Introduction
Sales force automation is an integrated system of computer software and hardware that performs routine sales function. The system is intended to keep track and monitor sales activities for small businesses and large companies.
Organization transactions, customer information, and company operations are some of the information stored in the system. The basis for sales force automation is a computer network in which an internet connection is outfitted to the main server that links them to the sales management software and connects them to marketing sites through the internet or extranet.
Sales force automation has several advantages and disadvantages as discussed in the next section.1
Advantages of Automating the Sales Force
Decreasing Human Resources and Increasing Productivity
Sales force automation increases productivity through saving time that could otherwise have been spent on manual creation of reports, records, and presentations.2
It facilitates accessibility and improves communication to support sales activities that may help in planning sales tactics. The system has improved productivity by increasing the pace of data collection and analysis from the grassroots to senior managers at company headquarters.3
This provides an opportunity for sales and marketing management personnel to improve information delivery and support provided to sales executives.4
Reduction of Human Error (Increase Efficiency and Productivity)
The system helps in minimizing human error by removing unnecessary steps, setting control, and reorganizing the supply chain. Through sales force automation, it is possible for sales executives to access real-time inventory levels, update catalog information, and reverse any information for verification, which increases accuracy of data.5
When information is processed from the field, crews can be programmed very easily and the inventory from the warehouse restocked on time to time basis.
Sales force automation is therefore very essential in inventory control as compared to traditional hand-written order forms that were subject to human error and their productivity was very low due to the use of manual systems to gather information.6
Data Management with Ease
Strong sales automation software helps the user to check the accuracy of data that goes through the business, particularly data relating to the customer.
Through sales force automation, it is possible for the sales and marketing management team to organize sales lead information by linking the customer with the associated organization.7
When the customer is contacted, all information is computed into reports for easy analysis and evaluation by financial analysts. Companies have experienced several challenges when keeping strong and progressive customer reports, which is very important for a company’s track record.
Use of traditional data management systems was very risky for large business organizations because data could be lost when shifting from one department to another.8
Electronic Data Interchange
This is an essential requirement for any firm to be on the competitive edge. Many companies providing customer support services have experienced low turnover due to their failure to capitalize on capabilities of electronic data interchange which could help in meeting customer demands.9
It also provides medium sized companies with an approach to increase the quality of services they provide to their customers and improve communication between business owners and their supply partners without having to travel or incur extra costs.
The whole process of electronic data interchange is made possible by sales agents who place orders direct from the customer to the supplier for immediate delivery. The software also supports multiple connections such as cases where distributors’ sales agents make order for their clients.
Integration
The ability to sustain customers lies in integrating sales force automation, call center system, and customer support into comprehensive solutions that help business organizations in supporting and tracking customers from the primary contact through future sales support.10
Sales systems that are not well integrated confuse customer relations, paralyze service provision, and later reduce the overall sales potential. Integrated systems provides high level services to both new and existing customers and provide new tactics of interacting with customers using a computer system with an internet connection.11
Maintenance (Cost of Goods Sold Increase)
It is important to note that for a business enterprise to progress in the recent competitive environment, the marketing and sales managers must adopt sales force automation technology.
Although this technology puts businesses at a competitive edge over others in the same industry, it is more important to note that maintenance cost of such technology is very high in terms of installation and payment of technical experts.12
This is because it is very expensive to buy the sales force automation software which is difficult to install and expensive to maintain. In addition, some data could be lost during data transfer from one computer to another, which might lose some important customer information leading to a loss in an organization.
Successful integration of the system requires internet connection, which is costly for medium sized businesses because they must pay for installation cost and internet usage.
Training
Effective implementation of the system requires adequate training on the software application, which is costly.13 For any software application, the training begins with practical examples and therefore it is the responsibility of all managers to ensure that both the management and employees are comfortable with software navigation before additional capital expenditure. Some companies prefer to offer training seminars in order to offer their sales force software.14
Hackers, Virus, Shut Down (contingency and cost)
Security threats from computer networks mainly come from hackers who take advantage of security flaws like exposure of published products and well-known configuration errors.
The cost of responding to such an incident can be very high and it could lead to loss of data and productivity in an organization.15 For instance, taking servers of a large company like Microsoft offline and altering data can cause down time.
Extra expenses are also incurred due to the cost involved in conducting forensic audit, coordinating with the investigators, replacing damaged resources and managing negative relations.
Viruses also pose a great challenge to data management in an enterprise.16 Many organizations have been forced to go offline for hours and days due to past attacks by viruses such as Melissa, Love, and Letter.
