CLOUD ERP DEMYSTIFIED. LET S CUT THE CR@P n interview with DVID BRSSFIELD I m not sure about you but I m getting a little tired of the hype around Cloud ERP. There s just too much rhetoric from the big consultancy firms and some vendors on the apparent benefits of cloud ERP, EPM and nalytics tools. I m not questioning the Cloud proposition, there just seems to be some naivety around how companies exploit what the Cloud has to offer. Talking to my network, SME and fast growth businesses are at the forefront of this movement due to what they perceive as the main features of cloud technology: - Scalability and flexibility of the applications. - Reduced upfront implementation and operational costs (with no hardware associated costs). - Improved data security (in the past arguable, but less and less of a concern these days). - Immediate access to data for decision making. - Mobility - real-time data updates provide enterprise wide access to real-time analytics and business intelligence. The trick is turning those features into tangible benefits for your business and ensuring you re getting best return on your technology investments. How do you do that? In designing an integrated cloud strategy, CIO s and CFO s should be asking what problem does it solve? What opportunities does it present now? and how do we adopt future functionality that delivers measurable business benefit? s companies are becoming increasingly data-centric they need solutions to manage information in a realtime, agile manner that will remain flexible enough to react to trends and help realize growth. Business strategy and decision making in the SME/high growth market then, is intrinsically linked to the utilization of the cloud and maximising the benefits available. But where should you start? Who should you trust? To help answer these questions and cut through all the marketing hype I turned to David Brassfield, CP, MS. David s an independent veteran in ERP implementations with a track record of working client-side to evaluate, select, implement & support ERP & EPM solutions for companies such as Illinois Institute of Tech, Lebara Mobile, Xaxis, Etsy and Balyasny sset Management L.P. Without the potential bias of working for a vendor or Consultancy partner, David s focus has always been on asking the question what is best for the client? and goes beyond the aim of simply to go-live, but instead focuses on implementing, developing and supporting cloud solutions that will set the business on course to achieve their objectives and goals. I hope you find this interview useful as you take your company to the next level of transformation. Interview by EDWRD COOK - Systemsccountants Inc.
Following are some excerpts from our conversation: Edward Cook asking the uestions and David Brassfield providing the nswers. David, what would you consider are the main drivers for businesses in the SME/high growth space looking to adopt cloud accounting technology? You mentioned security of data, and flexibility of the system (caveated with the assumption that this has been setup with foresight), can you elaborate on those points at all? The big drivers are things like: - Security of data everyone from my class of ERP administrators has stories of walking into server rooms with the full access, super user, data rights to the back end of the system on a post-it note next to the screen. New/cloud systems have reliable audit trails that ensures individuals are held accountable. - The providers are constantly updating/upgrading the system so that it s optimized and reduces the need for costly patch updates and upgrades at the client s expense when utilizing on-premise solutions. - Though the initial implementation might take the same amount of time and cost a similar amount, due to the continual updates, there is no need for full new implementations every few years. - No need to retain servers on site and incur the associated costs of maintenance of hardware. On-premise solutions meant that companies often needed inhouse support (application/software and hardware/ servers). This could lead to a scenario where if the person hired to deliver security or maintenance of the company s hardware was not as good as the people trying to exploit weaknesses in the system, then this would represent a serious risk to the system and business integrity. Equally, if a company throughout their implementation are working alongside a systems integration partner or software vendor, then the end goals of the two (end client and implementation partner), may be quite different. It s not uncommon for the implementation partner to aim to go live with a solution as long as they get something live. Whereas the business needs something different, and would benefit most from a system that is setup to enable them to achieve their strategic goals. - Flexibility of the cloud to enable scaling up of a business in line with their growth plans. ssuming that the system has been configured at the outset with the foresight to allow for this.
Can you give me an example of how foresight at the early stages of a project from the consultant implementing the system can enable the recipient business to achieve their future goals? GIGO is a classic saying in the tech world Garbage In, Garbage Out. But, what might be even more important in a new implementation is understanding that good processes built during implementation might not stand the test of time, and eventually turn into bad processes. Many times I have run into the implementation of a new product at various companies and the implementer essentially will look at that data as Boolean either it is one thing or it is not. This works really well for smaller companies or simpler business models either it is a spend category related to COGS (cost of goods sold) or it is not. What happens when we move down the road a little, and that same spend category is starting to get used for internal developments rather than just for manufacturing products? Because the implementer never defined the rule based on a combination of Ledger ccount and Spend Category then the rule broke down and the non-manufacturing invoices started getting sent to the wrong approver. In addition, a review of reporting had to ensue to make sure that the P&L was categorizing the costs correctly. This is why it s so important that when an implementation is occurring that the fundamental reason for a categorization is understood, and some understanding of what could be the future of that particular challenge might look like, so that reports and rules can be built out in a logical and efficient manner.
