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10 Internal Questions You Absolutely Need To Ask For A Successful ERP Search

10 Internal Questions You Absolutely Need To Ask For A Successful ERP Search

Internal Planning is Key to Forming ERP Search Questions 

Let’s face it, many articles have been written about companies “Outgrowing QuickBooks” or “Signs you need an Enterprise Resource Planning (ERP) system”. But what those articles don’t usually talk about is what you can do to prep your team internally for an ERP software system. This is a comprehensive sales, finance, and operations system. As such, planning comes into play. Unfortunately, “planning” is one of those words that tends to make people groan. They know it means more work, lots of discussions, and loss of time. However, asking detailed internal ERP search questions is paramount to a successful ERP evaluation and implementation.

 

Would a military general or combat veteran go into battle without a plan? There is a reason that ERP implementation rooms are nicknamed “War Rooms.” First, leaders storm through strategy. Then, heavy system testing is done and current company practices come into question.

 

What are some of the right internal ERP search questions to ask for planning purposes? Questions like system design, usability, industry specific functionality, cost, and implementation assistance are just some aspects to consider when looking for an ERP system. I look around on the web, and I find a lot of system questions written by software vendors, but not a lot of internal company questions to ask or considerations that need to be discussed. Having talked and worked with many, many companies over the years during their ERP searches, I wanted to give some examples of planning areas and questions for companies to prep internally.

 

10 Internal ERP Search Questions to Get the Project Planning Started

  1. What does my company need and want to accomplish with an ERP System?
    1. Accessibility throughout departments
    2. Financial reporting
    3. Time frame for evaluation purchase, deployment phases/locations, and full usability
  2. What are the challenges of my company’s current business software? Why is it no longer meeting the needs of my company? Look at this from a department level:
    1. Production challenges
    2. Services challenges
    3. Finance challenges
    4. Executive/Owner(s) challenges
    5. Sales & Marketing challenges
    6. Purchasing challenges
    7. the Warehouse(s) challenges
    8. Research & Development challenges (if applicable)
    9. Human Resources challenges (if required as part of an ERP search)
  3. Is my company fully utilizing current systems in place. Is the current software potentially sufficient with added training? (I suggest talking with an expert consultant of that software if it’s an ERP system. Through this view, you can see if the current software works for your needs. Then, you can focus on ERP user training.)
  4. Does my company have specific compliance or auditing conditions? Examples: Medical CFR, Aerospace & DoD DCAA, Medical Records HIPAA, Internal export FCPA, Electronic Underwriters UL, Federal Airlines FAA, Finance SOX etc.
    1. What are the key aspects of the compliance in relation to software? What data needs to be captured?
    2. Why do I need an ERP to do in order for my company to meet the compliance? Reporting?
  5. Do we need a SaaS (cloud-based) solution, on-premise (due to data security concerns), or a hybrid cloud (hosted) system? Hybrid cloud platforms combine the best of on-premise with the best of pure cloud.
  6. How do you plan to care for your ERP system? Do we have IT staff in-house to support an on-premise solution, or is there an outsourced IT firm we can work with to help?
  7. Do we need a system that will work for 3 years, 5 years, or 10 years?
    1. How important is scalability?
    2. What modules would you like to add to your core functions as your company grows?
    3. Do you have multi-company or multi-site requirements?
  8. What are the key functions we need the ERP system to do? Look at this on a department level:
    1. What does production need?
    2. What does services need?
    3. What does finance need?
    4. What do the executives and owners need?
    5. What does sales & marketing need?
    6. What does purchasing need?
    7. What does the warehouse need?
    8. What does research and development need?
    9. What does human resources need, especially for the ERP search?
  9. What are the “nice to have” or “wanted” functions beyond the base needed requirements?
  10. What is a realistic budget and ROI for a new ERP system?
    1. Licensing budget (per month spending for cloud or for fully purchased or financed system)
    2. Implementation budget (research firms say to estimate 1 to 2 times the licensing budget for implementation costs)
    3. Software maintenance, etc. should also be factored into a budget
    4. Hardware system requirement budget (especially important for on-premise software which basically requires a data center in-house)
    5. Additional personnel / staffing requirements to support a new system
    6. Expected ROI?

 

Is your company looking for an ERP system? Chat with us now!

EDI Not Working? Try Picking Up the Phone. Communication is Key to Problem Solving.

EDI Not Working? Try Picking Up the Phone. Communication is Key to Problem Solving.

