As a follow up to our post defining the acronyms and terms commonly used in ERP and CRM software implementations, we’ll continue with some technical and cloud terms. When in doubt, ask your vendor to clarify the terms they are using. In their excitement to show you the latest advancements, vendors sometimes forget that not everyone lives and breathes technology.

Technical Terms You Should Understand

SQL. Structured Query Language, commonly pronounced “sequel”, is a relational database system whose primary function is to store and retrieve data as requested by other software applications.

Workflow. A sequence of connected procedural steps that are automated through the ERP or CRM system. For example, a workflow for purchase requests could automatically route POs over a defined value to a supervisor for approval before processing.

Customization. Programming that adds functionality to an ERP or CRM system to meet unique needs of an organization. ERP systems are written to offer functionality that most companies need and don’t include industry-specific functionality. Customizations can automate processes that companies need to fulfill an industry or process specific requirement.

Integration. The connection between two systems that allows for the flow of data from one system to another, or reciprocally between the systems. For example, a company’s storefront website is usually integrated to the ERP so that inventory availability is updated on the website, and transactions completed on the website flow back to the ERP.

Cloud Terms Explained

Cloud Computing. In terms of ERP and CRM, cloud computing means that users access the software through the Internet or via a remote connection.

Hosting. The ERP or CRM software application is housed and managed by a cloud services provider. Application support includes installation, upgrades and user configurations. Application licenses can be owned or rented (subscription).

SaaS, Software as a Service. The software publisher delivers the application via the Internet to users on a subscription basis.

Hybrid. Hosting services built to suit unique business needs. For example, a company owns their servers but houses them in a secure hosting facility, and receives operating system and application support from the hosting provider.

Private Cloud. Infrastructure supporting the cloud delivery of applications that is dedicated completely to one customer.

Public Cloud. Infrastructure supporting the cloud delivery of applications, that is shared or “multi-tenant”, serving a variety of businesses, individuals or groups.

With an understanding of the basics, you’ll be able to ask your solution provider better questions. We are ready to tell you more. Let’s talk about what ERP or CRM could mean for your business.

Every industry has their jargon. Acronyms can be confusing, and common terms can take on entirely different meanings when you venture outside your field. When it comes to evaluating ERP or CRM software, you’ll be well equipped with the following primer.

Start with the basics

ERP. Enterprise Resource Planning is a software system that manages the transactions and flow of data between all the business functions in an organization, including: financial management, human resources, manufacturing, supply chain management and project accounting.

CRM. Customer Relationship Management is a software system that manages the flow of data for a business’s sales, marketing and customer service functions.

XRM. A term used to describe the functionality of CRM to manage more than customer activity. XRM can be used to manage the flow of data for any definable entity. For example, XRM could be used to track and schedule the use of company equipment.

LOB. Line of Business applications are software systems that deliver functionality for a specific industry business requirement. LOB applications are often integrated with the ERP system, for example: an engineering firm uses a computer aided drawing application to calculate material requirements, which are then integrated into ERP for costing.

BI. Business Intelligence is the reporting of data from the ERP, CRM and LOB applications in a form that is useful to business decisions makers. BI applications can include dashboards and reports as well as charting and analysis tools.

Add-on Products. Most ERP applications manage the high level functionality that most organizations need, and depend on an ecosystem of development partners (see ISVs below) to create applications that manage special requirements. For example, an ISV might develop a warehouse management system specifically built for the beverage industry.

Service Providers

VAR. Value Added Resellers are professional service companies that specialize in the installation, configuration and training services supporting the implementation of ERP, LOB and CRM systems.

ISV. Independent Software Vendors are application development companies that create software to address specific industry or niche market requirements.

SI. System Integrators are professional services companies that help businesses integrate all of the systems in their organizations for a more holistic approach. SIs often have the capability to create custom applications that will integrate into enterprise ERP systems.

Partner. Includes VARs, ISVs, SIs and other service organizations that support a software vendor’s products. For example, Microsoft partners are members of the Microsoft Partner Network (MPN). The MPN program provides training and certification to their network of 640,000 partners.

MSP. Managed Service Providers are professional service companies that provide outsourced management of technical services for organizations. For example, an MSP may remotely manage a company’s in-house computer servers.

