The Definitive Guide for Choosing Business Management Software - CHAPTER 11
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CHAPTER 11 - GLOSSARY
Too often, business management software professionals use a vocabulary that is as familiar to us as it is exotic to our interlocutors. We use expressions, anglicisms or highly technical terms that are either unknown or open to confusion.
We did not want to finish this guide without including a small glossary of terms commonly used when selecting a tool of these characteristics, with the aim of dispelling doubts and clarifying concepts.
These are the expressions that seemed essential to us:
DATABASE
According to Wikipedia, a database is a collection of data organised according to a coherent structure and accessible from one or more programs or applications. Ultimately, it is to an ERP what petrol is to an engine. Having data properly stored is the first step (of several) towards the correct and efficient management of a company.
BUSINESS ONE
This is the flagship product of the German company SAP for managing SMEs. It is proprietary software sold under the traditional licensing system and is quite widespread among many companies.
CLOUD
The cloud, or cloud computing, is a new way of offering IT services based on access to the Internet or a data network. The idea is that the technology is hosted and centralised on external servers, and users pay to access it over the Internet. This saves maintenance and hardware costs and allows them to pay only when they need to use the services they want.
CONSULTING
Implementing an ERP in a company always involves an initial consulting phase. The aim is to properly diagnose the company’s real needs and its managers’ expectations, so that programming and implementation can then be carried out correctly.
CRM
Customer Relationship Management is the tool worshipped by the marketing department. It makes it possible to control, analyse and manage all business opportunities, as well as relationships with established customers. Its integration with the ERP is essential for making strategic decisions in sales.
E-COMMERCE
Everyone knows what e-commerce is, but everyone asks us how online sales platforms relate to ERPs. Each case must be studied, but we always believe that maximum integration is necessary to synchronise the evolution of the respective software as much as possible. In any case, you should know that the world’s most popular e-commerce solutions have been developed with free software.
ERP
If you are reading this, that is a bad sign. The whole guide is about ERPs, the programs that organise a company’s management (also known as Enterprise Resource Planning). The general idea was to explain how to approach the complex process of selecting this type of tool.
TRAINING
Training is another important moment in the implementation of an ERP. It is almost always carried out at the end of the process, once the program has been launched and users need to be shown how to operate it. But this guide has strongly emphasised the need for prior training aimed at those who have to decide which tool will ultimately be installed. This will give them an in-depth understanding of the product’s possibilities and help minimise the risks of the decision.
IMPLEMENTATION
Installing an ERP is not like downloading a mobile application. It requires hours of planning and programming before reaching the point at which it is installed on the company’s hardware. This is a delicate moment which, if not handled professionally, can push nerves and tension to the limit. You must trust the chosen provider and accept that subsequent adjustments will always be necessary.
LICENCE
A feared and hated term among proprietary software users, because it means paying for individual use of a program. It is completely harmless, however, to those of us who defend and recommend solutions based on free software.
NAVISION
Another widespread example of proprietary ERP, in this case made by Microsoft. We could call it the classic of the sector, with a large number of users around the world, since it was launched in the mid-1980s. Although it allows more customisation than other solutions such as SAP, Microsoft’s aggressive licensing policy is causing it to lose market share to open-source tools.
OPEN ERP/ODOO
One of the most popular open-source business management solutions. In fact, we started out recommending and installing this solution, but the lack of medium- and long-term planning for the development and release of new versions, combined with the emergence of new, opaque ties with users, disillusioned us. We now recommend Tryton to our clients (see the last point in the glossary).
PARTNER
The distributor of a lifetime, although in the field of management software we like to call it a partner. As we have already explained in previous pages, establishing a climate of mutual trust is essential when undertaking an ERP installation.
PROGRAMMING
Programming is how IT professionals make our living, especially those of us who work with free software and do not sell product licences. We mainly develop whatever the client requests in order to optimise use of the new program. Much of the work involves integrating databases or software already existing in the company. We also adapt systems to new versions and address emerging needs.
FREE SOFTWARE
We devoted an entire chapter to explaining what free or open-source software is. We detailed its advantages and disadvantages and discussed the business models surrounding this philosophy. In short, it is software that can be used, copied or modified without any restrictions. Its use is free of charge, and anyone can see how it is built and modify it as they see fit.
SAAS
It is closely related to cloud computing. In fact, it results from hosting technology on external servers. It is the acronym for software as a service, and the idea is to host data and technology in the cloud and consume them according to our needs as a service rather than as a product. This saves on maintenance and other associated expenses.
TRYTON
It is our ERP of choice. It is the robust, transparent, flexible and open product that we recommend to our clients and on which we build their business prospects (and ours too, why deny it?). Technologically, it is at least on a par with, or better than, the other solutions mentioned in this glossary. It is worth considering.
PREVIOUS CHAPTERS
- CHAPTER 10: The 10 questions you should ask
- CHAPTER 9: The general manager’s opinion
- CHAPTER 8: The financial manager’s opinion
- CHAPTER 7: The CIO’s opinion is essential
- CHAPTER 6: Who should take part in the selection? Involve the heads of the key departments in the organisation
- CHAPTER 5: Is free software better? Not necessarily, but it is worth keeping this option in mind
- CHAPTER 4: Include products developed with free software in your search. They will broaden your perspective and offer advantages that may interest you.
- CHAPTER 3: Where should you start looking for an ERP? The main mistake is limiting the initial search too much.
- CHAPTER 2: We explain when the right time is to select an ERP and how long it will take to choose and launch it.
- CHAPTER 1: Selecting business management software is always a headache. This guide is the aspirin that will help you deal with it.
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