Manufacturing ERP: To customize or not to customize?

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It's a question many organization's encounter at one point or another: Does enterprise resources planning (ERP) development mean customization or replacement? For most manufacturing businesses the answer is customization. Brand new implementations can cost up to 14 percent more than for non-manufacturing companies, and manufacturing processes tend to be more complex, pushing executives to add custom options before upgrades where such options are standard become available.

Moreover people are creatures of habit, and abandoning a system employees are comfortable with can be a difficult prospect. Manufacturers, in general, choose not to implement new systems until they absolutely must. 

If your business chooses customization options over upgrades, there are a number of things to consider. Manufacturing companies tend to experience budget overrun when they do not plan well or evaluate enough proposals. Here are a couple of steps to take as you begin the customization process:

Evaluate ERP systems

If you have been using your current ERP for a long time it can be beneficial to step out and see what the modern market is offering. It is very possible that available functionality of newer systems, such as Microsoft Dynamics NAV, will make the modifications you have or are aiming to add unnecessary. It is also possible that tools available in newer ERP will allow the development of the customizations you need at a lower price and in less time. In such cases it might be beneficial to upgrade before customizing. 

Evaluate customizations

Approach the process with an open mind. Customization might sound easier than replacement, but if it is to succeed you may need to make process changes. Customizations evolve over time, and it's possible that a new option might be able to achieve the same results as your old system, while adding additional features. Don't balk at the idea of removing certain customizations from your current system entirely, to make room for a more functional solution.

It is also important to be aware of what is a standard report in your software, versus what is a customization. There are a few ways to handle this:

  • In-house customizations can be identified by a member of your IT staff.
  • If a third party conducted the work reach out and request a list of modifications.
  • ERP consultants and certain software programs can detect changes made to a standard ERP.  

If there is no contact you can turn to you may need to do some digging on your own, or with the help of your IT staff, to determine which processes are customizations:

  • Customizations are often stored in unique folders on your server's hard drive. Scour your menu system for folders with "custom" or "mods" in the name.
  • If you have an unmodified version of the software you may be able to run a comparison of the standard version versus the modified version to learn where customizations were made.
  • Microsoft Dynamics NAV offers specific tracking capabilities through the use of the Team Foundation Server's Source Control Explorer, which can be used to view a full history of customizations.

Finally, assess the purpose and functionality of your current customizations. If a certain modification has had little to no effect, or was rendered obsolete during a previous customizations. This is a good opportunity to remove counterproductive and expendable options. Removing these will also help clear the way for a better understanding of what you will need in your new system. A qualified NAV partner can then help you decide which customizations should be carried forward versus those that are no longer necessary due to advancements in the standard program.

ERP software is a lifeline for manufacturing businesses, simplifying complex processes and increasing efficiency. As with any large business decision, take the time to plan, map out routes for success and review potential results. Accent Software, a trusted Microsoft Business Solutions partner, can work with your company to provide effective business management software solutions. Microsoft Dynamics NAV offers rapid adaptability, simplified customization, and ease of use which allows businesses to easily add functionality and custom applications that enhance software to be relevant to each business's needs.

ERP Consumerization

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A handful of years ago, enterprise resource planning (ERP) systems were only available to a limited number of ventures with the capital to fund and implement the software. Technological evolution has slowly brought ERP to more and more business, and now consumerization is ensuring that even the smallest startup can find an ERP solution that fits their needs and budget.

Consumerization means, according to CFO.com, "the use of interfaces that resemble web, social, and mobile consumer technologies." Vendors should dedicate themselves to building user-friendly system that can be easily adopted by employees at any level. Consumerization allows software to be utilized by anyone who has an impact on the results of a business by creating intuitive applications. 

It seems to be the natural progression in an industry where mobile ERP interfaces are becoming standard. Many first-class ERP vendors have introduced mobile platforms to their software to support a range of popular mobile devices, from iPhones to Android tablets. Consumer style apps will define worker interaction with enterprise software in the future.

Today's ERP applications also include a degree of social capability, with tools that allow for collaboration between employees or with customers. Businesses that are spread out across the nation (or across a number of nations) are sure to take advantage of the accessibility such features allow.

