DSD Business Solutions of Georgia

DSD Business Solutions of Georgia

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Archive for

September 2010

 
Sep 30 / 12:07pm

Downsizing Tier 1 to Tier 2 ERP Systems

by Free Polazzo

Process for Detrermining whether a Tier One ERP system can be Downsized toa Tier Two ERP system

Blog by Doug Deane

Downsizing your ERP systems from a Tier 1 to Tier 2 level provides some challenges and here we will discuss the approach that you should take when evaluating downsized ERP packages.

It is critically important to do a thorough evaluation, in order to determine if the candidate systems are capable of handling all or most of your critical needs.  This methodology is similar to any standard ERP software evaluation, but with consideration given to the special needs of a company that is downsizing:

  1. Business process review.  Before you do anything, conduct a thorough business process review and analysis. Your ERP system is an extension of your business processes and you must document them before evaluating any downsized ERP packages.  Most Tier 2 resellers are very capable of providing such a review, as are many CPA firms and business consultants.  Cover any pain points, and list the strengths and weaknesses of your existing system.  Be careful to include all areas of your business in which customizations were needed in order to accomodate your business processes.  This will form the basis of the discussion that you will have with your prospective vendors.
  2. Hardware/IT infrastructure.  Include your hardware and IT infrastructure standards in your evaluation.  Although downsized software will probably run on your existing system, many Tier 1 systems run on proprietary devices and operating systems.  You must fully understand whether the downsized system is compatible with your current IT environment.  If not, this may dramatically change the associated ROI.  You should also determine if the downsized system is compatible with your IT Director’s or CIO’s in-house standards, and if not, whether there is flexibility in these areas, based on the need to reduce costs.
  3. TCO.  Determine the total cost of ownership (TCO) of the candidate systems. Some ERP software sales representatives are interested in downplaying the costs associated with their software.  Be sure to uncover any hidden costs, including implementation and training costs, data conversion costs, annual software maintenance fees, associated hardware upgrade costs, etc.  Also remember to obtain a proposal from your existing Tier 1 provider, for providing conversion data in a format that can be accessed by your new system.  This information can dramatically change your ROI, and can turn a compelling reason to downsize into a marginal one.  You should always ask for a fixed fee for the implementation services.  Avoid contracting for the services on a time and material basis.  And remember that very often, the lowest initial purchase price is not the lowest TCO.  You get what you pay for.
  4. Implementation plan.  You must ask for a detailed scope of work (SOW) for the implementation before making a purchase decision.  The SOW should include (i) acknowledgment that your special needs and pain points have been addressed, (ii) a detailed breakout of any customization services, (iii) a project schedule including the impact on your own staff’s resources, (iv) a description of the testing process, and (v) an estimate of the data conversion services.
  5. Evaluate multiple options.  There are many Tier 2 and Tier 3 ERP publishers and packages out there, each having distinct benefits and limitations.  Avoid using a software vendor who only sells one particular ERP package.  They will not be as objective as a reseller who has access to multiple ERP packages.
  6. Involve your staff.  It is critically important for you to get your staff’s buy-in before you make a final decision.  You are asking them to downsize their ERP software, which means they may lose some features which, although not critically important to your operations, probably make life a bit easier for them.  Make them stakeholders in the evaluation process, and have them participate in the creation of the mission statement for your project.

If you follow these guidelines, downsizing from a Tier 1 ERP package can pay for itself in a short period of time, allowing you to stay afloat until the market has rebounded.

DSD Business Systems excels at business process review and documentation, and would be happy to assist any company who is considering a downsized ERP system, in order to cut costs. 

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Doug Deane is President of DSD Business Systems, a national provider of ERP software and accounting software, specializing in wholesale distribution, warehouse management, inventory and CRM software, including Sage MAS 90, Sage MAS 200, Sage Accpac ERP, Sage MAS 500, Sage FAS, Sage Peachtree, SageCRM, SalesLogix, Extended Solutions Enhancements, and Custom Programming.  DSD has offices in 25 citiies including Atlanta, GA.  

 
Sep 24 / 2:19pm

FRx being "retired" by Microsoft and Sage Software has chosen its replacement: Sage Intelligence!

by Free Polazzo

Sage Software ERP products replacing FRx with Sage ERP MAS Intelligence as alternative for Financia Reporting. 

As a result of Microsoft’s decision to retire FRx, the module will no longer be distributed with the Sage ERP MAS product effective January 31, 2011.* In response to Microsoft’s announcement, Sage ERP MAS Intelligence will be provided to customers using FRx as an alternative solution for Financial Reporting. In the coming weeks, you’ll see information from Sage providing current on-plan FRx customers with an offer to transition their FRx licenses to Sage ERP MAS Intelligence. Customers will receive one free Intelligence Report Manager or an equivalent product mix depending on the FRx licenses purchased in the past by the customer.

Sage MAS Intelligence offers powerful and easy to use graphical financial reporting capabilities to access business-critical information and makes complex reporting easy using a new report designer. Going beyond General Ledger reporting needs, Sage MAS Intelligence provides Business Intelligence across the entire Sage MAS ERP system, including CRM and Abra.  Sage MAS Intelligence benefits include:

  • Quickly identify and respond to trends using sophisticated, customizable dashboards
  • Empower your staff with timely, meaningful information and trend reports
  • Easily create in-depth financial, operations, customer, and vendor reports
  • Efficiently view, manipulate, analyze, and distribute reports in a familiar Excel format
  • Extract up-to-the-minute high level summaries, account groupings, or transaction details
  • Effortlessly consolidate data from multiple companies, divisions, and databases
  • Streamline customized work in Excel

Spend more time focusing on strategic analysis and interpretation and less time pulling the data together from static reports.

 

*After January 31, 2011, customer’s current on maintenance and using FRx will continue to receive support from Sage. Microsoft will no longer be providing any bug fixes for issues found within the FRx product so Sage will only be able to support matters that involve the integration between Sage MAS and FRx. Sage will maintain backward compatibility between FRx and Sage ERP MAS 90 and 200 V4.5.

**  This same Intelligence report writer is also available for the Sage Accpac ERP product.