain credible insight.
Businesses with multiple systems often make it more difficult for key decision-makers to fully understand their business and know what they can do to be more efficient. Since system integration unifies data, it allows essential people to identify inefficiencies and optimize processes to stay competitive.
8. Your business has outgrown its systems’ capacities
Every business’ goal is to become successful. However, more customers, employees, and data come with success, creating more complex processes. If aspects of your company become more difficult to tackle due to your continued growth, business systems integration can help.
System integration optimizes production through existing resources, providing the information framework for scaling. This process shares information and production knowledge across the workforce, thus allowing anyone to contribute to driving production forward.
Built for Success
With industries getting more competitive, knowing when your business needs a leg up on the competition is essential. By employing business systems integration processes, you can scale up your business further. Above all, it ensures that you can keep your company competitive for a long time,
If you need a reliable system integrations service provider, look no further than 天博. Offering business systems integrations services, 天博 can help your company live up to its full potential by untangling and integrating systems and processes. Contact us today and schedule your consultation with 天博’s team of experts to know more.
If you’re ready to pursue systems integration to manage business data and functions better, a reliable business systems integration provider is of the essence.
In the past, different systems cater to individual business functions. For example, an organization might use a platform for procurement and inventory that is different from its tool for product development. The most obvious downside of this is the various protocols by which these systems are operated. Similarly, there may be multiple approaches to systems maintenance, too. As a result, those compromise the ideally smooth operations of any business endeavor. Thankfully, there’s a way to consolidate subsystems into one all-encompassing resource: business systems integration.
Business systems integration allows organizations to benefit from overarching functionality, improved efficiency, and augmented productivity. This process can be classified as any of the following:
- Data Integration (DI) – The integration of various information sources into one access point.
- Enterprise Application Integration (EAI) – A help-based integration that assembles different information and administrations based on a required work process.
- Electronic Document Integration/Interchange (EDI) – Seeks to activate the paperless exchange of information between businesses.
Different methods cater to systems integration. You will hear names like Point-to-Point, Vertical, Horizontal, and Star Integration. Obviously, these are highly technical concepts. To carry them out, you will need the help of IT experts who specialize in the process. To that end, you must know what qualities to look for in a business systems integration service provider.
8 Characteristics of a Great Business Systems Integration Provider
When you visit a doctor, you expect them to ask questions about your medical history and current lifestyle. That is the first step for them to understand where you are health-wise.
In the same vein, you must demand that same level of curiosity from your systems integration service provider. They must conduct a thorough assessment exercise to understand your existing IT landscape. That way, they will know how best to approach the consolidation of your subsystems.
2. Solid credentials
Get to know your service provider like how you would know a new friend. For instance, you should ask whether their company is expanding or downsizing? Consider the former a good sign and the latter a red flag. You should also take a look at the certifications and qualifications of the company from relevant organizations like Amazon, Google, ISO, and ISTQB. They will hint you at the level of service you could expect from the service provider.
Additionally, see if the provider offers standard software to clients or if they’re equipped to come up with a tailor-fit solution.
3. Highly-skilled team members
Once you’ve gotten to know the organization as a whole, the next order of business is zeroing in on its components—or the people who make up the team. Here, you need to look for both skills and dedication. You require skilled IT professionals proficient in their trade. To that end, look for relevant certifications and qualifications like ITIL and Microsoft.
You also require unwavering dedication from your systems integration partner; you don’t want any of them to give up on the project upon encountering a major roadblock.
4. A vast network of partners
As much as possible, work with a systems integration partner surrounded by competent allies. Doing so means you’re not putting all of your eggs in one basket.
Should a mishap occurs, you’ll get all the necessary support you need not just from your hired service provider but from their coterie of IT experts, too. For instance, affiliations with relevant associations like the IT and Business Process Association of the Philippines (IBPAP) and the Philippine Software Industry Association (PSIA) are great to have.
5. An impressive portfolio of past clients
This rule applies to all kinds of business transactions. To gauge the reliability of the business entity you’re considering a partnership with, look at their past and present pool of clients. Moreover, don’t be satisfied with just a list of names. Know what these clients have to say about the provider via review platforms and other means at your disposal.
6. Agile team dynamics
An agile team boasts individual experts who can easily transition to cross-functionality when needed. With this team dynamic, you will be confident with your systems integration project knowing its components are handled by skilled experts who know with certainty the common goal they are trying to achieve.
7. A specialist in your industry
Before signing a contract, make sure you’re dealing with a systems integration service provider specializing in your industry. For example, 天博 has a proven track record working with finance, construction, insurance, manufacturing, retail, and logistics.
