Sandy Kurtzig

Next Generation ERP: Kenandy’s Approach

Changing the World of ERP, One Click at a Time

It has been a while since I last posted in our Next Generation ERP series. If you haven’t been following, you might want to catch up on the 4 part generic series of posts. This one features the approach of a relatively new entrant into the ERP market: Kenandy Inc. Some of you will immediately recognize Kenandy’s founder, none other than Sandy Kurtzig of ASK and MANMAN fame.

By way of introduction or reminder….

What do Star Trek and Enterprise Resource Planning (ERP) have in common? Apart from each being a bold adventure, both have experienced a rebirth as a next generation. In our four part series, we describe the next generation of ERP in terms of new technology that enables:

  • new ways of engaging with ERP
  • custom configuration without programming
  • more innovation
  • better integration

The next generation of Star Trek continued the original journey but was faster, more technologically enabled and more in tune with the evolving needs of the galaxy. When Sandy Kurtzig came out of retirement in 2010 and founded Kenandy, she may not have been thinking about Star Trek but she clearly wanted to explore new worlds in her entrepreneurial journey and boldly go where no ERP for manufacturing has gone before. Using new technology, Kenandy designed its new ERP from scratch with a singular purpose in mind: to deliver a robust solution quickly that would also keep pace with the rapidly changing world in which we live.

Does Kenandy Qualify as Next Generation ERP?

Not every ERP solution on the market today qualifies as a “next generation” ERP. The depth and breadth of functionality has increased over the past three decades, which makes it harder for a new entrant to compete in the market. The “basics” are table stakes, but they aren’t so basic anymore, particularly in the world of manufacturing where Kenandy hopes to compete.

While other industries might be able to survive with back office functionality that is limited to accounting or human resource management, manufacturing requires a much broader set of features and functions. Indeed, ERP for manufacturing has evolved from material requirements planning (MRP) to manufacturing resource planning (MRP II), to the full operational and transactional system of record of the business. Even the manufacturing of a simple product can be quite complex when you run lean, but strive to be responsive to your demanding customers.

Any ERP vendor today must compete on functionality, but that is not what makes a solution “next generation.” It is the underlying technology and the power it delivers.  But technology and functionality are closely related, because it is the power of the technology platform that allows solution providers to deliver more features and functions faster. Selecting the right platform on which to build ERP is therefore critical.

While the platform may not be immediately visible to the end user of the software, it is dangerous to ignore it and the power of technology. You probably never knew how the USS Enterprise achieved warp speed, but you knew that it could. You didn’t know how the transporter beam worked, but you knew what happened when Captain Kirk said, “Beam me up, Scottie.” While neither were the only ways to get from point A to point B, both added speed and efficiency.

While Kenandy chose to build an ERP solution from a clean sheet of paper, in order to compete, it needed to find a way to add both speed and efficiency to the development process. Kenandy chose to build on the Salesforce Platform to deliver both. And in doing so, its customers also benefit from speed and simplicity, which together yield efficiency.

ERP: Empower Real PeopleTM

Speed and efficiency are prerequisites for delivering on the first element of next generation ERP: providing new ways of engaging with enterprise software.

Traditionally, users have engaged with ERP through a hierarchical series of menus, which require at least a rudimentary knowledge of how data and processes are organized. Hopefully this organization reflects how the business processes and the enterprise itself are structured, but with a hierarchy of menus, there are no guarantees that navigation is intuitive or that business processes are streamlined and efficient.

When processes within ERP are clumsy and inefficient, employees spend more time trying to work around the system, rather than working with it. Cynics like to refer to ERP not as “enterprise resource planning”, but as “Excel runs production.” Sandy Kurtzig strives for a different goal where ERP stands for “empower real people.” For that to happen you need to reach both up and down the corporate ladder.

Traditionally, a small percentage of employees of any company ever put their hands directly on ERP, and this select group almost never included top-level executive decision-makers. But the speed of required decision-making and the consumerization of IT are making this unacceptable.

So how does Kenandy empower real people? It relies on the Salesforce Platform to deliver a user experience that is appealing to the younger work force that has grown up on the Internet. And in making the solution appealing to the millennials, it also makes it easier for the older crowd to use. It recognizes there are “mobile” and “social” users as well, both of which are addressed by the platform.

