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The Problem with Hosted Solutions

The Problem with Hosted Solutions

Every company wants to move to the cloud. Most notably, manufacturing firms want to realize the benefits of cloud-based ERP systems, including real-time access to critical business data, improved productivity, scalability, mobility, integration with other software, and greater return on investment. The cloud is now a critical path technology for manufacturers, and as a result, the cloud ERP market is being flooded with ERP “solutions” that either fail to deliver on all of their promises or don’t solve manufacturers’ problems at all. Take hosted solutions. Eager to get into the cloud ERP market, some large software vendors are selling hosted solutions presented as real cloud solutions. However, these hosted solutions are at best fake cloud solutions and bring with them many disadvantages. Many on-premise vendors like Microsoft now offer hosted versions of their software. So what’s the difference between Rootstock on Salesforce, a Software-as-a-Service (Saas) ERP solution that is designed to run in the cloud and integrated with an ecosystem of products, and a product that was originally designed to run on-premise but is now being offered as a hosted solution? With a hosted solution, companies rely on an external services provider to manage their ERP system. The organization connects […]

Jan Baan Reviews: “From Legacy ERP to Smart Industry 4.0” The four revolutions are: Economy 1.0:Steam Engine, Economy 2.0:Mass Production; Economy 3.0: Digital Revolution/Internet Technology; and Economy 4.0: Mobile Internet and Internet of Things. When Jan Baan writes about where we have come from to how we are going to adopt to Gartner’s suggested Pace-Layered Application Strategy Model in our software approach, we are excited to read it. After all, Baan, who is Chairman and Founder of Vanenburg Software and who established Baan Company in 1978 to became a pioneer in the ERP industry, should be able to provide a terrific overview. The article appears in one of the industry’s leading websites, (Bolded italics are by the blog author.) In the piece, Baan relates how, in the 80’s, “relational database technology and MRP algorithms helped us further expand our logistics systems to so-called Enterprise Resource Planning (ERP) systems. In addition to planning and stocks, the financial data were linked, thereby, simplifying periodic reporting to shareholders. Therefore, the ERP solution belonged to the core systems of the company, which also has, unfortunately, led many users to feel locked into their software vendor since it is the software vendor that programmed those core algorithms.” Then, “at the beginning of this […]

Enterprise Apps Today Reviews Top 11 Cloud ERP Vendors for 2-Tier ERP Systems

Gartner expects that most organizations will shift from monolithic ERP to a hybrid approach by 2017. Gartner is not alone. Accenture Technology agrees that a distinctive feature of today’s ERP is that it is built inherently on a hybrid architecture. Commonly, such an architecture is referred to as a “Two-Tier Model”—that is, the combination of core ERP capabilities with cloud/Software-as-a-Service (SaaS)-based capabilities on the edge in areas such as sales, CRM and collaboration—all integrated with the ERP system. Accenture continues, “CIOs today need to manage the legacy environment, ERP systems (sourced either through a public or private cloud), SaaS technologies, as well as various platform as a service, business process as a service or SaaS offerings from vendors and integrators. And all the while companies need to be thinking about the proper way to incorporate today’s leading technologies including in-memory computing, analytics, mobile and social. In the April 12, 2016 issue of Enterprise Apps Today, reviewer Drew Robb discusses two-tier ERP software and looks at the leading Cloud ERP providers. According to Robb in agreeing with Gartner and Accenture, finds Cloud ERP software is becoming increasingly popular for two-tier ERP deployments, the model Gartner describes in which companies run more […]

Data Cleansing – A Most Important Step in ERP Implementations

Most would agree – a cloud ERP system is only as useful as the quality of data flowing through it. Therefore, if you are in the process of implementing a new Cloud ERP solution, be sure to include data cleansing as one of the important projects in your implementation process. In both the short and long runs, data cleansing will save you time, frustration and budget. Plus, it will help you ensure having a successful implementation. If you don’t believe this, ask any veteran of an ERP implementation. They will emphasize that in order to have a successful cloud based ERP installation, you will need to prioritize “data cleansing” near the top of your list of things to do. If you ask those same people to identify the top two or three tasks that they most underestimated, in terms of scope and complexity, they will list “data cleansing” near the top. ERP Focus notes, “Data cleansing is a huge factor in ERP success because it is leveraged in every phase of the operation. An ERP implementation will be exactly as successful as its testing execution, and the only limitation on testing execution is master data completeness and accuracy. An ERP […]

Advantages of a Postmodern ERP Strategy

In our last blog, we discussed a new concept call Postmodern ERP. From ERP legacy systems to the cloud to hybrid solutions, manufacturing firms have had to keep pace with rapidly evolving ERP technology over the last several years. Recent analyses by Gartner now promise to shake things up further. Gartner is promoting an ERP strategy called Postmodern ERP, which calls for a decentralized hybrid system that generally consists of a core ERP solution integrated with a mix of different cloud-based software. As manufacturers have even more choices than they did before, they can count on cloud ERP vendors like Rootstock Software to help them implement their own postmodern ERP strategy. According to Gartner, a successful postmodern ERP strategy must support: Business agility and flexibility – With specialist applications from the cloud, firms can leverage upgrades applied by the software vendor, let users make configuration changes, and replace applications within a two- to five-year time frame. Reduced complexity of the core ERP – Implementing a hybrid set of solutions frees companies from having to customize a monolithic ERP suite to meet a differentiating business need or drive user adoption. Improved usability and user adoption – Users’ needs for a Web-based […]

