Digital Transformation

What don't you know about ERP? Industry secrets, mis-aligned incentives and drivers of behavior all impact your final result - Today's ERPodcast let's you get a handle on some of the largest pitfalls threatening your project before you start. 

LinkSources

 

ERPodcast E27

CEO/CFO Report 2021 Links

 

Links mentioned in today’s Episode 26 of the ERPodcast

SaaS Success Series - an online seminar series brought to you by Sage Intacct. Register for this week's sessions and find links to previous panel appearances by Gene Hammons Here

ERPodcast Episode 24 and Episode 25 Is a case study on one company, Nice Link Home Furnishings, who implemented the Cloud ERP Acumatica in the middle of the pandemic – here’s the link to the ERPodcast ERP News Page.

 

About today's ERPodcast

MIsaligned incentives - budget shortfalls - tight implementation timelines - How do you conquer the most common pitfalls leading to a failed ERP implementation? The ProfitFromERP methodology bakes in best practices so you end up watching company goals exceeded and, like we say, ProfitFromERP, our clients make ERP PAY!

 

E27 – What They Don’t Tell You About ERP

(but you soon find out anyway)

 

MFX up and under

 

It’s Episode 27 of the ERPodcast, What They Don’t Tell You About ERP (but you’ll soon find out anyway).  I’m your host, Gene Hammons the Director of ProfitFromERP - a business consultancy revolving around software, it’s uses and misuses – and as we like to say, Our Clients Make ERP Pay – pay for itself, pay off, pay back, break even and we even have the cash flow analysis to prove it.

But all that aside. What’s this about what they don’t tell you about ERP? Who are they? And Why are they so hush-mouthed about important ERP situations?  We’ll get to that in today’s episode, what they don’t tell you, but more importantly, what’s their motivation, what’s their incentive and how are we going to shift incentives both for the software vendor, but also shift incentives for your internal team - all so that your company comes out on top in your next ERP project.

 

But here’s the Number One Thing they don’t tell you – most ERP projects fail. Some are small fails, like, the software wasn’t live on time. Some are big fails like, we went over budget. By double. And some are epic fails, like, this doesn’t really do what we saw in the demo. But we’re stuck. And some fails are Ed’s fault. Ed ran the selection committee that got us into this mess in the first place – he’s not here anymore so we pretty much blame it on Ed-ware instead of software. So today we’ll even tell you how to keep your job if someone walks into your office and says, “We need a new ERP system and we want you to run the project…say, your middle name isn’t Ed is it”? – all that and more – right after this word from our sponsor – It’s Episode 27 of the ERPodcast What they don’t tell you about ERP.

 

(break)

 

 

 

 

 

Endorsement – SaaS Success Series

Sage Intacct

 

Much has changed in the Business world over the last year - - don’t need to tell you that. While we don’t  gather in large groups, conventions, presentations, business meetings – have moved online and I have to say the webinar content has improved dramatically.

I know for myself,  instead of my normal speeches at various conventions, I’ve avoiding airlines, hotels, overserved networking parties and have still appeared on a few panel discussions over months past – most recently, the SaaS Success Series by Sage Intacct – which is still ongoing the week we release this podcast -  but even better, you can catch the on-demand links of the sessions just passed as well as registering for next week’s sessions. We link the registration on the website ProfitFromERP.com – just look for the News & ERPodcast page and it’s under Episode 27. Here.

So the Saas Success Series is all about SaaS B2B companies and issues that concern them.  I spoke on a panel with Ben Murray of the SaaSCFO.com and Sam Jacobs who runs the Revenue Collective – these guys are great sources when it comes to technology for today’s businesses. Other than that panel theres’ Best Practices for Forecasting for raising funds, ASC 606 Rev Req, and a lot more - some leaders of great businesses letting you in on what’s really happening for SaaS B2B companies.