The Salesforce Platform also enables collaboration by connecting people to the business and to information. For years, salesforce.com made a big deal out of its “social” capabilities but the manufacturing community is just now appreciating social. While a hot topic among pundits and industry “influencers,” the perceived value was lost on many, particularly in manufacturing. Traditionalists distinguish between a business event and a social event, between a business conversation and a social chat, between a business colleague and a friend or social acquaintance. Many didn’t “get” that social is really just shorthand for new and improved ways of getting and staying informed in a collaborative way. And who doesn’t want that?

By building an ERP on the Salesforce Platform, these social and mobile aspects are built in.

Personalizing with Clicks not Code

While all manufacturers face similar challenges, they also have unique ways of dealing with those challenges, and in doing so, actively seek differentiation in their individual markets. What company today doesn’t believe it is unique in some way?

Being different used to mean customization and with traditional, older generation ERP, this meant programming changes, mucking around in source code and building barriers to upgrade and innovation. To qualify as a “next generation” ERP, most, if not all of this customization must be done without ever touching a line of source code. Configuration, tailoring and personalization should replace customization.

Kenandy likes to say it can personalize with “clicks, not code.” This means adding fields, changing workflows, rearranging the screens. This is an absolute necessity in a Kenandy environment because it is delivered only as multi-tenant software as a service (SaaS). In a multi-tenant environment, multiple companies use the same instance of (hosted) software. Of course, data is protected from access by other companies (tenants), but any “customization” is generally delivered through configuration settings, which vary per company.

Kenandy’s architecture allows you to modify business processes and the user experience, including screens, dashboards and even the device. This doesn’t require programmers. Simplicity and this “Do It Yourself” aspect were among the primary reasons Blue Clover Devices selected Kenandy. These features became obvious to Blue Clover during its trial run of the system.

“I immediately saw how easy it is to add and extend capabilities with Kenandy,” said Pete Staples, President and Co-founder. “I was convinced that this was something we could manage pretty much on our own, and that had a strong appeal to us.” While the other system Blue Clover was considering had many positive features, “We felt like we would have to hire them to do everything for us, and that just made us nervous.”

Beyond the Initial Implementation

While this level of personalization and configuration is important when Kenandy is first being implemented, it becomes even more so as life goes on. Today’s manufacturers are bombarded with change, whether as a result of growth, regulatory requirements or just the desire for continuous improvement. Change doesn’t halt once you implement ERP. In fact, the need for change may accelerate as new functionality and new technology opens doors for growth and improvement.

And yet managing change has traditionally been an obstacle to achieving the goals of an ERP solution. The 2014 ERP Solution Study found this to be the number one challenge with the vast majority (82%) rating it as moderately to extremely challenging.

The ability to handle this kind of change was the primary reason Big Heart Pet Brands (formerly Del Monte Foods) selected Kenandy to support its recent acquisition of Natural Balance Pet Foods. “One of the many reasons Del Monte selected Kenandy was that we wanted a flexible system that easily adapts to business changes, such as acquisitions, while also offering enterprise-class capabilities,” said David McLain, Senior Vice President, Chief Information Officer and Procurement Officer, Big Heart Pet Brands.

Kenandy attributes this post-implementation agility to the flexibility and extensibility of the platform and Stuart Kowarsky, Vice President of Operations at Natural Balance seems to be a big fan. “At Natural Balance and in our corporate systems, we’re replacing a patchwork of applications with one unified, extensible solution that will grow and scale with Big Heart’s needs.”

But Kenandy’s ability to accommodate change is not only attributable to the platform, but also to how it has architected the solution on top of that platform, with a unified data model that takes full advantage of the power of business objects.

“Wide-Body” ObjectsTM

Legacy ERP solution data models consisted of an extensive number of tables. Joining those tables together reflected relationships between data. For example, a sales order header table might need to be joined to line items. In turn, those line items needed to be joined with the products being delivered, and any number of associated tables for validation, like units of measure, product categories, inventory locations, planning and replenishment codes, etc. The sales order also had to be joined with customers, shipments, and invoices. It didn’t take long for the number of tables and joins to proliferate almost exponentially, making a change to any one element a labyrinth of changes.

Kenandy replaces that myriad of tables with what it calls a ”Wide-Body” ObjectTM architecture.  These objects will sound quite familiar: orders, invoices, customers, etc. But by packing lots of information into each object, it significantly reduces the number that needs to be managed. Kenandy has less than 100 Wide-Body Objects.

