I recently completed system selection engagements for two of our clients. The first was for an existing client using Sage 100 which had looked at a service industry enhancement five years ago as well as an industry specific solution that was deemed too expensive. After evaluating the options and return on investment, they chose the industry specific solution since it met all of their needs. It was designed specifically for their industry verses trying to make an add-on work for them at a lower cost.
In the second engagement, the client initially had a good grasp on the solution they were going to choose but after careful documentation of requirements and evaluation of various manufacturing specific software vendors, they found a different solution that best fit the way they do business. The process allowed them to see their real needs, the options available and while many manufacturing software options exist, only a few met their specific needs and one clearly stood out as the best fit.
Chortek LLP's Technology Consulting team specializes in helping businesses find the right software for their needs. Contact us or visit our website at www.chortek.com for more information on selecting a new ERP system.
Thursday, May 30, 2013
AICPA Top Technology Initiatives 2013
The AICPA (American Institute of Certified Public Accountants) has released the results of the 2013 Top Technology Initiatives Survey:
1. Managing and retaining data
2. Securing the IT environment
3. Managing IT risk and compliance
4. Ensuring privacy
5. Managing system implementation
6. Preventing and responding to computer fraud
7. Enabling decision support and analytics
8. Governing and managing IT investment/spending
9. Leveraging emerging technologies
10. Managing vendors and service providers
If you have any concerns in your organization regarding these items, Chortek LLP's Technology Consultants can assist you with addressing your needs.
1. Managing and retaining data
2. Securing the IT environment
3. Managing IT risk and compliance
4. Ensuring privacy
5. Managing system implementation
6. Preventing and responding to computer fraud
7. Enabling decision support and analytics
8. Governing and managing IT investment/spending
9. Leveraging emerging technologies
10. Managing vendors and service providers
If you have any concerns in your organization regarding these items, Chortek LLP's Technology Consultants can assist you with addressing your needs.
Wednesday, May 22, 2013
Integration is driving need for new systems
In my 26 years in the pc-based accounting/ERP system industry, reasons for looking at and buying new software have changed with the increase in knowledge of the end user and various changes in the business climate.
Looking back, to the late 80's and 90's (pc based accounting software started shortly after the first PC's were introduced in the early 80's), the main reason at that time was to automate manual process. (normally accounting applications such as general ledger, accounts payable, accounts receivable and payroll). Due to lack of automation of small and medium sized businesses, it took many years for companies to move from manual to automated, computer based systems.
Looking back, to the late 80's and 90's (pc based accounting software started shortly after the first PC's were introduced in the early 80's), the main reason at that time was to automate manual process. (normally accounting applications such as general ledger, accounts payable, accounts receivable and payroll). Due to lack of automation of small and medium sized businesses, it took many years for companies to move from manual to automated, computer based systems.
On Premise verses Cloud (SaaS)
Traditionally, software has been purchased and installed on computers in your business (On Premise) and managed by you (upgrades, system requirements, etc). In the past few years, SaaS (Software as a Service) or Cloud Computing has become more pervasive in various aspects of business.
The advantage of Cloud/SaaS options include not having to deal with internal IT requirements, backup, upgrades, fixes, etc that have long been issues with ongoing costs related to On Premise solutions.
The advantage of Cloud/SaaS options include not having to deal with internal IT requirements, backup, upgrades, fixes, etc that have long been issues with ongoing costs related to On Premise solutions.
Monday, May 20, 2013
How to select a new ERP system (Part 4) – Finalizing the selection and implementing the new solution.
How to select a new ERP system (Part 4) – In Part 3, we discussed preparing for and conducting product demonstrations and in this final Part 4, we discuss finalizing the selection and implementing the new solution.
-Finalize Selection — After the demos, you will usually find one system that clearly meets your needs over the others. Finalize the cost and timeline, including software, implementation, training, hardware and annual ongoing costs to fully understand your commitment of resources (cost and people).
-Implement —Selecting the right software is one thing, implementing it is another. Software is only a tool that takes proper training, resources (people) and procedures to be utilized for its intended needs. A proper implementation plan will continue you down the road toward success.
While companies with proper resources can perform these searches on their own following these steps, many choose to hire an outside facilitator with the experience, tools and templates to set a realistic timeline and provide expertise about vendors. Sometimes, solutions look good on paper and in a demonstration, but in practice, some companies offer much more in customer support and implementation after the sale is made.
