Social Networking and ERP?

Social Networking and ERP

Social Networking has become the mainstay of the internet now. Facebook, Twitter, and the like are all drawing people in and essentially training the next generation of computer users. These social media sites are like magnets that people have to go to each and every day to keep up with their friends and share their updates. People are accessing these media sources from all types of devices. It is all absorbing.

One of the biggest problems in most business applications is user adoption. Getting the users to use the Social Networking and ERP together is a key challenge in many applications. So how does the business applications market combine the social media attraction to a financial or manufacturing system? Combining a social media approach to a business management system would seem to be a logical conclusion. But there are obstacles. You have two different elements playing here. The cold hard facts of transactional data and the emotional connectedness of the social media. How can these gel together?

Salesforce.com has begun a trend in combining social media with a business application through their Chatter application. Essentially, Chatter is a Twitter for Salesforce.com. It is an embedded part of Salesforce.com. Users can post status updates and see all of the updates from their chosen connections (friends). But the power of this application is that you can follow business objects within Salesforce.com such as Accounts, Opportunities, Contracts, etc. So anytime an update occurs on these objects, you get a status update, not from a friend, but rather from an application.

Social Networking and ERP in Action

So how would this likely work in an ERP solution? First you could enhance any alerts to post to a status page. Next you could potentially use it to notify you on any changes to any master record, such as customer, supplier, inventory, or BOMs. The next thing you might consider is to have criteria based alerts be in the form of status updates. Post an update when a customer exceeds their credit limit, or post an alert when a critical inventory part is below its optimal stocking level. Together Social Networking and ERP can have an amazing integration of functionality.

The next logical extension of this would be to extend the ERP to the social web. Imagine getting private posts on Facebook when your major customer falls past due or when your shipment that absolutely must go out notifies you that it shipped on time. When Social Networking and ERP converge, you will have seamless integration between your networks, including Twitter, Facebook, and Linkedin.

Social Networking and ERP in the future

The problem with this whole concept is the ability for traditional client server based ERP solutions to move in this direction. Some of the new systems (or recently re-written) solutions may be able to implement this type of functionality quickly, but some of the older technology solutions may have difficulty bringing a social media function quickly to bear. Social Networking and ERP may only be a thing of dreams, but it can very well be reality faster than you might expect. This integration is clearly something that anyone looking for software should watch for and something we should add to our post on What to look out for when selecting software.

As this is a topic with no clear solution yet, what do you our readers think? Where is this going? When will we see it? Please post your comments and thoughts.
Social Networking and ERP

ERP Disaster Recovery

One of the most critical plans you can make is to prepare for the worst, especially when it comes to your enterprise software system and the database of all of the company’s critical information. A proper disaster recovery plan is essential, if you are running an ERP system, as it touches all aspects of the company. The plan can be as simple as a backup and recovery strategy, or as extensive as a global hot site fail-over plan. In either case, you need to prepare and test your plan.
ERP disaster recovery
Testing the plan is often where people fail. You often plan for the eventuality of a hard drive crash (and thus you use a RAID array), or you plan for the possibility of natural disaster, but what if you have a hidden hardware problem that is corrupting the database a little at a time?

That happened with one company we worked with. A failing motherboard caused problems with the email virus scanner, which in turn corrupted the email store a little at a time, so that it was unrecoverable. What do you do then? Well, in that case it was restore to the point in time that the email store database was usable. So the net impact was a few weeks of data loss. That is one illustration, but what happens if something like that occurs in your ERP database? Again the key is backups.

If backups are so critical, then why do people choose not to bother with testing and restoring them? This is a key concept in ERP Disaster Recovery. Many people happily back up night after night, but never try to restore a data file or much less a database. Is it too expensive to have a test server? The real question is it too expensive to not have your ERP data after a disaster? What is the company worth? Millions? A few thousand dollars for a test environment seems like a reasonable investment.