8. 24/7 support
As a client, you deserve all the care and attention you need when you need them. This ensures the systems’ smooth operation. Moreover, you’ll need some troubleshooting when bugs are encountered. To that end, remember to establish a partnership with a service provider who can promise you exactly that via 24/7 customer support.
Untangle and Integrate
In short, systems integration aims to untangle functions. That is to streamline business processes. However, those objectives will only come to fruition if you pick the best IT solutions company.
On that note, you can’t go wrong with 天博. We aid organizations in their quest to reach their fullest potential via business systems integration. To know more about what we have to offer, schedule a consultation with one of our experts.
The methods and processes of construction accounting are different from other industries. Read this guide to learn more about accounting for construction.
Despite their significant differences, the construction, retail, and manufacturing sectors seem similar and sometimes interchanged by someone unfamiliar with said industries. Not only do they vary in concept—manufacturing makes products, retail sells goods or services, and construction builds establishments—but they also differ in cash cycles, upfront costs, and accounting processes.
Compared to the retail and manufacturing industries, the construction industry takes longer to convert its inputs into cash. It also has higher upfront costs, as before construction can even begin, there are already fees, taxes, and land acquisition costs to pay. The work-in-progress is different, too, because the prices and timetables are distinct.
With these differences, it makes sense that the construction accounting methods and processes are unlike other sectors’.
If you want to learn more, or have had some trouble navigating accounting for construction, this article can serve as your crash course about the topic and show you how ERP software can address some of your issues.
What is Construction Accounting?
Construction accounting is a branch of accounting that financially tracks a construction job’s progress. It’s an essential element in construction retention payments, bidding, invoicing, and project management.
Construction accounting management involves monitoring revenue and costs. There are two main types of expenses under this branch:
- Direct – consultancy fees, materials, architectural fees, and labor
- Indirect – insurance, supervision and inspection costs, and equipment rental
The usual construction accounting process starts by recording revenue and comparing the expected project value to the estimated percentage of project completion. Then, as time goes on, the client will receive completion invoices.
Next, they’ll make payments once the job is done. If the project is up to their satisfaction, the construction retainer, usually 5% of the contract value, is paid last because they keep the contractors until the project is finished.
In terms of accounting methods, construction has many unique ways of financial reporting. These methods are critical in construction management and taxation.
How is Construction Accounting Different from General Accounting?
Usually, you are taught regular or general accounting as it is the most common type of accounting. On the other hand, while it shares general accounting’s basic principles, construction accounting has specific differences.
1. Limited volume of sales
The construction industry may have a greater range in service categories, but it can also rake in limited sales, especially for construction firms with large-scale projects. For instance, companies that deal with municipal or commercial buildings may only get a few contracts every year. Hence, your chart of accounts will look different than that of high-volume retail or manufacturing businesses.
2. Change orders are common
For longer construction projects, change orders are quite common. Accurate documentation of the financial impact these changes bring to the project is essential to ensure that the project stays on track. It’s best to have an expert who can handle these changes efficiently, or else there will be problems with the project’s finances and contract.
3. Each project is different
In construction, every project is different, with an assortment of associated costs and complex requirements. For example, material costs and labor can greatly differ depending on the type of building and its location.
In general accounting for retail and manufacturing, break-even points are easy to calculate since income and expenses relate directly. You cannot say the same for construction projects whose variables change by the day.
4. The Cost of Goods Sold (COGS) is irregular
Unlike construction accounting, general accounting can easily record the sold product costs. It’s not that simple for construction accounting because of the direct and indirect costs. You have to classify each job into a category (materials, labor, insurance, etc.).
There’s a clear distinction between COGS and overhead costs in general accounting. Meanwhile, some expenses considered overhead in regular accounting are COGS in construction accounting because these costs are directly connected to the client’s project.
5. Profit and loss are harder to forecast
Due to different factors such as the abovementioned, it’s more difficult to gauge whether a construction project will be profitable or not than projects in manufacturing or retail. Fluctuating expenses, unique challenges, and change orders are the major components that affect the construction project forecast.
This is the reason accurate accounting is crucial in construction. It can help determine whether a project will lose money, make a profit, or break even.
The Fundamentals of Construction Accounting
Construction accounting is a specialized practice with unique concepts and particular building industry requirements. From estimates to payroll, these fundamentals vary based on the project type and risks involved. Check out the said fundamentals below.
1. Job Costing
In other industries, a general ledger (G/L) will suffice. They can simply track transactions that influence the company’s whole financial state. For construction projects, you track and report transactions for each specific job. This is because construction production is decentralized, and its accounting is project-centered. The tracking of production activities and project costs is called job costing.
