What's This Cloud Thing Anyway?

Was recently putting some thoughts together on the tipping point for a business to finally make the plunge and replace their ERP system and it seems that many "experts" and "articles" like to include the cloud or "The Cloud" in this discussion. Recalling an event where Oracles' Larry Ellison expressed his opinion of the the cloud.

 "The interesting thing about cloud computing is that we've redefined cloud computing to include everything that we already do. I can't think of anything that isn't cloud computing with all of these announcements. The computer industry is the only industry that is more fashion-driven than women's fashion. Maybe I'm an idiot, but I have no idea what anyone is talking about. What is it? It's complete gibberish. It's insane. When is this idiocy going to stop?" Full remarks

So what is this cloud thing anyway? And specifically related to ERP or business management systems? I think that it breaks down into two simple concepts. The first, my application can be accessed from anywhere and the second, some or all of my software/hardware investments have been outsourced.

Accessed anywhere simply means that if the internet can be accessed, my ERP can be accessed. This is done through a VPN, Citrix, RDP connection; natively through the ERP client or a browser based application with user authentication. Big surprise, nothing really new here. Access of this type has been around certainly longer than "free" internet access at every coffee shop on the planet.

Outsourced software/hardware - certainly a newer concept, but not the outsource part. Businesses have been outsourcing aspects of their operations for as long as there have been businesses. Anybody still doing their office cleaning? So with "cloud ERP" one end of the spectrum would be having a 3rd party facility provide a rack space (no real pun intended) for the ERP server. At the other end of the spectrum is a subscriber relationship where the vendor provides all of the software and all of the hardware. With any outsource relationship, the customer calculates the internal costs and compares them to the outsource price, then picks the one that makes the most business sense. And as anyone who has spent time selling outsourced services can attest - everyone has a different opinion.

Outsource hardware is fairly new, but not so new that it hasn't been commoditized already. Outsourced software, while there certainly has been some enabling technology, is really just a pricing model that's been around since the beginning of time.

Put me in Larry Ellison's camp - "It's compete gibberish".

But if you're wondering if your business has reached the tipping point and its time to consider next generation business management solutions - OpenSurge would be delighted to help.

Learn Your Business Management Solution

A recent article in USA Today, “Ask an Expert: Entrepreneurs, avoid these these 5 tech traps,” included one of the things many companies overlook related to their business management software. Item number four on expert Steve Strauss’ list:

"4. Never really learning the software: Like the brain, people tend to use only about 10% of what their software can actually do. That’s the mistake. Software companies spend a lot of time and money studying small business and creating software to meet our needs. If you spend a little extra time actually learning what your software can do, you will be amazed." - Here's the full article

Business management software and solutions have evolved over the last 20 years with plenty of best practices and cross-pollination of features and functionality. What this means is that more most any business process that your business performs, there is a corresponding function in your business management software.

Just spending an hour or two every week studying your small business management software, learning about the functionality will continuously open your mind to the possibilities. Those possibilities include organizing your business, saving time and smoothing out the flow of your operation, so you are in a better position to take on more customers, more business with the same resources- improving your bottom line.

Your ERP business management solution should be considered a strategic investment in keeping your business competitive and enabling your particular business model to far outperform your competitors - whether that be through customer service, shorten lead times, better inventory availability or simply sharing information. Granted your business is always what you know best - and you might need an outside specialist to help you with creative and innovative ways to get the most from your investment. And many times this a long term, evolving process.

At OpenSurge we have helped many clients unleash the power of xTuple ERP related to their specific needs. As an example, one of our clients had a compelling need to be able to readily access documentation and test results for specific batches of materials. Further they had a requirement to provide this documentation with each customer shipment. Utilizing the existing xTuple functionality, creative application of bar code technology and simplified work flow resulted in the ability to produce the necessary documents the time of shipment.


Be sure to check out the other four tech mistakes to be avoided on Steve Strauss’ list. One of which is "not scheduling regular data back-ups".  So if you haven't backed up in a while - here's your reminder!

