Category: legacy application modernization

Posted on

Competitive and Profitable Construction: What’s it take to get there and stay there?

The short answer is… update your operations and transform the business. It’s time to modernize and embrace the cloud.

Construction firms need to be more data-driven, analyzing and responding to conditions revealed by the various systems supporting the business operation. Turning a profit on complex projects means applying automation to manual processes and workflows, introducing more collaborative tools, and delivering real-time data to gain greater insight into the operation’s performance and profitability. The foundation for all of this is the cloud platform, extending connectedness beyond traditional boundaries.

Digital transformation and the adoption of agile and connected cloud platforms can result in productivity gains of 14 to 15 percent and reduce costs from 4 to 6 percent. These improvements are the way to address fading profits even as the pace of business increases. https://www.mckinsey.com/business-functions/operations/our-insights/decoding-digital-transformation-in-construction

There are several factors that typically weigh down the operation and cause profits to fade. Strained IT resources is a big item for most construction companies, where technical people spend far too much time building and maintaining on-premises servers and networks. Maintaining on-premises servers adds up fast. A single IT manager can easily cost around $150,000 per year, and the “cost of cybersecurity compliance raises the price by an additional $200,000.” (5 Reasons Contractors Need to Modernize Their Operations to Stay Competitive and Profitable by Trimble Viewpoint)

Even when you factor in the costs of hardware, software and IT personnel, those costs don’t include the hidden expenses that come with the use of on-premises servers, like disconnected and siloed data that requires manual processes to use, duplicated data entry requirements (increasing the potential for human error) and more costs for labor. When you figure in all the capital costs and expenditures, on-premises solutions can cost up to four times as much as their original purchase price. On the other hand, NOOBEH cloud servers, deployed on the Microsoft Azure platform, offer reliable, cost-effective solutions to support the variety of important business applications and integrations that high-performance operations require.

NOOBEH cloud services focuses on addressing the pain points businesses have with their IT. We help businesses implement services that promote real collaboration for real use-cases, and we look for ways to connect projects and operational data so it can be analyzed to unlock greater value across the entire enterprise.

Disconnects cause inefficiency, delays, errors, and reduced productivity. Lack of insight on the labor and equipment side leads to uncontrolled resource utilization and a lack of predictability. Jobs get delayed and profits fade. Lost productivity due to duplicate entry of information is leveled at 10%-30% (or more), and these rates are not uncommon. https://www.eckerson.com/articles/hidden-costs-of-duplicate-data.

Clearly, automation, connected workflows, cloud platforms and real-time data are essentials in the transformation and improvement effort. Let in-house IT focus on activities that bring value to the business, finding ways to innovate and improve how things get done. Replace cumbersome, manual processes with software and systems that facilitate greater automation and integration, eliminating redundant data entry and improving the quality of information.

Construction projects are becoming larger and more complex, and project owners want the latest technologies, real-time reporting, and comprehensive approaches to compliance. Today, industry-leading contractors are embracing connected cloud technologies so they can scale and future-proof their businesses.

The modern contractor takes advantage of connected platforms, automation and real-time data that feeds data analysis and business intelligence… innovations only available with the cloud. That’s what NOOBEH delivers.

jm bunny feetMake Sense?

J

Posted on

Love It or Leave It? QuickBooks Desktop Needs Internet Explorer 11 and Microsoft Uninstalls It.

We all know that software companies recommend running current versions of their frameworks and applications. Often for security reasons, software developers regularly update their products to make them more capable of avoiding or fending off attack of various kinds. New feature and integration delivery and updated compatibility requirements are also big drivers of software updates. Especially as online threats increase and attack potential skyrockets, businesses need to keep their systems updated and secure, and a regular cadence of updates and upgrades makes good sense… but only when the potential impacts of the upgrade have been thoroughly explored. With Windows 10 and 11 and the improved Edge browser (improved over IE), users are loving the enhancements and features. QuickBooks desktop users, on the other hand, might have preferred that Microsoft just leave Windows browsers alone.

