For manufacturers there are two key resources for funding and assistance. One is the Trade Adjustment Assistance (TAA) which can be used in the Midwest for Illinois, Iowa, Minnesota and Wisconsin. The other source is IMEC (Illinois Manufacturing Extension Center) funding for training.
For the last month, we have been partnering with IMEC (Illinois Manufacturing Extension Center) and have been able to offer our clients some funding through IMEC for training regarding the work flow processes in their current ERP system software, accounting software and inventory management training. This funding is available first come so if there’s anything you think we can help you with, please contact us at 815-965-9800 and ask for Charmaine or email me at cbliss@datacraftrockford.com
IMEC is a team of specialists who work with Illinois companies to be more productive and globally competitive. IMEC solutions help companies develop profitable business strategies, meet customer quality requirements, contain operating costs, increase capacity and on-time delivery, and solve technical operating problems such as product defects or process bottlenecks. We prepare the client's team to accelerate improvement and achieve results that will stick -- long term.
Since IMEC's inception in 1996, the 1,900 companies who have called on IMEC for assistance have realized an average of $7 dollars in sales and cost saving improvements for every $1 dollar they have invested in our resources.
Trade Adjustment Assistance for Firms (TAAF) is a program for companies that have been affected by import competition and want to improve their competitive position. This unique, focused source of consulting and technical service assistance offers up to $75,000 in cost sharing of projects aimed at enhancing a domestic company’s ability to compete successfully.
If your manufacturing or service business has been impacted by import competition you should contact the Trade Adjustment Assistance program.
Applied Strategies International, LTD. (ASI), the Midwest Trade Adjustment Assistance Center, provides consulting services and technical assistance to manufactures in Illinois, Iowa, Minnesota and Wisconsin.
*
If you are planning to switch your accounting and ERP softwares, migrating data from your old software to the new software can present challenges if not done properly.
To avoid any data migration issues, a well-planned data conversion should include:
- Clean cutoff - In order to have a clean starting date in your new software system, you need to have a clean cutoff date in the old one. Don't enter anything in the old system that would be BEFORE the cutoff date. It's best if there is a way to "Close" the financial software as of that date.
- Run parallel- Run both of your software systems together until you're comfortable with the new software. While you're using both systems, pull reports and financial statements to make sure the data matches and you're getting the information you want from the new system.
- Don't rush. Even though it might be really tempting to switch over to the new software system, take your time. Bad data conversions are expensive. Lost data, errors, time delays, inefficiencies, and disruption of normal business operations all are potential hazards.
Migrating from one software to another is a big project that requires proper planning. A well planned and executed conversion will get your business running on its new accounting and ERP software systems without putting your company at risk.
Looking to switch software systems? See how Open Systems Inc makes it easy.
Download Making the Switch:Migration from OSAS to TRAVESE Version 11
*photo credit: Stepan Mazuroy
The cost of an ERP system software depends on many factors -- size of the company, number of ERP users, functionalities introduced to the work flow software, number of software modules implemented, condition of existing IT hardware and the ability level of the company's team. Costs can range from $25,000 to millions.
About 45% of buyers experience unexpected costs that had not been initially taken into account -- Why?
Critical Implementation Meeting: The company's team should meet with the vendor's Project Manager and know from the beginning who's assigned to what tasks for the company and for the vendor; critical timelines to be met and consequences of not meeting those timelines; parallel date; test date; and go live date. When a company does not meet those timelines it equates
to the allocation of additional internal resources (costs); lost time using the new ERP packages (ROI); and most importantly, a decrease in the momentum of implementing the new ERP software system.
Training Costs: Be sure to allow for sufficient training for your team. Ineffective training relates to lost functionality of the software and a poor work flow. Companies do not realize that with poor training they lose -- software is used incorrectly resulting in poor data. I see this often with ERP implementation in QuickBooks Premiere and Enterprise (mini ERP systems) users who state that they know the software but then never knew about Estimates, Sales Orders, Inventory classifications, Assemblies, On Line Banking, etc. What a waste of your software package!
Data Conversion: STOP! This is the biggest cost of any system. Do you really need it? Store the data in a place where people can refer back to it if they need it. Export the most often used data to some Excel spreadsheets and refer to it when you need to.
