Distribution

Exact’s New UX for Macola 10.5: More Than Just a Pretty Face

Adding Functionality and Value Too

At its annual user conference Macola Evolve 2017 in New Orleans (April 20, 2017), Exact unveiled Macola 10.5. Much of the new release of its enterprise resource planning (ERP) software is focused on enhancing the usability of the software with new tablet-led user interfaces, “aligning with how and where manufacturing and wholesale distribution customers use the software on a day-to-day basis.” While new user interfaces are often just about screen navigation and visual appeal, the new usability features of Macola 10.5 add more than just a pretty new face. They make existing functionality more visible and accessible, while also adding new functionality. Will Macola users fall into the typical trap of resisting change or will they welcome it with open arms? It’s all about perceived value.

Overcoming Resistance to Change

It is not uncommon today for ERP solution providers to be transforming the user experience. In fact, it is almost a necessity. After all, the millennial generation grew up with technology in the palms of their hands. The concept of a user manual is as foreign to them as vinyl records and turntables. But with the introduction of so many consumer applications on mobile devices, even Baby Boomers have succumbed to the siren call of mobile technology and have become much more demanding of user interfaces. It’s called “the consumerization of IT” and it is a very real phenomenon. We demand truly intuitive screens and touch technology.

But this isn’t the first time user interfaces have undergone a transformation. Those of us in the older generation remember the “green screens” of yesteryear. And we also remember how difficult it was to get the users to abandon those green screens in favor of a graphical user interface (GUI). When GUIs were first introduced in a major release, if you asked a typical user, “What was the hardest part of the upgrade to the new release?” the answer was almost universally, “The new user interface.” It was a real struggle to get the users to abandon the devil they knew. But if you asked the follow on question, “What was the best value delivered with the upgrade?” the answer was almost universally, “The new user interface.” Even though transitions were tough, they proved worth the effort.

So what have we learned from this prior transition? The key to overcoming resistance is to add value. Even if you hate the existing user interface, once you get used to it, it is indeed the devil you know. But if the new user interface is just different, adds nothing new, doesn’t solve a problem, then you can’t blame the user for resisting.

Personal experience at the Macola Evolve event provides us with an analogy. The event was held at the Sheraton Hotel on Canal Street in New Orleans, right on the border of the French Quarter. A popular location for events of this size, I had been to several located in this 41-story hotel, but they were all held 15+ years ago. Since then, the Sheraton had installed new “smart” elevators. These smart elevators had a new “user interface.” Instead of just pressing the up or down arrow, you entered the floor you wanted to go to as you were calling the elevator. This eliminated the need for any buttons inside the elevator itself. I loved them.

Interestingly one of the main stage presenters at the event, a Chief Information Officer (CIO) at a manufacturer of consumer products, bemoaned this new elevator user interface. He hated it. He wanted the old buttons back inside the car.

Why did this CIO resist them, while I embraced them? Well, for one thing, it provided him with a tongue-in-cheek example of how IT projects would go so much more smoothly if it weren’t for the users. Just kidding, but put something new in front of them, and they are likely to baulk. I would partially agree, but only if what you put in front of them doesn’t immediately solve a problem or add real value. I loved the new elevators because they solved a problem I had recently experienced.

The previous week I was at an event with sessions on three different floors of a hotel. Not only did the hotel not have enough elevators, they didn’t provide any access to stairs (so no work-around). This caused a severe bottleneck. But as one elevator was filled and more people wanted to get on, they couldn’t just press the up or down button because that would cause the doors of the filled car to reopen. They had to wait until it was away to call the next one. And there was no way to organize the group by destination so every elevator stopped at every floor.

With the smart elevator, each passenger could enter his or her destination in advance. This not only allowed the elevator(s) to optimize the routes, often making them express to a particular floor, but never recalled a full elevator car. And a new one was coming before the full one was away.

The CIO’s perception: they took away my buttons. My perception: they made the elevators smart and my ride faster. There are two lessons here. The first to the CIO: Never introduce a new upgrade without being able to convey the value. The second to the solution provider: It’s not enough to just put a pretty face on the software. Make it do more.

Is Macola 10.5 Adding Value?

Macola 10.5 does have a pretty new face. The look and feel is a radical departure from prior releases. The goals from a visual perspective were to strive for clarity, avoiding clutter. And yet users tend to want and need lots of data for insights and decision-making. Power users in particular are likely to ask for more and more data at their fingertips. But the more you add to the screen, the longer it takes a user to react and respond.

Exact has reconciled these two apparently contradictory needs with something called “progressive disclosure.” Simply put, make that added data available, but hide it until you press the little arrow that signals you want more. Progressive disclosure adds more functionality to any particular screen without necessarily adding clutter.

This is particularly important as users move from desktops and laptops to tablets and even smart phones. It’s called “responsive design.” Exact starts with a tablet-first design. A tablet is more constrained in size. Size and fonts, use of color and contrast become more important for visual clarity, along with the ability to collapse or expand sections to take better advantage of the real estate on the screen. A tablet has touch access, but no mouse. Think about how you often use a mouse today to hover over a field to get more information. No mouse, no hover. That hover is a sort of search and help mechanism.

Therefore the way you search needs to change. Think about texting or typing on your smart phone. Once you start typing the word, it gives you suggestions for finishing it. Do you ever miss that when you are typing a document or accessing ERP from your desktop or laptop? Of course you do. You will start to miss it even more when you get used to Macola 10.5 giving you similar suggestions. Start typing a customer name in order entry and Macola 10.5 will show you a list of who you might be looking for, just like your email does when you start typing an email address with which you have communicated previously.

Macola 10.5 is not only striving for clarity, but combining the best features of your different worlds – smart phone, tablet, laptop, email, ERP, etc. – whether you are at your desk or on the move. The goal is to preserve the power of the solution while reducing the complexity of how you interact with the solution and the data.

What Users Want

These added bits of functionality bring value just like the smart elevator brings speed and efficiency. But if usability is the ultimate goal, do these efforts align with what users want? The 2017 Mint Jutras Enterprise Solution Study asked survey participants to select the top three most important elements of ease of use (Figure 1).

Figure 1: Most Important Elements of Ease of Use (top 3 selected)

Source: Mint Jutras 2017 Enterprise Solution Study

We find speed and efficiency at the very top of the list. Macola 10.5’s progressive disclosure, device independence, type-ahead search that requires less data to be entered, infinite scrolling and sort-able table columns all speak to speed and efficiency.

