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Management Information Systems
By JP Vellotti
PC Magazine - March 14, 2001 - ASPs that provide management information systems (MIS) offer a huge number of sophisticated applications formerly available only in highly customized networked environments at the corporations with the deepest pockets. Among the applications: enterprise resource planning (ERP), supply-chain and inventory management, sales and marketing, customer relationship management (CRM), help desks, sales force automation (SFA), and human resources.
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What MIS ASPs Offer
Traditional ERP relied on client/server architecture and tended to produce a rigid finished product, not easily altered to fit the changing needs of a growing company. Because the ASP model ERP is Web-based, it offers a more scalable and flexible architecture that can easily be adapted as a business plan or size shifts. The ASP model is, in fact, so desirable for ERP that older ERP companies are increasingly choosing it as their means of distribution. PeopleSoft, for example, partnered with Corio and usinternetworking to offer financials, purchasing, manufacturing, and HR models.
Companies that want to use CRM applications for sales force automation -- an approach that lets them track all interactions with all their customers in one centralized location -- also have good options among ASPs.
Companies that want to use an ASP for help-desk needs should expect to pay on a sliding scale. ASPs often charge a flat fee for a basic level of service, based on how many help-desk calls will be expected per month.
Smaller companies often outsource some aspect of their accounting procedures -- usually payroll -- but not through an ASP. Yet many payroll centers, such as Automatic Data Processing and Virtual Payroll, do in fact offer this service via the Internet. Many companies opt for such services, because that allows for quick and easy access by remotely located payroll departments (allowing several branches to be managed by the same staff). It's simple to provide data to third-party accountants as well; all a company need do is give them the password.
MIS ASP Tip
When negotiating, remember that the amount you pay often depends on usage. Additional activity will greatly increase the price of the service. The best idea is to be liberal in gauging your anticipated usage -- and your growth potential -- so that you don't incur unexpected and much higher ASP expenses later on. The up-front bulk cost is always less expensive than the succeeding cost for increased activity.
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