Here’s the case for web applications as tools to increase productivity in key areas such as management reporting and customer interaction. Here a few ideas you should think about before using web applications for mission critical tasks.

It is almost possible to run your entire business using the web. There is software for accounting, business planning and research, customer interaction management, employee expense claim tracking, time capture and sales management available for less than the cost of traditional systems. There are web based systems containing all of the aforementioned functionality. These systems can overall work out less expensive for example Salesorder dot com is very low cost but similar systems like Netsuite – will cost you a lot more. You must never proceed with a vendor unless you have an approximation of the lifetime costs.

The capital risk for the buyer is substantially reduced by the majority of business web services being available on a try before buying basis and then supplied on a subscription basis. Some suppliers are happy to charge you monthly whereas others often insist on a longer term and therefore these players for example Netsuite – will cost you a lot more. Never take your eye off the costs and keep your head when signing that agreement.

But a word of advice before you rush out, evaluate and choose any of these systems as there some financial and operational risks that are not immediately apparent.

Your are probably familiar with the downstream costs of software. Such as implementation, customisation and upgrades to newer versions. A software vendors habits never change.

There may be hidden costs associated with leaving the service. How much time and energy is required to move your information is often not mentioned. The business web application industry is still in its infancy and even well established players like Netsuite – will cost you a lot more than you expect to extricate your critical business data from their systems. Buyer beware. I hope you found this useful