Of course with intuitive navigation, second on the list, the proof is in putting your hands on it. If you are an Exact customer or prospect, ask for a demo. But don’t be content to watch one of the Macola experts demonstrate the new user interface. Of course it seems intuitive when you are watching someone who’s done it about a million times. You will only know if it is intuitive if you try to use it with little or no instruction. We think the software will speak for itself, but you need to be the judge.

Third on our list is “Easy access from anywhere, any time.” Loosely translated, this means cloud. Cloud brings tremendous value, but cloud-based software as a service (SaaS) brings more. What’s the difference?

  • Cloud refers to access to computing, software and storage of data over a network (generally the Internet.) You may have purchased a license for the software and installed it on your own computers or those owned and managed by another company, but your access is through the Internet and therefore through the “cloud,” whether private or public.
  • SaaS is exactly what is implied by the acronym. Software is delivered only as a service. It is not delivered on a CD or other media to be loaded on your own (or another’s) computer. It is generally paid for on a subscription basis and does not reside on your computers at all.

All SaaS is cloud computing, but not all cloud computing is SaaS. Traditional on-premise or hosted solutions might (or might not) be accessed via the cloud, although this is more likely to be a private cloud.

We could write volumes on the benefits of cloud and/or SaaS. For many, cost savings are the prime advantage. Beyond cost considerations, the other types of possible benefits include:

  • More innovation through more frequent updates
  • Better support of distributed environments and remote workforces
  • Risk mitigation

Macola has been available to run in the cloud for a long time. Everything demonstrated at Macola Evolve 2017 was running in Microsoft Azure.

And finally, rounding out the top four most important elements of ease of use is “Does what I need it to do easily and naturally.” This was a primary goal of Macola 10.5. “In any given day, our customers may be on the shop or warehouse floor managing operations, out of the office visiting customers or suppliers, or sourcing new materials. The latest update to our ERP and business software is focused on empowering users to more efficiently and seamlessly access the information they need to do their jobs, wherever they are at the time,” said Derek Ochs, director of development, Exact, Macola division. “With Macola 10.5, we are matching our software to the way our customers do their jobs. In the end, if Macola is truly doing its own job, the user hardly knows the software is there.”

Beyond Macola 10.5

Of course Exact will continue to develop its road map for Macola. But in addition it is also experimenting with a new “hackathon” approach. Periodically it takes teams of developers across all divisions of Exact and allows them to work on any new idea they might come up with, encouraging them to be creative and courageous. This can result in some pretty cool stuff that may or may not ever get into the product.

One that we think is very likely to make it in is a new login screen that uses facial recognition. Think about collecting transactions on a shop floor. Seldom does every worker have his or her own device for data entry to collect hours worked and quantity completed. At the lunch break or the end of a shift, are they queued up to record a half or full day of work? If so, wouldn’t it be great if they could just walk up to a screen and the system would automatically recognized them, log them in and maybe even bring up the production order in process? How much time and aggravation would that save?

Or how about a Macola Chat Bot (based on Microsoft’s bot engine) to do basic things in Macola just by chatting with it using Skype? Perhaps this might be an alternative user interface for occasional users so they don’t have to understand the system in order to get data and answers from it. Or how about a preferences engine that might suggest other items that are likely to be purchased as you add a line item in order entry?

These are just a few examples of sprint-like projects that are being conceived and developed through these hackathons. None of these are out of the realm of possibility with technology available today. Perhaps the biggest stumbling block to moving forward with these potential innovations is a lack of familiarity, and therefore appreciation for what technology can do today.

In our 2017 Mint Jutras Enterprise Solution Study we selected 14 different kinds of technology and asked respondents to assess their level of familiarity with each in terms of how they relate (or not) to their business. All respondents were asked about all 14, even though we realize some are more relevant to some industries than to others. Those shaded in the lighter green are primarily applicable to those making and/or moving a physical product, while those in the darker green are likely to be applied more universally (Table 1).

Table 1: How familiar are you with these technologies as they relate (or not) to your business?

Source: Mint Jutras 2017 Enterprise Solution Study

Adoption rates are still quite low and in many instances, those that have little or no familiarity outnumber those that understand it well. So in many cases Exact can’t rely on its customers to ask for these features. But even if customers aren’t pushing in this direction, perhaps Exact can pull them along, potentially transforming businesses as it does.

 Summary

Macola 10.5 brings some added new features and functions along with its pretty new face. These include:

  • A newly re-architected tablet-led user interface that uses size and fonts, color and contrast or added visual clarity, along with the ability to collapse or expand sections to take better advantage of the real estate on the screen
  • Progressive disclosure, keeping added detail (clutter) hidden until needed
  • Responsive design of software, which behaves differently depending on the device in use
  • Special search capabilities that ask the question as you type, “Did you mean…?”
  • Intuitive screens (but don’t take our word for it, see for yourself)
  • Available in the cloud

These are exciting times for the developers at Exact. If you are a customer, share in their excitement. If you are considering replacing your current ERP solution, Macola is definitely worth a look. Dive in to Macola 10.5 to see what you are missing.

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SYSPRO Delivers on the Practical Side of Digital Technologies

Bringing Technology, People and Processes Together In a Winning Combination

Advanced technologies and automation have been transforming manufacturing and distribution for decades now. Through these advances we have streamlined production and eliminated waste and variability. We make products better and faster. But the digital technologies of today, those that serve to connect operations, people and processes through the power of the Internet, have the potential of fundamentally changing the way we do business. Eighty-two percent (82%) of manufacturers participating in the 2016 Mint Jutras Enterprise Solution Study agree and 86% understand that embracing digital technologies is necessary for survival.

And yet few manufacturers seem to fully grasp the potential digital technologies have to truly change the game. In some ways, this is perfectly understandable. While we are constantly bombarded with examples of how digital technologies can transform our world, most of the examples fall into the category of consumer technology (social, home, shopping, fitness…). The reference to this technology in the context of the enterprise is very often at a level of abstraction that leaves down-to-earth manufacturers either scratching their collective heads or thinking it is way beyond their reach. While we might buy the latest consumer gadget just because we can, manufacturers and distributors make investment decisions with their feet planted firmly on the ground.

This is why SYSPRO is announcing six new capabilities that help manufacturers and distributors take practical advantage of advanced digital technologies. If you are one of these pragmatic individuals, you might be so busy dealing with day-to-day challenges that you let inertia keep you mired in spreadsheets and paper. If so, you’re not alone. But don’t let that stop you. SYSPRO’s new advanced capabilities might be just what you need to justify that leap into digital transformation.