These viruses have increased the cost of operations in organizations because they have to adjust their cost each time an organization has gone offline. Currently, there is no any laid strategy to prevent an organization from such virus outbreak but they can reduce the cost brought by the virus by using antiviruses.17
Issues of Too Much Transparency
The main challenge in customer relationship development and management emanates from lack of clear and transparent presentation. Developers of sales force automation software are being challenged to create software that is easily compatible and without confusion which helps the user in controlling the system without difficulties.18
When sales force automation is transparent it means that there is no security and therefore all users can access important data for a corporate. Transparency is a very major disadvantage because anyone can access company data and when hackers access such information they can make a corporate go offline for several days.19
Electronic systems have become necessary in the life of every individual. They automated work in the offices, improved efficiency, and convenience for millions of people in the world.
However, since the introductions of portable electronic devices such as, mobile phones and computer people have suffered from several diseases causes by long exposure to electromagnetic radiation.
Such diseases include: leukemia in children and brain tumor.20 Medical experts have confirmed that in the past static scan has caused great harm to human body through lasting electrostatic Can which can absorb more dust in the surface therefore causing breathing problems.21
Conclusion
Though sales force automation has proved effective to many business ventures that adopted the system, It has also rendered many people jobless especially in countries with low market economy (developing).
Such technology is very effective if well applied in an organizational setting and the cost involved in operations can easily be cut down.
It is important to note that though there are so many advantages associated with sales force automation, companies and other organizations that have not laid down proper security measures have lost high revenues to computer hackers and virus. Others have been forced to close down due to competition and lack of enough funds to maintain the system.
Bibliography
Ahearne, Michael, Douglas, Hughes and Niels, Schillewaert. “Why Sales Reps Should Welcome Information Technology: Measuring The Impact Of Crm-Based It On Sales Effectiveness.” International Journal of Research in Marketing 24.4 (2007): 336-349
Banerjee, Snehamay and Ram, Kumar. “Managing Electronic Interchange of Business Documents.” Communications of the ACM 45.7 (2002): 96-102
Bellieni, Chen, et al. “Exposure to Electromagnetic Fields from Laptop Use of “Laptop” Computers.” Archives of Environmental & Occupational Health 67, no. 1 (2012): 31-37.
Boujena, Othman, Wesley Johnston and Dwight, R. The Benefits of Sales Force Automation: A Customer’s Perspective. Journal of Personal Selling & Sales Management 29.2 (2009): 137-150.
Clark, Paul, Richard, Rocco, and Bush, Alan. “Sales Force Automation Systems and Sales Force Productivity: Critical Issues and Research Agenda.” Journal of Relationship Marketing 6.2 (2007): 67.
Dimick, Chris. “Open for Business……Private Networks Create A Marketplace For Health Information Exchange.” Journal of AHIMA 83.5 (2012): 22-26
Dougherty, William. “Managing Technology during Times of Economic Downturns: Challenges and Opportunities.” Journal of Academic Librarianship 35.4 (2009): 373-376
Durkee, Dave. “Why Cloud Computing Will Never Be Free.” Communications of the ACM 53.5 (2010): 62-69
Furnell, Steven, and Matthew, Warren. “Computer Abuse: Vandalizing the Information Society.” Internet Research 7.1 (1997): 61-66.
Hayes, Chris. “The True Test of Loyalty.” Quality Progress 41.6 (2008): 20-26
Larpsiri, Ravipa and Mark, Speece. “Technology Integration: Perceptions of Sales Force Automation in Thailand’s Life Assurance Industry.” Marketing Intelligence & Planning 22.4 (2004): 392-406.
Moutot, Jean-Michel and Bascoul, Ganaël. “Effects of Sales Force Automation Use on Sales Force Activities and Customer Relationship Management Processes.” Journal of Personal Selling & Sales Management 28.2 (2008): 167-184
Owens, Dustin. “Securing Elasticity in the Cloud.” Communications of the ACM 53.6 (2010): 46-51
RenĂ©, Darmon. “The Concept of Salesperson Replacement Value: A Sales Force Turnover Management Tool.” Journal of Personal Selling & Sales Management 28.3 (2008): 211-232
Repacholi, Michael. “Concern that “EMF” Magnetic Fields From Power Lines Cause Cancer.” Science of the Total Environment 426 (2012): 454-457.
Rogers, Beth, Stone, Merlin and Foss, Bryan. “Integrating the Value of Salespeople and Systems: Adapting the Benefits Dependency Network.” Journal of Database Marketing & Customer Strategy Management 15.4 (2008): 221-232.
