10 Benefits of Software Solutions for Your Business

From startups to even large-scale enterprises, most businesses rely on software applications to secure different advantages.

And why not?

The advent of software solutions has created new avenues for enterprise for continuous advancement. These are the tools that make a business technologically capable and future ready by offering a host of necessary and useful features.

Due to the increasing use of software solutions, the software market is expected to reach the market volume of US$858.10 billion by 2028 at a CAGR of 5.27% during 2024-2028.

The growth is a result of a variety of reasons covered by these top 10 advantages that describe why software solutions must be a part of every organization’s reengineering efforts.

What are Software Solutions?

Software solutions are integrated sets of software applications, tools, and services that are developed to meet the requirements of various industries, functions, and processes within an organization. They provide numerous benefits that significantly improve operational efficiency, data management, customer experience, and overall competitiveness.

1. Increased Efficiency

Businesses have always been on a quest to achieve higher levels of efficiency and productivity. But for the last decade, they have been more keen and seeing the solution in adopting software applications to bring intended improvements.

Multinational companies have been demonstrating how software solutions can bring significant transformation. Enterprises like Walmart best represent the class of enterprises which have been relying on software-led transformation for exponentially increasing their operational efficiency for meeting strategic goals.

Take for instance the inventory management system that Walmart implemented. Employing a just-in-time cross-docking approach, the system assists in transferring goods directly from suppliers’ trucks to Walmart’s trucks at the company’s warehouses or merchandise distribution centers. As a result of the implementation, Walmart has massively reduced storage costs and minimized time to deliver goods to stores. It soon achieved the average inventory turnover ratio of 5.5 annually which was higher than the industry average. Due to such great benefits, most businesses have turned to retail software development to reap benefits of technology.

If we look at other areas, chatbots enhancing customer support systems bear testimony as to how applications can streamline key processes. Bank of America’s Erica, an AI-powered chatbot addressed 50 million client requests in less than 12 months after its launch in 2018. And as reported in 2023, the virtual assistant had completed 1.5 billion client interactions. This is how software solutions can phenomenally improve efficiency across any business process and generate handsome results.

2. Improved Data Management

The idea of data management in any enterprise first takes us to the idea of data. The need for data management arises because of data. When there were no software systems, manual methods existed for managing data. But the process was severely fraught with errors. Then arose the legendary solution – use of spreadsheet softwares that began revolutionizing how data was managed.

Soon, the sources of data multiplied and more advanced solutions arose. Big data, cloud-based data management capabilities became the norm of the day. These solutions also demonstrated tremendous improvements. As Gartner has brought out, businesses using master data management (MDM) solutions have improved the accuracy of their data by 20% resulting in 15% improvement in efficiency.

Today, leveraging a dedicated software solution is a part of the data management strategies of the most large-scale enterprises. Uber and Airbnb have been at the forefront of this revolution to manage data and generate valuable insights for furthering business success.

3. Cost Reduction

ORION (On-Road Integrated Optimization and Navigation) software implemented by UPS has been instrumental in optimally deploying thousands of drivers across routes.

Remarkably, for a $250 million total investment, ORION brought the company $320 million in three years of its deployment. ORION offered the promise of USD 300 to USD 400 million annual savings and cost reduction by cutting distance by 100 million and reducing fuel consumption by 10 million gallons, and offering the commitment of reducing CO2 by 100 thousand metric tons.

For its staggering improvement to the operational success, ORION won for UPS the prestigious Franz Edelman Award for Achievement in Operations Research and the Management Sciences, presented by INFORMS.

For different businesses, software solutions are assisting in reducing cost in many ways. Like UPS there are many companies who have achieved notable reductions in cost and have converted the cost consuming processes into revenue generating processes.

In similar manner, these are some acknowledged implementations of software solutions known for slashing costs:

An automated payroll system processes employee payments, calculates taxes, and manages deductions without manual intervention. HRs don’t have to spend unnecessary time on payroll tasks and also perfection is achieved in the process.
In the utility space, smart grid technology integrates advanced metering infrastructure, real-time monitoring, and automated control systems to optimize electricity distribution, reduce energy losses, and offer the ability to quickly respond to outages.
In banking, anti-money laundering (AML) applications automate the monitoring of financial transactions to detect and report suspicious activities. It eliminates the manual workload of compliance officers and minimizes the risk of regulatory fines. Further mobility solutions in banking are bringing new waves of transformation by improving operational capabilities.