One of the greatest challenges to having a successful Electronic Data Interchange (EDI) process will be determined by the data being sent to you and what your system will do with that data. In many cases, translation tables can be placed that will autocorrect incorrect data. But what if that data is not just incorrect, but corrupted or just plain invalid? Even though Electronic Data Interchange services are designed to be an automated process, manual intervention is still required to ensure the integrity of the data being received. If this data is not found and managed at the beginning of the EDI process, issues will occur that could derail the EDI process right from the start. To enhance success a proactive approach is required. This is where communication with your partners becomes critical. With constant communication with partners, customers and suppliers, your EDI setup will have fewer issues, and the ones that do occur will be much easier to manage and correct.

 

One instance that comes to mind was with a customer who sent daily and ten-day forecasts every workday. These forecasts contained firm orders that needed to be filled correctly each week. For weeks, an incorrect quantity was being shipped from our business to this customer. After multiple weeks went by, our inside sales rep finally brought the issue to my attention that either the incorrect order quantity was shipped out, or that the inside sales rep had to call the customer for confirmation of the quantity needed before shipment. Until this matter was corrected, our customer was certain that it was an issue on our side and we were to blame for their inability to produce their required products to their customers, causing our customer a great deal of problems.

 

After being able to review the raw EDI files data it was determined that the issue was arising on our customer’s end and not ours. Their ERP Electronic Data Interchange services system’s materials requirements were not set up with the correct required quantities and in turn produced an incorrect sales order on our end. Once the partner was able to get this corrected in their system, we started to see the correct quantities in orders and the partner started to see the correct quantities received.

 

This just shows that even though EDI is an automated process, manual interaction is needed throughout to proactively handle issues and provide effective EDI solutions and management. Without it, an issue like this could have taken even longer to discover and even longer still to get the proper research and solution in place. These sorts of issues erode trust with the EDI process even when the process is working as intended. With incorrect or corrupt system data, the EDI process, no matter how well the EDI mapping setup was done, will falter and fail to give the results needed to run your business the way you need it to. This is not the type of reflection you should want your partners receiving back from your digital mirror.

 

Having issues with your EDI management or interested in getting an EDI solution for your business? Want to chat with the author? Contact us and learn about our Electronic Data Interchange services today.

What is EDI? Be Careful, It’s Your Company’s Digital Mirror

What is EDI? Be Careful, It’s Your Company’s Digital Mirror

What is EDI?

 

What is Electronic Data Interchange (EDI)? In a much simpler five words or less definition, it means “data in, data out”. EDI is a toolset that interacts with an Enterprise Resource Planning (ERP) business software system that takes data coming into the EDI system, processes that data in the ERP, and sends that data back out to the originator (like a customer). You would think that a process which can be explained in only four words would be pretty simple, right? And it can be, if the proper care and attention is given to the EDI’s initial setup and further EDI strategy.
 
If a customer’s purchase order sent via EDI is being processed and has an incorrect date, or is completely missing a cell’s data, a simple mapping adjustment can be made to correct these sorts of issues. How can you ensure that your customer’s purchase orders are processed into your system correctly, if that attention to detail is not done? How can you be sure the pricing on your sales orders and the invoices that are generated are correct if your price lists are not correctly setup in your ERP system?
 
The EDI strategy and process is a digital mirror of how your system is currently setup and will reflect your strengths and faults back to your customers and suppliers. Think of EDI as a linked chain and your business is a boat being pulled along by a truck, which represents your customers or suppliers.
If all the links are solid, that truck will pull that boat forever always getting to the desired destination, but if there is a broken link, the chain will start to fail and eventually break, allowing that truck to continue driving, but it leaves the boat behind stranded in the middle of nowhere. To avoid being stranded and left behind, make sure that your chain is strong and durable by taking time setting up the ERP data properly, the EDI mapping, and running many tests before going live with customers. With the proper care and attention to your EDI solution, it will not matter how large that boat or truck gets. Your chain will not break; it can handle the pressure. Now ask yourself this, is your chain strong and durable enough? Or could there be some broken links you may or may not even know about?

 

 

Still not clear on the answer to the question “What is electronic data interchange?” Ask us anything, we would love to chat.