Together with a G/L, job costing is essential in construction accounting. G/L overlooks costs for the whole company while job costing tracks on a project level. Additionally, a G/L consists of accounts payable and materials expenses. On the other hand, job costing involves cost types, individual projects, and cost activities (e.g., framing, foundation).
2. Construction Billing
Construction production has several billing methods and styles because most projects are flexible and long-term. Some of the most common billing formats are:
- Fixed price – It refers to a detailed estimate of the project’s overall costs. The construction company completes the project following the established price regardless of time and materials. If unforeseen problems arise, price changes may be allowed.
- Time and materials – The contract price is based on the materials’ costs and the per-hour labor rate. You may give a standard markup to the materials and labor time to generate a profit and cover overhead costs.
- Unit price – You bill clients at a fixed price-per-unit rate. You’ll often see this when you provide repetitive items at an expected cost, but the number of required items is unforeseeable.
3. Revenue Recognition
You can determine the project’s income through revenue recognition. Since construction contracts usually have delayed payments and are long-term, revenue recognition helps establish what you should officially record as revenue. It’s an essential aspect of construction accounting because you don’t typically complete, bill, and collect a contract in a month.
Construction managers bill clients on a percentage-of-completion basis; hence, it is important to determine which milestones are reportable.
4. Contract Retainage
The client can withhold a retainage or a certain amount of the contract price for a specific period or until they are satisfied with the completed work. Retainage serves as the contractor’s financial incentive to finish the project to the client’s liking. It also protects the clients in case any issues surface.
Usually, the retainage amount is recorded as receivables, but if the client has the right to hold on to it for more than a year, it’s classified as long-term receivables. Most contractors work with low-profit margins; hence, retainage can represent a significant amount of the project’s profits. In turn, you may also withhold retainage from your subcontractors.
The construction industry has a more complex and unique payroll than other sectors. In addition to minimum wage requirements and the local market rate, you must also consider the specific rules of union labor and public projects. Here are some aspects of construction payroll you need to take into account:
- Prevailing wage – For public projects, you must pay each type of worker based on a government-defined minimum wage. Prevailing wage is called such because, according to surveys, it’s the rate people of the same role are paid to work in each region.
- Union payroll – The construction industry is largely made up of unions. Wages are decided through collective bargaining agreements, and you need to report them to each union to verify your company’s compliance.
- Compliance reporting – Following local tax requirements, you also must track and report employment regulations compliance to local and national agencies.
Common Methods Used in Construction Accounting
Construction accounting has several methods. You need to choose the right one so that your company can optimize its tax reporting and accurately distribute indirect and direct project costs. This is heavily important when working on long-term projects.
1. Cash Method
This method is easier than the other methods in this list because you only have to record the revenue when it’s received and the expenses when you’ve paid vendors. However, since the cash cycle for construction projects is long, it can skew the balance sheet towards the red and may not offer accurate financial reporting, unlike the other methods.
2. Accrual Method
You’ll recognize expenses when they’re “incurred” and income when they’re “earned” in this method. Compared to the cash method, it paints an accurate picture of your company’s financial standing because you record a transaction in the period you encountered it.
3. Percentage of Completion Method (PCM)
With the percentage of completion method, you bill the client in every stage of work performed and record the expenses and earned revenue. Using this method to record costs and income, you can easily match the work performed, which most lenders and banks prefer. Additionally, you can generate accurate estimates with PCM, hence why many companies prefer this method.
4. Completed Contract Method (CCM)
The completed-contract method is best for projects that don’t take more than a year to finish. Using this method, you’ll only recognize revenue, profit, and expenses once a project is completed. If you want to postpone income to a future period, you can use CCM.
You can take advantage of CCM as an accounting method if you’re a contractor who builds new, move-in-ready homes and only recognizes revenue on a house once it’s sold.
Maximize Cash Flow and Profitability with 天博
Construction accounting has been adapted to the complex needs and processes of the industry, which is why it’s distinct from regular business accounting. If you’re new to it, you need to take on specialized skills and learnings to navigate this accounting type and make your financial reporting easier.
Take control of your construction projects using a cloud enterprise resource planning (ERP) system. Aside from your accounting processes, you can also manage your project’s supply monitoring, schedule, decision-making processes, and communication flow on this platform. It’s organized, efficient, and productive, thanks to automation.
As the leading IT company in the Philippines, 天博 serves as Acumatica’s partner in the country. Acumatica is a cloud ERP with a Construction Management module fully integrated within its system. With this and other useful modules like Inventory Management and Finance, you can further drive your construction business growth.
Aside from Acumatica, 天博 also develops customized construction management software based on your business model and process. You don’t have to skip on the benefits of construction ERP just because Acumatica doesn’t fit your business’ needs. With 天博’s personalized approach, you can take your business to the next level on your terms.