Do Manufacturers and Distributors Care?

As noted above, the majority of manufacturers and distributors today have an appreciation for the significance of digital technologies. In our 2016 Mint Jutras Enterprise Solution Study we asked survey participants how much they agreed with various statements about these new, advanced technologies (Table 1).

Table 1: How strongly do you agree or disagree with the following?

syspro-table-3Source: Mint Jutras 2016 Enterprise Solution Study

Only 3% to 6% disagreed at all with any of the statements above and a relatively small percentage was neutral. The majority of those in manufacturing and distribution companies today understand that digital technologies can not only facilitate the connection between companies, people and processes, but can also automate the connection between different enterprise systems. Whether this is a continuation of your current plans for information technology (IT) and/or automation, or a brand new direction, you need to implement them in order to forge that connection. While 86% agree these technologies are necessary for basic survival, we find evidence they have not been embraced with the level of priority and urgency that will give companies a competitive advantage.

Table 2: To what extent are these activities performed/managed digitally?

syspro-table-2Source: Mint Jutras 2016 Enterprise Solution Study

Table 2 is a sad reminder of the continued prevalence of spreadsheets and paper. Of course some use of spreadsheets is simply the result of familiarity and comfort level. But that doesn’t make it any less troublesome or the data any more real-time.

Come to find out, SYSPRO USA also gathered its own intelligence on this topic through one of its SNAP surveys, sent to its own customers. From this latest poll, SYSPRO concluded, “Companies are confused or have never heard about the newest, high-impact technologies.” This conclusion was based on the question: “Have you read or heard about [insert technology]?” The technologies included were predictive analytics, the Internet of Things (IoT) and bots. In each case, less than half (about 45%) said “Yes.” The remainder said, “No, I don’t know” or, in the case of bots, “Not sure.”

While this actually could help explain this lack of urgency, Mint Jutras interprets the answers a little differently. Individuals may be confused, but more likely these responses indicate they simply are not paying attention and therefore don’t make the connection between problems and challenges faced and digital technologies. For those that follow technology trends closely, the hype over digital technologies is impossible to miss. But your typical manufacturing or distribution professionals are far less likely to follow technology just for the sake of technology. They are far too busy fighting those pesky fires on a day to day basis.

Talking about predictive analytics won’t get their attention. Talking about ways to better forecast demand or predict revenue and profits might. Connecting the dots is not only practical, but also a winning combination.

Discussing the Internet of Things is an intellectual discussion. Suggesting ways to make better use of data captured today on the shop floor (i.e. through the IoT), whether it is for the purpose of increasing throughput or quality or customer service, is not only practical, but also a winning combination.

Bots in general still seem quite futuristic and “pie in the sky” to many, in spite of the fact that all kinds of production and material handling automation is already quite prevalent in many manufacturing and distribution companies. But investment in that kind of automation has traditionally been expressly for the purpose of making and/or moving more product, better and faster, not making the business itself, or the people that run it any more productive or efficient. But think about where supervisors and managers can be the most effective – not sitting at their desks, but out on the floor. The problem in the past arose from the fact that as soon as they leave the comfort of their offices and venture out on the floor, they have been instantly disconnected from enterprise data. Demonstrating how communicating with devices in a hands-free manner can facilitate control and decision-making is not only practical, but also a winning combination.

That’s really what SYSPRO’s new capabilities are all about: practical ways of bringing technology, people and processes together in a winning combination.

SYSPRO’s New Digital Capabilities

So what are these new capabilities? They combine the power of digital technologies with analytics, cloud deployment, big data and some other cool, high-impact technologies like that used for facial recognition. But think beyond faces; think about blemishes on raw ingredients, components or fabricated products. Here’s the rundown:

SYSPRO Azure Cloud Platform

SYSPRO has teamed up with Microsoft to deliver infrastructure as a service (IaaS) now and platform as a service (PaaS) in 2017. SYSPRO’s ERP will be delivered in the Azure cloud in 2016, but will also move beyond this to deliver the SYSPRO Azure Operation Center. This is more than just a data center. It will be staffed with SYSPRO employees that will provide managed services to assist companies looking to move from on-premise to cloud deployments. Early on SYSPRO customers may want to lift and shift from existing on-premise deployment and then move more fully into a SaaS environment in order to take full advantage of software as a service (SaaS). But these SYSPRO employees will also be available for new installations and will be armed with templates and tools for rapid deployment.

Additional services offered will include backups of course, but also system monitoring, incident management, disaster recovery and high availability (think automatic rollover and scaling).

Mint Jutras research finds SaaS deployment is the most preferred option for new deployments, but the market will be in transition for the next ten years or more because there are simply so many on-premise deployments today. The inertia that keeps manufacturers and distributors from actively researching and investigating new technologies is the same inertia that keeps these solutions in place long after their glory years. SYSPRO can help make that transition smoother and more appealing.

SYSPRO Harmony

SYSPRO describes this as a “cloud-based multi-user experience platform that unites social media capabilities, internal/external collaboration, machine learning, cognitive services and data analytics into a single offering for accomplishing targeted or highly complex tasks.” That’s a mouthful. What does it really mean?

To the manufacturing or distribution professional who might think “social” is something employees should do on their own free time, think of it more as an application that lets you keep your finger on the pulse of all the “stuff” going on concerning your production, orders, operations and finances.

Many business leaders in manufacturing and distribution companies downplay the importance of “social” capabilities, equating them to social media. But when we break down the really useful capabilities, and don’t necessarily label them as “social” we get a very different response. Suddenly these concepts become useful or even “must have!”

Table 3: Would these capabilities be useful? Shhh… don’t call them “social”

syspro-table-1Source: Mint Jutras 2016 Enterprise Solution Study

If you aren’t already a fan of “social” the concept of “following” might not seem familiar to you. But chances are, you are already following someone or something either in your professional or personal life. Perhaps you follow the stock price of specific companies, or you watch a stock exchange like NASDAQ or the Nikkei. Or maybe you follow the stats of your favorite sports teams. Maybe you do that through newspapers, online or using an app on your mobile device. Perhaps newsfeeds are delivered to you through email. Regardless of the delivery method, the objective is to stay informed.