-Finalize Selection — After the demos, you will usually find one system that clearly meets your needs over the others. Finalize the cost and timeline, including software, implementation, training, hardware and annual ongoing costs to fully understand your commitment of resources (cost and people).
-Implement —Selecting the right software is one thing, implementing it is another. Software is only a tool that takes proper training, resources (people) and procedures to be utilized for its intended needs. A proper implementation plan will continue you down the road toward success.
While companies with proper resources can perform these searches on their own following these steps, many choose to hire an outside facilitator with the experience, tools and templates to set a realistic timeline and provide expertise about vendors. Sometimes, solutions look good on paper and in a demonstration, but in practice, some companies offer much more in customer support and implementation after the sale is made.
How to select a new Accounting/ERP system (Part 3) - Preparing for and conducting product demonstrations.
How to select a new Accounting/ERP system (Part 3) – In Part 2 we discussed researching possible solutions and creating the request for information. In Part 3, we discuss preparing for and conducting product demonstrations.
-Demo Script — Now that you have your top two options based on the requirements, prepare a demo script which outlines your key requirements within a demo focused on your functional areas (invoicing/payroll/etc). You will dictate the items the vendor is to cover during the demo in a flow that most resembles your business (for example, enter the customer order, create the purchase order, receive goods, ship to customer, complete invoice, etc.)
-Conduct the demo — Using your demo script, schedule vendors for half-day or full-day demos so they can prove to you that they can deliver on what they have promised, allowing an apples-to-apples comparison of possible solutions.
In the final part 4, I discuss finalizing the selection and implementation.
-Demo Script — Now that you have your top two options based on the requirements, prepare a demo script which outlines your key requirements within a demo focused on your functional areas (invoicing/payroll/etc). You will dictate the items the vendor is to cover during the demo in a flow that most resembles your business (for example, enter the customer order, create the purchase order, receive goods, ship to customer, complete invoice, etc.)
-Conduct the demo — Using your demo script, schedule vendors for half-day or full-day demos so they can prove to you that they can deliver on what they have promised, allowing an apples-to-apples comparison of possible solutions.
In the final part 4, I discuss finalizing the selection and implementation.
How to select a new Accounting/ERP system (Part 2) – Researching solutions and creating the request for information.
How to select a new Accounting/ERP system (Part 2) – In part 1 we discussed creating a selection committee and documenting needs and in Part 2 we discuss researching solutions and creating the request for information.
-Research possible solutions —Sage (Sage 50 - (Peachtree), Sage 300 (ACCPAC), Sage 100 (MAS 90/200 and MAS 500), Microsoft Business Solutions(Dynamics GP, NV and AX) and Intuit (QuickBooks) dominate the general software marketplace but you may need to look at specific (vertical) solutions for construction, manufacturing, retail, service, etc.
-Request for Information — This step involves sending vendors your key requirements and asking them to reply with their ability to meet your needs and the approximate cost for software and implementation for the user count you provide them. Once all replies are received, you will be able to easily narrow the field to the two top candidates.
In Part 3, I will discuss preparing for and conducting product demonstrations.
-Research possible solutions —Sage (Sage 50 - (Peachtree), Sage 300 (ACCPAC), Sage 100 (MAS 90/200 and MAS 500), Microsoft Business Solutions(Dynamics GP, NV and AX) and Intuit (QuickBooks) dominate the general software marketplace but you may need to look at specific (vertical) solutions for construction, manufacturing, retail, service, etc.
-Request for Information — This step involves sending vendors your key requirements and asking them to reply with their ability to meet your needs and the approximate cost for software and implementation for the user count you provide them. Once all replies are received, you will be able to easily narrow the field to the two top candidates.
In Part 3, I will discuss preparing for and conducting product demonstrations.
How to select a new ERP system - Part 1 - "Creating a selection committee and documenting your needs"
How to select a new ERP system - Part 1 - "Creating a selection committee and documenting your needs"
First and most importantly is to create a steering/selection committee that is represented by individuals throughout the organization. This committee will be the resource to move the company through a successful selection by representing their functional area, defining the requirements, evaluating software against those requirements and be an advocate for the software chosen. Much higher success (based on completion of selection and implementation within a timeline) is achieved with a committee verses only production, financial, or IT involvement.
Generally, these are the steps you should take when looking at replacing your existing systems:
-Document your needs — Most companies will start searching for software when they really don’t know what they’re looking for. Thoroughly documenting your current processes and procedures will allow you to identify what really keeps your business running, identify opportunities for improvement and most importantly, keep you from forgetting critical needs. Gather this information by functional area (invoicing, job costing, payroll for example).