Integration Costs: How critical is it to "interface" with another system, application or function? And what is the definition of that "interface"? How will the data reach your accounting software, sync with the CRM system database, update the inventory and product information, or is it a simple journal entry in the General Ledger and it's really not interfacing all of the data?
IT Infrastructure Costs: Know the specs for your software, the capabilities your internal hardware, the cost to maintain the system internally and be aware of the fantastic outsourcing opportunities to have everything managed off site. Do the ROI and see for yourself.
Customization: Determine that there's a valid ROI before signing off on a customization. In addition, be sure to have a scope of work and hours allocated to the customization before agreeing to it.
KISS: Remember, keep it simple enough so that several people can learn the system. What if your key expert leaves? Don't make it too complicated.
Licensing: Buyer Beware!! There can be many license fees involved besides those of the ERP System Software -- SQL, Crystal Reports, Access, Third Party modules, etc. Get all of the details up front. The type of licensing -- packaged, concurrent, module-bases, site or location and subscription.
ROI (Return on Investment): What helps to define this?
- Inventory solution that reduces inventory levels.
- Inventory management and accuracy.
- Ship more orders and on time.
- Shrink the aging report for accounts receivable.
- Accurate data for margins, revenue, forecasts and budget.
That was our last blog on this ERP Systems series. We hope you enjoyed it and we would love your feedback!
Don't fall into the pit of making your ERP system software too complicated. Then you'll have to hire a team to use it effectively.
An ERP system software is primarily an integrated suite of modules and features that can encompass financial, production, services, human resources, payroll, time entry and CRM (customer relationship management). The software is dependent upon how your company work flow operates, how you would like to set it up and how it can be incorporated efficiently and effectively into the company's environment.
The modules your company purchases is dependent upon what is most important to the company's processes (this goes back to the beginning of our ERP blog series). 
Again, one word of advise as you continue the ERP research buying process ... Keep It Simple Stupid... the old KISS method still applies here. An ERP system too complicated can make your team's life miserable. Then what happens? Your team only uses 35% of the ERP system software you have, which is the national average.
Typically companies are examining a combination of financial management, manufacturing, project management, supply chain management, product life cycle, supplier relationship or customer relationship management (CRM) software ERP modules. Know what your team desires and understand the resources needed from the company (not just the vendor) in undertaking an implementation of any piece of the modular ERP software. There's a commitment required from the company and the vendor and the agreed upon combination equals success.
Industry Specific ERP software can be necessary. I spoke with a CFO from a large asphalt company the other day. They have two types of software they use -- bidding and order/job implementation. Due to the critical element of what can be missed in a bid for a highway or a bridge, there was an ROI (return on investment) for the bidding software they implemented and used habitually. On the other hand, if some customization is necessary, most softwares can handle that but beware that you own the code and that it is in a programmed language that can be integrated to other applications or services.
Next week .... cost!
Which ERP System is right for your business?
Sorry for the delay in continuing our ERP system software blog series. We've had many inquiries. Let's continue to the buyer stage and try to define "what type of buyer are you".
For ERP systems the buyer types have been defined on the basis of the following: scale and complexity of business; modularity; and industry verticals. What does all of that mean?
Scales and Complexity of Business:
Elementary buyers are looking for simple ERP systems to meet their uncomplicated requirements. Usually the company is a growing mid-sized business and most requirements can be met with an out-of-the box ERP system that has minimal customizations. There may be some basic integration requirements and the business has limited IT support.
Enterprise buyers are focused on business complexity, integration, scalability and globalization. These buyers tend to be mid-size to large enterprises with highly complex business processes. A high level of customization may be required for their niche requirements. Sometimes an in-house IT expert is required.
Modularity:
Suite buyers look for a complete ERP suite having all modules -- financial, production/business, and CRM (customer relationship management) to execute business processes across all departments. This type of buyer realizes the long-term strategic investment for the company.
Module buyers usually seek two or more ERP modules that can automate business processes for two or more departments but not the entire organization. This type of buyer is more price sensitive and is looking for short-term productivity gains. There may be significant integration with systems in other departments.
