ERP – To the Cloud

Enterprise Resource Planning System CRM in word tag cloud

By Ken Crafford

Part I

ERPs are strategically important as a “must-have” capability for most companies. They are a major investments, and a large component of total IT spend. CIOs know that getting the ERP aligned with business drivers, while remaining efficient and cost effective, is imperative to a company’s long term strategy and financial success. And they understand the importance of being nimble and keeping up with the constantly evolving needs of their business customers.

Historically, ERPs have been large and complex and expensive to implement and maintain – think Oracle and SAP legacy ERP systems. While they may be hosted or running in the cloud, you still have to maintain and upgrade them, and with that comes significant risk and cost. Keeping ERP’s current and adapting to new business requirements also consumes significant portions of IT spend.  And, if your business is changing quickly, it is very difficult to be keep up with those changes when you are running these very sophisticated, and accordingly, very complex software products.

This leads to the question of what are the alternatives?  Many of our clients are looking to the cloud for solutions that can meet their requirements for functionality, cost, and flexibility.

Solutions are indeed emerging, but with some caveats.  As we have seen in other areas – CRM being a primary one – there are great platforms for delivering top tier solutions.

However, before ERP in the cloud would be ready for prime time, both the applications and underlying platform technology must be rock solid.

The platform architecture and capabilities are critical to how the product will scale to meet your demand, how the vendor can add functions and features over time, how you can add enhancements that don’t break when the vendor updates the core product, and the extent of the ecosystem of supporting solutions that run on the same platform.

And so the crux is not just whether cloud ERP products have the functions and features that you need – you must also look at the underlying technology platform and the ecosystem of products and services that are part of the complete solution.

Fortunately, the market is evolving very quickly and we are seeing some solid cloud ERP products emerging that are based on great technology platforms, and provide a solid foundation for a product that you will probably be using for the next 10 years.

In future posts I will be calling up some examples of these solutions and how they can be leveraged.

Stay tuned.

 

StratraFusion – Values

Values balls

 

The pace and evolution of enterprise technology more than ever calls for strategic advice on how best to use this technology to optimize your business.

We formed The StrataFusion Group as a unique technology and business consulting practice based on knowledge gleaned from practitioners and their years of in-house “hands on” leadership and experience. Our Partners have driven technology and business strategies in disruptive Fortune 500 companies and fast-growing enterprises and firms, and they bring years of practical knowledge into solving each opportunity in its complexities and challenges.

We advise and assist our clients on how to leverage their technology investments to increase revenue, and improve customer satisfaction while reducing risk and cost.

We originally conceptualized and founded The StrataFusion Group to provide expertise ”for CIO and CTOs, by CIOs and CTOs.” The practice has, unlike many other technology consultancies, continued to emphasize the personal operational experience of our Partners. This expertise is then applied directly to your problems and issues by our Partners — not inexperienced stand-ins. You receive our personal attention and commitment to efficient and effective engagement management.

Our passion is to empower companies to be business innovators by combining leading-edge insights with significant experience-based knowledge of markets, technologies and industries. We focus on adding client value, delivering ultimate professionalism, applying team cohesion to expand experience and focus success, with respect for individual values and goals. We truly seek to earn the “Trusted Advisor” status. When you have a serious technology problem we want you to think of StrataFusion, not Ghostbusters!

We offer proven solutions for the most difficult business challenges, focusing on these practice areas:

StrataFusion Practice Areas

  • CIO / CTO Advisory
  • Information Security
  • Digital Transformation
  • Big Data / Cloud Analytics

As we go forward and continue to build on our consulting practice areas, how we were formed, our foundation and core values continue to drive how we approach each company with their unique set of of challenges. Underlying all of our work is our set of guiding principles:

StrataFusion Guiding Principles

  • We challenge and reinvent the vision
  • We create through teamwork
  • We nurture the independent, entrepreneurial spirit
  • Our personal and operational competence and professionalism is clear and at our clients’ disposal

We look forward to working with you.