Next week, we’ll define common technical terms, including the latest “cloud” jargon.  If you would like a deeper understanding of any of these terms, give us a call. Let’s talk about what ERP or CRM could mean for your business.

Customers have high expectations and they’re getting higher all the time. They expect quick responses and accurate answers. Whether chatting online, sending an email, or calling you on your phone, customers don’t expect to wait, or to get passed on to someone else. It’s not easy to meet those expectations if your employees have to go to more than one place to find the information or documents they need to answer queries.

Connect Departmental Silos If your organization has silos of sales, service, operations and accounting data, it’s time to connect those systems. A fully integrated system with shared data will:

• Allow salespeople to see where orders are in the fulfillment process
• Let customer service reps know where the item is in the supply chain
• Help accounting bill service tickets more quickly
• Provide access to actual in-stock inventory and price information

Sales and Service Teams Can Add Value In addition to added customer service, your sales and service teams can build sales with connected systems. With instant access to information across the organization, they can cross sell and upsell to build order value:

• “Model 365 is in stock and priced at $45. However, Model 367 with the automatic turn-off is only $50. That’s quite a deal.”
• “We just received a shipment of gilded cases for that violin. That makes a beautiful set.”
• “The technician is on his way out to fix the printer.  We are having a sale on cartridges, would you like him to bring you out your usual order?”

With connected information, customer satisfaction and the opportunity to enhance order value go hand in hand. Is it time to break down the silos of information in your organization? Microsoft Dynamics ERP and CRM solutions are built to work together for unified business management. Let’s talk.

Today’s social connectedness, mobile devices and instant interaction, “any time, any place” are changing the way your customers live and work. To remain competitive, your business needs to adapt to the new reality.

Connect People Inside and Outside of the Organization Traditional business management applications are passive, backward-looking systems that report on the results of past activity. That’s no longer enough for businesses that want to actively engage with employees and customers. Systems need to connect information to provide insight into performance, as well as the interactions between people.

Business management systems of the future need to incorporate communication with transactions, helping customers to make the right decisions. Collaboration must be linked to production to coordinate workers who are not in the same room. Reporting has to evolve from tracking past results to visualizing future opportunities.

Unified Business Management From email to voice to video, from presence to social - business management solutions, including ERP and CRM, should help connected organizations to:

• Leverage the exploding number of channels to connect with customers, at the time and place of their choosing.
• Create an inclusive, listening organization by extending collaboration scenarios that exist internally to include customers.
• Evolve from an organization that engages with individual customers, to one that leverages the crowd to benefit the brand.

Connected organizations remove impediments that separate information from the people who need it. They foster internal and external connections that inspire innovation and improve productivity. Unified business management systems support connected businesses by providing insight that people need to make better, more informed decisions.

Microsoft has just released a white paper entitled “Dynamic Business: From Aspiration to Reality” to share the vision of how businesses can adapt to the new social realities. Download the white paper and let’s talk about how business solutions built to support innovation could help you build a connected organization.

When it comes time for your organization to evaluate ERP systems, whether you are replacing a small business accounting package or an aging ERP, it’s important to clarify the components.  Each piece (often called module) of the ERP system delivers different value for your organization. To get the most from the full system, make sure your evaluation team understands the fundamentals.

Financial Management At the core of ERP are the financial modules, including general ledger, accounts receivable, accounts payable, billing and fixed asset management. If your organization is considering the move to an ERP system to support expansion into global markets, make sure that multiple currencies and languages are supported, as well as regulatory compliance in the U.S. and in foreign countries.

Other functionality in the financial management modules will include budgets, cash-flow, expense and tax reporting. The evaluation team should focus on areas that are most important to support the strategic plans for your organization.

Business Intelligence Business Intelligence (BI) has become a standard component of most ERP packages. In general, BI tools allow users to share and analyze the data collected across the enterprise and centralized in the ERP database. BI can come in the form of dashboards, automated reporting and analysis tools used to monitor the organization’s business performance. BI supports informed decision making by everyone, from executives to line managers and accountants.

Supply Chain Management Supply Chain Management (SCM), sometimes referred to as logistics, improves the flow of materials through an organization by managing planning, scheduling, procurement, and fulfillment, to maximize customer satisfaction and profitability. Sub modules in SCM often include production scheduling, demand management, distribution management, inventory management, warehouse management, procurement and order management.

