What is an enterprise application? Examples & benefits

Most businesses rely on technology adoption to operate more smoothly and efficiently. These tools simplify tasks and enhance employee productivity.

One example is an enterprise application, which uses advanced tech like automation and data analytics to help companies manage and improve their operations. When used effectively, these applications can make a business more efficient and competitive. 

They’re particularly useful for companies aiming to increase their return on investment (ROI) while keeping costs down.

In this article, we’ll explore what an enterprise application is, why it’s important, and provide examples of different types. We’ll also discuss the benefits and challenges of using these tools so you can make an informed decision for your organization.

What is an enterprise application?

An enterprise application helps businesses simplify and automate their work. These tools can enhance productivity, efficiency, and teamwork across various departments.

Unlike apps for personal use, enterprise applications focus on improving business processes. They range from simple customer management systems to advanced AI software that handles everyday tasks.

This reduces manual work and makes processes easier to manage. Enterprise applications can also be part of a unified system that manages data, tasks, and resources in one place.

Why is an enterprise application important?

An enterprise application is crucial because it helps businesses run daily operations more efficiently and allows companies to grow without significantly increasing costs.

For instance, it can automate tasks in HR, payroll, marketing, and data entry, freeing employees to focus on more critical work instead of repetitive tasks.

Enterprise applications also include tools like project management software and data analytics, helping businesses offer personalized services that better meet customer needs.

What are the main types of enterprise applications?

Several examples of enterprise applications are available.

So, we’ve compiled a list of the top 7 types of these tools:

1. Human resource management (HRM)

Example: Rippling

HRM systems are invaluable for HR professionals, making task management much more efficient, from hiring to retirement.

This system organizes all employee and candidate information, aids in planning benefits, and ensures payroll accuracy. By streamlining the hiring process, it can boost employee retention and engagement.

HRM systems also offer training opportunities and track onboarding progress. They handle time and attendance, syncing this data with payroll.

Additionally, they assist with workforce planning, monitor performance reviews, and support succession planning. They cover all the bases for effective team management.

2. Business intelligence (BI)

Example: Looker

Let’s break down how business intelligence software works. It transforms raw data into valuable insights that aid in making smart business decisions. You’ll have access to various data—historical, current, internal, and even from external sources. It can also handle complex data, like social media content.

With this software, you can analyze data to assess business performance and plan your next steps. It helps you make better decisions by identifying problems, spotting market trends, and uncovering new opportunities.

Having a clear view of current data can enhance decision-making and propel your business forward.

3. Customer relation management (CRM)

Example: Salesforce Sales Cloud

A CRM helps manage all your interactions with current and potential customers. The aim is to strengthen those relationships and boost business growth.

CRM tools gather data from various sources and use AI to manage these relationships across marketing, sales, digital commerce, and customer service.

You get a unified customer profile on a single, secure dashboard, showing purchase history, order status, and ongoing service issues.

This setup keeps everything organized and helps you focus on revenue generation. By understanding your customers, you open up more cross-selling and upselling opportunities, leading to better business and higher revenue.

4. Enterprise resource planning (ERP)

Example: Oracle Cloud Enterprise Resource Planning (ERP)

Think of enterprise resource planning (ERP) as a system that helps organizations manage all their daily activities. This includes everything from accounting and procurement to project management, risk management, compliance, and supply chain operations. It also has tools for planning, budgeting, forecasting, and reporting financial results.

ERP systems link different business processes and ensure data flows smoothly between them. They gather data from various sources, helping avoid duplication and maintaining accuracy. This ensures reliable and consistent information across the board.

In a nutshell, an ERP system connects people, processes, and technology within a business. This connection is key for driving business transformation and enhancing operational efficiency.

5. Supply chain management (SCM)

Example: Sage

Supply chain management (SCM) involves overseeing manufacturing duties, from obtaining raw materials to delivering the final product. While often associated with logistics, SCM encompasses much more.

SCM covers procurement, product lifecycle management, planning, logistics, and order management. It also deals with global trade, handling international suppliers, and production processes.

To make SCM work effectively, companies need to view their supply chains from the customer’s perspective. It’s not just about timely deliveries; it’s about ensuring smooth operations at every stage—before, during, and after delivery.

6. Contract lifecycle management (CLM)

Example: Ironclad

Let’s discuss contract lifecycle management (CLM). It manages contracts from start to finish, including creation, negotiation, approval, execution, performance tracking, and managing renewals or expirations.

CLM software streamlines this process by centralizing all contract data and automating essential tasks. Without it, managing contracts can be slow and disorganized, leading to inefficiencies and a higher risk of losing crucial data.

CLM software can update employee contracts for HR teams and ensure compliance with laws. Finance and operations teams can also track contracts and minimize data loss.