Increase your profitability and collaboration and choose an ERP solution that’s right for your business. Schedule a consultation with 天博’s ERP experts today.
Keep up with the ever-evolving ecommerce industry by improving your site with advanced tools and technologies. Check out the latest trends here.
When the pandemic broke out in 2020, it changed how businesses operated. As a result, many companies had to shut down their physical stores and divert their activities online. If you want to maintain your business’s performance during the pandemic, investing in an online presence is the way.
Moving to the online space is a good move for most companies. While most people aren’t allowed to leave their homes, the need and desire for products are still there. By going online, you’re reaching out to your customers without face-to-face interaction.
As online transactions continue to rise, the ecommerce industry won’t slow down anytime soon. Experts predict that the global ecommerce market will hit $5.42 trillion by the end of 2022 and $6.3 trillion by 2024. In comparison, the market was at $3.3 trillion in 2019 before the pandemic happened.
Ecommerce is here to stay, making it a must for businesses to hop on an ecommerce platform if they want to boost their profits. But as the industry expands, the market also becomes more saturated. As such, you need to keep up with the latest ecommerce trends to stand out from your competitors.
In the infographic and article below, we’ve rounded up the ecommerce development trends that will significantly impact global online retail in 2022 and the years to come.
eCommerce Development Trends to Watch Out For
Many businesses are transitioning to the digital space as online purchases become more common. If you want to start improving your ecommerce site, developing it with advanced tools and technologies is the first step. Here are some of the custom ecommerce development trends you may incorporate as you update your website.
1. Headless Commerce
If your ecommerce platform doesn’t require a pre-designed storefront, your site is considered headless commerce. In a traditional ecommerce model, you would need to constantly update both the front- and back-end systems, which is a burdensome endeavor that takes up a lot of time, effort, and resources.
On the other hand, adopting a headless ecommerce store gives you more flexibility on the back-end because you’ll be able to build your website however you want. Additionally, the architecture makes space for more SEO and content marketing opportunities. Thus, you can focus on enriching your website’s user experience without wasting time and effort organizing the back-end data.
2. Subscription-Based Model
From beauty and food to education and gaming businesses, subscriptions are becoming the top ecommerce development trend. The subscription economy has grown more than 435% from 2012 to 2020. This shows that many online shoppers find value in subscription-based ecommerce sites.
Additionally, customers find subscription-based models attractive because of their convenience. With this, you can plan out your inventory more accurately as your sales are already locked in.
The biggest challenge with subscription services is continuously creating a sense of value and variety with your offerings so that consumers will stick around. To execute a subscription-based model effectively, you need to generate compelling ideas hinged on your target market’s needs to convince them to renew their subscription each month.
3. Progressive Web App
Another growing trend in the ecommerce industry is progressive web apps or PWAs. Online retailers are always looking for ways to improve their sales and customer experience, and PWAs can help with that. PWAs are web applications that deliver a native app-like experience. They provide an enhanced mobile experience minus the high costs of native app development.
Native apps create higher engagements than mobile web, but to start one requires a lot of resources. If you want to market your business faster, PWAs are a good alternative. With PWAs, a website can look and behave like a native app with the perks of fast load times, push notifications, and offline use. You don’t have to invest in developing a high-cost native app because you can implement PWAs instead.
4. Digital Wallets and Social Payments
Digital wallets or e-wallets are electronic cards linked with apps that allow users to send and receive money. In 2020, 44.5% of global ecommerce payment transactions were made through digital or mobile wallets.
By 2024, forecasts show that mobile wallet usage will increase to 51.7%, making it the most popular payment option for ecommerce. Other top payment methods are credit card, debit card, bank transfer, and cash on delivery.
Offer multiple payment options on your ecommerce site to give your customers more ways to pay. If consumers don’t see their preferred payment method on your site, they’ll likely abandon their carts and look for a different brand that offers their choice of payment method.
Excellent customer support is essential to enhance your engagement, and chatbots are a way to provide this 24/7. Chatbots streamline your conversation with customers. They instantly answer any basic queries customers have, which boosts your operational efficiency.
Powered by artificial intelligence technology, chatbots also make it easier to personalize your online shopping experience. They gather data from their interactions, which real support reps use to personalize their interactions with customers.
6. Voice Search
During the pandemic, the average number of people who bought smart speakers globally increased by 69% compared to pre-pandemic times. This rise in smart speaker purchases goes hand-in-hand with the increase in user dependence on voice assistants since it’s one of the device’s main features.
Consumers often use voice search to shop online or order food. This trend means you should optimize your site for natural language searches to be more searchable in voice commerce.