Key ERP Disaster Recovery Priorities

Here are some of the things you need to think through when planning for ERP Disaster Recovery:

1. Backups and Recovery procedures
2. Off-site storage of backup media
3. Security of backup media
4. Remote site backups (In a disaster, can you get the business up if the server site is destroyed?)
5. Personnel (In a disaster, can the right people be there to recover?)
6. Priority levels and potential downtime acceptability
7. Costs

ERP Disaster Recovery Resources

There are some excellent disaster recovery resources on the web on this topic. One article that we liked was on making proper backups for your ERP system. We would suggest that you invest the time to learn more about this topic before it bites you. Remember that disaster always strikes at the most inconvenient time, so make the time now.

ERP Disaster Recovery

Infor Launches Infor24 Cloud Initiative and Selects Microsoft Windows Azure as Preferred Cloud Platform

Infor and Microsoft

Infor, one of the major players in ERP software, announced today that it has teamed with Micosoft to utilize their Azure platform for SAAS based computing and is offering several cloud based solutions on the Azure Platform. This is a significant move on their part and shows how larger ERP Vendors are moving to cloud computing.

Leading their ERP charge is Syteline, a powerful ERP solution for manufacturers. Taking this to a cloud solution will allow companies without the base infrastructure to utilize this software without the headaches of maintaining application and database servers.

Cloud based ERP should also shorten the implementation timelines of implementations. Using a cloud platform, you have taken the infrastructure questions out of the equation and are now strictly focused on processes and configuration.

You can read the press release here: Infor Launches Infor24 Cloud Initiative and Selects Microsoft Windows Azure as Preferred Cloud Platform.

This seems to be a trend in the industry, ERP software vendors moving to the cloud. Infor is clearly an example of this. What do you think of larger ERP solutions moving to the cloud?

You can see more Infor products in our ERP Vendors Directory.

Infor Launches Infor24 Cloud Initiative

ERP Evaluation

If you have ever been through the ERP Evaluation process, you understand the stress and pressure that is involved with selecting ERP Software. Selecting ERP software is like getting married. It can have a lot of unknowns. If you are just beginning the process, hopefully this article will provide you useful tools to streamline your efforts. An ERP Evaluation process takes time and the level of effort for properly selecting a provider and implementer can be tremendous. Here are some key things that you need to keep in mind.

A company only goes through an ERP Evaluation, on average, only once every seven to ten years. As such, they usually do not have resident experts in selecting software. Companies do everything from the extremely methodical analysis taking years, to the rash signing of the contract at a software convention with no investigation at all. How long should a proper search take from start to finish? If done in a thoughtful and yet expedient manner, it should take anywhere from three to six months. This really depends upon the number of candidate software vendors you are looking at and the degree upon which you investigate the implementers.

Reducing time on you ERP Evaluation

One of the best ways to keep the selection time down is to hire a coach. This coach can be a consultant, a seasoned colleague from a trade association such as APICS, or a Software Selection Service. In either case, they will be able to steer you clear of some of the obstacles that you are likely to run into. You want to choose someone that has a clear understanding of the ERP Software landscape. They must have been through several ERP Evaluations previously.

ERP Evaluation of Internal Processes

Once you choose your guide, you then need to look at your internal processes. Ideally, you can document your business and answer the following questions:

What is the general industry of the business are you in? (ie. Manufacturing, Distribution, Professional Services, Retail, Property Management, or Construction, etc.)
What are the things that distinguish your company from others in your industry? (ie. We have a retail store, we only sell through distributors, we manufacturer locally [or offshore], we have a strong customer support staff.) Don’t stop at one item, list out as many as possible.
What is your budget? Are you looking at $50,000 or a $1,000,000 system? (Including implementation services and maintenance contracts)
What does your current system do today that you want to keep as functionality and what does it do horribly that you want to improve upon?
What are the key requirements for each of your various departments or functional areas? Both #4 and #5 should be documented in a spreadsheet with columns to indicate if they are “Must-haves” or “Nice-to-Haves.”
What are the key business process that the system must enable? This is usually a flow from Order to Cash receipts (ie. Order, Inventory management, manufacturing, shipment, Invoicing, and finally payment) or on the other side, Procure to Pay (Inventory Shortage, Requirements Planning, Purchase Requisition, Purchase Order, Delivery, Stocking, Invoice Receipt, Accounts Payable) and ultimately financial reporting and analysis. Today, Customer Relationship Management (CRM) plays a large part in a business processes. This includes marketing to lead to account management to sales opportunity processes and product support with customer service processes. These processes should be mapped or at least documented to both a current state and a wishful future state.