ERP consumerization is the future of a system that is always evolving. If you are interested in learning more about business management software contact Accent Software today!

Is it time to replace your ERP system?

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The enterprise resource planning (ERP) market is dynamic and innovative. The system is in constant flux, rapidly developing like any other digital-era technology, and in order to avoid falling behind, companies must conduct constant evaluations of their business management software. Are you taking full advantage of all the advancements that have been made in ERP? Does your system still fit the needs of your business and its environment?

Here are a few signs that it might be time to replace your ERP system:

Outdated systems: Aging systems will frequently take long periods of time to respond, or will break down entirely, indicating that the system is overtaxed and begging for replacement. Outdated systems will suffer architectural limitations, such as the type of network configuration that can be accommodated, and functional problems, like a lack of integration between different systems. Your ERP system should be able to efficiently and effectively meet all the demands of your business.

Functional limitations: If you ever find yourself avoiding your ERP system because it simply has too many issues to use, think long and hard about updating. Many companies simply stick to spreadsheets and other methods to get things done in the moment, leaving the problem of a clearly impractical ERP for another day. There is no point in keeping a software you can't use. If you have recently acquired another company, introduced new products or expanded your chains, the changes could put a huge load on systems that cannot handle complexities. Instead of living with the functional limitations, make a point to look for replacements.

No mobility: Modern ERP systems are designed to make use of new technologies in the market, such as smartphones and tablets. Take advantage of the convenience of these features by updating your system.

The face of ERP is constantly shifting. To bring your system into the modern age, contact Accent Software today.

ERP for custom ETO manufacturers

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Custom engineer-to-order (ETO) is a great way to increase sales and improve margins for many companies. It is also a business reality for those in industries that demand products that fit into a customer's environment.

ETO manufacturers have a unique lifecycle process — as the manufacturing company grows, the processes in place become more and more complex and difficult to handle with traditional forms of communication. The bottleneck this issue creates can quickly stifle growth. Businesses tend to hire more staff to offset the issue, ignoring end-to-end software solutions because they feel their manufacturing process is too distinctive for ERP to handle.

The truth is manufacturing business software like enterprise resource planning (ERP) can offer a great solution for these specialized problems, ensuring that all steps in the manufacturing process are consistent and completed. Here are a few things to look out for when selecting ERP for your custom ETO environment:

Functionality: A good ERP software will have the capacity to continually add detail to the bill of manufacturing of a project.

Integration: If you have already invested in CAD software it is important to find out whether your chosen ERP solution will be able to integrate with the program.

Tracking: Many ERP solutions only allow tracking of time within the walls of your company. For custom ETO manufacturers it is important to have the ability to track time and expenses for delivery and installation at customer sites too.

Specialized: ERP often begins as accounting or distribution software, to which more modules are added overtime. Instead of this traditional system, try to find a solution that has been developed from the beginning for manufacturers.

When you decide it is time to employ an effective ERP system to your manufacturing process, give Accent Software a call. We have years of industry expertise and will help you best implement your new software.

What does the SAP’s new ERP mean for customers?

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Earlier this month SAP announced the next-generation ERP system, S4 HANA, which will replace S3 or SAP Business Suite. The new model promises an easier-to-use interface, disruption-free migration and super-fast data analysis, supported by entirely rewritten code. SAP co-founder Hasso Plattner predicted that S4 HANA would eliminate 40 percent of SAP IT load.

As appealing as S4 HANA sounds, for now it is merely a vision for SAP, and won't be released for at least a few more years. Still, the launch, called "the biggest in the vendor's history," could mean a lot of changes for consumers when it finally comes to fruition.

Reduced complexity: Analyst house Pierre Audoin Consultants stated, "While the SAP landscape has become more and more complex due to the various new components the vendor has added over time, it is SAP's intention to reduce this complexity with S4 HANA. With this, SAP delivers on its promise to provide an integrated system." Plattner claims that data complexity has been reduced drastically in S4 HANA simply though getting rid of aggregates, redundancies and creating satellite applications that do not need their own instance.