Rust, Roland and Ming-Hui Huang. “Optimizing Service Productivity.” Journal of Marketing 76.2 (2012): 47-66.
Speier, Cheri and Viswanath, Viswanath. “The Hidden Minefields in the Adoption of Sales Force Automation Technologies.” Journal of Marketing 66, no. 3 (2002): 98-111.
Spiessl, William and Hussmann, Huntler. “Assessing Error Recognition in Automated Driving.” IET Intelligent Transport System 5.2 (2011): 103-111
Tung, Wei-Fung and Soe-Tsyr, Yuan. “Intelligent Service Machine.” Communications of the ACM 53.8 (2010): 129-138
Footnotes
1 Michael, Ahearne, Douglas, Hughes and Niels, Schillewaert. “Why Sales Reps Should Welcome Information Technology: Measuring The Impact Of Crm-Based It On Sales Effectiveness.” International Journal of Research in Marketing 24.4 (2007): 336-349
2 Paul, Clark, Richard, Rocco, and Bush, Alan. “Sales Force Automation Systems and Sales Force Productivity: Critical Issues and Research Agenda.” Journal of Relationship Marketing 6.2 (2007): p.67.
3 Othman Boujena, Wesley, Johnston and Richard, Dwight. “The Benefits of Sales Force Automation: A Customer’s Perspective.” Journal of Personal Selling & Sales Management 29.2 (2009): 137-150.
4 Chen, Bellieni, et al. “Exposure to Electromagnetic Fields from Laptop Use of “Laptop” Computers.” Archives of Environmental & Occupational Health 67, no. 1 (2012): 31-37.
5 William, Spiessl, and Hussmann, Huntler. “Assessing Error Recognition in Automated Driving.” IET Intelligent Transport System 5.2 (2011). p. 104.
6 Ravipa, Larpsiri, and Mark, Speece. “Technology Integration: Perceptions of Sales Force Automation in Thailand’s Life Assurance Industry.” Marketing Intelligence & Planning 22.4 (2004): 392-406.
7 Durkee, Dave. “Why Cloud Computing Will Never Be Free.” Communications of the ACM 53.5 (2010): p.68.
8 Dustin, Owens. “Securing Elasticity in the Cloud.” Communications of the ACM 53.6 (2010): p.49.
9 Chris, Dimick,. “Open for Business……Private Networks Create A Marketplace For Health Information Exchange.” Journal of AHIMA 83.5 (2012): p.24.
10 William, Dougherty. “Managing Technology during Times of Economic Downturns: Challenges and Opportunities.” Journal of Academic Librarianship 35.4 (2009): p.376
11 Steven, Furnell, and Matthew, Warren. “Computer Abuse: Vandalizing the Information Society.” Internet Research 7.1 (1997): p.61.
12 Michael, Repacholi. “Concern that “EMF” Magnetic Fields From Power Lines Cause Cancer.” Science of the Total Environment 426 (2012): p.456.
13 Rust, Roland and Ming-Hui Huang. “Optimizing Service Productivity.” Journal of Marketing 76.2 (2012): p. 49.
14 Wei-Fung, Tung, and Yuan, Soe-Tsyr. “Intelligent Service Machine.” Communications of the ACM 53.8 (2010): 129-138
15 Jean-Michel, Moutot, and Bascoul, Ganaël. “Effects of Sales Force Automation Use on Sales Force Activities and Customer Relationship Management Processes.” Journal of Personal Selling & Sales Management 28.2 (2008): p.174
16 Darmon, RenĂ©. “The Concept of Salesperson Replacement Value: A Sales Force Turnover Management Tool.” Journal of Personal Selling & Sales Management 28.3 (2008): p.211.
17 Beth, Rogers, Merlin, Stone, and Foss, Bryan. “Integrating the Value of Salespeople and Systems: Adapting the Benefits Dependency Network.” Journal of Database Marketing & Customer Strategy Management 15.4 (2008): p.229..
18 Chris, Hayes. “The True Test of Loyalty.” Quality Progress 41.6 (2008): p.23.
19 William, Spiessl, and Hussmann, Huntler. “Assessing Error Recognition in Automated Driving.” IET Intelligent Transport System 5.2 (2011). p. 109.
20 Cheri, Speier, and Viswanath, Viswanath. “The Hidden Minefields in the Adoption of Sales Force Automation Technologies.” Journal of Marketing 66, no. 3 (2002): 98-111.
21 Snehamay, Banerjee, and Ram, Kumar. “Managing Electronic Interchange of Business Documents.” Communications of the ACM 45.7 (2002): p.101.