- Identify your key requirements — The ability to print checks is not a key requirement, as all software can, but things such as supplier price-list imports, serialized service history, machine or technician scheduling, customer asset listing, seasonality inventory levels, customer discounts based on sales volume and return material authorization are key requirements. By functional area, document the key items you need your system to perform. Don’t forget reporting, as most businesses have very specific information they need in management reports to make daily business decisions.
In Part 2, I discuss researching solutions and creating the request for information.
First and most importantly is to create a steering/selection committee that is represented by individuals throughout the organization. This committee will be the resource to move the company through a successful selection by representing their functional area, defining the requirements, evaluating software against those requirements and be an advocate for the software chosen. Much higher success (based on completion of selection and implementation within a timeline) is achieved with a committee verses only production, financial, or IT involvement.
Generally, these are the steps you should take when looking at replacing your existing systems:
-Document your needs — Most companies will start searching for software when they really don’t know what they’re looking for. Thoroughly documenting your current processes and procedures will allow you to identify what really keeps your business running, identify opportunities for improvement and most importantly, keep you from forgetting critical needs. Gather this information by functional area (invoicing, job costing, payroll for example).
- Identify your key requirements — The ability to print checks is not a key requirement, as all software can, but things such as supplier price-list imports, serialized service history, machine or technician scheduling, customer asset listing, seasonality inventory levels, customer discounts based on sales volume and return material authorization are key requirements. By functional area, document the key items you need your system to perform. Don’t forget reporting, as most businesses have very specific information they need in management reports to make daily business decisions.
In Part 2, I discuss researching solutions and creating the request for information.
Tuesday, May 7, 2013
Cost of doing nothing
A recent client meeting reminded me that we often focus on the cost of a project and its ROI yet forget the cost of doing nothing at all.
For example, I received a request from a customer regarding the cost to add the ability for their customers to order online, check on inventory availability, pricing, etc. I determined the cost to be approximately $15,000, in this instance, to implement the technology to allow their customers to have this "self service" capability. This may initially sound like a lot of money to spend on this type of project. But is it? They didn't feel the ROI in increased sales could justify it. However, what is the cost of doing nothing?
If a customer that does $250,000 in business with them at a margin of 20% leaves them for a competitor who has this capability, the cost of doing nothing is $50,000. Instead of four customer service personnel needed to handle the incoming calls from customers they could reduce that to three, the cost of doing nothing may be $30k to $40k plus benefits.
Whenever you determine the cost of doing any project in your company, be sure to consider the cost of doing nothing in your ROI. Many times its a forgotten and significant portion of the equation.
For example, I received a request from a customer regarding the cost to add the ability for their customers to order online, check on inventory availability, pricing, etc. I determined the cost to be approximately $15,000, in this instance, to implement the technology to allow their customers to have this "self service" capability. This may initially sound like a lot of money to spend on this type of project. But is it? They didn't feel the ROI in increased sales could justify it. However, what is the cost of doing nothing?
If a customer that does $250,000 in business with them at a margin of 20% leaves them for a competitor who has this capability, the cost of doing nothing is $50,000. Instead of four customer service personnel needed to handle the incoming calls from customers they could reduce that to three, the cost of doing nothing may be $30k to $40k plus benefits.
Whenever you determine the cost of doing any project in your company, be sure to consider the cost of doing nothing in your ROI. Many times its a forgotten and significant portion of the equation.
Monday, May 6, 2013
About Me
The summary is I have been providing technology consulting services since 1987 and have focused on accounting/ERP software with particular emphasis on assisting companies with selecting a new ERP system. My Bachelor of Arts degree from Lakeland College was focused on majors in Business, Accounting and Computer Programming with a minor in Economics. Having worked in CPA firms 22 of my 26 years (owned a technology consulting firm outside a CPA firm for four years) in this business, I understand the three most important items for successfully selecting or implementing a new system -- People, Process and Technology.
I am in Business Development for Chortek LLP's technology consulting practice and serve as Vice-Chair of the Board of Directors for ITA (Information Technology Alliance) www.italliance.com
I hope you enjoy my blog, the information and education it provides. Please feel free to contact me with questions or comments about where the industry has been, where its going and how you can take advantage of technology to help your company achieve its goals, objectives and your definition of success.
Welcome
Welcome to my technology blog. I have been in the accounting/ERP software business since 1987, started consulting on Open Systems and RealWorld then moved into Sage Software. My blog will focus on issues regarding selecting, implementing and using technology in your business.
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