Now, I hear you saying, well, I’m not a SaaS B2B but let me stop you right there.  As regular listeners to the podcast know, I’ve been in over 400 ERP projects over the last couple of decades and seen quite a bit. But when I walk into a young startup SaaS company, yes, I still present my proven methodology and help them ProfitFromERP – but the reality is, I learn more, quicker on how these amazing tech-oriented startups are approaching markets like never before – and isn’t that what we’re all pivoting toward in the post covidian economy? The SaaS Success Series – it’s brought to you by Sage Intacct, no slouches in the SaaS area themselves – it’s great content, leading company presenters and you’ll get a lot out of it. Like I said, www.ProfitFromERP.com click on the News and ERPodcast tab and look for the registration link under Episode 27. Link

 

Back to the ERPodcast – What they don’t Tell you about ERP. And who are ‘they’ exactly and who are these nefarious truth-twisters? Well, let’s not get all judgmental right out of the gate, there’s plenty of time for that later.

 

Heres’ a thing – was watching Netflix last night, Gemini Man – it’s a Will Smith action adventure as he plays a 50 year old assassin who unbeknownst to him, was cloned and now has to face a 22 year old version of himself – and action adventure highjinx ensue.  Towards the resolution of the movie, the older Will Smith is telling the younger, same Will Smith a few life truths.

I thought, this is just like the ERPodcast – well, without the major motion picture budget of course. But here I am, the 25 year veteran of hundreds of ERP projects talking to you, giving you a few life truths about ERP – and we’re the same person – sort of – I mean, just like Will Smith and his clone, both are just as smart, just as talented, given all the same tools – only I’ve watched ERP go right, and go wrong for all these years – and meanwhile you’ve built a successful business that you’re trying to take to the next level with ERP.

 

So what don’t they tell you about ERP?

 

The truth is, different people have different incentives. An ERP sales guy is incentivized to sell you some software. An ERP software consultant is incentivized to give you the standard safe proven implementation that most often avoids big problems – but should big problems erupt, well, it ends up he bills more hours, makes more money, he goes to President’s Club Annual celebration for top performers in Aruba for all the billable revenue he generates.

 

Now on some level, the software vendors, the software resellers want to have happy customers but you know what’s the biggest impediment to customer satisfaction?

You are.

Well, maybe not YOU personally, but your people…Henry, Dan, Marcy – the names change but the stories live on -

I mean you have Henry down in purchasing who’s been against this ERP thing from the beginning – he’s the company expert in your current system UltraBizPro, and everyone in the company goes to him when they have questions – and they have questions since UltraBizPro was written in 1989 by some guys who were past their sale date before the first line of code was written.

There’s also Dan. Dan remembers you moved his cheese some time ago. He remembers walking a lot during management by walking around. He wrote his own mission statement. Developed 7 Habits of Success. Then was before you tried activity-based costing, then lean, then Kanban, Dan is sure this ERP thing will be another passing fancy.

And Marcy. Don’t tell her your moving the invoicing to 100% digital with AP Automation. Marcy’s job is data entry. Sure, she has an accounting degree and has worked for some pretty big firms back in the day – but this ERP thing looks like the end to her and her heads down data entry.

You see, Dan, Henry, Marcy – the ERP software vendors have absolutely no control over their incentives, what makes them tick, heck, they don’t even know if Dan, Henry or Marcy is a project asset or a project roadblock – so how can the ERP vendors promise you success when it’s really up to Dan Henry and Marcy?

So what they don’t tell you about ERP? Well as you can see, you need a team to make it work. So think about what makes a team succeed – they need achievable goals, measurable progress, practice, learning, motivation – it’s kind of like football, you have your Pittsburg Steelers, pretty great every year and then you have, well, everyone else – one guy is playing for stats because he’s a free agent next year, the next is playing just good enough to sit on the bench a couple of more years, some guys don’t know why they’re there. And you may be in Pittsburg but Dan, Henry, Marcy – Dan’s incentive is to roll with the latest management fad doubtful it will last. Henry’s incentive is to keep being the one guy everyone depends on – and if you take away UltiBizPro – Yikes. Marcy’s incentive is to keep her head down and don’t make waves. Can we get this team on the same page?

So another thing  they don’t tell you about ERP is the ProfitFromERP approach. You need a commitment from Dan that with this new system saving him time and effort, he can drive sales up by 10%.