The Internet Explorer 11 desktop application will be retired and go out of support on June 15, 2022

Microsoft is removing Internet Explorer 11 on some Windows 10 computers, and it doesn’t come with Windows 11. According to Microsoft:

The future of Internet Explorer (“IE”) on Windows 10 is in Microsoft Edge. What does this mean for commercial organizations, IT admins, developers, and end users? Microsoft Edge brings you a faster, more secure, and more modern web experience than Internet Explorer. Also, Microsoft Edge with Internet Explorer mode (“IE mode”), is the only browser with built-in compatibility for legacy IE-based sites and apps.

As announced today, Microsoft Edge with IE mode is officially replacing the Internet Explorer 11 desktop application on Windows 10. As a result, the Internet Explorer 11 desktop application will go out of support and be retired on June 15, 2022 for certain versions of Windows 10.

Internet Explorer 11 has been an old technology browser for many years now, so it isn’t surprising that Microsoft is moving ahead with Edge. Browsers are used for far more than just viewing static web pages or bulletin-board chat rooms, so they have grown into frameworks that support a wide variety of processes and procedures. As browsers go, IE11 just doesn’t cut it any longer. But there is a hitch that can really mess up the (literally) millions of QuickBooks desktop users out there who innocently update their computers when Microsoft pushes it via Windows update.

IE11 gets removed from the machine, but QuickBooks desktop 2021 and earlier are dependent on IE11 to run

A little dependency is unavoidable in any good relationship where cooperation and compromise are involved. But being a little too dependent on another can be unhealthy and put a lot of stress on the relationship. Dependencies are among the things to consider any time a software update or upgrade is about to be installed. What relationship does the software about to be updated have to other applications or services installed? Is the new version going to get along with the other applications on the system, or will it even run on the current system? These are the things which should be closely looked at to avoid problems post-update.

Many users are already reporting problems opening their QuickBooks desktop software due to IE being removed from their Windows 10 computers. Microsoft has announced the retirement of IE11, but most users either don’t pay attention to those notices or they don’t really understand the implications. These are among the things that Mendelson Consulting and the NOOBEH cloud services teams pay attention to for you, so that we can help you avoid the things that keep your business from doing business.

If you find that your QuickBooks desktop software will no longer run due to IE having been disabled or removed on your computer, you can link here to find instructions on how to disable and enable Internet Explorer on Windows 10. This will get IE re-installed on your computer so that you can make your QuickBooks desktop software work again.

QuickBooks Desktop 2022 versions are compatible with Windows 11 and Edge browser

QuickBooks Desktop 2022 versions, including Pro, Premier and Enterprise editions, are certified as fully compatible with Windows 11 64-bit, but only if you have installed R3 or later. Other year versions of QuickBooks (and QB 2022 desktop running a prior update release level) may experience unexpected issues including problems with browser compatibility.

What’s the benefit of modernizing if it breaks your business?

Updating application software often means also updating your operating platforms. To keep your business running smoothly, you need to make sure to keep your computers and your application software up to date. It makes no sense to fix a vulnerability in one place but leave another open. Yet sometimes your software vendors don’t do things in an order that works for you, and you end up breaking something that the business depends on. This is where companies find additional value in what Mendelson Consulting and NOOBEH cloud services offer.

For customers running their QuickBooks desktop applications on the Microsoft cloud with NOOBEH, we got you covered. Among the many benefits of working with Mendelson Consulting and NOOBEH cloud services is that we help keep your business software and systems working for you, not against you. We stay up to date with the latest changes to platforms and software systems to ensure that compatibility and performance isn’t compromised. We help businesses leave their old systems and migrate to modern, agile cloud platforms that businesses love.

jm bunny feetMake Sense?

J

Posted on

Good Housekeeping for Healthy QuickBooks

QuickBooks desktop software is very easy to install and use, and that is precisely why it is the standard for small business bookkeeping and accounting. QuickBooks is simple to use.

Getting QuickBooks on your computer is also simple. You can just buy the software from wherever – your QuickBooks solution provider, a retail outlet or an online store. Then you download it to your PC and run a setup application, and voila! It’s there on your PC ready to help you do your books.

When just a single user needs to use QuickBooks, things are very straightforward because there is no networking to worry about and no multi-user access required. On the other hand, there are many businesses using QuickBooks that experience a lot of frustration with trying to install QuickBooks on a network and managing the software that must be installed on multiple computers.

