The answer is no.

“If it aint broke, don’t fix it” does not apply to your small business application programs. Your application is like a good race horse, you run it until it can’t race anymore and then you retire it. You don’t try to patch it up.

The contact management sector is a prime example of this.  Thousands of small to mid-size businesses are still operating old versions of desktop programs such as ACT, Goldmine and Maximizer that are no longer meeting changing business requirements, but because they aint broke, they don’t get replaced.  As a result of this, these mid-size businesses are not taking advantage of newer web based CRM programs that are helping businesses become more effective marketing, sales and service organizations.

The great applications replace is upon us and we can’t fight it any longer but how do you go about deciding which applications to replace? See my list below.

• If it was built over a decade ago, no matter by whom, it is a prime candidate for replacement.
• If the underlying business requirements have changed significantly since the application was developed, you can be certain that it is not performing optimally.
• If the application was written to run natively on a mainframe, a midrange or even a personal computer, it’s on the list.
• If the application has a pure character interface and all of the reports are in text, it’s a candidate.
• If the application does not grant web-based access to staff or members, it needs immediate attention.  Some things to beware of:

If the application does not fit the business requirements then you have to go back to the drawing board. To do this properly, presupposes that you thoroughly understand how your business functions.

The good news about replacing older applications is that there is a large number of providers to choose from.  In the CRM sector for example products such as Microsoft Dynamics, Salesforce.com and Commence CRM from Commence Corporation are excellent choices for managing customer interaction and improving sales execution and customer service.

About the author:  Jim Smith is the CEO of YChange International, a consulting firm that provides marketing and consulting services to small businesses. Smith has more than 30 years of experience in the field and has held executive level positions with several Fortune 100 software firms.  He is an accomplished author of numerous white papers on the subject of marketing and business development. Additional information may be found at http://www.ychange.com

Take the recent article that appeared in Tech Vibes titled Hui Family takes over Maximizer software. The article indicates that Maximizer CRM has experienced a significant decline in revenue due to recession related issues.  While it’s clear that most CRM companies are not hitting too many home runs, this revenue decline may have more to do with the migration of small to mid-size businesses to Web CRM software than economic issues.  Maximizer does not offer a web based CRM solution.

Commence Corporation had been in a similar space, selling desktop customer management software and sales force automation software to small and mid-market companies. For many years we competed directly with the FrontRange Goldmine product, SalesLogix and later with Microsoft Dynamics after they entered the market, but even at that time it became clear that things were beginning to change in the SMB space.  Software as a service (SaaS) solutions from companies like Salesforce.com were beginning to pave the way for a migration from desktop solutions to web CRM software that were easier to implement and easier to use. While several of the companies outlined above stayed the course, Commence migrated its award winning CRM software to the web and introduced Commence On-Demand, a web CRM solution  specifically designed for small to mid-size businesses. While we still sell our desktop product, 80% of the inquiries we receive each day for customer management software are for our web CRM product and even through the economic conditions are not much improved, Commence On-Demand has experienced growth in both the number of subscribers and in revenue.

It’s clear that this trend towards web based CRM software vs. on premise CRM software will continue and those companies that do not have a “software as a service” or SaaS offering will continue to experience a decline in their customer base and revenue.