For example, invoice, credit memo and adjustments share similar data structures and therefore can be expressed as a single object, distinguished by embedded fields. Adding fields is a simple process and only has to be done in one place. Changing workflow steps is equally simple because the workflow connects directly to the objects. Also, these Wide-Body Objects are reusable and it is a simple process to make these changes by pointing and clicking. No database administrator (DBA) required.

More Innovation to Come

The ability to enable change this rapidly also has implications for the on-going development of the product, which impacts the third requirement for next generation ERP: more innovation.

In deciding to build a new product from scratch, Kenandy avoided a lot of the headaches other longer-tenured companies face. In developing a new product, you don’t have to worry about keeping any existing customers happy with product or implementation decisions they may have already made. You can start from a clean slate. It is sort of like building a new house. It is much easier to start with an empty lot and a design plan, than it is to remodel an existing structure.

And yet Kenandy set out to build a very big and complex structure. As noted earlier, the depth and breadth of functionality needed to compete today, particularly in manufacturing, is extensive.

The platform itself comes with an extensive toolbox that accelerates the development process. The power of the platform, combined with its SaaS-only delivery model, supports agile development, managed around “sprints,” a concept familiar to proponents of rapid application development. Innovation doesn’t have to be packaged up to be delivered every 12 to 18 months, but in shorter cycles that include scripting a scenario, designing a solution, building and testing. Think of these more as a series of short proof of concept projects, which are continually being delivered. As a SaaS model, no customer is left behind running an older release.

In an interesting twist on “agile” and “sprints,” Kenandy applies these same concepts to the implementation process. New customers gain access immediately to an instance of the software. They can add data, experiment and test it out in a series of pilots. At the end of the process, teams not only have a working environment, but also have learned how to make changes to business processes, again with clicks, not code. Nothing is cast in concrete as the first (or any) “go live” milestone is achieved, therefore it encourages and supports the popular manufacturing concept of continuous improvement.

These were some of the benefits Del Monte saw in its recent acquisition of Natural Balance. Indeed, Sandra Kurtzig was so confident in Kenandy’s ability to respond quickly, she made a commitment to Del Monte to go live with Kenandy at Natural Balance just 90 minutes after the acquisition was complete. No, that’s not a typo – that’s 90 minutes, not 90 days. In fact, the system was up and running in less time and represented a complete implementation including order-to-cash, planning and production, procure-to-pay and financials.

Summary

Like the starship Enterprise, whose five-year mission was to explore new worlds and “to boldly go where no man has gone before,” early versions of ERP charted new territory for enterprise applications. It evolved from MRP (material requirements planning) to MRP II (manufacturing resource planning) and then boldly set out to conquer the “final frontier” of ERP, managing not a small piece of the enterprise, but the enterprise itself.

The new journey Kenandy has embarked on, this next generation ERP, is a far cry from legacy ERP solutions of the past. Not wanting to be constrained by legacy code or preconceived notions, it started with a clean sheet of paper to design a whole new solution. But this new company knew better than to take a further step back in designing its own development platform. Instead it chose a platform that has already proven itself in terms of power, flexibility and reliability.

When Sandy Kurtzig stepped down from her first venture (The ASK Group) she left behind a loyal following within the manufacturing community, where trust is not easily given, but is hard earned. Can she attract the same kind of following in her new venture? In order to compete in this new era she will need:

  • A proven technology platform that allows users to engage with ERP in new and different ways, with intuitive and visually appealing user interfaces, which don’t rely on intimate knowledge of how the system or the data is structured. She’ll need a platform that opens doors to a whole new level of executive involvement… Check
  •  A system that is easily custom-configured, eliminating invasive customization that prevents companies from moving forward with updates and upgrades… Check
  •   To deliver innovation at an increased (and impressive) pace, supported through the use of web-based services, and object-oriented data models… Check
  •  Good integration capabilities that provide a seamless user experience across the enterprise… Check

Manufacturers stuck on older technology with limited functionality might well consider saying, “Beam me up, Sandy.”

This post was derived from a white paper entitled Next Generation ERP: Kenandy’s Approach. Click here to read the full report. The report is free, but registration is required.

 

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Cloud ERP: Is Kenandy and Force.com a marriage made in heaven?

