How Social Media can be used for Tangible Business Results and Insight on some Great Success Stories

I often think why is the need for proliferation of social media into every industry. Aren't conventional marketing techniques doing the job pretty well. I mean the company would still be achieving the regular sales numbers and doing good business even in absence of some of the internet marketing techniques.

However social media techniques if used correctly and done in the right way, produce tangible business results. And if used in the right way, can add those extra bucks to the bottom line as well. Twitter and Facebook are the two most popular social media platforms today, followed by Orkut, Myspace, Linkedin and some other social media sites.

I was reading an article on the companies that use social media the best. The company that topped the list was Coca-Cola and I wasnt surprised. It executed one of the largest social media campaigns on Facebook called Expedition 206. Now this is a bit similar to the MTV Roadies concept. In Expedition 206, three Coca Cola Brand Ambassadors would be chosen by the fans to make a year long trip visiting all the 206 countries where the brand is sold.

Such a fresh concept, and executed brilliantly on facebook where photos, vidoes, messages of fans would be posted. This would create more die hard loyalists for Coke, would act as a brand energizer. People would relate to their favourite brand and interact with loyalists on facebook, posting comments, and pictures which is great for evangelizing the brand, reiterating the fact that no matter where you go Coke is truly a global brand.

Another example of a company using social media in a great way is my own favourite brand Dell. Dell claims adding $3 million in sales using the Twitter platform. Dell Outlet on twitter is a page than has more than 1,500,000 followers. It announces great discount offers on this page and the link is redirected to the actual page where a customer can make a purchase. This is a great example of quantifiable ROI of social media.

Dell interacts with its followers on Twitter and Facebook to gain feedback about its new product launches, resolve any service issues and respond to any other queries of fans and customers on their forum. So in a way your market research is done for you online, and even better you get to gain valuable insight and be in direct touch with your brand loyalists and fans.

These were a couple of examples of companies leveraging social media and using it as a serious marketing tool. I strongly feel that irrespetive of the size, companies must look at social media marketing. If you ask me why, its simply the way of the future. I remember Marc Benioffs quote that he had wondered why isnt all enterprise software like Amazon.com, when he started Salesforce.com. Now he wonders why isnt all enterprise software like Facebook.

On that note, even SAP Labs benefits hugely by social media and is one of the few companies making the best use of social media. Earlier Netweaver was a platform to network and resolve business issues all across the globe. Now global users and employees can stay connected by social media and participate in discussions about usage issues or patch fixing or any other adoption issue. Hence increasing the "support" efficiency of SAP and it can reply to its user base and cutomers via social media with ease. This would eventually increase brand adoption and more users for SAP.

For smaller companies, it is cost effective and an easy way to reach out to its audience. Even if the company has a niche customer base, this is a great way to share ideas, discuss with your customers and gain new insights. Keeping the customers updated with latest product developments and news and interacting with them on a regular basis, would increase loyalty, brand recall and eventually the reach of the product or brand. To close I would recommend a focussed social media strategy for all companies, as it is an easy, cost effective and new way to reach out to your customers, and in my view is the way of the future.

What's the real reason behind the Stock Market Bull Run..are FIIs good or bad for us in the long run?

Every day I see in the newspapers, about the great bull run and a gala time for Indian investors, reaping money after a long sluggish phase at the markets. A lot of FII (Foreign Institutional Investors) are partly responsible for this surge in the markets. Foreign investors are looking at India as a great investment destination. More’ so, India is growing and is a safe bet, especially considering the global economic scenario and the financial situation in the US.

In fact I just read a quote from Dr. Vijay Mallya himself, where he said he was happy to see India slowly becoming the preferred global investment destination. But then why the sudden shift in India as an investment hub. Well not just India, but most of the developing countries have seen a rise in global investment trends.

A recent report on Chinese growth trends reaffirms the faith in the global investor that Asia is indeed on a growth track, and this is the time to invest to reap huge long term returns. However there is another reason for this strong shift in investment patterns.

One is the second phase of Quantitative Easing by the US Fed Bank. Apart from this major banks are providing zero interest loans to investors investing in high yielding assets such as securities and debt. Considering India as a perfectly positioned emerging economy, investors are now investing huge sums of money in the Indian market.

However, the question arises whether these are good signs for India in the long run. From one point of view, it is a good move as India is gaining large amounts of foreign exchange and the markets are on an all time high.