Industry Verticals:
Sector-specific buyers have industry-specific and specialized needs that cannot be met by generic solutions. The company may be governed by stringent regulations or compliance.
What type of buyer are you?
Next week -- ERP System Modules and Features
What ERP System is the right fit for your company?
As promised, we are continuing our series for ERP Systems. This is our second install of the ERP blog with more to come regarding purchasing, implementation and unexpected costs, open source, industry specific and ERP buyer survey comments.
10 Steps to Buying an ERP System Software
Enterprise resource planning software is an integrated information management system involving financial and business software for all industry segments.
1) Do we need an ERP System? Assess your existing business processes from ALL departments to identify whether there is a need for an ERP system software. Implementing an ERP system is a long-term strategic decision for the company and it alters the work flow of your company.
2) What are the goals and objectives for the selection? After you meet with all company department managers, you'll be surprised to find that not everyone has the same requirements for ERP system software but they will have some very specific "must haves". Know what those are! Realize that there is not an ERP software package that can meet ALL the business requirements of a company or industry segment. I had a client that approached me at the Rockford Chamber's Manufacturing Expo and he stated, "I haven't found a software that can do all of what I want it do." That's right, there's not a "magical" software out there. Sometimes the solution is to fix some internal work flow issues.
3) Form an evaluation process. Either have a company committee research what is out there that meets your requirements or hire a consulting firm to do it. Usually, it's a combination of both - functional experts from different company departments and an outside consultant.
4) Define product requirements. Don't make it too difficult. Define the simple first. Is user friendly the most important? What is the skill level of your team using the software? Is inventory your biggest headache? You can purchase the best industry specific software in the world, but if it's too difficult to use, to set up and to manage then the ROI (return on investment) is not there.
5) Develop a pre-evaluation selection criteria. Select the top 3 ERP packages for final selection that meets the critical business needs, matches the skill level of the users and implements the business model work flow for the company.
6) Check out your peers and competition. What are some of the financial and business software packages they are using? What do they like? What do they dislike?
7) Final 3 extensive research. Schedule the real time software demos (NOT a power point) for the final 3 ERP system packages. Be prepared ahead of time with the specific functions and reports that you would like to see.
8) Know the history. How long has this ERP system software been around? How many times has the company been purchased? How much "red tape" do you have to go through to get the answers for fixes to software development problems that may occur after an upgrade? What language is this ERP system written in - how many platforms?
9) Flexibility. How easy is it to interface with third party softwares? Do you own the Source Code after you pay for a customization? Will the customization perform easily after an upgrade?
10) Vendors. Pick a vendor who can work successfully with your company's team. You have to be confident that they can carry through the implementation. Each company has its' own culture and not everyone can successfully work with that culture. Finding the right relationship and commitment is key in a vendor relationship. How long has the vendor been around? Check out their references.
Next week we will slide into third base with our ERP System Modules and Features.
For the small to medium size business, financial/production software, or ERP systems should not be made difficult. Some ERP systems (Enterprise Resource Planning) create complexity and duplication of effort. Really, it should not be that difficult. Who said an ERP system had to be complicated? People seem to think that an ERP system is unaffordable and hard to set up and implement. This shouldn't be the case.
Eight Warning Signs
- You can't get your data out. You know it's in there but you have to pay some programmer to build you a report to receive the data in some type of format that you can actually use.
- Upgrades are costly, time consuming and disruptive. If you haven't applied your software upgrade because you are afraid it will wipe out all of the customizations you paid for, then you are missing out on functionality and technology improvements that could help your business run more efficiently.
- Disaster recovery plan involves tape back ups. Back ups should be easy, not a headache and worrisome. Yet, we always hear the stories about how the back up never took place, we couldn't restore our data from the previous back up, and now we have lost over a weeks worth of data transactions. Ouch! With virtualization, there's no need for tape back ups any longer.
- Hardware costs increase every year. Can you say SaaS, Cloud, Virtualization ....
- High renewal fees. What's the ROI (return on investment)? Has it been worth it in the past? How can we lower these? Do we need that many users or applications?
- Can't access data easily when traveling. The system is too clunky or too costly to access remotely.
- Vendors or Customers cannot interact with the system. The is very important to grow your business and become more efficient.
