Integrated Systems vs. Separate Systems

Comparing Business Management Systems for The SmallBusiness

Summary

This report considers the benefits and drawbacks of using one integrated businessmanagement system versus using several disconnected business systems.Although we highlight these benefits and drawbacks in reference to smallbusinesses, the results are relevant for a business of any size.

A normal, disconnected business system is one that handles only one aspectof accounting, customer relationship management (CRM), customer support,document management, human resources, etc. An example would be HighriseCRM (www.highrisehq.com) or Freshbooks (www.freshbooks.com) accountingsoftware.An integrated system is one that handles all aspects of the business in onesystem.

In an integrated system, all data between the different modules isconnected by default, without the use of third party or customer integrations. Anexample of an integrated system is BusinessVision (businessvision.me) OnlineBusiness Software.

Our report considers the following Needs, identified as most important to businessowners/managers looking to implement a business management systemNeeds Considered (in order of importance to customer):

1. Ease of Implementation

2. Ease of Use

3. Low Total Cost of Ownership (TCO)

4. Scalability

5. Ease of Updates

For each Need, we'll consider which method meets the Need better. We'll declareone method a winner and one a loser for that method. Then, we'll consider whichmethod is the winner overall.

Report

Ease of Implementation (Winner: Integrated)

While separate systems for accounting, customer relationship management(CRM), etc. are easier to implement one-by-one than a integrated system, onemust consider the time it takes to implement the communication between theseseparate systems.

For example, a business owner signs up with SalesForce, a popular CRM, and thensigns up for Freshbooks, a popular accounting software for small businesses.Signing up for both of these systems takes very little time and effort. (Of course,signing up for an integrated system takes the same amount of time.)

The business owner will also take about the same amount of time and effort toload data into the separate CRM and the accounting software as he or she willtake loading the information into the integrated software. (Although, some timeand effort is saved with the integrate systems, since accounts and contacts needonly be loaded once, compared to twice with the separate systems.)

But, when the business owner tries to connect information from the CRM to theaccounting software, he or she is limited in option and must use a workaround.He or she could either a)install a third party integration software, increasing thechance of a system breakdown, b)hire someone to code a new integrationmethod, increasing the cost and effort required to implement the whole system,or c) just deal with the separate system ad hoc, which ads complexity for theentire time the business owner continues to use separate systems.

On the other hand, an integrated system is just as easy to sign up for, easier toenter information in (since you are not entering information twice), and far easierto connect information, since the system is already designed with all the dataconnected.

Therefore, considering the Ease of Implementation for the total businesssystem, an integrated system is easy to implement than disconnectedsystems.

Ease of Use (Winner: Integrated)We have found that integrated systems are, in general, easier to use than anetwork of disconnected business systems.

Every business system, integrated or not, has different levels of usability. It is notthe scope of this report to compare all these systems. Rather, we've found that asa whole, integrated systems are easier to use because of their integrationa keyrequirement for business management systems.

A business owner must be able to connect documents with customers, costs withservice requests, and staff with projects, just to name a few. Using one systemfor project management and another for accounting and another for customerrelationship management (CRM) compounds the difficulty of using the totalbusiness system for the user. The user is forced to integrate outside of thesystem. Once this step is taken, the integration is temporary and unusable byothers. In other words, every time the integration must occur in a disconnectedsystem, it must be integrated again by each user at that moment. The integrationdoesn't last and it doesn't transfer.

An integrated system is built to connect all pieces of data together in meaningfulintegrations. The integration is part of the system, and the user is not given thetask of making the integration, it is already done. This makes the system mucheasier to use for information retrieval and decision making.

Therefore, considering the Ease of Use for the total business system, anintegrated system is easier to use than disconnected systems.

Low Total Cost of Ownership (Winner: Integrated)

Even given the limited amount of data we were able to find on the costs ofrunning disconnected system versus an integrated system, it's clear that anintegrated system gives the business owner a lower Total Cost of Ownership(TCO)

Disconnected systems can run anywhere for $4/user/month to $300/user/month.Considering a business that must manage accounting, customer service, customerrelationship management (CRM), support, projects, and documents, the lowestmonthly cost came out to be $597/user/month (considering an office with 5-10users).

This high subscription cost for disconnected systems doesn't consider the costs ofintegrating the systems to make a functional business system. Whether thatintegration cost is recognized by developing/paying for integration software, orpaying staff for the time they spend integrating individually, the lack ofintegration between disparate systems raises the Total Cost of Ownership (TCO)significantly.

An integrated system costs much less on average ($99 /user/month considering a5-10 user office). Plus, with an integrated system, there is no integration cost,since the system is already built integrated.

Therefore, considering the Total Cost of Ownership(TCO) for the totalbusiness system, an integrated system has a lower TCO thandisconnected systems.

Scalability (Winner: Integrated)

An integrate system scales much more gracefully than disconnected systemssince an integrated systems can scale up once where disconnected systems mustscale up many times.

Disconnected systems have their own abilities to scale as a business grows orshrinks. Some systems can reliably support 1-20 users, others 5-50, others 25-1,000. A business owner attempting to scale up a total business system, if he orshe is using disconnected systems, would have to switch different systems atdifferent levels of scaling. Every time a switch must occur, the costs and hasslesof starting up and integrated a new systems reoccur.

An integrated system, however, can scale all necessary features together, with noneed to switch systems at any point. An integrated system that can handle 100users in the accounting module will be able to handle 100 users in any othermodule.

Therefore, considering the Scalability of the total business system, andintegrated system is more scalable than disconnected systems.

Ease of Updates (Winner: Integrated)

An integrated system is easier to upgrade than disconnected systems sincedisconnected systems will need to be upgraded separately, and any integrationbetween disconnected systems will most likely be destroyed with each upgrade.

Each disconnected system will have its own team of developers processing theupgrades. Since each team is only concerned about upgrading its own system,upgrades will be released on schedules that don't consider the needs of the totalbusiness system.

Also, every time a disconnected system is upgraded, any third party integrationsthe user has implemented will likely need to be updated as well, doubling the timeand effort it takes to update the total business system.

Integrated systems, on the other hand, are updated by one team. Every updateenhances the integration, rather than destroying it. An update to the projectmanagement module will cause benefits to trickle down to all modules connectedto it. And the integration to the modules will not need to be updated separately bya different team.

Therefore, considering the Ease of Updates, an integrated system iseasier to upgrade than disconnected systems.

In Total (Winner: Integrated)

The integrated business system meets the needs of the business better thandisconnected systems.The integrated system is easier to implement, easier to use, less expensive, morescalable, and easier to update.

Business Vision is an integrated online Business Management solution. BusinessVision handles Project Management, Support, Human Resource Management,Customer Relationship Management (CRM), and Accounting. All features areintegrated for maximum efficiency.

To learn more about Business Vision, and start a 30-day free trial with free oneon-one implementation, visit BusinessVision.me today.

Integrated Systems vs. Separate Systems

By: Mark

POST COMMENT

What are Digital SLR Cameras? Digital Signage - Benefits to Educational Institutions How Can Drinking Milk Trigger Weight Loss Air conditioners - The right way to Minimize the Operating Charges by One half How to Do Deep Hair Conditioning Sex and the (Digital) City Why We Should Use Dog Electric Fence? Common Sense Approaches to Buying Air Conditioners Pays Off in the Long Run Choosing an Electrical Inspection Certificate Contractor Electrician in Delaware: Know When and How to Choose One Starting your Child Out with their First Digital Camera Digital record cataloguing Free Gifts from DigitalRev and Warranty Info