What if you could easily apply that same concept to your customers, orders or prospects? Perhaps you need to keep tabs on that big deal you hope to close by the end of the quarter. Wouldn’t it also be helpful to “follow” the trail of activity that has already occurred during the sales cycle? What if you could see the conversations or chatter between sales rep and manager? What documents have been delivered to the prospect? And what if this potential deal is with an existing customer? Wouldn’t you like to be able to scroll through the support activity over the past few months, including the calls, issues, resolutions? Has the customer experienced any quality or delivery issues? Have they been consistently paying their bills on time or is their outstanding balance over 90 days?

And what if all that activity was collected for you and presented in a single stream? The result of monitoring these types of activity streams is fewer surprises and more proactive versus reactive management. And to present this coherently you need a “consumer grade” user interface. This is what SYSPRO Harmony is all about.

SYSPRO Predictive Search

Enterprise search capabilities should be quite self-explanatory, but don’t mistake just any kind of current search capability for a true enterprise search. Of course you can look up a part by its description or a customer number by the customer’s name. ERP solutions have had this kind of search capability since the 1990’s. But can you search across your entire enterprise database for any reference to a particular customer, including contacts, conversations, sales orders, invoices, dunning notices, cash receipts? It’s not entirely clear when “Google” became a verb, but can you “Google” your customer and include the data in your ERP?

SYSPRO’s Predictive Search can be used to search like this within the confines of your ERP. It is predictive just like your consumer device or your productivity tools (think email and messaging) are predictive. You start typing and it anticipates what you are looking for. And best of all, it puts that search into a specific context of a customer or an order or any relevant business object.

SYSPRO BOTS

Sometimes you might think when you are looking for an answer to your question, “Wouldn’t it be nice if I could just ask for something in plain English?” Many smart phones today allow you to do just that, using voice activated commands. You say, “Hey Siri” and an automated bot responds. With SYSPRO Bots, you initiate a similar conversation with, “Hey chatbot.” And guess who and what is at your service? It is actually a self-service agent lurking in the background, one that never needs a coffe break or a day off.

SYSPRO Webviews (User Interface)

SYSPRO has completely rethought dashboards, making them configurable to the extent that a single individual can construct his or her own “single view” of the world. Tailorable by power users (without the assistance of a developer), the traditional “read only” view of the world becomes interactive. For example, an order can be released from a dashboard via a single click – no need to open it up, browse through and then take action.

The Age of Digital Disruption

Eighty-one percent (81%) of manufacturers and distributors agree that embracing digital technologies will give them a competitive advantage. And yet 77% to 91% still rely at least partially on spreadsheets or (even worse) manual efforts to plan and manage activities. This is a far cry from “embracing” digital. So what are they waiting for? What are you waiting for?

The Internet levels the playing field in our global economy, allowing companies of any size to establish a presence and compete on a global basis. That’s the good news. The bad news is that those same windows of opportunity you might encounter, are also open to your competitors. And those competitors come in many different shapes and sizes. So as you take your place on the world stage, be careful what you wish for. The enterprise applications that got you where you are today simply may not be able to take you where you need to go. In order to participate and become a real player, you need to embrace the cloud and take advantage of digital technologies in many different shapes and forms.

The age of digital disruption is upon us. As a result, you better be pretty flexible in terms of where you want – and need – to go. Giving examples like Uber, which disrupted the taxi industry, Airbnb, which disrupted hospitality and Netflix and iTunes, which disrupted entertainment, we asked our 2016 Mint Jutras Enterprise Solution Study participants, “How much risk do you face in your industry being disrupted?” Figure 1 shows the majority (79%) peg the risk as low to medium. But how do you think the taxi industry would have responded shortly before Uber came on the scene? These kinds of game-changing disruptions can occur right out of the blue. Are you ready? Would you survive?

Figure 1: How much risk do you face in your industry being disrupted?

syspro-fig-1Source: Mint Jutras 2016 Enterprise Solution Study

What will be the compelling events that drive this disruption? Will it come from the introduction of new products or from new ways of selling/pricing existing products, or entirely new business models? Or might it come from some combination of sources, making it even more unpredictable?

Are You Listening?

Manufacturers and distributors face difficult challenges, not only in the possibility of disruption, but just in dealing with the increasing complexities of an already complex world. You don’t have time to constantly surf the web and other information sources looking for that one new digital technology that just might change the game (and your life). So in keeping abreast of new, potentially high-impact technologies, select your source carefully. SYSPRO has the practical experience, the vision, the expertise and the platform to deliver. If you are looking to better embrace digital technologies for practical use, to connect enterprise systems directly to people and processes, to gain a competitive advantage… SYSPRO speaks your language.

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Acumatica is “All In” with Partners. Bringing Home Next Generation ERP

It’s partner summit season in the world of enterprise applications. These events, combined with a Mint Jutras research project on channel strategies (still underway), have led me to dozens of conversations with software vendors and their partners over the past few weeks. Acumatica held its Partner Summit last week, providing me even more opportunity to dive deep into the partner relationships that are fueling business for this cloud ERP vendor. My impressions can be summed up in two words: All in.

“All in” was a phrase repeated several times on stage by Stijn Hendrikse, Acumatica’s chief sales and marketing officer. Stijn used it in the context of growth, products, partners and the cloud.

All In on Growth

Being a relatively young company (founded in 2007), you might expect double-digit growth from Acumatica. After all, it is much easier to increase millions of dollars of sales by 10%, 20% or even 50%, than it is to apply those percentages to billions. But triple digit growth? Yes. According to CEO Yury Larichev,  “Acumatica is on track to meet its growth target for 2013, which means we’ve grown more than 300% again in revenue, just like we did in 2011 to 2012. We think we may hit 350% this year.”

But Yuri’s goal is to achieve $1 billion in annual revenue within 10 years. He’s going to need a lot of partners to achieve this, because Acumatica is also “all in” on partners.

All In on Partners

One hundred percent (100%) of Acumatica’s business is indirect.  In fact management went as far as to say on stage, “No way are we going to sell direct or sell out to someone with a different strategy.” One on one, Stijn said to me, “I’m excited to be excited again. I don’t have to balance priorities between direct sales and the channel. Instead we have a high appetite to reduce channel friction and shorten the sales cycle.”

As a result of an intense recruiting effort, the company added 50 partners to its channel this year, including more than 40 in the last four months. Even attendance at its partner summit more than doubled, from 135 attendees last year (its inaugural event) to 282 this year. Those attendees came from 12 countries and 98 partners. Its global network currently includes 221 partner organizations.