4. Enhanced Customer Experience

In contrast to traditional, non-digital approaches that often depend on one-size-fits-all services, software applications harness data potential to make the experience smooth for users. Online stores and OTT platforms work on this philosophy and enhance audience engagement and CRM solutions remain one of those tools that improve customer loyalty.

Music streamlining platform Spotify employs machine learning algorithms to analyze user listening habits and preferences. It creates personalized playlists like “Discover Weekly” and “Daily Mix,” introducing users to new music they are likely to enjoy. Users don’t have to sift through an ocean of songs to search for their favorite one.

Working in similar fashion, Netflix leverages sophisticated recommendation algorithms to suggest movies and TV shows based on a user’s viewing history and preferences. Netflix’s continuous refinement of recommendations consistently presents users with options that hit the mark, boost user engagement and keep subscribers hooked.

5. Scalability

Implementing a software solution is an indispensable choice for businesses to scale in today’s tech-dominated times.

Take Amazon, for instance. The eCommerce titan didn’t just become a household name overnight. By implementing advanced logistics software and using Amazon Web Services (AWS), Amazon could manage its colossal inventory and dynamically scale its infrastructure. Implementing cloud is a cost-effective strategy to scale, what Amazon’s experience shows. Meanwhile, the retailer’s sophisticated supply chain software ensures rapid order fulfillment, keeping pace with increasing demand.

What about Uber, which scaled its business by embracing newer applications and bringing change to applications witnessing the need to scale? We all know how the Uber app connects drivers and riders in real-time, but behind the scenes, the app dynamically balances the network, which is the key to accommodate a growing user base without compromising service quality.

We have also been witnessing the rise of telehealth platforms, which is part of healthcare organizations’ scaling efforts. Overcoming physical limitations, these platforms help deliver virtual consultations, monitoring, and treatment. Healthcare organizations can expand their reach to underserved areas and accommodate more patients without increasing physical infrastructure. This is how software solutions can unfold possibilities of scaling for enterprises.

6. Better Communication

For businesses which have their teams scattered across locations, they need powerful applications for unified communication so that their schedules are not hampered. Today, you have tools like Slack, Zoom, Microsoft Teams, Trello, and Asana; but apart from these off-the-shelf communication and collaboration tools, you can also build your own custom communication software that precisely addresses your needs.

For geographically dispersed teams, these applications prove to be of high value as they break down barriers of time and space, and allow for real-time exchange of ideas, information, and resources by:

Offering channels, direct messages, and integrations with other tools
Supporting virtual meetings, webinars, and conference calls, allowing for face-to-face interaction despite physical distance.
Combining chat, video meetings, and file collaboration in one place.
Offering boards, lists, and cards to help teams visualize tasks and workflows.

While this was more about communication within a team, applications like CRM systems smooth the communication with clients. You can effortlessly manage client interactions, track customer history, and provide personalized service, by remaining in constant touch with them. Communication software thus helps build and maintain strong, productive relationships within and outside the team.

7. Regulatory Compliance

Compliances and regulations are a key part of most business processes and also in technology upgradation exercises. So, compliances are critical in cloud development as much as they are in any business process.

Due to automation capabilities, software applications excel in meeting regulatory compliances. They offer key features that bring efficiency to the process of compliance management. These features include:

Maintaining detailed logs of user activities, including access attempts, modifications, and deletions of sensitive data and ensuring logs are tamper-proof, time-stamped, and stored securely.
Implement policies and mechanisms for managing data retention periods and secure deletion of data when no longer needed
Capabilities to generate compliance reports that document adherence to specific regulations or standards. Dashboards offer real-time visibility into compliance status, metrics, and potential issues.
Automated compliance checks into workflows to enforce policies and detect deviations promptly for validating data input against compliance rules or performing periodic scans for vulnerabilities.
Maintain a documented change management process that tracks and manages updates to software and configurations.
Implement version control and metadata tagging for documents to manage revisions.
Develop and test incident response plans to address data breaches or non-compliance incidents promptly.