Fast analysis: Undoubtedly S4 HANA will continue the SAP trend of high speed data analysis. During the launch SAP product and innovation lead Bernd Leukert showcased the tool's speeds by analyzing 245 million lines of items for a company's profits and losses within seconds.

Cloud capabilities: With S4 HANA SAP is looking to configure cloud products so they can be used on-premise, for consumers who are not quite ready to make the upgrade. This is a reversal on last year's announcement that the vendor had put a deadline in place for on-premise ERP support.

S4 HANA represents a radical shift for SAP, since the new ERP will be dependent on HANA instead of supporting multiple databases. While it seems to be an impressive system so far, what S4 HANA can really do remains to be seen. For more information on new ERP systems and other business management software get in touch with Accent Software. We would be happy to answer your questions!

The evolution of ERP mobility

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Research from the Aberdeen Group states that "58% of laggard organizations seek out modern ERP solutions because of the lack of features in their current solution." One of the most desired features happens to be mobile access. Modern ERP solutions are empowering business around the world, providing users with real time analytics, reports and customers information, as well as streamlining business processes and improving management performance. If the data ERP provides could be accessible via smartphones and tablets it would allow for increased efficiency, more knowledgeable operations and greater productivity. Luckily modern ERP vendors have listened to consumers and top-of-the-line systems now come with mobile optimization.

Here are three areas where mobile ERP access can be utilized:

Knowledgeability: The success of many organizations depends on the availability of up-to-date information. Employees and executives who have data at their fingertips are able to provide customers with expeditious and customized service. Such dedication and attention to detail will impress clients and can turn one-time customers into long-term business relations.

Distribution: Mobile enabled business management software allows sales representatives to access information from any location, even on the go. The ability to give customers stock information, invoices and delivery notifications, among other data, from inside their shops or outside the main office makes for smoother operations and happy customers.

Efficiency: ERP solutions on their own streamline procedures at all company levels. Adding mobile access to the mix allow for simplified ordering processes, quick customer information updates and tends to eliminate manual ERP activities.

Giving executives and employees access to business intelligence from smartphones and tablets has become imperative for organizational success in this era. If you are looking for an ERP solution that is mobile enabled, contact Accent Software today!

ERP trends to keep an eye on

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It is looking like a good year for enterprise resource planning (ERP), for both vendors and business users. Technology is advancing rapidly, and increasing numbers of companies are taking the time to upgrade in the new year. As enterprise resource planning systems become more flexible and varied we can expect the demand to keep rising. While IT leaders might not be able to see into the future to determine precisely which system to license or which upgrades to make, they can follow current trends to aid decision making. Here is what 2015 is bringing to ERP:

Hybrid cloud: Chris Wolf, VMware's CTO of the Americas told CIO, "[We] saw a spike in multi-cloud strategies in 2014, and that will continue into 2015. CIOs will continue to seek out the flexibility that [hybrid clouds offer]. And senior IT decision makers will invest in hybrid cloud architectures to future-proof their applications and services."

The advantages of the cloud are numerous: It allows for higher levels of service and faster execution at lower costs. Experts predict that most businesses will choose to adopt a hybrid cloud system, mixing off-premise and on-premise modules.

Subscription pricing: Competitive pressures are ever increasing, causing a shift in price point. Trends point to ERP becoming priced on a per-use and/or per-year basis, as opposed to traditional lump sum licensing. This price model is more scalable and predictable. Look for it to be available in end-user-centric applications, as well as data center management and other business management software and services. 

Deeper integration: ERP will become more versatile and offer greater degrees of integration with procurement, HR and customer service software. SAP recently made a number of strategic acquisitions that will help customers expand their ERP systems.

Looking for more information about current ERP trends? Contact Accent Software, where we can help you find top-of-the-line systems that will take your business to the next level.

Sustainability in the next generation of ERP management

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Enterprise resource planning (ERP) is an evolving concept. As technology advances, so do the capabilities of ERP systems, with improved storage and management, alternative deployment models and expanded data access. However, there is always room to make improvements.

According to Brian Sommer of ZDNet, one of the most concerning issues surrounding enterprise resource planning software is vendors' lack of understanding regarding sustainability issues.