With these ERP Evaluation factors, you now have the basis for an objective review. You can use the list of requirements for your analysis of the vendors. Often the requirements are sent out as a Request for Proposal (RFP) and the vendors are scored based on their requirements. The top two or three vendors are then invited in to demonstrate their product. Usually that begins with a walk through of the company and an extensive question and answer session so that the vendors can get a sense of who you are as a company and learn more about your requirements in preparation for the demonstration.

Using your process documentation, a script should be provided to the vendors who will be involved with the ERP Evaluation process. You can then use the script as an evaluation factor to compare the process flow of the various software candidates. The vendors should be held closely to the scripts processes. Many times, they will want to deviate to the latest release module that has nothing to do with your business, but looks “really cool.” Keep them on track.

Once all the demonstrations are completed, there is usually a sense of which vendor showed their software in a way the more clearly demonstrated that they could fulfill your requirements. You may have eliminated the last place contender, But this is not the decision point yet! Along with the demos, the vendors also need to provide a price proposal. These proposals should include the following:

Software License cost
Annual Support Agreement cost
Implementation costs
Estimate of hardware infrastructure costs
Any other miscellaneous costs

You can also get references that you can either call or visit. In our experience though, these are only good to find out about the user’s experience with the software as they will tell you nothing but good things about the vendor, since they were selected because they are favorable references. But it might be good to hear about their implementation and their user’s reaction to the software.

Once you have all of these facts, you are ready to begin the next phase, which is the negotiation. Your evaluation still needs to look at the financial and contractual obligation you will be signing up for. At this point, you usually are down to the final two. One strategy is to play the vendors against one another, but this is sometimes not a good strategy. They are wise to this and will often dig in their heels. The best thing to do is to give them financial and contractual targets that will convince you that they are the right vendor for them. Don’t be afraid to ask for a lot more than you think they will give. They might just give it to you. Another key strategy is to negotiate at the end of the month. Ideally, the end of the month at the end of their fiscal quarter or year is ideal. The vendors are hungry to show the sale on their books and will often give deeper discounts.

Now with all the facts, you can make your choice. Once chosen, both you and the software provider will need to learn to compromise and respect the other’s view as you proceed to implement. Software can only be configured so far, before you need to change your processes. However, if you ran the evaluation process correctly, you will have selected the best fit for your business, so if there is any change to your processes, it will be by adopting the software system’s best practices. Thus, with your well-run ERP Evaluation, you have laid the groundwork for an even happier marriage!

Download the Ten Steps to Selection ERP Software now!

Download the Ten Steps to Selection ERP Software now!

ERP Evaluation

Enterprise Resource Planning 100 Success Secrets – 100 Most Asked Questions: The Missing ERP Software, Systems, Solutions, Applications and Implementations Guide

Latest Erp Software Amazon products

Enterprise Resource Planning 100 Success Secrets – 100 Most Asked Questions: The Missing ERP Software, Systems, Solutions, Applications and Implementations Guide

Addresses the top 100 Enterprise Resource Planning consultancy & education forum questions, with tips & success factors on investigating, evaluating & implementing ERP Software, Systems, Solutions & Applications.

Enterprise Resource Planning 100 Success Secrets – 100 Most Asked Questions: The Missing ERP Software, Systems, Solutions, Applications and Implementations Guide

ERP Vendor Selection

The ERP Vendor Selection process can be challenging. It can also be frustrating or even humorous in some cases. Weeding through the morass of ERP Software Vendors is a task that hopefully only happens once every seven to ten years. Here are some tips to help make this process less painful.