But Acumatica knows that in order to grow its channel, it needs to demonstrate its commitment. While of course one way is through its product roadmap and platform innovation, another is to insure the company is easy to do business with. And I believe it has made a sincere effort to do just that. Acumatica is extending its CRM to its partners and providing strong incentives for the partners to manage their own businesses with the Acumatica business solution. Acumatica University has been a recent addition for training and education. These are becoming table stakes for a world-class partner program. But Acumatica has taken a few steps further.

Its latest software release includes a new licensing engine that facilitates license key distribution for every product module and automates renewals, a feature that is obviously easier to deliver operating in the cloud. It has also introduced a new partner portal, which will include leads, opportunities, invoices, product keys, support cases, guidance on up-sell and cross-sell opportunities and a tool to manage accounts. Partners will be able to see license keys and renewals as they are issued.

All in on Product

Product roadmap and platform innovation is key, but this 100% commitment to the channel puts an interesting spin on Acumatica’s product and channel strategy. Acumatica believes that in order to grow a successful channel, it must leave room for the partners to add value.  It is not unusual to rely on partners to take a solution into new verticals, sub-verticals or micro-verticals. In fact other vendors also encourage this in order to expand their addressable markets without diluting their own efforts.

Acumatica has three different kinds of partners: Value Added Resellers (VARs), Independent Software Vendors (ISVs) and OEMs. How does it define the difference?

Think of a VAR as a typical reseller of the Acumatica software. The “value add” might simply be the implementation and consulting services provided along with the purchase of the software. Or it might include some customization, or add-on functionality developed by the VAR. In providing this value add, the VAR might also be providing specific knowledge or expertise of a certain software, industry or country requirements.

The value added by an ISV is more specific. An ISV adds value through extensions to the product. Some ISVs you might have heard of include: Avalara (for sales and use tax management), Adaptive Planning (for financial planning, budgeting and forecasting) and ADP for payroll. Others might expand the addressable market for Acumatica beyond its standard financial, distribution, project accounting and CRM. For example, JAAS Systems adds advanced manufacturing features to Acumatica’s solution. ISVs (like JAAS) might also be VARs and other VARs may also resell solutions from ISVs. Indeed any partner that sells to manufacturers today must also partner with JAAS for a complete solution.

OEMs are a little different. These companies will use Acumatica technology to build their own solutions, sold under their own brands. So Acumatica will be “under the covers” so to speak. The two most notable of these relationships are Visma, a provider of business software solutions to SMBs in Northern Europe and MYOB, an Australia and New Zealand-based company that enjoys market shares as high as 70% to 80% within its operating markets.  The deal with MYOB, just announced (August 19, 2013) enables MYOB to localize and distribute Acumatica’s ERP solution.  Visma offers Visma.net, a complete business solution including a white-labeled version of Acumatica’s ERP as a key component.

So does this philosophy of leaving room for partners to add value mean Acumatica isn’t “all in” on their own product? My answer is: I seriously doubt it. If “leaving room” had become a convenient excuse for the Acumatica development team to deliver less innovation, I might think otherwise. So far this does not seem to be the case at all. In fact just the opposite seems to be true. The upcoming 4.1 release was intended to be a minor release, but has become a major one and plans are already underway for version 5.0.

And these new innovations seem to be closely aligned with the characteristics of what Mint Jutras calls “next generation ERP” including improved user experience, more innovation and better integration. And of course the ability to operate effectively in the cloud is also becoming table stakes for competing in the enterprise applications market today.

If “leaving room” means Acumatica relies on partners for specific functionality for a particular market niche, that’s a good approach. Inserting too much niche functionality into the base product serves only to clutter it up with added complexity. Better to have that supplied by a partner thoroughly familiar with the niche requirements and made available only to those that require it.

The question is: how opportunistic or purposeful are these efforts? One Acumatica partner developed a solution to manage auto loans at a car dealership. Something tells me Acumatica didn’t have a burning desire to get into that niche, so that was an example of opportunistic expansion. But if it desires to expand into process manufacturing for example (JAAS targets discrete), Acumatica will have to launch a directed effort to recruit a very specific type of partner, or convince an ISV like JAAS to expand its solution and market. It is still too early in the game to fully understand how much of these efforts will be strategically planned and how much will result from a VAR and/or ISV seeing a need and jumping on an opportunity, and therefore it is hard to predict exactly where Acumatica is headed. But wherever that is will be under the umbrella of the cloud.

All In the Cloud

Acumatica is definitely all in when it comes to the cloud. A “cloud only” solution has its pros and cons. On the plus side, the Acumatica solution was born in a browser and therefore has always had a zero footprint on the client, making it accessible any time, from anywhere. No legacy issues here. It is built from the ground up with cloud technologies: SOAP, web services, HTML5, Azure, Amazon, etc.

The downside of being “all in the cloud” ordinarily means less choice. Typically a cloud-based solution is only available as software as a service (SaaS). Not so with Acumatica. Lots of choices here: multi-tenant SaaS, single tenant SaaS (more like a hosted model), or even traditional on-premise deployments. You can purchase a perpetual license or pay a subscription. It is designed to be a multi-tenant cloud solution, but that doesn’t prevent Acumatica from offering it in a variety of different environments and Acumatica is quite unique in this regard.

Some industry observers, including those that have their own specific definition of what constitutes “true SaaS,” might argue against this approach. While Mint Jutras is seeing a major shift in acceptance of SaaS solutions, our research also proves that there is still a lack of understanding and even misunderstanding of cloud, hosted and SaaS offerings. While pundits argue about multi versus single tenancy and architectural nuances, our Understanding SaaS survey (data collected from 300 respondents about one year ago) showed the vast majority of survey participants don’t know or care about these aspects. They are simply looking to unburden themselves from the care and feeding of enterprise apps like ERP. They are attracted by lower costs, easier upgrades, less hardware and IT staff and are less worried about a single prescription of how cloud solutions are delivered. They are looking for business partners they can trust and having more choices in how they address these needs can be very attractive.

Are Customers All In?

One final note: Acumatica wants its customers to be “all in” as well. John Howell, one of Acumatica’s founders, is also still actively involved in the company’s product and corporate strategy. In his keynote address he talked about different market drivers, including Metcalfe’s law. If you aren’t familiar with it, here is Wikipedia’s definition: “Metcalfe’s law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system.” John’s interpretation is: involve everyone. The value of ERP is equal to the square of the number of users. This makes terms like “ease of use,” “usability,” “the customer experience” all that much more relevant.  All of these factors were addressed on the main stage throughout Acumatica’s Partner Summit.