When Marc Benioff talked Sandy Kurtzig into coming out of retirement and founding Kenandy back in 2010, it was clearly seen as a business marriage of sorts. You can define marriage today any number of different ways, some of which are very controversial, some quite safe. Erring on the side of safe, I would define marriage as a “union of two things.” In this case the marriage is between an application development platform (Force.com) and an Enterprise Resource Planning (ERP) application. While the marriage between Kenandy Cloud ERP and Salesforce Force.com might not be made in heaven, the wedding at least was right up there in the cloud.

While I am not overly superstitious, when I got married I wanted to stack the deck in favor of marital bliss. I wore something old, something new, something borrowed, something blue. It must have worked because more than 37 years later, I am still happily married. So amidst all the seemingly obligatory predictions for the New Year (no I don’t publish mine), let’s apply the same old adage to Sandy’s new venture and see if we can predict its success. Can we find something old, something new, something borrowed, something blue in this union?

Something Old

When I look for something old, my thoughts first go to “old friends.” I joined Sandy’s first company (ASK) exactly 30 years ago today: January 2, 1984. While this is a new company for Sandy, there is a lot to be gained from the experience in building that first one. During her 20 years as founder, chairman and CEO of the ASK Group, she grew the company from a one-woman show to one of the ten largest software companies in the world.

Her first product, MANMAN, short for Manufacturing Management, was an enterprise application that helped manufacturing companies run their business. In fact it still is. Having survived several acquisitions, MANMAN is now owned by Infor and still has fans in manufacturers around the world. In spite of running on what is now old and outdated technology, for more than a few, you will have to pry MANMAN from their cold, dead hands. Their perception: It just works.

Her new product, Kenandy Cloud ERP, has similar aspirations. Like MANMAN, its target market is manufacturing. Those that “know” manufacturing intimately understand the complexities associated with this type of business. Those that don’t tend to over simplify the solution needed. Fans of Workday for example constantly laud the company for its simplicity. Workday has a great product, but of course it is simpler. First of all it is Human Capital Management (HCM) and financial management (accounting) software, but it isn’t full ERP. And second, it doesn’t even try to address the manufacturing market. It takes a lot of manufacturing experience to satisfy this market. Sandy “knows” manufacturing.  You might say she is an “old hand” at it.

Something New

But it is not MANMAN that Kenandy is selling. It is a completely new product. As I mentioned before, MANMAN is now based on old and outdated technology. While many are satisfied with what it can do, quite frankly, they shouldn’t be. Any company still running MANMAN, or any number of other older business applications, are at a very serious competitive disadvantage today.

I wrote a lot about “Next Generation ERP” in 2013. If you are running an older ERP solution, especially those implemented prior to the year 2000 (Y2K), you may not even be aware of what you can expect from a modern, technology-enabled, next generation ERP. A lot of the basics required by a manufacturer today are the same, but the basics aren’t enough any more. The footprint of ERP has grown steadily, to the point where it is sometimes hard to figure out where ERP ends and other applications begin. So you need a very broad footprint to compete.

But it isn’t the depth and breadth of functionality that qualifies an ERP solution as “next generation.” It is the underlying technology. And conversely, it is that new technology that enables ERP footprints to expand at an accelerated rate. This is what makes the marriage of Kenandy Cloud ERP with the Force.com platform so important. When Kenandy decided to enter the market, the company started by building a new product from scratch. In one way, this made it much easier. As you are developing a new product, you don’t have to worry about keeping any existing customers happy with product or implementation decisions they may have already made. You can start from a clean slate. It is sort of like building a new house. It is much easier to start with an empty lot and a design plan, than it is to remodel an existing structure.

And yet Kenandy set out to build a very big and complex structure. One of my all-time favorite quotes from Sandy Kurtzig dates back to that year I joined ASK. I don’t remember who we were talking to, but I remember what she said just as clearly as if she said it yesterday, not 30 years ago. We were talking about the software competitive landscape. ASK was a market leader at the time and Sandy was very confident in its ability to maintain that leadership role. She said, “To get into the software business and compete, you have to match me line for line of code. It’s like having a baby. You can’t put nine women on it and do it in a month.”