Other than networking QuickBooks desktop software, it seems that the majority of issues users experience can be attributed more to poor software habits and a lack of PC housekeeping

QuickBooks desktop software has been engineered over many years to be as simple to use as possible, but at the same time has grown to be a product with lots of features, add-ons and extensions.  People have found ways to make QuickBooks do things it wasn’t really designed to do, which is sometimes a good thing and sometimes a bad thing. When it works, it works great.  When it doesn’t work, it’s beyond frustrating.

Yet there are a few things that QuickBooks desktop users should be doing regularly to keep their QuickBooks software and data in good working condition. While these items are very important to keeping your QuickBooks system working for you, they will never overcome problems with your network, the server or any of the workstations connected to it.

To solve these networking, software management and other IT platform issues, I recommend moving to a virtual cloud server on the Microsoft Azure cloud platform. NOOBEH’s QuickBooks on Azure service is just that… your QuickBooks software and data running securely on your own private cloud server in your own account on the Microsoft cloud, fully managed and supported by experts. With NOOBEH’s service, you don’t have to worry about server failures, network problems or hardware problems any longer, and we eliminate the issues surrounding multi-user, multi-location, and remote access for QuickBooks.

When it comes to PC housekeeping and other chores, I cannot stress enough the importance of keeping the QuickBooks company file in good condition

What’s the accounting and financial data worth, after all?  A little time spent taking care of the file can save on a lot of time and headaches trying to recreate or reenter the data. A QuickBooks company file is a database and is a complicated framework for keeping track of all sorts of related information.  Anyone who has used QuickBooks desktop products for a while understands that the data file can get messed up for a variety of reasons, and it can mean lost time, work and revenue when it isn’t working correctly.

What many users don’t realize that QuickBooks has built-in utilities to check and fix data problems in the company file, so it makes sense to periodically use them to check for problems.  Like a check-up with the doctor, these utilities can help diagnose issues with the data file before they become big issues. They are easy to find in the software… simply go to the File menu and select Utilities.

Run the file Verify any time the file starts to act slow or if QuickBooks crashes when the file was open, and if the Verify tells you there are errors, you should run a Rebuild to fix them. Note that a rebuild may have to run multiple times to fix all the issues in the file, and even then, may not correct everything. Some manual work may even be required to resolve all errors.

You should also back up the company file to a “portable” type file periodically, and to then restore it for use.  This doesn’t need to be done very often, maybe once a year or so. This process can not only validate the integrity of the file, but it also helps condense and condition the file.  Conditioning the data file periodically can help prevent data corruption and/or loss of data.

A very important housekeeping item for QuickBooks desktop is the file backup. Backups don’t just make copies of your company file for safekeeping, which is important to have, but when you run a backup with complete/full verification, the process also reduces the file size of the TLG file. For QuickBooks, the TLG file is a transaction log, and when it gets too big the file can perform poorly and even get corrupted.  Run backups more frequently if you have a lot of transactional activity, or less often if there is not so much going into the company file.

When you do the file backup, it is a good idea to consider where the backup will go. Keeping the backup files on your PC is convenient, but it also does nothing to protect your data if your PC gets hit with malware or has a hardware problem. Put the backup file in a protected location that isn’t stored on your PC, like Microsoft OneDrive, Google Drive, Dropbox or even a removeable USB device. You can’t put your live QuickBooks company file in this type of location, but you can store the backup files there. This way, if your PC does have a problem, you’ll have backups of your company file that you can use to get yourself back in business.

Close the company file and exit QuickBooks occasionally, please

Users who leave their computers on all the time are not allowing the computer to run periodic power-on self-tests, which means the machine or operating system could have an issue that isn’t recognized until computer restarts.  For this same reason, programs and their data files should be closed when not being used – so they can run through their own startup and validation routines before you use them.  Also, leaving the program open means it is active on the computer, and leaving the data file open means that it’s available (available=vulnerable).  A random by passer accessing the computer, a program crash, a machine crash… loss of power or a furry kitty running over the keyboard could each result in catastrophic damage to the application and/or data.  It’s just better and safer if the files and programs are closed when not being used.  Maybe use a screensaver with a password, too, or at least lock the keyboard when the machine is on but not in use.