On the flipside, more foreign exchange puts upward pressure on the rupee, causing it to appreciate. This could affect the profitability of exporters. Inflationary figures also tend to increase due to this. So what is the solution? One of the things to look out for is whether this trend would continue or is it a passing phase.

Countries like Thailand have already introduced capital controls like adding a tax slab on bonds. However if this trend is just a passing phase, introducing capital controls could hurt our investment scenario in the long run as investors react strongly to such controls.

It is thus a tough call for the RBI, yet I feel that capital controls in the currency markets would ensure that exporters interests are protected and we do not lose out too much with heavy rupee appreciation and an out of control inflation rate.

RFID tag - technology and scenarios

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RFID tag - technology and scenarios

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Manage your HR function better with an integrated HRMS solution

Human Resources management in different companies is viewed differently. Some companies view HR as an administrative task that needs to be done. In fact, till the 1960’s the personnel department was still viewed as a record keeping function that did the payroll tasks and organized the company picnic.

However due to ever increasing issues in managing workforce and the increasing complexities of Human Resource management, the top management soon realized that the function is not just important but critical to its business. Terms like organizational behaviour, complex psychometric tests, feedback forms, having policies and structures in place are becoming very important in today’s increasingly competitive business environment.

Hence most firms look at creating HR as a strategic business partner within the firm, having a definitive say in strategy meetings, adding value to business by suggesting changes in policies or the way employees are managed within a firm. Most companies now see HR as a potential game changer, having a definite role in strategic planning of a business.

For HR to take such a comprehensive role it must first identify the business needs, processes and both, short term and long term goals of the company. Hence companies find the need to more efficiently manage their day to day operational tasks more efficiently so they can channelize their resources in the more strategic aspects of HR.

This is when most firms look at implementing an HRMS software solution to help them better manage their daily complex processes. However companies must first do a rigorous assessment whether they really need an HRMS system. Issues like how much paperwork is becoming cumbersome to manage, record keeping and a growing need to quickly run reports, needs to be assessed.

Considering a web based HRMS solution would seem to be a good option, especially for SMEs who want an integrated and cost effective solution.Using this solution, employees can easily see their attendance, benefits, leaves pending, claims and many other features which advanced HRMS software’s provide.

Most HRMS systems also have the option of multiple user licenses which gives specific access to different users based on their role and function in the company. For example, an HR manager would have complete access of all the employee records, while employees would have restricted access to only their records, and every department manager would have access to only the records of his functional department.

Even if the company consists of only hundred employees, a web based HRMS system would be useful to streamline the entire HR lifecycle right from training to recruitment to payroll management. This helps in increasing efficiency of HR processes, and limits errors in payroll or ambiguity in record keeping. At the same time, it empowers employees to focus on the more strategic aspects of HR.

A good HRMS system would be one which is user friendly, secure, having wide range of modules covering the entire HR lifecycle, would be flexible in terms of implementation, and being compliant to open database platforms (ODBC) such as Oracle or Microsoft SQL Server. This would allow better integration capabilities with other applications as and when required.

Going for a comprehensive HRMS solution is becoming a must for large organizations and a great investment for SMEs to provide efficiency and add value to the HR function in their company. The time is soon when majority of companies would have HR as a strategic enabler and a business partner for contributing to the long term strategies and goals of a company.

The all new SAP Business One 8.8 release for the growing SMB market

The mid market adaption to ERP software is increasing every day, and so is the constant changes and new releases in the ERP provider landscape. So how can the market leader in the Enterprise Software landscape stay behind. SAP has announced its latest release, SAP Business One 8.8 for the small and medium sized (SMB) market.

With growing competition from Microsoft Dynamics and Oracle in this space, SAP Business One 8.8 has some refreshing add-ons to differentiate its product offering. One of the new features that is eye catching is the new interface which is much more user friendly with an improved GUI. Newer icons give SAP a more Web 2.0 look, however giving users an option to switch to the previous GUI.

The integration of Crystal Reports in SAP Business One gives users and partners an easy and flexible option to create and view reports. Data archiving is another new feature for SAP Business One 8.8, which enables users to archive old operational data like sales order closures, dead accounts or gives the option to deactivate certain ledgers or partner information.

One of the most interesting features for companies in varied industries; is a solution packager feature which helps companies to implement pre-packaged industry specific solutions. This gives additional flexibility to companies to add certain configurations that are specific to their industry or deploy certain industry specific add-ons.