"ERP vendors don't get sustainability. They think it's about collecting all of a user's electric and gas bills to determine their carbon footprint. They think it's a reporting exercise. If they can develop a spreadsheet with more rows and columns than the next ERP vendor, then they have achieved some sort of market leading, product excellence crown of achievement," writes Sommer.

Yet, he believes that even asking suppliers to account for sustainability in ERP systems would be a drastic mistake. He states that adding sustainability modules to ERP would be "intrusive, disruptive and expensive," and would only make things more difficult for vendors.

Thomas Odenwald, Senior Vice President of Sustainability at SAP, doesn't quite agree, instead believing that accounting for business externalities in ERP should be an essential part of the next-gen movement. In an article at Sustainable Brands he states that future ERP systems must be able represent all resources a business uses, whether they are traditional capital or otherwise. A company's processes always depend on available assets. Considering how natural resources are included among their assets, organizations take an important step toward running a more accurate and efficient business. 

Odenwald believes that environmental depletion and unsustainable uses will eventually catch up to all industries, making it important to account for ecological circumstances by using business management software.

At Accent Software we have the acuity and experience to help companies implement ERP systems that are best suited to their needs. Contact us today!

Flexibility is essential to ERP

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A recent Gartner report had some harsh words for highly customized enterprise resource planning (ERP) systems, saying that by 2016 customized, monolithic ERP software would be known as "legacy ERP," a term Gartner defines as, "any system that is not sufficiently flexible to meet changing business needs."

Andy Kyte, vice president and Gartner Fellow, stated, "Early ERP adopters, particularly large enterprises in energy, manufacturing and distribution industries, are paying the penalty of a decade or more of excessive customization. Businesses looking to improve administration today can take advantage of lower costs, better functional fit and process flexibility offered by blending cloud applications with on-premises applications in what we now refer to as 'postmodern ERP."

When ERP was first introduced, CEOs and executives latched onto ERP as a source of reliable integrated solutions. Stakeholders are still seeking these qualities today, but technological advances have allowed them to assume that such characteristics will be present in any decent software on the market. Expectations have now changed, and business owners are not looking for more affordable and flexible systems. ERP that fails to meet these new demands will only hold an organization back.

ERP evaluation will only become more rigorous as time passes and more advancements are made. Current implementations are obviously not going to disappear any time soon, but vendors will be forced to understand and adapt to the new hybrid ERP environment sooner or later. Off-premise solutions, combined with business process outsourcing, will only become more popular because they provide executives and CEOs with alternatives to the inflexible and expensive modules of the past.

If you are interested in learning more about ERP flexibility, or are in search of business management software for your enterprise, contact Accent software today!

Managing change key to ERP success

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According to The 2014 ERP Report: Organizational Change Management, "organizational change is one of the most overlooked and neglected aspects of ERP implementations." While enterprise resource planning is undoubtedly an incredible tool that streamlines all aspects of business functionality, it is not a miracle worker. When implemented as is, without any organizational change, ERP may bring some improvement to your company but eventually the positive effects will plateau. Here are a few things to take into consideration before bringing in a new ERP system:

Target employees: ERP implementation requires a number of changes which can be overwhelming for employees. It is essential to develop clear lines of communication with workers regarding ERP systems. Outline what the changes are, when they will be taking place, why the company is upgrading to business management software, and how the changes are going to affect individuals and teams. Craft briefs according to the reader — bulleted memos for executives, face-to-face meetings for sales reps, etc. — and be prepared to disclose developments as they occur so the message can truly resonate with employees.

Tailor training programs: No matter the industry there will always be a training period involved following ERP adoption. Don't depend on your vendor's usual training manual, and instead tailor training procedures to your organization. This will require extra time and investment, but in the long run it will be more valuable to have employees who know how to use ERP systems as they relate to your business specifically.

Wait until your business is ready: Don't rush the process. Measure organizational readiness and take the next steps only when you are sure everyone is ready for it.

Accent Software can facilitate your company's transition to ERP systems. With 10 plus years of experience we will do everything in our power to support your business.