7. Gamification in Ecommerce
Games enhance your ecommerce website experience because they make shopping more exciting and entertaining for the customer. For your business, gamification can improve customer loyalty, sales rate, and brand awareness.
Pura Vida Bracelets is an example of a company that introduced games on its ecommerce site. It provided customers a chance to play a “Spin the Wheel” pop-up where they could win various perks. This game increased the company’s email capture by 150% and boosted conversions by 164%.
People are typically enticed by competition, status, and achievement. These elements in games encourage your customers to explore your ecommerce site for longer while earning fun discounts, rewards, or points. Examples of games you can implement are product quizzes, customer avatars, and a freebie wheel of fortune.
Develop a Robust eCommerce Website
The ecommerce industry progresses at such a fast pace. Consumers and their ever-growing expectations and demands are the main drivers of the industry’s growth. As such, it’s your responsibility to keep up with these ecommerce development trends to continue delighting your customers.
By building a cutting-edge ecommerce website, you can stand out from your competitors and capture the attention of your target audience. Explore trends and technologies that will allow you to stay ahead of the game.
Vessell is an ecommerce platform builder that makes it easier for businesses to build, customize, and launch their website. Contact us to upgrade your online store and take your ecommerce business to greater heights.
Securing software-collected data is imperative for all companies; even more so in the banking, financial services, and insurance (BFSI) sectors. These institutions possess sensitive data that could certainly prove detrimental to organizations and clients should this information become compromised. Hence IT staffing for BFSI can…
Securing software-collected data is imperative for all companies; even more so in the banking, financial services, and insurance (BFSI) sectors. These institutions possess sensitive data that could certainly prove detrimental to organizations and clients should this information become compromised. Hence IT staffing for BFSI can benefit these organizations, as they provide top-notch services related to security and productivity.
Indeed, hiring skilled IT experts is crucial for the BFSI sector. Find out why in this article.
7 Reasons Why IT Staffing is Important for BFSI Companies
1. Focus on core business functions
The core focus of BFSI companies is to keep track of their balance sheets while providing services to customers. Hiring IT staffing for BFSIs to handle equally important tasks like software and website maintenance and cybersecurity allows your banking and actuarial experts to focus on more pressing issues related to your business.
IT experts can do the heavy-lifting in the front-end and back-end operations while you focus on the tasks that matter. For that reason, it can help you grow your business and meet or formulate new goals.
2. Data and network security
Maintaining a high-functioning and secure establishment is a challenging endeavor, especially for the BFSI sector. Its unique processes and database of sensitive information needs IT expertise to run perfectly and securely. Moreover, this sector is highly susceptible to cyberattacks and data breaches, as well.
Hiring IT staffing for BFSI positions ensures that you have the necessary security measures and safeguards to protect sensitive data and system networks from a wide range of cybersecurity issues.
Aside from preventing data breaches, IT experts are also responsible for creating and securing backups in case digital files in your system are affected by viruses or malware.
3. Immediate IT troubleshooting
Technical glitches could crop up at the most inopportune time, as IT-related issues can be unpredictable. Additionally, the surge of users may cause problems for the server that requires fixing. For this reason, having IT experts to monitor your technological infrastructure round-the-clock will ensure that your establishment receives the necessary IT services on time, all the time.
Additionally, suppose your system experiences a crash due to unknown or unforeseen reasons. In this case, IT experts can immediately trace the issue and fix the problem for your establishment to resume all aspects of operations with little to no time wasted.
4. Enhanced customer service
Aside from addressing technological issues, IT experts can also help you improve your customer service. Because of this, your client base and customer satisfaction score will likely increase.
IT experts’ contributions to the customer service aspect are far-reaching. Not only do they optimize the websites, apps, and other mediums that you use to establish a direct connection between your business and your customers, but they also fix bugs and errors that are causing inconveniences to the users. Moreover, they ensure that the interface of these platforms and relevant factors regarding their compatibility across devices is seamless.
Because of this, your company can have well-optimized communication mediums. These are necessary to compete in a more digital-centric era of the world of business.
5. Increased productivity
Being in the financial sector, tech may not be your organization’s strong suit. While you can certainly train your in-house team to take on your IT requirements, it may take time and expose you to costly mistakes. In addition, they may not have enough expertise to troubleshoot tricky problems.
Hiring expert IT staffing for BFSI companies from the get-go will allow you to roll out technological updates quickly while your core team focuses on their job, thus increasing overall productivity.
6. Updated on new and innovative technologies
If your establishment needs an upgrade, IT experts can integrate new technologies to keep you up to date. Because of this, BFSI companies should consider hiring IT experts, as they have a wealth of knowledge of new technologies and often offer access to the latest technological advancements.