What would you highlight as being a downside to cloud vs on premise? How would you define success in a cloud accounting implementation project for any business but specifically the SME/high growth market? For those business looking for a customized, hand-in-glove solution then there are limits. Without access to the backend of cloud accounting solutions, then naturally there is less ability for customization. The more customized the solution the easier it is to make it do exactly what you want, and arguably to fit it exactly to the businesses existing processes. However, it does present difficulty when it comes to upgrading and it s not uncommon for businesses to need to re-implement opposed to upgrade if they continue to customize throughout a systems lifecycle. lso, there are benefits of having the systems experts on-site/ in-house as employees of the business. You have your system and business experts on hand all day, so issues can be resolved quickly and often with significant business insight. That said, the support functions within the serious players in the cloud space are extremely adept at providing support and there are additional options out there to provide external support to users. Personally, I think success is defined over a period. It s not about going live on time and budget, but it s about: - How much does the business need to spend on post golive functional improvement? - How many times does the business need to reconfigure the functional front end and configurable back end to meet the business process? - Is the system futureproofed and aligned with the organizations strategy? - Can the system selected flex and grow with the business as it grows and evolves in line with the strategy? Of course it is incredibly difficult to put a price tag on a job well done, as the classic saying goes When you do things right, people won t be sure you ve done anything at all
nd what would you say are the barriers to success as you just defined? Finally, what would your top tips be to any organisation looking to implement cloud accounting technology? I d flip that and say factors to improve the chance of success, opposed to barriers are: - Ensuring the business spend enough time at the outset to grind out their requirements with the consultant/implementation partner. - Being clear whether the implementation partner fully understand the business, their strategy and share the common goals of building this as a flexible solution that allows, as best it can, for the development and growth of the organization that it underpins. If you do not believe this is a common goal then to look for a different delivery partner. - Spend time with the users and wider business stakeholders to ensure that they are fully briefed and prepared for the upcoming change. Get them on board, and keep them informed. It sounds cliché but you can t get far away from the adage of: - People, process, technology. You need the people in the business to be bought into the implementation. You need to work with the business to clearly define processes, adapting those that need to fit more to the system (opposed to bending the system unnecessarily to meet the business if not absolutely required). You need to understand the business strategy, their processes and needs and to work in collaboration to ensure that the system is fit for purpose but ultimately, the system alone will not solve everything. You need the people on board and the processes clear before the journey begins. - But outside of this, I would highly recommend working with an independent consultant to assist you (the business) with quality assuring what it is that the vendor/partner is suggesting you implement. It is the expertise that these independents have, the knowledge of the application and the fact that they are employed by the client to deliver the best solution for them that keeps the vendor/partner held to account and will give the business the best chance of a considered, futureproof solution.
Thank you to David Brassfield for his time and for adding some real weight to the conversation about the benefits of cloud accounting and business systems technology. Specifically, with the insight around how SME/high growth business looking at embarking on these implementations can prepare themselves for a successful implementation. David has particular experience in the world of Workday, but speaks with good knowledge of their competitor products including Netsuite, Oracle Fusion, daptive Insights, Onestream etc. and clearly equates cloud accounting as an asset to the SME/high growth sector offering: - Improved data security - Less expensive maintenance costs and reduced need for future full implementations - Flexibility of application to adapt to business growth Whilst emphasizing the need for the business to take a lead role in ensuring that they utilize both a partner/vendor in the delivery but also bolster their expertise in house (by utilizing independent consultancy) throughout the implementation to ensure that there is an awareness of the specific business needs, their strategic goals and that these are represented at the early stages and throughout the implementation. S Inc is North merica s specialist provider of Financial Systems and Finance Transformation expertise. Bridging the gap between Finance & IT we help organizations work more efficiently by getting the best from their technology investment. From evaluation, selection through to implementation and optimization we support our clients journey toward efficient, automated business processes, better reporting, greater insight & competitive advantage. To explore our track record visit www.systemsaccountants.com/us or to discuss how our unparalleled expertise could benefit your company contact Edward or David: Edward Cook Client Services Manager +1 (312) 825-9017 edward@systemsaccountants.com David Brassfield Director of Professional Services +1 (773) 499-9866 david.brassfield@systemsaccountants.com