John may well be onto something here. A cloud solution can go a long way in making ERP more convenient and accessible. According to our Mint Jutras 2013 ERP Solution Study, on average, 65% of employees in companies with SaaS ERP actively use ERP, compared to 45% in those companies with more traditional on-premises implementations. This represents a 44.5% differential and does not include those casual users that are limited to access to specific self-service functions (e.g., paid time off requests, purchase requisition requests, etc.). Actively engaging more of these knowledge workers also keeps all on the same page, making decisions that are data-driven, rather than based on gut feel.

This also reaches into the higher echelons of decision-making in the organization. Executives where SaaS ERP is deployed are 24.4% more likely to have access to and regularly use ERP, with 84% having some direct access (limited or regular use).

The challenge for Acumatica’s partners will be to make this the reality with each of their own customers. Are they up to this challenge? Is Acumatica willing and able to help them reach more broadly and deeply into their addressable market? The desire is definitely there; the goals are aggressive. Acumatica, its partners and its customers all need to be “all in.”

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NetSuite Takes Omni-Channel Commerce to the Great Outdoors

What do camping gear, nutrition bars, portable ultraviolet water purification systems and surfboards have in common?

  1. All are consumer products, consumed by outdoor enthusiasts
  2. All are sold by national retailers like REI, Bass Pro Shops and Eastern Mountain sports
  3. All are also sold online
  4. All are manufactured by companies that once ran QuickBooks but today use NetSuite to manage their businesses

These companies were among 33 exhibitors at the Outdoor Retailer Summer Market 2013 show in Salt Lake City, Utah that run NetSuite cloud-based solutions. NetSuite of course capitalized on this event to highlight its recent wins in the outdoor industry. Featured prominently in NetSuite’s press release was the concept of omni-channel commerce. Omni-channel is all the rage amongst retailers, but if you don’t follow retail closely, you might be asking, “what’s that?” In short, omni-channel retailing “is a seamless approach to the consumer experience through all available shopping channels.” And what are these different channels? Stores you visit in person, catalogues you get in the mail, 800 numbers you call after seeing an advertisement on television, websites you visit from your computer or your mobile device.

Have you ever bought something online and wanted to expedite delivery by picking it up at a nearby store? Or maybe when it arrived it didn’t fit and you wanted to save the shipping cost and just bring it back to the store? How about when you go to the store to make a purchase and the item is out of stock? Maybe you’d like it shipped directly to you from a regional warehouse or directly from the manufacturer. As a consumer, these all sound like logical alternatives and perhaps you get annoyed when you can’t “mix and match” your channels. If you can’t, then it is probably because manufacturing, distribution and each of those retail outlets are all running separate systems that don’t (or can’t) “talk” to each other.

So if you think omni-channel commerce is just a retail issue, think again. It also impacts wholesale distribution and even manufacturing. While many struggle with this even today, others have made the leap to fully integrated solutions that support the omni-channel experience.

NEMO Equipment, for example, is a designer of innovative tents, sleeping bags and pads and other camping gear. Its products are sold both online through its own custom-built web storefront, as well as through about 300 retailers including REI and Eastern Mountain Sports in North America, and internationally in Europe and Asia. Up until recently (January 2013) it was trying to piece all this together with QuickBooks, but today uses NetSuite for financials, inventory and order management, CRM and PCI-compliant credit-card processing. Consolidated inventory management allows NEMO to also compartmentalize inventory, virtually segmenting direct-to-consumer, B2B and US military sales channels while cutting pick, pack and ship time in half.

Liberty Bottleworks is another example. The company prides itself in making the only metal bottle on the market that is entirely made in America. Therefore it can’t rely on off-shoring or other low-cost country means of reducing costs. It relies instead on operational efficiencies to create a strong bottom line. It uses NetSuite financials, manufacturing, inventory, order management, CRM and eCommerce, with a direct-to-consumer website powered by NetSuite SuiteCommerce to manage its business end-to-end while also expanding its retail network to about 1,400 including REI, Whole Foods and L.L. Bean. But its omni-channel commerce has a bit of a unique twist.

In addition to its B2C online sale of standard metal bottles and its distribution through regular retail outlets, Liberty Bottleworks also offers custom bottles. Want your logo and company name on a bottle? No problem. Liberty Bottleworks can do that for you. In fact it does just that for corporate customers like Coca-Cola, the Seattle Seahawks and even NetSuite itself. While the company expected this to be about 10% of sales, this part of the business has recently exploded, which has added a level of complexity that would be unmanageable without an integrated solution to support it. NetSuite supports Liberty Bottleworks in managing up to one million components (who would have thought?), including recycled materials.

These are just a couple examples of companies manufacturing consumer products that face a level of complexity added to a business that once might have been relatively simple. As consumers expect and demand more choice, merchants, distributors and manufacturers require an added level of seamless integration that is impossible to achieve with spreadsheets and desktop-bound solutions.  In order to manage the relationships between consumers, retailers, distributors and manufacturers, you need seamless integration of financials, ERP, CRM and eCommerce. Yes, it’s a tall order, but consumers demand it. And with the right solutions, the opportunity for companies like Liberty Bottleworks and NEMO Equipment is as big as the great outdoors.

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NetSuite Acquires OrderMotion: Bringing Omni-Channel Products and Expertise

Earlier this week NetSuite announced its latest acquisition: OrderMotion, Inc., a provider of cloud-based Direct-to-Consumer (D2C) order management solutions. The acquired company is located in Burlington, MA. NetSuite’s go-to-market strategy is to take a suite-based approach, providing an end-to-end solution, which addresses the full quote-to-cash life cycle. The customer order is at the very core of this process and therefore the SaaS ERP company has always carefully guarded any function that touches the order. No alliances or marketing partners here. When it comes to customer orders, NetSuite wants to own the functionality.  In this regard, an acquisition makes perfect sense. But given OrderMotion is not embedded in the suite and NetSuite already fancies itself as having an industry-leading order management system, what value does it hope to gain from this addition?

NetSuite is buying OrderMotion for its expertise as well as its products. OrderMotion’s products are typically sold stand-alone and that will continue. The target is not current NetSuite customers. So this is more a market share play than it is one that goes after an increased share of the customer’s wallet. NetSuite intends to continue selling the OrderMotion product but it also hopes to apply some very specific expertise to further strengthen its own current order management capabilities. The OrderMotion engineering team will continue to innovate the acquired product but NetSuite also hopes to have them contribute to the order management modules of its ERP suite.