 

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Levels of Leadership: The High-Flying and the Etherized

Levels of Leadership: The High-Flying and the Etherized

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“When the evening is spread out against the sky like a patient etherized upon a table” – T.S. Eliot

When I first began dabbling in the field of Business Process Management, the terminology of this new and strange body of knowledge perplexed me greatly.  The concept of elevation, for one thing, was utter babble to me.  Or Babel, perhaps.  My notion of “high level” carried with it certain ancient connotations—height was a luxury in the ancient world, and only the most powerful civilizations were able to get a view from above the tree tops: from a Babylonian ziggurat or an Egyptian pyramid, for instance.  Height, therefore, implied greatness, or to use one of Aristotle’s favorite terms Eudaimonia, sometimes translated as “flourishing.”  At the highest Olympian point, one breathes the rarest of airs, or so I thought.  But I was breathing the ether of an entirely different allegory.  Height, in this new world, dealt not with levels of greatness, but rather with levels of precision and abstraction.  In the business world, for something to be “high level” inferred that it was at some level of aggregation and abstraction as to be disconnected from the tactical nuances of day-to-day operations.  News to me.

Back in the day, it was common war room parlance to utter something to the degree of “we’re looking at this from thirty-thousand feet” at least once a day.  It was not until my first airplane flight that I truly understood what it meant, to look at something from that kind of distance—beautiful, and a little terrifying.  I’m more of a pavement-and-pothole kind of guy.  The other day, I was skidding down the highway in another rental, that was fortunate enough to still have a CD player hidden amongst its many modern accoutrements.  I had borrowed Jim Collins’ “Good to Great” in CD form the local lending library and spent the better part of my ride listening once again to his seminal work.  It was a fun listen: Collins began by underscoring some of the key principles of successful companies, and then went on to expound on some examples of excellence, such as…Wells Fargo, and um, Circuit City, and well…Fannie Mae?  My ride, all at once, seemed a little…dated.  I thought to myself that Collins would do well to write a follow-up to his earlier work and title it  “From Good to Great to God Awful.”  Now that would keep me engaged while ripping down the interstate!  So, maybe Lord Jim’s examples have not stood the test of time.  But I believe that the good leadership qualities that underscore successful organizations have outlived their exemplars.

To that point, whenever I think of flashy and charismatic leaders in business process management, I smell pizza. Not because of any neurological condition that would make me a risk on the open road, but due, rather, to a story a man recounted on a flight from Minneapolis to Memphis, regarding the former executive of a large manufacturing company.

Let’s call this former executive “Pep.”  Now Pep came to his role of eminence in this company not as an internal promotion, but as an outside hire, touting a flashy resume from one of America’s well-known pizza chains.  And his demeanor was more flashy than his letterhead, and greasier than the pizza he peddled.  He’d bound down the hallway in a shiny suit, talking like a sailor and firing off one-liners, like the proverbial mouthy guy at the end of the local bar.  One of his favorite lines was “yesterday’s news wraps today’s meat.”  It was a line, with his delivery, that could drive a man to veganism.  Another time, his personal assistant heard him cussing out his computer and rushed to his aide, not to discover that the company’s earnings report was unfavorable, but that he had just lost another game of solitaire.  All of this from a guy with a Fortune-500 pedigree.  It was his story, among others, that led me finally to realize that CVs are like statistics—they can be twisted to tell you whatever story you want to hear.

Of his many witticisms, one line stood out to me from the others.  When commenting on the company’s long-standing issues with the accuracy of its outside sales staff, he exclaimed.  “If they wanted you to be exact, they wouldn’t have called it estimating, they would have called it exactamating!”

Exactamating.  As you might have guessed, Pep was a rather high-level guy.  He sounded like such a high-level, that I imagined him bantering about exactamating in the first-class section of a transatlantic flight, sucking down a gin & tonic, while eating a big greasy slice of pizza, all at thirty-thousand feet.

As you might imagine, he was also afflicted with many of the ailments that bother high-level fellows of his ilk.  For one, he didn’t sweat the details—he liked to make big decisions, make them fast, and then walk out of the room and have someone else fill in the finer points.  If you locked him in a board room with the VP of engineering, he’d find a way to slip out the ventilation shaft for a smoke before the hour was quartered.  To the folks in the trenches, it seemed like simple impatience—he seemed too impatient to be bothered with the details, and similarly too impatient or just incapable of holding any of his people accountable at any kind of detailed manner.  But at any level, the company’s failing business results empowered the CEO to request that this high-flyer to take the next flight out of town.