Utilizing relevant and up-to-date technology can increase efficiency and give you a leg up over competitors. Moreover, once there are more advanced creations on the technological market, IT experts can save you valuable monetary resources by guiding your company towards tools that are worth the investment.
7. Increased IT operational support
IT operations can be a taxing endeavor to tackle over time, especially as your need for enterprise-level servers, network devices, and workstations increases. Managing IT-related operational support can consume substantial time and human resources, consequently limiting your opportunities to formulate strategic processes and migrations.
While this might seem like a big undertaking, hiring a few will be enough. Automation can be integrated with remote monitoring and management (RMM) to enable a small team of IT experts to manage a substantial number of endpoints.
Additionally, leveraging automation and remote management solutions are great for institutions with a large employee workforce. For that reason, it allows them to improve their IT processes with a dedicated staff of IT experts.
Expertise Pays Off
Being in the BFSI sector requires that you improve, maintain, and optimize your IT infrastructure. Above all, you’ll need them to properly secure your customer’s sensitive data. You can achieve this goal by simply enlisting the help of IT experts.
These technologically proficient individuals can manage IT-related issues and help you and your employees conduct excellent work without worrying about the technological aspect of your business.
If you’re exploring the possibility of hiring a group of IT experts, look no further than 天博. As one of the Philippines’ top IT solutions companies, 天博 has a ready workforce of talented and certified IT professionals ready to take on any challenge that may be hampering your day-to-day operations.
Contact us today to know how we can help you with your IT-related needs.
Different companies have different needs, including software. Get an idea of how much custom software costs to help you accelerate business growth in the digital world.
Enterprises and organizations with unique business models and processes may not be satisfied with commercial off-the-shelf (COTS) software, as this type of software may not suit the complexities of their operations. COTS software may be unable to keep up with the business’s day-to-day requirements, unlike custom software. Then again, custom software cost is a primary concern for business leaders or managers.
You may have your sights set on digitalizing your business but suddenly find yourself stopping because you don’t fully understand how custom software pricing works.
Here are a few cost-related factors you may want to consider as you look to develop custom software. This can help cement your place in the digital business landscape once you’ve developed the best software for your needs.
6 Factors That Affect Custom Software Development Cost
1. Software size
Software size is one of the main factors determining custom software costs. The bigger the software size is, the more you’ll have to invest. You can choose from various sizes, from small to enterprise-level software sizes, with each one offering custom solutions to fit your organization’s needs.
For most start-ups, the go-to software size is a small minimum viable product (MVP) development approach. This level of development only has the bare minimum of features and can only support a small user-base. Small-sized software usually deals with minor bug fixes and improvements to the user interface. Meanwhile, medium-sized software allows integration with an existing system using a single data source.
Large projects may have several requirements, including multi-system integration, security and logging, module-based design, and database components. Combining this with scalability considerations, enterprises with complex processes and internal systems may require larger development teams, thus driving up the cost.
The complexity of the software encompasses the number of screens, workflows, required automation, intertwining processes, paths, and the like. The increasing number of databases included in the software will also be more complex. Think about the scope of your custom software. If you want to include more functionalities and features, the more it’s going to cost you.
For example, you may be developing a mobile application with many features such as profile creation and customization or different payment methods, including e-wallets. This can make your application more complex since it has to handle more processes.
Other features like the complexity of the user interface design, data migration, integration for third parties, bulk of data analysis, cybersecurity features, and the number of iterations may also add to the pricing.
As you keep adding more complex logic and outcomes, you’ll naturally need more time and budget for custom software costs.
3. App Integrations
Another factor that may cause your custom software costs to increase is its ability to be integrated into third-party applications. Besides giving users a seamless experience, app integrations can enable your business to improve its operational and workflow efficiency. As such, it is vital to have software with integrations to third-party apps, APIs, and even legacy apps.
Again, this feature can make your software more complex, requiring additional time for your development team to complete all installation and integration tasks. You’ll also need to pay a fee when integrating your software into your preferred third-party application or API.
Nevertheless, taking this route may be relatively cheaper than integrating your new custom software with your existing legacy systems. In any case, you can expect to see additional costs.
4. Software testing and QA
Quality assurance (QA) is an integral part of any project workflow, and building custom software is no exception. Conducting software QA testing ensures that your custom software is void of bugs that may compromise product quality.
A thorough and streamlined testing process minimizes disruptions once it’s time to shift your day-to-day operations from a legacy system to the new software. This can accumulate costs since you’ll spend more time and effort addressing bugs and improvements.
