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Got ERP?
By Noel Ward, Editor@Large
A lot of butts were in chairs at recent conference for a session on ERP systems, aka Enterprise Resource Planners. ERPs are complex software offerings that purportedly provide business owners with the info they need to run their businesses more efficiently. As you might expect, there is no one-size-fits-all flavor of ERP systems. But the group of 50 or so printers at the conference was diverse enough to provide paths forward for those needing a bit more than QuickBooks or and Excel spreadsheet. A few took the stage while others shared their experiences.
Three ERP models were offered and there are other iterations that weren’t part of the presentation. ERP software is expensive and despite vendor promises, no single solution can do everything. This means living with the nuances you don’t like, perhaps by adjusting to the pluses and minuses of the system. Some systems need customization to provide the desired levels of detail. If you have the needed IT and programming skill you may be able to this internally or perhaps hire a consultant with the requisite skills.
Buy-in Critical
No matter the approach, one must-have cited by panel members is the need for executive level buy-in. This may seem surprising but as companies grow (or are parts of M&A activity) the actual owners of a business may be mostly absent or not as hands-on as when the business was smaller. In other instances. not all business owners want to measure every detail. Some may even consider ERP an intrusion. The thing is, knowing more is always good. And data talks even when one does not like what it says.
All businesses ultimately run on finances making solid accounting information a key need in an ERP. Cash flow is always important so you need to know exactly how much is in every account. Similarly, if you are hemorrhaging money in a given area the ERP should highlight it. Every ERP has this info but some are better than others at presenting it to you.
Grow your own
The panel also noted that creating an ERP with fully integrated automation can require hundreds of hours and substantial expertise is required: there are no point-and-shoot solutions. The speaker from one IT-heavy company said their internally built, highly automated system was created to replace an aging Microsoft ERP that lacked the automation required. The firm built the whole thing internally but found a strong project manager was still needed inside the company. While hiring a contractor is possible, you still need an inside person who understands —and will demand—what your company needs.
Hybrid systems
Sometimes no single system can do all that’s needed so some businesses choose multiple systems and use them together. A hybrid system provides needed data and even though the data is from multiple programs it can be an effective way to go. The notable downside here is that ERP systems typically refuse to talk with each other.
If you run a technologically-oriented company your resident geeks may be able to develop APIs that foster communication between different ERPs, but this is not always possible for less technologically-inclined firms. You may also be able to hire such work out, but knowing what can and cannot be done is essential, as is understanding what to expect from the system you buy. Some of the best advice everyone heard was to put any plan on paper before you start. If you see it won’t work you know upfront and can change your approach.
Large scale Implementations
If you have a big shop you may have a larger challenge when it comes to ERPs: You have more moving parts needing to be monitored and corralled. In one instance, a company with some a few hundred employees said they had been using a well-known ERP for more than twenty years. That’s eons in the software world but in this case the software vendor has a rep for regularly updating its software and supporting customers. In their case, knowing what they had and how to use it let them focus on other things.
AI and ERP
AI will eventually be part and parcel of all ERPs. If you have an ERP, its maker may already be assuring you how amazing it will be as more AI becomes part of the package. Can AI support what you need in an ERP? Very likely. Some customizations will be required but AI will be a major game-changer, in no small part because of its speed. We don’t know how far AI will go or how quickly it will get there. What we are seeing in AI now is akin to assuming offset printing in 1960 was as good as it could ever be. And AI is moving far faster than did offset (or even digital) printing. Am I gonna make predictions? Nope.
So far, much of AI is based on massive experience (meaning training), rather than limited or targeted experience—as in targeted to the needs of an ERP system that delves into the details of your business. There are benefits to both massive and limited training. The AI/ERP solution you choose should be based on the needs of your business.
Bear in mind that the software people you hire in the coming years will be increasingly conversant with AI. As you grow or expand, a well-chosen ERP system should accommodate your needs. If you don’t already have an ERP system in place get started now.
