Archive for December, 2010
Gartner Research article shows reader interest and areas of thought.Dennis Gaughan, Managing VP at Gartner Research recently published an article entitled Will Core ERP Move to the Cloud? In Dennis’s words, the topic of “ERP in the cloud generated a tremendous response, prompting a bunch of requests for more thoughts and opinions.” In his follow up, Reader Response to ERP in the Cloud,” Dennis summarizes the discussion and makes some interesting points. Several people that read Dennis’s article mentioned the following discussion points.
- Need for deployment flexibility. Not surprisingly, people wanted different deployment models.
- Concerns over pricing. Many are intrigued by SaaS, but are unsure that SaaS pricing will save them money in the long run.
- Cloud adoption varies by industry, company size, and application category.
- Collaborative business models are supported by the cloud and can add value above and beyond the applications.
Cloud ERP Discussion Remains SpiritedThe key takeaway is that people are interested in the Cloud and how they can use it to improve their ERP software deployments. The bullet points above reveal that the Cloud ERP discussion has moved to the next level. A couple years ago, people were primarily concerned about saving money and worried about security. Today, many customers, vendors, and resellers are asking and learning about deployment and collaboration. In the process, they are finding that the security issues are in fact not security issues, but risk and deployment issues. Also, many are understanding the differences between web-based software and traditional client-server despite the attempts of some vendors to confuse the issue.
Cloud ERP on the Right TrackDiscussions about Cloud ERP are on the right track: - First, many are interested. - Second, people are thinking beyond the standard pricing and security issues. - Third, people are thinking creatively about how to benefit from the technology. As we move into 2011, expect more creativity and exciting case studies that describe how businesses are taking advantage of Cloud ERP software.
If your business is like majority of businesses, you only worry about taxes when it comes time to file. This method may work, but to maximize efficiency and to fully understand tax forms, a daily tax analysis can be done. It may seem unnecessary and tedious but it will save time and anguish when it comes time to file during tax season. In Peachtree there are many ways to lessen your hassle with taxes and make the daily analysis run smoothly. Some have even noticed an improvement in their cash flow. See how its done by reading the complete article HERE.
Warehouse management systems have revolutionized the way businesses operate. In the past WMS (Warehouse Management System) were only used by large international companies. With the level of sophistication amongst businesses on the rise, even small businesses have started to adopt the usage of WMS. Even with the advantages of a WMS, small businesses still hesitate to implement the use of a WMS. There are eight reasons in particular that tend to be the leading reasons many businesses still choose to use archaic and inferior systems.
Lean manufacturing and wholesale distributionIt’s been many years now, since manufacturers of all sizes and industry types started embracing the principles of “going lean”. Also commonly called “Lean Manufacturing”, these organizations purposely set out to focus on eliminating wasteful and redundant activities from their processes, procedures and resources, to ultimately be reborn as a much leaner, more efficient company. Today, that same desire for performance improvements, better customer service, and a stronger balance sheet is gaining steam for the wholesale distributor as well. Distributors are fast discovering the concept of lean distribution and how it establishes a framework for helping distributors operate at peak efficiency, exceed customer expectations, and strengthen their bottom line.
Using technology to go leanBut, why am I bringing this up on a Cloud-based blog site? Technology is the corner stone of being lean and reducing costs. The speed, volume, and complexity of business transactions now dictates the use of technology to efficiently support communication and information exchange across departmental boundaries—and the organization’s supply chain. Furthermore, companies can leverage appropriately applied lean-centric technology to eliminate the redundant entry of information from one department to another. In other cases, technology eliminates steps traditionally requiring human intervention and, therefore, time. Keep ERP costs low But using technology brings up a very eye-opening question. Why would anyone buy an on-premise system – or even a SaaS based system from one of the normally on-premise vendors, like SAP – when the cost of going this way is 40% to 70% more expensive, and you get a fraction of the system? Unless I am wrong, lowering costs or going lean means reducing cost…not paying more money! And paying a lot of money to support being lean completely blows a big hole in the reason you are going lean in the first place. To help make my point, try a simple side-by-side comparison of SaaS costs over a 3-5 year period, and it becomes incredibly clear that the new SaaS offerings from the traditional ERP vendors are far more expensive then the SaaS offering from companies who started out as SaaS companies from the beginning, like my company Acumatica. Fact is, traditional ERP companies are very accustomed to charging a lot of money for their on-premise systems and frankly they don’t feel comfortable with the low costs pricing that is associated with SaaS. So, whether the charge is for implementation set up costs, updates to the system, maintenance costs or charging for each user on the system, traditional ERP companies will always come up substantially more expensive.
Acumatica ERP supports lean distributionMy company Acumatica offers a very comprehensive Cloud ERP system that provide all the features needed to successfully run companies, from front to back. Yet, our costs are less expensive – supporting your need to reduce costs and go lean. In addition to the multiple cost-saving benefits of SaaS, including not having an IT infrastructure and the staff to support it, we do not charge for each user, allowing users to be added as needed without additional costs. We also allow our customers to implement their deployment as a service or on-premise in order to fit their individual requirements. Our customers can also switch from SaaS to on-premise or on-premise to SaaS based on their needs. Each one of these benefits allow our customers to best fit our SaaS offering into what they are attempting to accomplish.
Conclusion – fat software does not make a lean distributorWhen you think about it, part of your decision to reduce cost and to go lean is to also choose an ERP system that embodies these goals. Facts are there, a Cloud ERP solution from a non-legacy ERP company is the only answer for companies to reduce costs and support going lean.