A feature that caught my attention was even country specific customization, for example SAP Business One 8.8 lets you send an e-TDS return statement to tax authorities, in liaison with Income Tax Act, 1962 norms of India. This is an example of the localization concept and an epitome of the phrase “Think Global, act Local”.

With this release, SAP has gone one step ahead on the infrastructure and security front as well. With the help of advanced encryption algorithms and enhanced access mechanisms, the access to critical data is restricted. Better memory and cache management is another significant improvement on the infrastructure front.

Most of the times, customers have a concern of adding customized modules or need integration of SAP with some third party tools. The new SAP Business One SDK can be used to create customized applications and interfaces with third party applications with ease. Hence, giving flexibility to SAP users and adding to their convenience in using the application.

SAP has also recently announced better business network connectivity for its customers, hence empowering them to better manage their business partners and tightly integrate their various branch locations with their headquarters. With a plan to release by April 2010, SAP Business One 8.8 has some strikingly new features which have the potential to put SAP in the driver’s seat in the SMB market as well.

Some really innovative ideas like iPhone integration and increased integration capabilities with on-demand Web applications shows that SAP has its roadmap and focus attuned in the right direction. As most people say that the future is cloud computing, SAP Business One’s added capabilities shows its willingness to adapt and constantly evolve to keep pace with changing customer needs and the business environment.

How would the latest SAP Business One product fare in the SME segment is something which everyone is eager to know. It would be interesting to see how other Enterprise software vendors would react to the release. However SAP Business One 8.8 is definitely a product which reaffirms SAP’s dominance in the Enterprise Software space.

Cloud Computing - Is this the way of the Future

Cloud Computing is slowing becoming a buzz-word in the Software Industry. So much has been said about the power of cloud computing and its ability to revolutionize the way we do business.

So what exactly is cloud computing? A very simplistic explanation would be internet based use of technology. Here the term cloud personifies internet as a medium to communicate and collaborate. This would allow companies and consumers to access applications over a connected network without the hassle of installation and maintenance.

Most people jump to conclusions that cloud computing is same as SaaS (Software as a Service Model). However SaaS is only a part of this larger concept. Cloud Computing includes three core aspects. These are Infrastructure as a Service (IaaS), SaaS and Internet based development (Platform as a Service).

IaaS typically provides the networking infrastructure and other hardware support to software developers and vendors. They can use these IaaS services to host their applications on the internet to their end users. This is a concept in the nascent stages, yet providers like Amazon, provide such computing services to their customers.

SaaS is a concept which has been in use for some time now. Vendors like Salesforce.com, Google and NetSuite use it in a big way, and it is slowly gaining popularity as an effective business model. The basic idea behind this concept is that customers can access software applications, on demand over the internet via a Web Browser. In this model, customers can subscribe to the software, instead of purchasing it. Hence they can pay for the period for which they use the software, most commonly on a pay per month basis.

PaaS is a concept where software developers can develop and host new software via the internet, without having to purchase new hardware or software. Microsoft Azure and Google Apps, are some of the popular PaaS providers.

Seeing a rise in popularity of this concept, major software vendors like SAP, Oracle, Microsoft and IBM, each are working on devising key strategies for the same. Currently vendors like SAP and Microsoft have a combined share of thirteen percent in the Indian SaaS market, with Webex and Salesforce leading the roost. There is a general trend of SMEs adapting much faster to a model like this as compare to larger corporations.

It seems traditional on-premise application providers have shown some resent toward this increasing buzz and adoption towards the cloud hype. In fact Oracle CEO Larry Ellison states that the IT industry is more fashion driven and begins to associate everything to a cloud, in a sarcastic statement to the press. Yet, Oracle has its own strategy to counter cloud computing. Its CRM on-demand tool is slowly gaining popularity among the industry.

SAP is not far behind when it comes to cloud adoption. It has taken a hybrid approach to integrate the on-premise and on-demand models to ensure unison and integrity among enterprise applications. SAP BusinessObjects is an on-demand solution to cater to the diverse needs of small and medium sized enterprises.

There are still some risk factors and apprehensions to a complete shift to the cloud. In fact, SAP's former CEO Leo Apotheker had said, that a large company cannot put everything on the cloud, as the cloud would collapse. John Wookey who is now in charge of SAP's on-demand strategy, is working on new strategies to counter the hype of cloud computing.

How will businesses, software companies adapt to the changing trends in the software industry is something to look for in the near future. But from the looks of it, cloud computing is definitely something that is here to stay.

