What is internal use software?

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Internal use software refers to computer software that is developed or acquired by a company for its own internal use rather than for sale or distribution to external customers. This software is typically used to support various business processes, improve efficiency, and enhance productivity within the organization. In this article, we will explore the concept of internal use software in more detail, discussing its characteristics, benefits, and common examples.

Characteristics of Internal Use Software

Internal use software possesses several key characteristics that distinguish it from software developed for external customers. These characteristics include:

Intended for internal use: Internal use software is specifically designed to meet the needs and requirements of a particular organization. It is not intended for sale or distribution to external customers.

Customizability: Internal use software is often highly customizable to suit the specific workflows and processes of the organization. It can be tailored to fit the unique requirements of the company, allowing for greater flexibility and efficiency.

Integration: Internal use software is typically integrated with other systems and applications used within the organization. This integration enables seamless data exchange and collaboration between different departments or functions.

Security: Internal use software often places a strong emphasis on security measures to protect sensitive company data. Robust security features, such as access controls, encryption, and authentication mechanisms, are implemented to safeguard the software and its associated data.

Benefits of Internal Use Software

Internal use software offers several benefits to organizations, contributing to improved efficiency, productivity, and overall business performance. Some of the key benefits include:

Streamlined processes: Internal use software helps streamline various business processes by automating repetitive tasks, reducing manual effort, and eliminating inefficiencies. This leads to increased productivity and cost savings.

Improved data management: Internal use software allows organizations to effectively manage and analyze large volumes of data. It enables data integration, storage, retrieval, and reporting, providing valuable insights for decision-making and strategic planning.

Enhanced collaboration: Internal use software facilitates collaboration and communication among employees by providing centralized platforms for sharing information, documents, and resources. This promotes teamwork, knowledge sharing, and innovation within the organization.

Competitive advantage: Well-designed internal use software can provide a competitive advantage by enabling organizations to differentiate themselves in the market. It can support unique business processes or provide innovative features that give the company an edge over competitors.

Examples of Internal Use Software

Internal use software can take various forms, depending on the specific needs and requirements of the organization. Some common examples include:

Enterprise Resource Planning (ERP) systems: ERP systems integrate various business functions, such as finance, human resources, supply chain management, and customer relationship management, into a single software platform. They enable efficient resource planning, data management, and process automation.

Customer Relationship Management (CRM) software: CRM software helps organizations manage their interactions with customers, track sales, and streamline marketing efforts. It provides a centralized database of customer information, facilitating effective customer engagement and relationship management.

Project management tools: Project management tools assist organizations in planning, organizing, and tracking projects. They enable teams to collaborate, assign tasks, monitor progress, and manage resources, ensuring projects are completed efficiently and on time.

Inventory management systems: Inventory management systems help organizations track and manage their inventory levels, ensuring optimal stock availability and minimizing wastage. They provide real-time visibility into inventory status, streamline procurement processes, and support accurate demand forecasting.


Internal use software plays a crucial role in supporting business processes, enhancing efficiency, and improving productivity within organizations. It is specifically developed or acquired for internal use, and its characteristics include customizability, integration, and security. The benefits of internal use software include streamlined processes, improved data management, enhanced collaboration, and a competitive advantage. Examples of internal use software include ERP systems, CRM software, project management tools, and inventory management systems.


– Oracle: www.oracle.com
– Salesforce: www.salesforce.com
– Project Management Institute: www.pmi.org
– Fishbowl Inventory: www.fishbowlinventory.com