John Dick, Partner and Co-Founder, StrataFusion

Measuring What Matters

Measuring stick

By Maureen Vavra

Our clients often call on us at StrataFusion Group to help with Business Intelligence projects to validate and monitor major corporate initiatives. BI and Big Data have become fundamental in managing profitability and improving efficiency for business today. Managing with data can also make a big difference in smaller internal change management or projects, too.

It doesn’t need to be too complex, and the payback is clearer understanding up front and a better grasp of what an initiative needs to accomplish to be successful. I find that working with clients to identify a few key measures is a good way to quantify the level of change they want and can realistically achieve.

For projects or initiatives, define success before you start – which needle do you want to move?

  • Any big effort has to boil down to a few quantifiable outcomes, usually along the lines of the project management mantras of cost/schedule/performance. Define your outcomes and your tolerance for variance. Make it all explicitly clear.
  • For any change, the Performance area is the most important. Before you start to plan a project or a major change, define the outcome, and what success looks like. Make sure you can measure impact.
  • Keep a close eye on the business imperatives you don’t want to adversely impact – and reward people for maintaining their high standards. It’s called “managing multiple priorities.”

Measure what matters – don’t spend a fortune on reporting in the early stages

  • Ask the people doing the job or receiving the service what really matters.
  • If any effort is monitoring more than 4-5 key measures, you have overthought it.
  • On a “replace functionality” project, cut the number of reports you generate in half (even if you just did that.)
  • Think about metrics as if you’re driving a car – how many dials can you watch and still get somewhere?

Got a problem or roadblock? Value the naysayer

  • Vocal employees are saying what others are thinking. Examine the barrier: real? big? how can it be tackled? Make it a measure you knock down.
  • Accept it: good employees who are negative about a new project or change usually have a point – get them to quantify why they think something won’t succeed and help turn it around.
  • Challenge critical thinkers deliberately: to suss out what could go wrong, develop risk mitigation tactics, and help quantify and test the system for failure points.

Take a victory lap that boosts morale

  • Set solid milestones for internal initiatives, monitor and acknowledge when they are met. Recognizing specifically what worked, why something is more efficient, provides better job clarity.
  • If something fails and you catch it early, credit your measures for giving you an early warning – that’s a major value add.
  • Tie your measures to the bottom line, saving or making $, improving quality, increasing Customer Sat – it keeps the CFO happy.
  • People like to be rewarded for specifics, to know what to do to succeed – show them that something they did made a difference.

Finally, once a change management initiative or project completes, having quantifiable data can be invaluable in assessing key learnings and planning for follow-on activities as well.  If there is a larger BI or reporting effort required, the foundation has been set.

Lessons Learned

Lessons Learned green image

In our recent StrataFusion Partner leadership meeting the topic of lessons we have learned, or the ‘big mistakes’ we have made, with our subsequent learnings, came up in our discussion. Lately there seems to be a proliferation of these learnings, and we thought it would be a good time to present some of ours.  Below our Partners have recapped some of their biggest lessons learned.

Maureen Vavra:

  1. Focus on building relationships with the business leadership and aligning with their goals at the beginning of a new consulting relationship.
  2. On projects: Have a defined sponsor and a clear set of measurable business objectives before you allow a project to start.

Mark Egan:

  1. Be proactive with low performing staff, putting an improvement plan in place, before waiting too long to take any action, with hope that things would improve.
  2. Gage and focus on projects that help the company build high quality products/ services or sell products/services.

Reed Kingston:

  1. Stay focused on critical projects. Verify constantly.
  2. Let projects be led and driven by data and facts instead of “enthusiastic hopes,” hanging on to some projects/initiatives/products too long.

Doug Harr:

  1. Taking too long on a termination believing the person in question could be coached to success.
  2. Make the timely effort to establish a great relationship with the peer customer on your management team to reap the benefits of great communications and emotional deposits 🙂

Ken Crafford:

  1. Cement the approval and support from all executive stakeholders before engaging in large, critical projects.
  2. Understanding that managing up the organization is as critical as managing down the organization.