NetSuite already has a strong order management solution with capabilities that include distributed order management, fulfillment from multiple locations and return merchandise authorization (RMA) as well as strong back-office integration with billing and cash collection. It provides standard integration to major carriers like United Parcel Service (UPS), Federal Expres (FedEx) and the United States Postal Service (USPS). It can deal with multiple currencies and multiple sales and use tax structures. OrderMotion will add more depth of functionality in orders “direct” from the consumer and trends in the industry towards omni-channel commerce.

Omni-channel refers to the ability to use different channels simultaneously. Consumers might purchase online, but pick up, or return merchandise at a physical store. Retailers may use retail stores as distribution hubs. As consumers make online purchases, it may be advantageous to ship from a store location where the item may be overstocked, thereby drawing down surplus inventory. Or the choice of ship from location may be made to minimize cost and lead-time. Combining all these options requires a level of expertise and feature functionality not typically included in your traditional ERP software suite.

This is definitely an issue for retailers today. But more and more manufacturers and distributors find themselves also selling direct now, so it is just a matter of time before they need to deal with omni-channel supply chain issues as well.

In continuing to sell OrderMotion stand-alone, I would expect the acquisition to be accretive. But behind the scenes I would also expect to see the OrderMotion team lending a hand to further extend distributed order management and omni-channel supply chain capabilities in NetSuite’s ERP suite. Both solutions have a strong technical architecture that supports multi-tenant SaaS, so business models are consistent. But they are different architectures. While I don’t expect them to be sharing code, I would expect them to share designs.

NetSuite ERP will benefit from the expertise of a team dedicated exclusively to order management, one that has specific omni-channel expertise. OrderMotion engineers should also benefit from having to blend this functionality into an integrated suite, something they have only done at arm’s length previously.

Overall NetSuite winds up with a new product and a better way to attack the retail market that is already forced to deal with this omni-channel phenomenon. And it has the opportunity to further strengthen its existing product as the omni-channel commerce begins to invade the world of manufacturing and distribution.

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SYSPRO: Changing the Way Products are Bought and Sold

 

By Manufacturers, Distributors, Retailers & SYSPRO Too

On June 28, 2012, SYSPRO, a developer of award-winning enterprise resource planning (ERP) software, made two announcements, seemingly unrelated, but both driven by an undercurrent of change. The change is in the way products are bought and sold. More and more today manufacturers and distributors have at least one sales channel where they eliminate the middleman, by-passing the retailer and selling directly to the consumer.  This places new demands on the business at the point of sale, demands typically not addressed by ERP. SYSPRO’s response is a fully integrated Point of Sale (POS) solution that will provide manufacturers and distributors a single solution to manage business information, store operations, customer-focused POS, inventory optimization and merchandizing along with ERP.

At the same time, SYSPRO itself is engaging in a new way of selling. In a world where you hear more and more, “There’s an app for that” SYSPRO is opening its own SYSPRO App Store: an open marketplace where eventually thousands of solutions will be available to extend and complement the value of its ERP solution. Partners benefit from a broader reach with minimal investment in infrastructure and customers benefit from the easily accessible added value.

Two Worlds Converge

When it comes to managing the sale of goods, retail and manufacturing are typically worlds apart. In retail, at the point of sale you deal with cash, check or debit/credit card; the customer walks away with goods in hand and inventory is depleted. In manufacturing you process your customer’s purchase order, create a sales order and subsequently ship and invoice, relieving inventory and creating accounts receivable. Later you receive cash and apply the cash receipt against accounts receivable either on an open item or a cash balance basis.

Receiving cash in a traditional point of sale (POS) system in a retail environment is easy. Managing an open account is more difficult. For a manufacturer or distributor using an Enterprise Resource Planning (ERP) system, managing accounts and accounts receivable is standard practice. Processing a cash sale is more difficult.

In a retail environment, the cash in the drawer is reconciled against the sales recorded at the end of the day. In a manufacturing or distribution environment shipments, invoices and cash receipts are reconciled at the end of the month. Yet in all cases, everything must be posted to the general ledger in order to create a balance sheet and profit and loss statement.

So what happens when a manufacturer or distributor sells directly to a consumer? It happens more and more today in showrooms and factory outlets, as well as online. In eliminating the traditional retailer, does the manufacturer need to invest in both a retail POS solution, as well as a back office ERP solution and interface or integrate the two in the hope they will one day all work seamlessly? Not if you are a SYSPRO customer.

SYSPRO is not the first ERP solution provider serving manufacturers to offer a retail POS solution. Yet typically these are two separate products. Most often when POS is part of an ERP solution provider’s product portfolio, that solution provider is targeting retail with its POS solution and manufacturing with its ERP solution.  SYSPRO isn’t going after the traditional retail sector. It is still focused primarily on manufacturers and distributors, but offering additional features and functions to support these companies as they reach out directly to consumers.

SYSPRO Point of Sale for Manufacturers & Distributors

As a result, the SYSPRO Point of Sale solution offers features specifically designed for manufacturers that might not be available in a POS solution designed first and foremost for retailers. These features include support of a “make to order” environment, complete with complex product and pricing configurations and supply chain transfer, a feature that supports tracking of shipping and in-transit inventory. It also includes support of lot tracking and serialized products and inventory locations down to the bin level. And yet these manufacturing-specific features are blended with features necessary to fully support a retail environment. Features like:

  • category and catalogue browsing
  • customer and loyalty programs
  • store management
  • exchanges and returns
  • touch screen interface and mobile access from a tablet
  • scanner and cash drawer functions that allow the use of any personal computer with a “locked” cash drawer
  • credit card limits for individuals in addition to an overall account limit
  • end-of-day cash reconciliation (“cash up”)

To make the solution more scalable, SYSPRO has uncoupled the ERP and POS user counts. A manufacturer might have 10 named users for ERP and 1,000 POS users. Or a SYSPRO Point of Sale user might also be linked to an existing SYSPRO ERP user. While accessible through a web-based interface, the system has been designed to be “always on.” This means the store can continue to operate even if the connection back to the central server is lost, a necessity because you can’t afford to have a customer walk out the door for lack of service. When the connection recovers, data is synchronized transparently and seamlessly.