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Effective Sales Strategies to Maximize Business Opportunities in a B2B Environment

In any business, be it a simple retail shop consisting of cookies or books, or a Multinational Corporation seeking to sell high end electronic products to corporate customers, sales is a vital component. This is because the survival of a business depends on this quintessential function, and maybe this is why the best salespersons are the most sought after and highest paid professionals.

Sales processes differ in every industry. In a Business to Consumer Sales Environment, there are a lot of factors which contribute to effective sales, including the product quality, the marketing promotions and campaigns; in case of a retail setup, the store design and excellent service are key differentiating factors.

A good product well marketed and advertised like a Herbal Shampoo or an Eco Friendly Refrigerator, would require less efforts on the parts of the Salesman, as the consumers who want to buy already have a fair idea of the product due to the barrage of advertising. However in case of a Business to Business environment, the role of the Salesman becomes very important, in addition to the marketing campaigns and strategies.

As advertising expenditures are relatively less, companies selling in a B2B environment need to focus on targeted marketing campaigns keeping in mind their target segment and product offering. Marketing activities definitely support a sales team; however the company must chalk out a clear sales strategy and select the right model best suited to the company.

For example a sales model could be to outsource the sales activities to another firm. For companies who shrug to invest in sales development or do not have a robust sales plan or strategy in place, can seek the help of Global Sales Partners who manage the entire sales process and represent the company for you.

In case of an in-house set up for sales management, it is essential for a company to identify the roles and responsibilities of different sales personnel. The right sales team mix, for example the sales development representatives for prospecting and lead qualification are responsible for generating qualified leads and the field sales personnel would be responsible for closing the deal. A collaborative effort with the right mentoring and reporting structures in place, in unison with the marketing team as well lead to high end results.

Managing all the processes in the sales cycle efficiently will lead to a shortened sales cycle. The sales team needs to be well trained about the company and its product offerings. Moreover the right research pertaining to target sectors and companies, result in a higher hit ratio and better ROI on sales efforts.

Good sales collaterals and information also go a long way in engaging the interest of the prospective buyer. The sales team needs to focus on high productive leads and invest more time on them. Prioritizing time becomes very important and hence a sales representative needs to invest more time in leads which have high buying capability and interest rather than wasting time on cold leads.

A good sales plan, with a sales budget and a fairly accurate forecast of sales, helps keep a clear vision in the minds of the sales team. This enables the sales personnel to have a clear understanding of the deliverables, which makes it easier to work accordingly. However the sales manager and top management needs to set realistic goals, which are not too idealistic or too pessimistic, keeping in mind past trends.

Accurate evaluation, measurement and compensation of the sales team are very important to increase accountability and to motivate high achievers with rewards or incentives on achieving the sales targets. The strengths and weaknesses of every sales employee can be measured using certain sales metrics to understand the conversion ratio, calls to leads ratio and other parameters. Steps can then be initiated by the sales manager to assist or improve the team members in their respective areas of weaknesses.

With the advent of technology, more and more firms are looking to implement dedicated Customer Relationship Management (CRM) softwares to improve their sales process management. CRM software is a tool which has detailed reporting capabilities and access to key information in a simplified manner with efficient searching capabilities. This saves a lot of time and sales people can work faster and more efficiently.

Sales department is becoming more of a strategic function in most companies and hence the right management and strategies go a long way in adding more to the top line and bottom line of a business.

Streamline your Accounts Receivables Process to Improve Cash Flow Efficiencies

An accounts receivable function in any company, if managed efficiently can result in high dollar savings every year. For large conglomerates, where the scale of operations is huge, there is a wide range of sources for accounts receivable, including dealers, agents, retailers and many such disparate sources. For such a firm, maintaining a clear visibility on the cash flows and keeping a track on credit management of different sources becomes a problem.

Hence, these companies lose out on millions of dollars due to extended DSO (days sales outstanding) periods and no clear visibility with respect to future cash flows. This hampers the decision making of CFOs and top management due to lack of a consolidated picture of cash flow and working capital.

The onus then is on the A/R department to manage this process effectively so as to minimize losses due to bottlenecks in the process. Most A/R teams collaborate with the treasury department and chart out clear cut strategies on streamlining the process. The CFO needs to take an initiative in revamping existing processes to improve efficiencies and in turn the bottom-line.

For instance, the CFO charts out a set of key performance metrics with inputs from the treasury department. The Six Sigma wave has influenced several large corporations, especially after GE revolutionized the concept and continues to do so by extending it to its customers. Most companies look at implementing a Six Sigma process in the accounts receivable cycle. Using Six Sigma metrics helps the company to identify patterns and to measure existing bottlenecks and take corrective measures in improving the collections management process.

