To increase the return of a given BI investment requires maximizing the extra profit the company makes a result of the BI deployment.
In his Theory of Constraints, Dr. Goldratt states very clearly that in a for profit company, the main goal is to achieve sustainable profitability. In other words, it’s to “make money now and in the future”.
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I recently read an article published by Brett Beaubouef on his blog (Cloud ERP – New Dog, Same Fleas), about the future of ERP in the cloud. Referring to the traditional ERP, Brett called these systems „the panacea for all business automation pains”. Instead, Cloud ERP is positioned as a revolutionary approach to deploying an ERP solution.
„Practically speaking, Cloud ERP is just another deployment option available to customers. Cloud ERP provides a solution that is flexible, adaptable, scalable, efficient, and affordable. Customers can enjoy painless upgrades, rapid deployment, and easy customization along with availability “anywhere at anytime”!”, said Beaubouef.
The question that arises is the following: are there major differences between those two ERP solutions? At first sight, it seems not. The activities required for an “on premise” ERP implementation are also required for Cloud ERP and the scope and responsibility for the implementation activities are still required. And then, what would be „the key impacts that a Cloud ERP deployment will have on the implementation?”
As Brett said in his article, „from a technology perspective, Cloud ERP offers a faster implementation timeframe and provides very robust functionality”, but if the organization is not prepared to properly use the software then the value of Cloud ERP will quickly dissipate. Also, „integration will be a greater challenge in a Cloud ERP model versus an on-premise ERP model – if only because the Cloud ERP will be outside the company’s internal network”.
Than, the customizations and integrations are impacted based upon the cloud model. Regarding Brett, a customer will have greater flexibility if the customer has a dedicated instance. „If multiple customers are on single software then the Cloud ERP provider may limit the level of integrations and customizations because the software changes may have an adverse impact on all the customers on a shared instance”, specified Brett.
As a conclusion, As with every deployment model, there are advantages and disadvantages to consider. „But it is important to remember that Cloud ERP is not a short cut to success”, noted Beaubouef.
We participated on May 17, in Bucharest, at „Business Productivity Solutions” Conference. organized by Agora. The event wanted to demonstrate the changes that occur at this moment in ERP, CRM and Business Intelligence market and, also, the important trends that, soon or later, it will mark the future of this market.
We spoke about our company ERP, CRM and BI solutions - Socrate+ ERP, SocrateOpen ERP&CRM, Socrate Payroll, MicroStrategy BI - which allows companies from various industries to improve productivity and to provide better services to customers by streamlining and automating processes to achieve smart growth and sustainability goals.
Having seen BI implementations ranging from the very good to the very bad, I think a BI solution needs to be:
1) User friendly, self-help oriented and designed for the users and not for IT experts, because constantly needing an IT person to run SQL, MDX or complex reports is a slow and unproductive process for everyone.
I read recently, on a blog powered by Software Advice, an interesting post about what questions to ask yourself about ERP software license. Regarding to Anya Ciecierski, „once you have found the software that has the right functionality for your business, you need to make sure you understand the costs”. She talks about upfront costs and hidden cost and how you can save money or waste money. It is important to understand that the total cost of an on-premise accounting software project will include three components: software licenses, implementation services, and hardware. Regarding to software licenses, Ciecierski brings up nine questions that every ERP software buyer should ask before signing on the dotted line.
1. Is the system priced per user or per module?
For many companies, user-based pricing is often a better value and a better investment – you get more for your money and room to grow.
2. Can you buy full user and light user licenses?
If the software you choose gives you an option to purchase full user licenses and light user licenses, this can be a substantial cost savings for those additional 15 users.
3. Is the system priced by concurrent users or named users?
If you buy a system based on concurrent users, you can set everyone up in the system. If you pay by named user, however, you’ll have to buy a license for each user.
4. How easy is it to upgrade your ERP system?
5. What are the required annual maintenance fees?
Negotiating your maintenance contract can be tricky business.
6. What is included in the annual maintenance fees?
7. What are the rules for lapsed maintenance fees?
Maintenance plans are like insurance, we all wish we didn’t have to pay for it, but when we need it we’re glad we have it.
8. Is there a strong ISV/Add-On community?
9. Is there a strong user community?
A strong user community offers an opportunity to share ideas and learn best practices.
What’s your experience with software licenses? Please feel free to leave a comment below.
As the global market for Business Intelligence and Analytics continues to experience double digit growth, BI vendors from around the globe will offer creative and lower cost solutions to gain share in the mid and small size company segments that are turning to BI for the first time.
