How do VoIP Phones Work and what are their Benefits?

It is impossible to imagine a business place without a phone. Communication is the backbone of business and the amount of business that takes place over phone is immense. In this article we will look into VoIP (voice over internet protocol) phones and understand how it works. We will also compare the various benefits it offers in contrast to the conventional analog phones. Read on.

What is a VoIP phone?

VoIP is a popular abbreviation and it stands for voice over internet protocol. It pretty much means the same thing, transferring voice over internet. The conventional phones we know about used to be heavenly dependent on landline wires and currently depend on the 3G and 4G network spectrums. They still use a dedicated phone network to transmit voice alone and this is pretty expensive for a business organization where thousands of calls are made every day. VoIP phones ensure that phone calls can be made using any internet connection, still retaining all the features and benefits of a conventional phone. Voice is converted into small packets of data to be transmitted over the internet and converted back into sound at the receiving end. Simply put, VoIP phones are advanced analog phones that use internet instead of a dedicated phone network.

What are the Benefits of VoIP Phones?

1. Flexibility

First of all, VoIP phones offer a lot of flexibility when compared to the conventional analog phones. VoIP phones can be operated over any internet connection. You can go anywhere with the phone, connect it to a working internet connection and you have a dial tone. Any business operation needs an internet connection more than a dedicated phone system today and it makes no sense to pay hefty amounts to a telephone network when you can make calls over the internet.

2. Cost Effective

Be it an analog phone or a VoIP phone, you have to invest on a phone system. However, you can still save over the phone network you are using and completely abandon it. When you are making calls over the internet using VoIP you don’t have to pay any additional amount to the internet service provider. Thus you will be saving a fortune over the time and still be able to make phone calls like you used to.

3. Easily Scalable

VoIP phones are way more advanced when compared to the traditional analog phones. You can create and remove a phone line as and when you please without any hassles. Suppose you recruit new employees or few of your employees get shifted to another branch, you can easily manage the phone lines without depending on any telephone network provider.

4. Additional Call Features

If VoIP phones were just about voice over internet, they wouldn’t be such a rage. Apart from voice calling they allow multiple other call features including call hold, call transfer, conference calling, automated calling etc. These features can help boost efficiency and productivity in a business organization.

Importance of Software for Small Businesses

There are many tools and solutions that business professionals use today. Most of these tools and solutions are software applications that help businesses leverage their operational capabilities. Almost all business operations will have some or other software application that will help organizations in achieving their objectives. Popularly known as business software, these are a set of software applications that can be used to improve the efficiency and accuracy at work places. There are many advantages that software offers for small businesses which we will discuss in this article.

Business Software and Its Need in Small Business

1. Automation

Firstly, business software help in automating many processes that used to be handled by people before. Process management, procurement, customer relationship management, inventory management, accounting, auditing, billing…there is no business operation that cannot use the services of automation and reduce its dependency on human intervention. Automation not only reduces the need for humans but also increases the accuracy and efficiency with each business process is carried out. Small business can thus hire less and save on their HR expenses.

2. Integration

Business software applications help create a digital world of business operations and integrate all these operations in real time. For example, two different solutions that are used for sales and billing respectively can be integrated to track the conversions that happened during a span of time. Later this data can be transferred to a CRM software to whitelist the loyalist customers the company has and special loyalty benefits can be offered to them. What you can see here is the integration of different software applications serving different small business operations integrated together to ensure ease of flow.

3. Accuracy

Data management is one of the most tedious jobs in business organizations and with the use of software applications, a lot of this work can be automated as mentioned above. Apart from automating, business software also ensures that accuracy is maintained throughout. Thus there won’t be any inconsistency in data management or any errors that can prove fatal later. Small businesses which have limited budgets cannot afford to make mistakes with their data as there is very little money left for risk management.

4. Business Intelligence

Data integration and management becomes a major aspect of using business software. These applications leave behind a lot of raw data that can be further processed to understand patterns, trends and other interrelated aspects that is hidden within data. With software that support big data management, analysis and machine learning, the data that a small business owns can be put to good use to make predictions and obtain business intelligence.

5. Communication

Another main benefit of using software in small business is that helps in managing both internal and external communication effortlessly. There are many applications that bring all the employees on a single platform where objectives can be updated, projects can be created, deadlines can be set, work can be assigned and documents can be uploaded and downloaded. These applications ensure that a virtual workplace is created which can be used by any employee irrespective of the location and time. Thus, it enables employees to be on the go and stay connected all the time.

Importance of Technology for Small Businesses

Technology has always been the leading cause of evolution of humans as a species. Technology makes our lives simple, automated and helps us focus on more cognitive things that machines can’t perform. Moreover, the best part of technology is that it keeps evolving, making our lives smarter and better. Business technologies are the type of technologies that are specifically meant for business organizations. In this article we will see how important technology is for small businesses and look at few of the most essential ones that every organization needs.

Importance of Technology for Small Businesses

1. Reduces the dependency on location and improves communication

With the help of internet, laptop and smartphones, bedrooms have turned into boardrooms. People can be connected under a common platform, upload and download files quickly from any place and even co-ordinate with another with various communication channels. Email, WhatsApp, Slack, LinkedIn…the number of platform over which the communication happens are endless. People don’t have to attend offices every day and can always be on the go. For small businesses that have fewer resources, small office spaces and limited hiring, technology becomes a boon as their employees don’t have to be bound by an office space. All these companies need is individuals who can work on the go, juggle multiple responsibilities and efficiently use technology to multiply their capabilities.

2. A lot of things get automated

Another main advantage that small businesses can enjoy by being technology dependent is that a lot of their processes become automated. Be it inventory management, data processing, accounting, auditing or any other operation that involves quantified data, technology takes over these responsibilities. Software applications and suites are available in plenty for different business operations and they are easy to install and use as well. For example, businesses can use convenient CRM software to automate most of their customer relationship management. Automation reduces the need of human labor and also increases efficiency and accuracy. Thus with automation technologies, small businesses can reduce their hiring, and increase efficiency and accuracy.

3. Improves Efficiency and Productivity

Business technology helps in improving efficiency and productivity in business organizations. Computers and various software applications that are run on them are highly accurate and faster than humans. Even when it comes to manufacturing, machines are far better than humans for assembly jobs. As time passes by, these technologies will only get smarter and make things better for the organization. A lot of work can be done within a short period of time, ensuring quality of work for small businesses when business technology is actively used.

4. Business Intelligence

As mentioned before, machines keep evolving over time and the kind of advancements computing is making is impressive. With technologies like AI, machine learning and big data analytics, the computational abilities of computers have drastically increased. With acquired intelligence and predictive analysis, these computers and software applications can offer business intelligence regarding investments, accounting, hiring and a lot of other business decisions. Small businesses can take the risk and implement these business decisions as machines are always accurate and compute risk beforehand.

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