Any company dealing with products, from manufacturers to distributors, needs to clearly define their SCM requirements to properly evaluate an ERP solution.  It’s easy for a vendor to focus on their applications’ strengths and not address the full needs of the company.

Human Resource Management Human resource management ERP modules should enhance the employee experience - from initial recruitment to time tracking.  Sub modules can include payroll, performance management, time tracking, benefits, compensation and workforce planning. Self-service tools that allow managers and employees to enter time and attendance, choose benefits and manage PTO are available in many ERP solutions.

Manufacturing Operations Manufacturing modules make manufacturing operations more efficient through product configuration, job costing and bill of materials management. ERP manufacturing modules often include Capacity Requirements Planning, Materials Requirements Planning, forecasting, Master Production Scheduling, work-order management and shop-floor control.

Integration Key to the value of an ERP package is the integration between modules, so that all of the core business functions are connected. Information should flow across the organization so that BI reports on organization-wide results.

ERP can be easier than you imagine - Microsoft Dynamics ERP is cost effective and familiar to your users. If you are thinking about upgrading your systems to a fully integrated ERP system, give us a call.

As the economy rebounds, it’s time to realign your view of cash flow. During the recession, maintaining enough cash to make payroll and keep the doors open was the primary focus for most organizations. Now that the future is looking brighter, are you ready to align your resources and costs to maximize cash flow and profits?

The next stage of growth The accounting program and spreadsheets you used in the past to manage payable, receivables, inventory, and payroll can’t handle the larger task of optimization as your business grows. Balancing all of the variable resources in your business, and matching them to your forecasts goes beyond manual processes.

To grow your business effectively and remain competitive in today’s fast paced economy, you must have a clear view of:

• the status of your resources, including inventory, employees and capital assets
• operational efficiencies, including the costs to produce and deliver your products
• cash flow through the business to support operations

Aging accounting systems and spreadsheets cobbled together can’t deliver a complete picture of the three fundamental building blocks of your organization. To support growth and take advantage of the growing economy, it’s time to look for an ERP system. Connected data and consolidated reporting will give you the ability to balance all the elements for success.

Usability for fast results As you begin evaluation of ERP systems, keep in mind that usability is critical to fast results. The economy is rebounding now, and you need to implement an ERP system quickly. Choose an ERP solution that gives employees a familiar user interface, and is integrated with Microsoft Office. With both cloud and on-premises deployment options, Microsoft Dynamics ERP is an easy choice.

Let’s talk about how you can take your business to the next level. Call us today.

As your company grows, so does your use of specialized business applications that serve your industry. Manufacturers and companies serving the medical, hospitality, or educational markets often depend on line-of-business (LOB) applications built to serve the unique needs of the industry or specialty. Connecting you to vendors and customers, LOB applications save time but also can separate the information that you depend on to make decisions.

Smart decisions require full information

Typically LOB applications provide excellent functionality, fulfilling the operational needs of a specific business requirement. LOB applications support everything from engineering drawings to patient management to student services, delivering functionality that is critical to the organization.

But there is a price for that tailored functionality. The data gathered and stored by the LOB application is not connected to your ERP system. Summary data often has to be reentered from one system to another, with accompanying loss of detail and productivity. Manual processes to import data from one system to another are error prone and not real time.

Integration is the answer

In today’s fast-paced economy in which customers’ needs change on a dime, your organization can’t afford to have limited information to drive decisions. Only real-time integration between your LOB applications and ERP system will give you the information you need — when you need it.

While most ERP systems can be programmed to automatically import information from other systems, few are easy and inexpensive. The ERP system that you choose should offer multiple options for integration of disparate systems to meet the varying requirements of LOB applications. You may require integrations from web-based applications as well as those housed on your own servers.

With full integration across all the applications in your organization, you can serve customers better and respond quickly to change. Let’s get started today, connecting your systems for better insight.

Is your accounting department wasting valuable time creating reports using spreadsheets and manual processes? If so, it may be time to check out a centralized reporting system to reduce costs and wasted time. With better business intelligence provided by a robust reporting system, you’ll be in a better position to make sound decisions based on accurate, timely information – as well as easily comply with business regulations – and that's always good for business.