- Costly training for new employees. Is the ERP system difficult to learn? It shouldn't be.
DataCraft implements user friendly ERP systems software. Give us a call. We can help.
P.S. Stay tune for three other blog series regarding ERP systems.
What ERP System is right for your business?
A study conducted in 2007 showed that nearly 25% of business owners have been victim to fraud.
Unfortunately, just about every company is susceptible to some sort of fraud. There are different forms of fraud ranging from check fraud to embellishing expense accounts, and third party kickbacks. The tactics differ, but the results are always the same, loss of valuable company time and resources.
But that doesn't mean that they have to fall victim to it. Developers for ERP system software and accounting software systems like QuickBooks Enterprise are making it easier for businesses to detect fraud.
Don't fall victim to fraud, learn how to protect your company. Download the white paper "Protect Your Business from Fraud" for simple steps in how to secure your company's financial information.
What does scalability in terms of accounting software mean?
No, we are not referring to a) mountains or b) a career track. In the accounting technology world, "scalability" refers to how much or in what ways a particular accounting software package can be expanded. Usually, the term means a product's ability to grow without causing undue disruption of the processes associated with its use. "Scaling up" refers to expanding the size of the system, the number of users who can access the system, or the amount of information the system can handle. "Scaling out", on the other hand, means to increase the number or types of functions the system will process.
Let us give you some examples.
Scaling Up
Consider a person who has decided to start a pack and send company. When the business first opens, sales, accounts receivable, checkbook reconciliation, and accounts payable can be handled with a simple accounting package on a single computer. Only the owner of the business probably accesses the accounting system. As the business grows, additional computers are added and networked so employees, in addition to the owner, can work in the accounting system. Accounting packages with the ability to "scale up" are important for businesses that plan to add users to the company's current accounting functions.
Scaling Out
As our pack and send business grows, our business owner has hired several employees and needs to process payroll on the accounting system. Also, recognizing an opportunity in the marketplace, the business expands to include production of a special packaging material. Now the accounting system needs to be able to "scale out" and increase the functions it can perform. In this case, payroll, inventory management, and job costing modules could be helpful.
Small, privately owned companies have long been the basis for business growth in the U.S. The Small Business Administration estimates that companies with fewer than 100 employees drive 80% of the U.S. economy. DataCraft, Inc. applauds your efforts.
Find the right small business Enterprise Resource Planning ERP software system and accounting software for your business. Download the Software Selection Guide.
We receive this question a lot from our current and prospective ERP system clients. First let's define ERP and then let's discuss the key issues overlooked and the social issues surrounding ERP implementation.
The term ERP (enterprise resource planning) applications used to refer to the manufacturing industry. Currently, ERP systems cover the core functions of a business whether they are manufacturing, non-manufacturing, not-for-profit or government. ERP system software can apply to a broad spectrum of industry segments.
ERP packages usually encompass accounting (or financial functions), payroll and production functions (manufacturing, supply chain, job cost, warehouse management, inventory management, estimates, human resources, service fees, sales order, CRM, etc.). Ideally, an ERP system delivers a single database for the data in all of the software modules. There are many free web site services out there that will evaluate various ERP systems for you. Remember, those services also receive advertisement dollars. DataCraft has performed an evaluation within our software selection guide.
Some key issues companies or executive committees overlook when evaluating an ERP implementation:
- What is the skill level of my existing team in regards to software?
- What resources will be required from my team for the implementation?
- What are our expectations for testing and going live with the new software?
- Is it cost effective to perform a data conversion? Options -- only bring over critical customer data and open transactions. Refer to all history in the old database.
- ERP systems do not have to be expensive. There are plenty of economical ERP software systems out there that range in price from $3,000 - $25,000.
Social issues (yes, I said social issues) uncovered when implementing an ERP system:
- There is no "magical" software. If you have problems with your current team members or departments working in harmony, you will continue to have those problems. Fierce conversations are needed here.
- Set up of work flow in the software is critical, but don't make it too complicated!! Keep it simple!
- Don't spend a lot of money on a customization because that is the way you've always done it and even though it's inefficient you are going to keep on doing it that way. Nuts!
What ERP Software system is best for your company? Download the Software Selection Guide