The goal is to provide manufacturers with retail operations a single solution to manage business information, store operations, customer-focused POS, inventory optimization and merchandizing along with ERP. It has several customers currently running both SYSPRO Point of Sale and ERP including:

  • Coricraft Furniture, a fully integrated furniture retailer in South Africa. Its manufacturing facility produces a diverse range of high quality, full grain leather and fabric couches in a variety of styles and colors. Coricraft has 80 SYSPRO ERP users ad 370 Point of Sale users
  • Lesel Research, a beauty product manufacturer and retailer with 48 SYSPRO ERP users and 40 Point of Sale users

SYSPRO is Preparing for Change Too

But manufacturers aren’t the only companies experiencing a change in the way product is bought and sold. Consumers today are quite accustomed to hearing, “There’s an app for that.” In response they go online to purchase and download those apps, and they start using them immediately. Many of those consumers also work for manufacturers and distributors. So why not bring the same convenience and buying experience to the corporate world?

The SYSPRO App Store is SYSPRO’s response to its customers’ growing appetite for expanded functionality and the consumerization of Information Technology (IT). It is an online marketplace for the global SYSPRO community where partners can offer new products and customers can search for solutions. In fact it is a public site, so anyone will be able to browse and search, but a secure login will be required to either purchase or publish.

So the SYSPRO App Store is a way for partners to add value to the SYSPRO solution. Any registered partner can publish to the site, making applications or content available using one of three licensing models:

  • free and unlimited usage
  • perpetual license with one-time payment
  • protected license with an initial payment, followed by a recurring annual fee

Publishers can make a free trial version available in addition to a full commercial version. This feature and the App Store in general will be a very cost-effective way for the partners to market their products globally, potentially reaching a far broader audience than their own immediate sphere of influence. And they can use SYPRO’s licensing technology to protect their intellectual property (IP) while also generating recurring revenue.

SYSPRO Takes Control

SYSPRO will evaluate and must approve all products, but as the volume is likely to grow over time (SYSPRO ultimately expects to host thousands of apps), this may wind up being rather cursory.  But there are two additional factors that will make the site somewhat self-selecting. First of all, the publisher of the app will be required to provide support and issues are logged right in the “store.” So SYSPRO would be able to monitor all. An unusual number of open tickets will help identify apps that might not be up to snuff or partners that are unable to provide adequate support. The risk of course is in giving SYSPRO a black eye before the problem is identified and corrected.

So perhaps even more appropriate is the consumer-like five star rating available for each app, along with customer reviews and comments. Poorly performing applications will not be able to hide, and will likely not produce many sales. In a reference-based business like software applications, the insight these ratings and reviews will provide can be priceless.

Managing the Process

SYSPRO will manage the eCommerce aspect, collecting payment from the customers and distributing payment to the partner on a quarterly basis, after taking its cut of course. This leaves the partners free to concentrate on the products themselves, leaving distribution, payment and sales tracking to SYSPRO.

The buying process is simple and straightforward but it is also a controlled environment, which will prevent purchases from individuals at SYSPRO customer organizations that are not authorized to buy.  And an administrator at a customer site can monitor what products have been downloaded. The App Store handles version changes and will inform consumers of the product when an update is available, one less thing for the publisher to worry about.

A full ERP solution still requires the due diligence of a comprehensive evaluation, careful planning and commitment from top management, right on down through the rank and file. But once an ERP solution is in place, companies continue to change and grow and many seek continuous improvement. Having the ability to easily expand ERP’s footprint to satisfy changing or expanding needs is a huge plus.

Key Takeaways

We live in a world of change. The way we buy and consume products is changing as fast as the technology that has infiltrated our lives. We demand instant and direct access to products and we expect the companies selling us these products to evolve and adapt to our demands.

SYSPRO Point of Sales, together with its ERP solution blends the manufacturing and distribution of goods with retail, providing a direct selling process in a single integrated solution. The SYSPRO App Store provides a direct purchasing process for SYSPRO customers, while maintaining control over that process. And it has the potential to aggressively expand the footprint of the solution.

It would appear SYSPRO has both ends of the spectrum covered.

 

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Activant announces new Business Rules Engine

Last Thursday I questioned whether IT spoke the language of business. In that short commentary, I used a couple of examples. One of them was “abstraction.” I mentioned that, “if you tell a business person you can set up rules that will govern processes once, and those rules will be enforced by all your business systems, then you have introduced the concept of abstraction without having ever said the word.”
Today I read that Activant has introduced a Business Rule Engine for Distributors.  This is exactly the type of feature I was talking about – one that takes the solution beyond the traditional transaction and reporting ERP of old. The Business Rule Engine provides Prophet 21 users with the ability to insert their own business logic into the Prophet 21 code base without altering the application code itself.
Some examples provided by Kevin Roach, executive vice president and general manager of Activant’s Wholesale Distribution Division included:
·         Conversion rules that auto-populate some fields based on others –  like the town or city and state based on zip code? These are the types of “smart” features we have become accustomed to through our own personal online shopping experiences. Heck, I was a catalogue shopper long before the Internet and even back in those days I had customer service reps automatically filling in my town and state based on my zip code. But I didn’t see the same intelligence in business applications. This is a very simple example, but there are scores of ways to use this kind of functionality.   Like certain compliance requirements based on type of product.  Activant suggests an item entered with a product group of Pharmaceuticals could automatically set the Pedigree Tracking Checkbox to be checked. Or food and beverage for nutritional labeling, etc.  As new requirements are added, new rules reflect the changes with far less disruption than mucking around in code.
·         Validation Rules:  Another Activant example, Customer A can only buy items with Item Class 1 set to “No Restrictions.” The system will provide an error message if an item without that Item Class is entered on an order for Customer A. These validations basically allow for the creation of warnings and error messages based on rules being met or not met.
·         Asynchronous Workflows. A third Activant example… a distributor could set up a workflow so that a purchase order placed in the amount of $5,000-$10,000 triggers an alert to an authorizing manager for signoff, while an order over $10,000 triggers an alert for the CFO’s signoff. When the inserted trigger is activated in the Prophet 21 software, the rules included in that workflow will be executed in the sequence indicated.  Those are the rules today, but perhaps during a downturn in business, you need to (temporarily?) reduce those authorization levels or require the CFO to additionally review all purchases. Perhaps the rules tomorrow will add the type of purchase. Maybe a requisition generated for direct materials will be handled differently than indirect materials.
Why are these features and these examples (which appear to be so simple) so important? Because these business rules are subject to change. And if they are embedded within the logic of the application then changes to your business either require changes to your application (think source code and programming) or prevent your business from adapting.
If you are using older, outdated technology, and looking to upgrade or replace…perhaps this type of requirement is not top of mind. But all ERP users should be clamoring for this type of logic to be extracted (or abstracted) from the underlying code so that it puts the power of change in the hands of the business user.
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