The increased efficiencies and cost savings afforded to companies by moving business practices to the Internet are significant. There are also several economic factors facing businesses that have spurred demand for software. High labor costs encourage organizations to automate specific processes. By employing the technological advantages of software applications, timely and expensive tasks can be reduced, increasing worker productivity. Businesses are also in extremely competitive environments with little pricing power.
Software can cut expenses to spur bottom-line growth.
Examples include customer service, sales, and marketing. Company websites have become a major investment vehicle by fulfilling every customer need anytime, anywhere. The Internet has improved the flow and quality of information, thereby allowing employees to make critical decisions that improve relationships with customers and suppliers. Last June, Rule Maker co-manager Matt Richey picked the brain of Foolish research analyst John Del Vecchio about Siebel. It's interesting to go back and read the piece, because many of the questions that were left unanswered have since been resolved, particularly regarding the competitive environment.