7. Product lifecycle management (PLM)

Example: Teamcenter 

Let me explain what product lifecycle management (PLM) entails. PLM helps businesses manage every stage of a product’s life, from design and development to distribution, marketing, and sales. It’s about speeding up the time to market and making the process more cost-effective and efficient.

One of the great things about PLM is that it unites different teams. Using a standardized process improves communication and encourages collaborative problem-solving. When teams work well together, businesses become more efficient.

This teamwork reduces time to market and increases flexibility. Plus, PLM helps reduce waste and improve product quality by breaking down complex tasks into simpler steps.

What are the benefits of an enterprise application?

The most significant advantages of using an enterprise application are:

Betters customer experience

Enterprise applications are ideal for boosting team performance and enhancing the customer experience. Tools like CRM systems or business intelligence software ensure that when your team is more productive, customers receive higher-quality products.

These applications also contribute to customer success by fostering more meaningful interactions. You’ll see higher satisfaction and loyalty when you build better customer relationships. For instance, analyzing customer data helps you design loyalty programs that customers value.

Another advantage is that enterprise applications can analyze data based on customer type, helping you create tailored solutions that encourage repeat business.

Lowers costs

Enterprise applications streamline operations, resulting in more efficient processes and employees. This boost in efficiency can lower costs. With the extra time saved, employees can focus on new ways to increase revenue.

Often, businesses use different systems for different tasks. For example, a finance system for payments and a supply chain system for managing orders and deliveries. When these systems don’t integrate, it leads to duplicated work. Enterprise applications create a unified platform where all systems can collaborate.

Allows you to grow at a quicker rate

Enterprise applications help organizations expand operations and manage resources more effectively. This flexibility makes it easier to control costs and adhere to budgets.

Many enterprise applications are cloud-based, which is a significant advantage. With cloud solutions, businesses can quickly adapt the tools they need. Unlike on-premise systems, you don’t need to spend a long time altering your infrastructure.

Cloud providers have the necessary infrastructure in place, allowing you to add extra services as needed. When demand decreases, you can easily scale back to your original setup.

Improves the productivity of employees

Enterprise applications boost employee productivity by automating repetitive tasks and reducing manual work. They also centralize information, so employees don’t waste time searching for data.

With these tools, employees can quickly respond to questions and concerns, allowing more time to engage with customers without feeling rushed.

When productivity increases, employees have time for creative problem-solving. Plus, with the right tools and processes, employees feel less stressed, fostering a more motivated and collaborative work environment.

Allows your operations to be more efficient

An enterprise application connects all a company’s tools and services, making business processes more efficient. It helps achieve better results while using fewer resources and generating less waste, saving time, effort, and money.

With everything running smoothly, businesses can offer better value to clients. It also makes it easier to leverage employee skills and technology to provide personalized services. This, in turn, helps attract and retain top talent, supporting long-term growth.

When efficiency improves, employees can tackle complex problems and get creative, spending less time on repetitive tasks and more on engaging work.

What are the challenges of implementing an enterprise application?

The main challenges of implementing an enterprise application are:

More end-user support needed from IT

When your team starts using a new enterprise application, there will likely be some bumps along the way. They might encounter issues as they get accustomed to the new tool.

Without proper support, users can get frustrated, progress can slow down, and you might not see the technology’s full return on investment (ROI).

To address this, consider using adoption software alongside the new tool. It can guide employees through the learning curve and reduce the need for constant IT support, ensuring a smoother transition.

Lack of a structured communication strategy

Clear communication is key when making any change, big or small. Without it, people might get confused and resist the changes more.

It’s a good idea to set up a solid communication plan to avoid this. This should include:

• Meetings to announce the changes and explain what’s happening.
• Training sessions will go over the details and help everyone understand the changes.
• Communication channels where employees can ask questions and discuss the changes.

This approach helps everyone stay on the same page and smooths the transition.

Integrating various types of tools together

Combining old systems with new applications can be tricky. Older systems often don’t work well with modern apps.

The more outdated your legacy applications are, the harder it is to integrate them. To address this, evaluate various enterprise applications to ensure they can work with your current setup.

Driving end-user adoption and reducing resistance

Getting employees to embrace new tools can take time, especially if they’re accustomed to the old ways and hesitant about change.

To ease the transition, ensure the new software is user-friendly. Provide role-specific guides and ample support resources.

Also, a change management plan should be developed to explain the benefits of the new tools. This will help everyone see why the change is worthwhile and make them more likely to embrace it.

Choose an enterprise application solution that is right for your needs

Enterprise applications can significantly boost a business’s efficiency. They offer real-time analytics that help make smarter decisions for long-term growth.

These tools also enhance communication and teamwork between departments, improving customer satisfaction by providing better management and engagement features. For example, CRM software helps track customer interactions and data, while ERP tools streamline key business processes.

HR management software simplifies recruitment, onboarding, and performance appraisals. When choosing a new enterprise application, ensure it fits your specific needs. Consider your goals, resources, budget, and user-friendliness.