5. Data migration
A lot goes on when migrating existing data from an old database to a new one. Besides backing up the data, you also have to consider security requirements to protect sensitive customer and business data from potential and existing vulnerabilities.
On top of this, it takes time to clean, validate, and convert your data to a format compatible with your custom software. Additional costs can also come if you want to incorporate features like data analysis and profiling to make it easily searchable.
6. Ongoing app maintenance
Developing custom software doesn’t stop once it’s launched. You have to continually upgrade and improve its functionalities upon deployment.
Technology is ever-changing. Not having your software optimized with the latest versions can lead to software failure due to changing platform requirements. You can avoid this by constantly upgrading your software to make it compatible with new releases and keep it in tip-top shape.
Is Custom Software a Worthy Investment Considering its Cost?
Potential for a great return on investment
Having your own software is a great investment in the long run, making the initial cost of custom software rather negligible as it has the potential to have a high return on investment (ROI) when implemented successfully. Here, ROI is calculated using the reduced cost added with the increased revenue and then divided by the project cost multiplied by 100.
Since custom software can streamline workflows and make them more efficient, it makes the overall system and the employees more productive. This, in turn, translates to cost-savings in the long run.
Moreover, the software may be instrumental in building the company’s capacity to expand its customer base and reach new markets, thus increasing revenues significantly. All these benefits improve the company’s bottom line and prove the investment for the custom software project has been worthwhile.
Tailored to your business’s workflow
Custom software allows you to continuously update and improve it anytime you want or need to, unlike off-the-shelf software. With commercial software, you’re dependent on the upgrades of the developer you purchased the app from. This leaves you at a disadvantage whenever there are new innovations that you want to implement immediately.
On top of this, using commercial software limits you to the features included in the app. This may restrict your use of the software, as it might not have the exact features you need. You may have to look for another third-party software to fill the gap, which will increase your expenses.
By contrast, custom software will only cost you for one application as you can simply add other features along the way. This enables your business operations to proceed as smoothly and seamlessly as possible.
Increased productivity and profits
Since custom software provides you with additional features that off-the-shelf software doesn’t, you can increase employee productivity. If you’re shifting from multiple systems to custom software, you can collate all data from different siloes into one single database, making extracting information quick and easy.
Aside from that, custom software allows you to integrate it into other third-party applications. You can have a seamless experience and reduce the time it takes to process and analyze information. This increase in productivity can translate to bigger profits, as employees can do more tasks with their freed-up time.
More secure against external threats
With the increasing cases of data breaches, it’s important to have a robust security system in place. This is especially true for organizations that handle sensitive customer data, including their contact information, credit or debit card numbers, etc. But, off-the-shelf commercial software is more vulnerable to malicious cyberattacks if it lands in the wrong hands.
In this case, developing custom software can be the safer option. Here, you can be part of the development process every step of the way and ensure strong data security. You can also quickly respond to these threats since you’ll have control over the software’s security. This approach can discourage hackers from targeting your organization since they’re aware you’re using specialized software.
Every business aims to accelerate its growth and stay on top of the competition. However, technology continues to evolve and shake up the business landscape, challenging organizations of all sizes to innovate and adapt to these changes.
As such, it’s crucial to have the right set of tools, and developing custom software specially built for your business’s purpose and objectives can give you the competitive edge.
Custom software created with scalability in mind can help you adapt to the ever-changing business climate. So, if you’re going to shift to custom software, one vital factor you should consider is having the right tech partner that will help you maximize its benefits for your business.
Partnering with reliable tech companies skilled in mobile app developments like 天博 can enable your business to stand out in your industry.
Customizable Software for Your Needs
Knowing the factors that drive the pricing of custom software is essential when planning your organization’s shift to digitalization. This will help you create a plan that suits your business needs and resources, including the budget.
If you’re looking for the most reliable partner and app developer, 天博’s experts can help you with your custom software needs. Schedule a consultation with our experts today, and jumpstart your journey into the digital world.
Embrace digital transformation and ensure flexible visibility across the supply chain. Take a look at our webinar’s recap in this article.
With the growing needs of consumers and the continual technological disruption, businesses have to take a step back and reassess how they can remain competitive in the marketplace.
For instance, retailers, manufacturers, and logistics providers must adopt innovative solutions to transform their operations and serve their customers better.
天博 Inc. partners with the Supply Chain Management Association of the Philippines (SCMAP) to guide supply chain stakeholders with their digital transformation decisions.
Through SCMAP Live, a webinar entitled Flexible Visibility Across the Supply Chain was attended by participants from different industries and supply chain sectors last March 31.