Yet when I first communicated with Sandy in the early days of Kenandy, what she emphasized most was the speed of development that was possible with the Force.com platform. I reminded her of that quote from 30 years ago and asked her if she was trying to put nine women on it and do it in a month. Sandy chuckled, but didn’t really answer. I think time has answered the question. It is now almost three years later and Kenandy has delivered the baby. In order for it to be a real “baby” it needed to live and breathe on its own. That means for any company running it, it must provide a complete operational and transactional system of record for a (potentially complex) manufacturing business. I can’t tell you exactly when the baby was first delivered so it is hard to say whether it took the traditional nine months or more like three. But it is living and breathing in a handful of companies.

And I would say it meets the qualifications I have been promoting as necessary to be classified as a next generation ERP. It must include new technology that enables:

  • new ways of engaging with ERP
  • custom configuration without programming
  • more innovation
  • better integration

Many of these capabilities are derived directly from the Force.com platform.

The Kenandy baby didn’t necessarily need to walk or run when it was first delivered. But if it wants to compete against the big guys, those mature ERP solutions offered by big companies with deep pockets for continued development, it better help the baby grow up quickly. The more advanced features it can add easily through the Force.com platform, features like mobility and social collaboration, the faster the baby will grow and mature.

This will be particularly important to Kenandy because the target customer is also somewhat different from the old ASK customer. Yes, Kenandy is still squarely focused on manufacturing, but it is diverging from the MANMAN target, as well as the prime target for most other cloud companies. The sweet spot for MANMAN was in the lower end of the mid-market, often a division of a large company, but seldom a large enterprise. This has typically also been the target for emerging Software as a Service (SaaS) providers. Not so for Kenandy. It has its eye squarely on the large multi-national enterprise. While my data does confirm that the interest level in cloud ERP actually increases with the size of the company, I question the size of the target market. There are far more small companies in the world to sell to than large, and selling to the large enterprise is typically a replacement sale. So Kenandy not only has to sell into a large enterprise, they also have to oust the incumbent – certainly not an impossible task, but count on it being a long and involved sales cycle.

Something Borrowed

Quite frankly, no company could produce a product from scratch and make it competitive in three years without borrowing. Much of the technology that supports new and advanced features will come from the Force.com platform. So in a way, you could say it is borrowing those features. The best news about borrowing in this context: you never have to give it back. You gain the benefits for life.

But perhaps even more important is borrowing that knowledge of manufacturing from prior experience, and also the philosophy that made ASK a leader in its day.  Part of the evaluation process in selecting business software has always included checking references. As in any major purchase, before making a capital investment (or even taking on operating expense in a cloud environment) a prospect wants to talk to someone else that has walked in its shoes. Typically the software vendor provides one or more references.

But how much confidence does this really build in the prospect? By definition, any reference provided by the software vendor will be a good reference. Would it voluntarily provide a bad reference? Of course the prospect could instead get involved in user groups and/or do research on its own, but that is time consuming. And will the prospect even be able to get beyond the screening processes that occur naturally today? ASK used to handle references differently. When asked for a reference, the sales rep would hand over the entire customer list. As the customer list grew the “thud factor” alone was enough to win business. It will be awhile before Kenandy achieves that thud factor, but it fully intends to provide its entire customer list as references.

Something Blue

OK, so have we run out of our analogy with this final “something?” Hardly. Blue could represent any number of factors. Back in the ASK days, blue meant Big Blue, or IBM. In the early days when ASK was delivered on minicomputers, they were definitely not blue. The likes of BPCS (owned by SSA, now Infor) and PRMS (owned by Panasophic, then Computer Associates, then SSA, now Infor) ran on Big Blue. ASK ran on HP and DEC. But that all changed with UNIX and open architectures. Underlying hardware was no longer a point of differentiation. And with the entrance of SaaS and cloud, it is no longer even a consideration.

Blue could refer to blue sky. And blue sky could be exactly where the cloud resides, which is where the wedding took place: Kenandy Cloud wedded to ERP Force.com the cloud-based development platform.

But I prefer to consider blue sky in the context of: creative, knowing no limitations or boundaries. The sky’s the limit. After all, isn’t that the case if a marriage is made in heaven? As a woman and as an entrepreneur, perhaps I am a bit biased. While I will continue to watch and even be critical where appropriate, nothing would please me more than seeing this marriage achieve exactly what I was seeking in wearing something old, something new, something borrowed, something blue: marital bliss.

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