Cloud computing vendors will expand their offerings to include ETL, Data warehouse, reporting, OLAP, advanced visualization and dashboards in one package for the early adopters that moved passed the security concerns.
Software companies will follow the IBM-Cognos lead integrating advanced statistical packages and predictive analytics modeling into their current BI solutions.
More vendors will offer better mobile BI, analytics and advanced visualization applications.
More companies will realize that they can use BI/ Analytics beyond the back office tactical day-to-day operation. They will start to exploit the power of BI software to perform strategic and competitive analysis on the fly to understand market trends better than the competition and increase market share, revenue and profit.
More companies will realize that the semantic quality of their data is constraining the Business Analytics results. They will start to cleanse, organize and structure the data to contain more strategic meaning and provide direction to grow the business.
Some companies will gradually realize they have built unnecessary complexities in the configuration of analytic, BI tools and data marts. While this isn’t an impediment to IT or analyst experts, it causes casual business users to underutilize or not utilize at all the systems. This will gradually change towards a more business intuitive, self serve “analytics for the masses” model.
By Bill Cabiró and Strat-Wise LLC
„Please visit their web site at www.strat-wise.com for additional articles and resources on the strategic use of Business Intelligence and Analytics”
According to a study published by Gartner, the Business Intelligence market increased by 13,4% in 2010, the total value of the global BI market reaching $ 10.5 billion. The growth reflects the customers interest for business efficiency solutions and competitive advantage achievement in economic crisis time. Regarding to Gartner, the BI market is 59% controlled by the major vendors, such as SAP, IBM, Oracle, Microsoft and MicroStrategy.
The role, responsibilities and activities of client Project Manager in an ERP implementation project
Most of the companies who are looking to implement an ERP system have a great dilemma: which is the role of the client project manager and in what areas of the project management is he involved?
The key goals of any ERP implementation project are to complete it within the established time and budget, with a high degree of customer satisfaction. For this reason, the client Project Manager is responsible, first of all, for ensuring that all customer requirements are planned and executed in a manner that will meet the implementation goals.
What is more important for an ERP: the brand or the flexibility and the functionality?
I recently followed a discussion on LinkedIn about what is important for an ERP: the brand or the flexibility and the functionality? The discussion had started from a simple question: „X or Y - which is best?” (where X and Y are some of the biggest global ERP suppliers). The conclusion that emerged form that discussion was both and neither. Why? Because it depends on what your business requirements are and on how each vendor met your business needs. Most of the comments made reference to the best way to pick an ERP package. Which is to identify how you need the business to run and then find a package that best fits your business processes. Those involved in the discussion noted that too many people are picking one of the top 5 ERP suppliers without understanding how their business plans to function or if the ERP solution is a good fit for their business processes. They just picking a name, a brand, not a product.
The idea is that the brand should count, but did not override. There are many others factors to be considered, such as to define what is the goal in use, which benefits do the business you want, what are the challenges, what is the main area that needs supported, what will be the need in 2 years time and, last but not least, focus on how the license policy and payment is after „go live”. And so you will find that there are other alternatives that probably fits better your business needs. Maybe the top 5 ERP suppliers have the brand, but others have the flexibility and the functionality. Which are more important for an ERP than the brand.
In a discussion started on Business Intelligence Professionals Group on LinkedIn, 276 BI specialists have tried to answer to a simple question: why BI implementations fail. And how can specialists prevent this from happening again and again and again and ...
Although each of the respondents see somewhat different the answer to that question, finally they reached the same results, grouped into two categories: reasons to fail and reasons to succeed.
So, the BI Implementation fails with few reasons:
1) Not enough data to make history.
2) The company management does not have proper hierarchy.
3) BI is designed for Managers to facilitate them take quick decision support, they should know what they want and what they looking at.
4) The critical users not being involved from the beginning.
5) Ineffective or incompetent project management.
6) Understand the business needs.
BI Implementations will succeed when there is a:
1) Good Business Analyst who understands Business.This is a role that can bridge gap between Functional Experts and IT- BI Experts.
2) Good Dimensional models with flexibility to enhance future requirements. Basically well thought out models expecting future rquirements.
3) Requirements understanding between data modelers, Data integrators and Reporting people.
4) Proper resource and project management.
5) User friendly, self-help oriented and designed for the users and not for IT experts.
6) Identify how the business needs fit into the current BI architecture.
What is your point?