Key ERP Vendor Selection tips

Remember that the vendor is there for themselves. They may try to be your buddy, flower you with gifts, take you golfing, or whatever else it takes to close the sale. They want to build a relationship with you, so you will buy based on a feeling of gratitude towards them. If you do nothing else, keep the relationships with these vendors above board and strictly professional. We have seen clients being taken down a rosy path only to end up with that software, despite the fact that it wasn’t the best fit for them. There is a psychology to providing gifts and giving the client value up front. There is an underlying obligation or a feeling that the client owes them back. It is a very successful trick used during an ERP Vendor Selection by the salespeople, so you need to be on the lookout for this.
Engage a consultant or service to help weed through the numerous potential vendors to get you to your shortlist. Too many times, managers and owners have taken a shot in the dark and found the first names they find on Google, or that those that they saw at a trade show. Do your due-diligence. Find a company who specializes in vendor matching or selection. One such ERP Vendor Selection company is SoftwareAdvice.com. They can provide a suitable fit for your company.
In the ERP vendor selection process, drive the vendors down your path, not down theirs. If you let the vendor lead the processes, you will only end up at their solution. You need to strongly assert that you are driving the process and then follow this up with action such as pre-defined scripts for them to demonstrate and defined criteria for what they will show you such as references. If you lead the demo, they will either shine or fall apart depending upon how closely they match your business. If they shine, they were both prepared and understand your business. If they fall apart, then they probably are not a good fit. We have had vendors who get very upset at a level playing field. These are the vendors who are focused on themselves, not what you are asking for. If you prepare the vendors ahead of time with the ground rules, the things that they need to show and not show, then they should have no excuse for not tailoring their presentation to your requests.
Find out what ERP Software others in your industry are using. Sometimes with specialized, niche industries such as process manufacturing, or semi-conductor manufacturing, generalized ERP systems do not handle the unique requirements of that industry. Talk to members of your industry association on what they use. Do the proper research on the ERP Vendors you might be looking at. Do not select software based on the opinion of a friend or what your relative is using at their facility. Doing so will get you in trouble, because likely the software isn’t fit for your industry. Even related industries may require different types of ERP software. Be careful here on taking well meaning advice from those you know.
When negotiating with your primary candidate during your ERP Vendor Selection, never take the first or even the second offer. In fact, if you time your negotiations to the end of a month, quarter or even more ideal, the fiscal year end for that vendor, you will be able to negotiate great discounts. Every sale counts at the end of the period and often they will make a concession to book the deal in that period. Vendors often have more flexibility in the pricing that you might expect. Large vendors often will dig deep if it means beating out their rivals in a deal. But there is a threshold that they ultimately are unwilling to cross. You will need to trust your instincts that you have pushed them as far as they will go.
When you are talking to the ERP Software Vendor, find out who will be implementing the software. Often it is a Value Added Reseller (VAR) who will be doing the implementation. This could be different than the VAR involved in your ERP Vendor Selection. If that is the case, shop the VARs and find one that you feel most comfortable with. Just because there is a VAR on the sale of the software, does not necessarily mean they are the best qualified to do the implementation. But if you are to do this, do this early. You probably want to identify the VAR to go forward with as soon as you have a short-list of Software Vendors. If you wait until you made the purchase, it is unfair to the VAR who helped to demonstrate the software and spent all the effort finding out about your business.

If you follow these simple tips during your ERP Vendor Selection, you will be a lot better off and find a solution that is better suited for your business and you will have a easier time implementing as well. Work with the ERP Vendors as a business partner, but keep the relationship professional and hold them to a level playing field. Doing so will only be to your benefit, especially when you choose the best software for your business.

ERP Vendor Selection Tools

There are several tools on the internet that are available to assist you in doing your ERP Vendor Selection. The tool we have found best is the ERP Vendor Selection wizard at SoftwareAdvice.com. It allows you to drill down based on your industry, software preferences, and revenue size to find the right fit for your business. Further, you can get pricing and schedule interviews right there on the same page. Very useful.

To help you in your ERP Vendor Selection, we have a free guide for you “How to Assess Accounting Software Vendors’ Viability” available for instant download. Download it now.

ERP Vendor Selection: How to Assess Accounting Software Vendors Viability

ERP Vendor Selection

When to use ERP Software Consultants

Many times companies try to select and implement ERP software on their own. Sometimes this works and sometimes it doesn’t. So the question is, when should a company use an ERP Software Consultant to guide them in their ERP Selection or ERP Implementation?