These extensive capabilities make 93% of compliance teams agree that new technologies like AI and cloud software make compliance easier. Consolidating information, documentation, and processes, they make it easier for organizations to monitor and implement regulatory requirements across various departments and locations.

8. Remote Working Capability

Since the pandemic, many organizations adopted the remote model of working and those that came of it, switched to hybrid models, where employees still have to rely on strong technological capabilities to support their remote work. Today, 98% of remote workers are looking to work remotely for the rest of their careers, and they will need robust software applications to maintain efficiency.

The remoteness of work is not just restricted to specific industries today like IT, but is a part of even industries like manufacturing where one can hardly imagine working remotely. But changing times have called for changing needs. A field manager would like to get immediate access to the real-time insights into shop floor KPIs. Top management needs insights into all its manufacturing facilities spread across countries to gauge the performance of each unit.

All these situations necessitate an ecosystem that comprises diverse applications. For IT, those cover the areas such as:

Communication and Collaboration: As we already saw, these are essential for real-time interaction among remote teams, file sharing, document collaboration, and virtual whiteboarding.
Project Management: Tools to plan, track, and manage projects and tasks efficiently.
Time Tracking and Management: Monitoring and managing work hours, improving time allocation.
Remote Desktop and Access: Allow remote access to computers and networks, facilitating troubleshooting, support, and collaborative work.
Security and Privacy Tools: For data protection, including VPNs, encryption tools, and secure password management systems.
Development and IT Operations Tools: For coding, testing, version control, and deployment automation.
Knowledge Management: Platforms for creating, storing, and sharing organizational knowledge.

Businesses in non-IT industries may need some of these tools, but most importantly they need a strong custom tool that will combine collaboration and monitoring capabilities to meet the peculiar needs of their business.

9. Insightful Reporting

Many BI and reporting tools like Tableau and PowerBI have arisen which have changed the way businesses can generate and use insights and make decisions, using custom dashboards. And there are enterprises that prefer to have their own reporting tools where the data is fed directly into the application which in turn presents real-time insights to stakeholders.

Organizations like Facebook, Netflix, and Airbnb have demonstrated how internal tools can improve BI and reporting capabilities. Netflix has built multiple internal tools such as Genie (Hadoop job execution), Lipstick (Hadoop workflow visualization), and Vector (Real-time performance monitoring) that have improved their BI and reporting process.

Software solutions have magnificently changed the way data can be used for driving a business towards a profitable direction. The reporting capabilities are not restricted to desktop applications, but even the mobile market is shooting up, as most workforce now is dependent on mobile capabilities. During 2021 to 2026, the mobile BI market is expected to increase at a CAGR of 22.43%.

Cloud BI is another adoption that has become a priority area. What was important to 54% organizations in 2020, became a key concern for most organizations in the next just three years.

10. Competitive Advantage

With all the capabilities that we discussed in the preceding part, a software application acts as a potential tool to secure competitive advantage. They act as differentiators and help build a strong image in the market.

Especially, when you choose to build a custom software, you have a significant advantage, because you can customize it to your unique processes and it swiftly adapts to your business process as they evolve.

Sighting that your competitors are bringing changes that are driving their growth, you can implement an application to counter that competition. Things are easier when you are partnered with a professional software development firm, where you can directly discuss your business needs and have them in your application.

Overall, by investing in software solutions, you invest directly in your business’s capabilities and innovation potential, and always keep you ahead in the race.

To wrap up it’s time you build a software

Software solutions keep reconfirming their value as new technological developments continue to unfold. The limitless possibilities to implement them cast light on limitless possibilities to build applications.

If your business is still waiting for an opportunity to build an application, it’s time you identify opportunities or else you will keep missing out on gaining advantage. These 10 benefits or advantages we discussed are enough to inspire you to build a software application. Finoit is here to assist you with all your ideas as our experts will bring vision to life and help you thrive in the competitive market.