Large Enterprise software companies like SAP, help to better manage transactions by creating an automatic entry in the books of accounts, as and when a transaction takes place. This helps collection agents gain a clear picture on the overdue receivables and prioritize collection efforts. Most of these sophisticated ERP products from global vendors like SAP, Microsoft and Oracle, give in-depth reporting capabilities on past trends and all information pertaining to the A/R process.

Almost all large organizations have these sophisticated systems in place. However companies still lose out on millions of dollars due to inefficiencies in the process or workflow of the accounts receivable cycle. For example, issues like deductions and disputes occur outside the A/R department. Lack of a clearly defined workflow and an optimized set of metrics for these issues can lead to higher DSO’s and bad debts for the company.

For example, consider Syngenta, a $10 billion organization, which did a complete revamp of their existing processes in their A/R department. Facing challenges in collections and credit management, Syngenta put performance metrics in place for their A/R processes and introduced new policies to minimize their DSO’s. These steps resulted in a drastic reduction of their DSO to just 4.5 days and a whooping $3 million to their bottom line savings annually.

To stay competitive in today’s economic scenario, more and more companies, not just large corporations look to generate savings and add to their bottom line by managing the accounts receivable process more efficiently. Various cash flow management softwares are easily integrated with ERP systems, and are being used by organizations to gain a stronghold on their entire receivables process.

Companies are even looking at adopting newer business models like that of deploying a Shared Services centre which would centralize the accounts receivable process and streamline the customer-to-cash cycle. Be it a small company of just fifty employees or a Fortune 500 company, an efficient accounts receivable process goes a long way in charting out the right growth and investment strategies and for the long term growth of the company.

Growing Technology Awareness and Enterprise Software Adoption in Small and Medium Sized Businesses

The term ERP was essentially coined for large enterprises and perceived as a tool for Fortune 1000 companies. Smaller companies shrugged from the term ‘ERP’ itself because of the preconceived notions of huge costs, high maintenance and large number of resources required to maintain this high end technology. However perceptions are fast changing, and with innovation in the cost structures and application architectures, ERP adoption is on a rise, with the SME segment beginning to see value in these offerings.

Technology giants like SAP, Oracle, Microsoft, and Sage have been dominant in large companies, with virtually every large enterprise having a robust ERP application to integrate its processes. However most mid market companies and SMBs do not have a robust solution in place and are unsure of the economic viability and ROI it would generate.

To cater to these apprehensions and to leverage on this huge opportunity, Enterprise software companies are focussing on developing products which are tailor-made to suit the business needs of these companies. For instance SAP Business One and Microsoft Dynamics NAV are products targeted to suit the operational needs of smaller companies.

They are also aggressively priced, keeping in mind the budgetary constraints of SMEs. The space for ERP providers in the SME segment is becoming highly competitive with local vendors going toe-to-toe to compete with large vendors like Microsoft, Oracle and SAP. This creates additional confusion in the minds of companies to identify the right solution for their businesses. Most of these software companies spend a lot on their marketing expenditure to create targeted campaigns to increase the level of awareness among SMBs with respect to technology adoption and its long terms benefits to business growth.

SMEs would take a call more often based on referrals from existing partners, suppliers and customers. A tried and tested solution in the industry then tends to become the preferred solution in the particular vertical, and most companies then prefer to go ahead with that solution. However some of the key issues for any company to implement an Enterprise solution would be its economic feasibility, time to implement, the Total Cost of Ownership (TCO), scalability, maintenance, ease of use and its long term ROI.

Keeping all these things in mind, Enterprise providers are gearing up to consolidate their shares in the highly growing SMB market which shows large revenue generating potential. SAP has already set a goal to reach 100,000 mid-market customers by 2010. Traditionally an on-premise solution, SAP is also innovating on its technology architecture to enable partners to build more customizations, and it is also planning to roll out a newer version of the Business ByDesign product for midmarket customers, which is essentially based on the on-demand model.

With huge competition from Microsoft and Oracle, the market for SME enterprise solutions has become fiercely competitive, not to forget the ever increasing base of local Enterprise software providers. Which vendor comes out to be a winner in 2010 is still to be seen; yet the SMEs would benefit from innovations and new value additions from these software companies which would increase their operational efficiency and profitability in 2010.