By Noel Ward, Editor@Large
A lot of butts were in chairs at recent conference for a session on ERP systems, aka Enterprise Resource Planners. ERPs are complex software offerings that purportedly provide business owners with the info they need to run their businesses more efficiently. As you might expect, there is no one-size-fits-all flavor of ERP systems. But the group of 50 or so printers at the conference was diverse enough to provide paths forward for those needing a bit more than QuickBooks or and Excel spreadsheet. A few took the stage while others shared their experiences.
Three ERP models were offered and there are other iterations that weren’t part of the presentation. ERP software is expensive and despite vendor promises, no single solution can do everything. This means living with the nuances you don’t like, perhaps by adjusting to the pluses and minuses of the system. Some systems need customization to provide the desired levels of detail. If you have the needed IT and programming skill you may be able to this internally or perhaps hire a consultant with the requisite skills.
Buy-in Critical
No matter the approach, one must-have cited by panel members is the need for executive level buy-in. This may seem surprising but as companies grow (or are parts of M&A activity) the actual owners of a business may be mostly absent or not as hands-on as when the business was smaller. In other instances. not all business owners want to measure every detail. Some may even consider ERP an intrusion. The thing is, knowing more is always good. And data talks even when one does not like what it says.
All businesses ultimately run on finances making solid accounting information a key need in an ERP. Cash flow is always important so you need to know exactly how much is in every account. Similarly, if you are hemorrhaging money in a given area the ERP should highlight it. Every ERP has this info but some are better than others at presenting it to you.
Grow your own
The panel also noted that creating an ERP with fully integrated automation can require hundreds of hours and substantial expertise is required: there are no point-and-shoot solutions. The speaker from one IT-heavy company said their internally built, highly automated system was created to replace an aging Microsoft ERP that lacked the automation required. The firm built the whole thing internally but found a strong project manager was still needed inside the company. While hiring a contractor is possible, you still need an inside person who understands —and will demand—what your company needs.
Hybrid systems
Sometimes no single system can do all that’s needed so some businesses choose multiple systems and use them together. A hybrid system provides needed data and even though the data is from multiple programs it can be an effective way to go. The notable downside here is that ERP systems typically refuse to talk with each other.
If you run a technologically-oriented company your resident geeks may be able to develop APIs that foster communication between different ERPs, but this is not always possible for less technologically-inclined firms. You may also be able to hire such work out, but knowing what can and cannot be done is essential, as is understanding what to expect from the system you buy. Some of the best advice everyone heard was to put any plan on paper before you start. If you see it won’t work you know upfront and can change your approach.
Large scale Implementations
If you have a big shop you may have a larger challenge when it comes to ERPs: You have more moving parts needing to be monitored and corralled. In one instance, a company with some a few hundred employees said they had been using a well-known ERP for more than twenty years. That’s eons in the software world but in this case the software vendor has a rep for regularly updating its software and supporting customers. In their case, knowing what they had and how to use it let them focus on other things.
AI and ERP
AI will eventually be part and parcel of all ERPs. If you have an ERP, its maker may already be assuring you how amazing it will be as more AI becomes part of the package. Can AI support what you need in an ERP? Very likely. Some customizations will be required but AI will be a major game-changer, in no small part because of its speed. We don’t know how far AI will go or how quickly it will get there. What we are seeing in AI now is akin to assuming offset printing in 1960 was as good as it could ever be. And AI is moving far faster than did offset (or even digital) printing. Am I gonna make predictions? Nope.
So far, much of AI is based on massive experience (meaning training), rather than limited or targeted experience—as in targeted to the needs of an ERP system that delves into the details of your business. There are benefits to both massive and limited training. The AI/ERP solution you choose should be based on the needs of your business.
Bear in mind that the software people you hire in the coming years will be increasingly conversant with AI. As you grow or expand, a well-chosen ERP system should accommodate your needs. If you don’t already have an ERP system in place get started now.
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