Back to Good-to-Great, one of Collins’ key observations from the book has to do with the demeanor of those with good leadership qualities. Good leadership qualities for business process management, according to Collins, tend not to be of the flashy variety, full of id and ego. Rather, they tend to be soft spoken, less interested in their own presentation than in the success of their company.  Interestingly enough, this same company, who sent Pep the Pizza Man packing opted to replace him with a leader who fit Collins’ model.  For one, the new executive was a hire from within the company, and not a fly-in, as had been his predecessor.   Moreover, the new leader was much less of a showman.  Most importantly, the new leader’s obsession with the company’s success drove him to understand the company’s inner-workings at all levels.  Don’t get me wrong—he was never going to replace any of the data entry clerks, but his willingness to engage the organization, and its members at all levels was one important part of the success that the company went on to have under his leadership 

I’ll admit it: one of my guilty pleasures is the legalized blood-sport commonly referred to as mixed martial arts, or MMA.  As you may be aware, MMA involves the combination of multiple fighting arts, and they best fighters are often the ones who excel in combining these disparate arts into one integrate skillset.  One related skill in this field is the ability to “change levels”—to convince your combatant that you are going to attempt a strike, and then drop down for a wrestling takedown and quickly haul your opponent to the mat.  In my work as a consultant, I have had the good fortune to meet and work with many different managers and leaders, each with differing motives, differing personalities and differing intensities.  I find that the most successful leaders are those who similarly have the ability to change levels as needed—to move from high-level strategic thinking, down to tactical or operational problems, and then back up again.  The high-level folks often struggle with this: they are the proverbial kick boxer in a wrestling match—great when they’re on their feed, but hopeless at the ground-level.  All that being said, the next time that I have to take a flight, I think I might sneak a New York slice in with me, before I leave the ground.

Ask us any question you many have about good leadership qualities for business process management and ERP Software Implementations, we would love to chat.

How You Can Strengthen Your Network and Security with Passwords

How You Can Strengthen Your Network and Security with Passwords

We’ve all done it, at least once. Some of us maybe more than a couple of times, and I know there’s few that are repeat offenders. You know what I’m talking about – the bane of the security admin’s existence – default passwords.

Those are the usernames and passwords that come with every device. Even in this day and age, most systems don’t REQUIRE you to change the credentials that get you system admin rights. The bad guys know that and use it to their advantage.

When most of our business and personal systems are protected with just a name and a basic password (and maybe a trusted network range?), that’s pretty easy pickings for someone with a brute force tool or a sniffer to find out your secrets. And once the bad guys have your credentials, then what? Well after that is when the real dangers begin.

When’s the last time you changed your voicemail PIN from 0000? Perhaps your home router is still admin/password even though the FBI issued a warning for everyone to change it? And how many ERP users keep system admin “manager” around with the default password of… you guessed it. And those accounts open the door wide to anyone wanting to get in; good and bad.

If you have systems exposed to the bad guys (and we all do!) then this post is for you. STOP IT! Even if you told me “Well, none of those systems are internet exposed”, I’d ask “where are the bad actors in your network?”. If you said “outside the firewall”, I’d respond with something like “I dare you to create a share/folder called “payroll” and see how long some curious netizen (aka employee) fell into that folder looking for something juicy.

Imagine splaying your entire infrastructure wide open to someone who just happened to know that Netgear uses admin/password for all their routers? Or that your company name is NOT a good password?

So what’s a concerned system admin gonna do? It’s easy in theory and hard in practice. Here are some digital security tips that will create a stronger password security strategy:

1. Change the default username and change the default password.

2. Start using stronger passwords, not P@ssw0rd. We recommend pass phrases, or a sentence that you can remember but the bag guys will have a hard time guessing.

3. Enable account lockout so that if “x” bad passwords are guessed in a row, the account is locked FOREVER (not reset after 10 minutes, thank you Microsoft). Helpdesk notification of such a lockout will put you in the know.

4. Remove admin credentials from being used on untrusted networks. Yes, your users are untrusted! Create a management VLAN, or a specific set of IP’s that can RDP, or shutdown the access from outside devices altogether.

5. Enable multi-factor authentication. This can easily be enabled in Office 365 and Active Directory, and if your devices leverage that directory then they automatically get that 2FA protection as well.

6. Hack yourself! Run a network scanner, or hire an outsourced IT firm to investigate for you, find the unsecured devices and fix them before the bad guys do.

7. Let us help you! We can run an ethical scan IT Assessment Detective scan of your systems, attempt to break into your systems, and give you a full reporting of your IT weaknesses. As “they say” knowledge is power.

So, don’t let your next phone call to the EstesGroup be “help me, I got hacked!” And let our managed IT services company help you run your business better with a strong password security strategy – before the bad guys teach you a lesson.

Interested in Outsourcing your IT? Or have a question on data security? Ask us, we would love to chat.

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