While Enterprise Resource Planning (ERP) can transform your business in many ways, the time savings that your accounting department will realize may be the most surprising. As organizations grow, the need for coordination of resources and departments is clear. An ERP system supports that growth.

But smaller organizations often spend as much time on accounting as large ones. An ERP system may return productivity rewards more quickly that you imagined.

Automate reporting

It's no surprise that your accounting team spends many hours each month reporting profit and loss. But how much time are they spending on manual spreadsheets for each of the following?

• Making adjustments to inventory and vendor pricing
• Maintaining budgets for multiple departments
• Providing individual reports to departments with data from payroll to supply costs

A centralized ERP system can automate all these time wasting activities so your accounting team can focus on ways to make and save money.

Assure compliance

No one wants the IRS or any other regulatory agency looking over their shoulder. The best way to keep them out of your business is to provide prompt, accurate reporting to meet all agency regulations your industry requires. Most starter accounting packages don't give your finance team the flexibility to build the reports they need to comply.

To determine if it is time to evaluate ERP systems, have your accounting team track the time spent searching, compiling, and manually entering compliance report data for each of your required filings. The time savings with an automated system that pulls data from multiple sources to consolidate information could be well worth the investment.

Microsoft Dynamics ERP provides more options for reporting than any other ERP system on the market. Let us show you how flexible reporting can be.

In today's highly competitive environment, innovation plays a key role in staying ahead of the game. Fortunately, you can rely on help of business tools such as Dynamics ERP and SharePoint to help your teams collaborate, create, and deliver quickly and creatively.

The key to competitive advantage in today's connected world is innovation. Companies that can continually offer new product features and services will win and hold the attention of customers. To support innovation, how do you keep your employees thinking outside the box and building for the future?

Share the knowledge

Connect your employees to each other no matter where they are. When employees can collaborate in real time instead of emailing documents — not knowing who has the latest version and who contributed what — they keep innovation flowing. Dynamics ERP and SharePoint will give your teams the power to share their ideas in a central location without any slowdowns.

Lack of information, dated information, or disjointed information all keep people from making the best decisions. When you get the right information to the right person at the right time, you allow them to focus on productivity instead of data crunching. With business intelligence built on an integrated ERP system, you deliver information that fuels innovation.

Connect departments

When one department doesn't know what the other is doing, duplicate efforts, wasted time, and poor decisions follow. Dynamics ERP and SharePoint together allow you to share information from all departments across your organization. Help your team move forward together, basing decisions on the whole picture.

You can stay ahead of the competition by supporting innovation and creativity with a connected ERP system. Microsoft Dynamics ERP will help your teams collaborate and connect. Let's talk about how we can help you find creative solutions to get ahead of ever changing markets.

Are you able to track the true profitability of the projects that your business delivers? If your business provides services that are delivered by multiple people or departments in your organization, you may not be charging enough. Estimating costs to cover salaries, sales time, travel time, and other hidden expenses may be eating up your profits without you realizing it.

Take the guesswork out of project costing with a systematic review of the projects that you have delivered. Evaluate how you should capture and assign actual costs to specific projects, including:

• Project definition. Projects take different forms for different organizations, and it's helpful to have a good understanding of what yours entail. A manufacturer could define a project as a custom-made machine. A marketing campaign is a project for an advertising company. Each wedding would be set up as a project for a caterer.
• Assign the costs that should be allocated. Direct costs, such as materials, are easy to allocate to projects, but other costs might be less obvious. Think through all the steps of your project activities, from conception to delivery, to capture the full cost of delivering that project.
• Determine how to track time, costs, and expenses. Rule of thumb: keep it simple. Consider how much detail you really need to capture to accurately track costs. And be sure to make it easy for your employees to enter and assign time and expenses to each project, no matter where they are – you'll get more accurate results.
• Monitor. Check the results of your project costing regularly to make sure that your employees are using the system consistently. Use reports to monitor the profitability of each project, and then adjust your prices accordingly.

Project costing is a critical business management technique that most companies today need for at least a part of their business. A business management solution such as Dynamics ERP can help you manage projects and the expenses that go with them automatically. Give us a call and let us help you get a handle on project profitability.