Business Accounting Software is for Everyone

A recent study by the U.S. Bureau of the Census , Business Success: Factors Leading to Surviving and Closing Successfully by Brian Headd, Center for Economic Studies, found that:

"Major factors in a firm's remaining open include an ample supply of capital, the fact that a firm is large enough to have employees, the owner's education level, and the owner's reason for starting the firm in the first place, such as freedom for family life or wanting to be one's own boss."

Let's look at that second reason for remaining open, "large enough to have employees". By far, most business startups are because an individual has an idea, a belief in their abilities and a desire to be their own boss. They cobble together the resources they need and invest a generous portion of their own human capital. The business grows, customers are added, new products introduced and the next thing that new owner knows - its time to start hiring employees. Then the challenge begins.

The key differentiator of business management software solutions is the capability of the solution to be a true multi-user application.  There simply is no such thing as an enterprise class integrated business management and accounting solution that is not designed to be used simultaneously by multiple individual users. By far the leading accounting software package used by startup businesses is Quickbooks, mainly because its cheap and easy to use, but Quickbooks is not a multi-user application. (Yes, the Enterprise Edition is and by definition the online version is -sorta, but that's not the point of this post). "Sharing" an application is not the same as having multiple users.

In order to get the most out of your employees and resources it is critical that everyone is able to collaborate around common principles. One main objective of implementing business management software is to have an integrated solution where data is generally enter once, actions create further actions (think supply chain management) and processes are automated. In order to accomplish this objective your management solution must utilize a robust relational database which allows for many users to be accessing and updating information simultaneously while providing security and data integrity. Further the database and the application work hand in hand to manage users, privileges and transactions.

So when your business has grown and you realize its time to leverage technology to increase your business's efficiency and ability to service your customers - start you ERP search with those solutions that provide multiple user functionality as a fundamental concept.

Learn more about multi-user open source accounting and business management software at:
www.opensurge.com

Time and Expense Tracking with xTuple Open Source ERP

Just a short post for this video on using xTuple's open source ERP solution for managing time and expense for services.

xTuple's robust business management solution will let you use Mac OS X for you accounting and invoicing requirements. This cross-platform accounting software solution is great solution to put in a cloud computing environment where all your business colleagues and co-workers can access the same database. And using xTuple's CRM functionality, one of the leading open source CRM solutions, your workforce can collaborate and manage all the projects to run your business and service your clients.

Visit OpenSurge, an Atlanta, GA based xTuple Elite Development Partner to find out more.

When will Business realize the approaching wave of Apple users has arrived?

We want a Mac!

Starting a couple of years ago the first wave of college graduates entered the business world that had never used a Windows machine. Right now I'm looking over the 15 or so people gather in the local coffee shop - all on their computers, and only one using a Windows machine.

Being a Business Management Software guy - I struck up a conversation with her and asked about her Windows usage. Yep - because that's what her company uses. She has a Mac and an iPad at home (I don't even have one!), and hates having to use Windows - I told her to change jobs - she asked me for one. Well maybe, because she currently sells software and I'm guessing pretty good at it. Even with the Windows handicap!

Family Business Continuity Planning and Enterprise Management Systems

Let's discuss enterprise software and why it should be important to a family business looking to insure that the business can successfully transition from one generation to the next.

Simply put, an organized, well run business following a consistent set of business rules is easier to hand off to the next generation. Business management software is an integrated systemic approach to managing all the data about a business, its finances, sales, inventory, etc.; resulting in an operational culture that shares information, eliminates silos and promotes best practices across the organization. The successful implementation of a first rate enterprise system, one that allows for the flexibility of your unique business, can be that key ingredient to a successful transition of a family business from one generation to the next.

First, what exactly is enterprise software, also known as ERP (Enterprise Resource Planning)? Basically it is an integrated business management system that connects users and information, enhances communication, identifies bottlenecks and standardizes business practices. A good ERP system, properly implemented, can bring about massive improvements to operational efficiency, shine a bright light on hidden organizational costs, and strengthen relationships with customers and suppliers. All of that translates into real growth - often exponential growth - even in a challenging economic climate.There are many different forms and types of ERP, but for purposes of this discussion it is those solutions that include functionality for accounting, sales, purchasing, inventory, supply chain management, production planning and CRM. Additionally, the system should utilizes an accessible relational database and custom report writer.