The answer is not so simple. If a company is mature and has the resources that can look independently at the business processes, then it may make sense to embark on a selection on their own. Most of the time in mid-market sized or even smaller clients, then it is difficult for them to 1. Spare the resources and 2. Look at the business processes objectively.

Any good ERP Selection begins with a company evaluating their business processes. Borrowing from the Toyota Production system (aka Lean Manufacturing), a company should first eliminate waste and then consider automating. Automating bad processes will only make things worse faster. However, automating good processes will help grow the business and promote better communication.

: Image via Wikipedia

ERP Software Consultants – Best Practices

The real question becomes how much is the company willing to flex their processes to adapt to “best practices” that are usually built into a commercial software system. If the company is flexible (and this takes a lot of leadership to make happen), they can select a system and model their business around that system. The larger commercial systems, such as those from Microsoft, Infor, SAP, Oracle, and others have all grown up from thousands of implementations from all sorts of companies. They have developed efficiencies that many companies who adopt the software’s methodology can benefit from.

The real key is understanding the fit of a software package to the business. If the company does some niche processing, then a mainstream commercial package may not fit. However it the company is a distributor or a manufacturer of discrete products as an example, then a standard mid-market product would likely work for them.

So how do you choose the software, it is back to the business processes and the key requirements. “Key Requirements,” not just all requirements. The things that the old system does not do well and those things that it does very well are good places to start. Additionally, discover those requirements or processes that set your company apart from others in your industry. Usually processes around your competitive advantage are part of the key requirements.

Going back to the original question, should you use independent ERP Software Consultants? If you have a clear and objective understanding, you can afford the time to really research the vendors and you have a strong will with salespeople, then going it on your own might be reasonable.

If you do not have the time, the understanding of the ERP Software market, or the will power to manage at an arm’s length the software vendor’s salespeople, then an ERP Software Consultant would be a wise choice.

ERP Software Consultants

Telecom Billing Software – Why Telecom OSS Is Important

In many businesses, telecommunications is vital in ensuring that the business functions smoothly. This is why a good telecom billing software is needed for businesses of any size to manage their telecom costs and expenses. This billing software also makes sure the business budgets its expenditures wisely. Ultimately, the result is a business that does what is necessary to control spending so that their bottom line is not negatively impacted.

Telecom billing software may also be called expense management software. The software can consist of multiple functions that are customized to the needs of the business. For instance, one module can be used to track calls made to clients, while another tracks expenses.

One industry that commonly uses telecom building software is the wireless phone industry and this software is the center of their financial operations. The software is able to track the time that is used by each customer so that the customer can be billed for that time. The software is also responsible for creating the bills that are sent to customers. There are different modules that the program contains so that the company can manage their money all in one program.

It is important to know, however, that it is not just the wireless phone industry using telecom billing software. Companies that use telecom in any way may wish to use the software to track expenses, assets, and usage. Any area of telecom usage can be analyzed, as well as expenses, and a comprehensive report can be generated based on parameters specified by the user. Due to telecom usage within the company being able to be examined, analyzed, and a report created, all concerned parties are able to review the results. Once the results are reviewed, any necessary changes can be made so that the company’s profits improve.
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The telecom billing software also eliminates any existing billing errors that are taking place. These errors can cost a lot of money. This usually has much to do with hard-to-understand formats or billing and other financial activities that are spread throughout various software programs and not within the same software program.

When the many financial operations are integrated into a single software program, the individual modules are protected so that authorized individuals are the only ones able to access them. This means that lower management is not going to be able to access the modules that only upper management can access without receiving the proper permissions.

By having billing software that enables a company to have different modules that communicate with one another, costly errors can be reduced or eliminated. Many companies have to go above and beyond to fix their errors so that they don’t lose a customer, such as having to offer a credit to their account. If everything is correct in the beginning, no unexpected billing errors that can cost money will occur.

So, when your business has telecom activity occurring within it, whether that activity is invoicing or billing, Telecom Billing OSS can streamline your billing operations. You can easily troubleshoot, combine financial operations, and organize your system so that you can eliminate billing errors with Telecom Billing Solution. In the end, you will be able to triumph over your losses.