Tips for Selecting Your Cloud ERP Vendor

As the editorial team so succinctly points out, “The choice of vendor for your ERP software is critically important to the success of your project. A good fit for your industry and business ensures a relatively smooth transition from old to new. Solutions which are efficient and intuitive speed up the learning process, foster the sense of ERP being an improvement, and contribute to organizational confidence.” Does their Cloud ERP fit your business? For instance, a discrete manufacturer needs a very different Cloud ERP system than does a process manufacturer. Unionwear President Mitch Cahn emphasizes, “Unionwear manufactures completely customize products and we needed a cloud based solution that would allow our textile and promotional clients to design accessories online, get real time costing and stage opportunities that we flow directly into planning, procurement, and production. [We needed a solution that] makes small batch manufacturing a more fluid, profitable experience for both us and our clients.” “In our search for a new manufacturing ERP, we discovered that [our chosen] Cloud ERP gave us the best bang for the buck in the market, advises Devesh Patel, manager, Infinilux. “It provides the results we wanted from an ERP such as increased product […]

Why Aerospace and Defense Manufacturers Need Manufacturing Cloud ERP, Not Typical Cloud ERP

In his column “Ten Ways Cloud Computing Is Revolutionizing Aerospace And Defense,“ Louis Columbus on reports, “Synchronizing new product development, supply chain, production and Maintenance, Repair & Overhaul (MRO) strategies across Aerospace and Defense (A&D) manufacturers while reducing costs continues to make cloud platforms a viable option in A&D… As one aerospace executive told me recently, the industry sees cloud computing as solution to what many call “silos of excellence” that slow down progress.” However, when selecting a Cloud ERP solution, it’s not enough for the ERP to be only on the Cloud because most Cloud ERP software is created from either an accounting or customer relations viewpoint. They are manufacturing light. Aerospace and Defense Manufacturers needs a Manufacturing Cloud ERP. Only then can they – · Gain better visibility on project schedules and costs, · Compare actual costs versus budget by project in real time, · Capture complete serial and lot traceability through the entire Product Life Cycle, · Provide ‘as maintained’ versus ‘as built’ versus ‘as designed’ view of the entire BOM Tree Structure, · View the project impact of capacity on the shop floor and · Run Material Requirements Planning on a project Basis. Manufacturing Cloud ERP software for Aerospace & […]

Why High-Tech and Electronics Manufacturers Need Manufacturing Cloud ERP, Not Typical Cloud ERP

Cloud computing, more commonly known as “the cloud,” is all about delivering computing resources such as data and applications on demand over the Internet. The cloud uses a network of remote servers hosted on the Internet to store, manage and process data. Extremely large amounts of processing power and storage are instantly available anytime and anywhere and the ability to scale up or down as needed is a big advantage to manufacturing firms. The high-tech and electronics industry has been among the first to gravitate to the benefits that come with cloud computing. “1st Light Energy is a very fast-growing company that is a leading installer of custom-designed solar energy for residential, commercial and public sector applications,” says Trey Lackey, director of IT and logistics at 1st Light Energy. “We have offices on both coasts and thousands of successful installations from Hawaii to Massachusetts. There is no question that we would not be as successful as we are without switching to a Cloud Salesforce AppExchange manufacturing ERP.” There is a word you might have skipped over in Lackey’s quote – “manufacturing.” Most Cloud ERP software is designed from an accounting or customer relationship focus. Lackey knew his company’s software needed […]

If It Doesn’t Have Shop Floor Control, It’s Not Manufacturing Cloud ERP

There are many Cloud-based ERP alternatives available but very few of them provide the shop floor control software that manufacturers needs. That’s because most Cloud ERP software is created from either an accounting or customer relationship background. Manufacturing Cloud ERP solutions are in the great minority. Here is what to look for from a shop floor software aspect to determine if the ERP software you are reviewing is, indeed, Manufacturing Cloud ERP. Does the Shop Floor Control manage the life cycle of the work order and the routing that is used as a basis for defining the steps or processes that are required in the assembly and/or manufacture of the item on the shop floor? Verify that the ERP also has Scheduling and Capacity Planning software contained in a separate module as it will be needed in conjunction. Shop Floor module capabilities should include Routing Maintenance, Work Order Add and BOM Explosion, Work Order Firming, Work Order Release and Operation Extract, Work Order Pick, Work Order Operation Time Booking, Work Order Operation Quantity Recordings, Work Order Receipt and Backflush, Work Order Cost, Rework Work Orders and Refurbishment Work Orders. Here’s why. Routing Maintenance Before defining the Routing, the labor grades, departments, […]

Soon, Cloud ERP Users Will Be Surfing the Wave

by Chuck Olinger, COO and Executive Vice President Rootstock Software For those that wonder if analytics will become one of the major tenets of an ERP system, consider this. It is getting almost impossible to read an article on ERP that doesn’t have at least a paragraph on analytics. One of the best attended presentations/demonstrations at Dreamforce was presented by Rootstock COO and Executive Vice President, Chuck Olinger. It was on Wave Analytics, the first cloud analytics platform designed for every business user, making it easier than ever for anyone to explore data, uncover new insights and take action instantly from any device. Olinger demonstrated how Rootstock ERP Performance Dashboards would extend the power of the Salesforce Wave Analytics Platform to help every business user monitor measure and analyze the enterprise’s company performance, profitability and efficiency from any device. That’s because the data used in the ERP can be a gold mine. With ERP Performance Dashboards, customers are able to capture and manage this valuable data quickly across departments and facilities. When built on the Salesforce Wave Analytics Platform, access to this data is supercharged to allow organizations to quickly adjust to their markets by drilling into insights and discovering […]