From left to right: Our webinar panelists, 天博 Product Director for IT Services Karl Pulanco, 天博 Associate Product Director for eCommerce Solutions Alex Pelayo, and Acumatica Regional Channel Manager Shine Mathew, shared valuable tips on improving the supply chain visibility through automation and using insights to formulate informed business decisions.
Learn more about ensuring flexible visibility across the supply chain. Read on below for the webinar highlights.
Digitalization Through Supply Chain Automation
Many enterprises are applying digitalization across several business aspects, including supply chains.
But, digitalization does not produce favorable results overnight. Deciding to automate means committing for the long haul. It requires hard work, tedious research, and careful evaluation of current business practices.
The following are the highlighted points during the webinar in making such a big decision for your business:
1. Begin with the Big Why
Pulanco jumpstarted the discussion by reminding businesses to be cautious before deciding to go through digital transformation:
“Before embarking on digital transformation, we need to fully understand why do you want to do it in the first place. The most crucial part is knowing your objectives,” he said.
Businesses should understand that digitalization, particularly supply chain automation is a long and tedious process.
It takes commitment as it involves pivoting the whole business as needed.
On the side, Pulanco shared the major technological trends transforming the supply chain today: eCommerce Integration and Blockchain Technology.
2. Assess the Right Online Channels
A marketplace is an excellent platform to utilize.
However, marketplaces do not provide extensive data analytics and control over your branding and marketing efforts. Issues regarding the authenticity of products also arise.
That is the beauty of having your own eCommerce platform to use.
Pelayo emphasized the importance of having an eCommerce platform that allows easy curation or personalization of the shopping experience and easier integration with Google Suite like Tag and Analytics.
3. Implement a Digital Supply Chain
Studies show that around 85% of decision-makers feel that they only have two years to make significant steps towards digital transformation before falling behind their competitors.
This means that digital transformation is becoming an essential business requirement.
“Digital Transformation is what Acumatica has been doing for more than a decade now, bringing enterprise-grade tools to companies of all sizes,” Mathew said.
Data Centralization and Its Benefits
Centralized data has numerous benefits for businesses, especially in the supply chain sector. It helps improve processes and operations through a more accurate and updated flow of information.
The webinar tackled the importance of centralizing business data and how companies can leverage technologies, particularly the Acumatica Cloud ERP.
1. Centralizing Data to Avoid Silos
An effective and efficient new system may solve business problems like data silos.
However, Pulanco emphasized that before investing in a new solution, businesses should first take a closer look at their existing systems. Generally, what businesses need is to revamp the systems and tools they use.
Above all, understanding first what are the needed data and when do you need them is the best starting point.
2. Centralization through Cloud ERP
One of the major solutions capable of centralizing data and automating processes is a cloud ERP system.
With Acumatica Cloud ERP System, businesses may take advantage of connected business, rapid integrations, remote collaboration, and future-proof technology.
3. Centralization: Impact on Consumers
By centralizing the data into one place, businesses ensure that customers’ needs are being met and they efficiently handle the order fulfillment.
Data and Platform Security through Cloud Technology
Another crucial concern for businesses and consumers alike is security.
Nowadays, many businesses leverage cloud technology as a practical solution to manage business data and platforms.
1. Benefits of Moving your Business to the Cloud
Moving your business to the cloud has many benefits like scalability, data storage, and convenience.
However, as cloud storage and applications become more common, data security is also an arising concern.
Pulanco assures business owners that the cloud offers strong security for their sensitive and critical business data.
Cloud relies on more robust and powerful cybersecurity measures to protect data through consistent system security updates, Artificial Intelligence (AI) tools, built-in firewalls, and encryption.
2. Cloud ERP vs On-prem ERP
Mathew talked about the difference between a Cloud-based and an On-premise ERP System. He highlighted how a cloud ERP benefits businesses in cost, speed of implementation, accessibility, security, customization, maintenance and upgrades, and scalability.
According to Mathew, “Technology is evolving to such a degree, we can’t do our work without having any kind of mobility features. So only cloud solutions like Acumatica are able to keep updating constantly to stay ahead of the curve and be very scalable”.
Wrapping Up: Customer Satisfaction Should be the Priority
“Do not be afraid to make changes. The world’s best-run companies are successful because they are constantly evolving,” Mathew encouraged business owners not to be afraid to automate.
Digital transformation is a crucial business decision. The need to automate is apparent.
However, it all boils down to how a business can effectively meet customers’ needs and expectations. As we deal with significant changes driven by the current situation, we are challenged to innovate to serve our customers better.
天博 Inc. is committed to providing holistic technological experiences that go above and beyond to meet your business goals. One of its main offers is the Acumatica Cloud ERP System.
Let your business experience flexible visibility across the supply chain. Talk to our experts today.
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