QuickBooks and VPN / WAN are not awesome together

Just because a user can connect their remote PC to the office network doesn’t mean the PC will work like it’s in the office.  In the office, it’s a Local Area Network where the machines are all cabled together and communicate with nearby machines (e.g, Local). The speed of LAN communications is fast enough to allow multiple computers to share a QuickBooks company file in multi-user mode.  When there is a remote PC to connect, businesses often elect to utilize a VPN to provide local area network access to the remote computer. This turns the Local Area Network connection into a Wide Area Network connection, where the network has been extended to include the remote computer.

Unfortunately for QuickBooks users, the WAN connection is NOT fast enough to allow the remote user to open QuickBooks and use it like others in the network.  QuickBooks multi-user access is designed to work on a local network where local means the machines are in the same locale and on the same LAN. This is why many companies elect to use remote-access/remote-control software to access to QuickBooks desktop remotely.

Use NOOBEH QuickBooks on Azure to get remote access, managed service, update support, and the ability to run any other applications or add-ons your business needs. When QuickBooks desktop and the other software a business uses are hosted on the company’s Microsoft cloud server with NOOBEH, the QuickBooks application and the company files are all on the same environment so it works exactly as it is supposed to for all users no matter where they are located.

Use Automatic Update

New features and enhancements are provided, new technologies and operating platforms must be supported, and security and privacy must constantly be addressed in the software. What this all means is that software products necessarily change over time and users will be expected to update their products or lose out. While some IT departments may desire to prevent software from updating itself, QuickBooks users should recognize that the software’s proper function often depends on timely updates. Especially when payroll or banking is involved, it is important to keep the software current.

QuickBooks has a feature that allows the software to automatically download and install updates as they are released by Intuit. Leaving this feature turned on allows the software to check with Intuit periodically to see if there are updates available. If so, they are downloaded and readied for installation on the computer.

Updates are changes made to an edition and year version of the software. Upgrades, on the other hand, are changes from one year version to another (2021 to 2022, for example) or a change in QuickBooks edition (like Premier to Enterprise). Automatic updates manage the changes to the currently installed edition/year version, but do not upgrade the software.

Customers using NOOBEH’s QuickBooks on Azure service have their QuickBooks updates and their QuickBooks upgrade installations managed for them, as well as the other applications installed on the customer’s private cloud server.

Doing maintenance on your QuickBooks software and the company file can help keep them free from poor performance and potential corruption

It’s worth spending a little time on chores occasionally so that you avoid what could be a costly problem down the road. Some good housekeeping to keep your QuickBooks healthy is just good business.

jm bunny feetMake Sense?

J

Posted on

Microsoft 365: Stay Updated or Lose Connectivity and Support

Microsoft Office is a staple of business software, setting the standard for productivity applications across the globe. Unfortunately, popularity often means “target” and the bad guys out there are gunning for your system, looking for vulnerabilities they can exploit. This is among the reasons to make sure your Office applications are staying up-to-date with the latest fixes and security features. The easiest way to do this is to turn on automatic updating for Windows via Microsoft Update so that your system gets Office updates for earlier versions of Office you might have installed, such as Office 2010 or an Office volume license install.

Security updates aren’t the only reasons to keep your systems up to date. Sometimes an update addresses compatibility with other applications or services. In recent days, Microsoft has reminded businesses of the roadmap for Microsoft 365 services where certain versions of the Office and Microsoft 365 applications will stop communicating with the Office 365 and Microsoft 365 services.

Microsoft Outlook for Windows

Effective as of November 1, 2021, older versions of Outlook for Windows (starting with Outlook 2007), will be unable to connect with Office 365 and Microsoft 365 services, including hosted Exchange mailboxes. Versions that are only a little bit out of date might work, but are likely to experience connectivity issues with the back-end services. Here’s the list of retired versions of Outlook for Windows:

  • Office 2007 All Versions
  • Office 2010 All Versions
  • Office 2013 Versions prior to 15.0.4971.1000 of Office 2013 (Service Pack 1 with the October 2017 Update)
  • Office 2016 MSI Versions prior to 16.0.4600.1000 of Office 2016 (With the November 2017 Update, KB 4051890)
  • Microsoft 365 Apps for enterprise;(formerly Office 365 ProPlus) 1705 and older
  • Microsoft 365 Apps for business(formerly Office 365 Business) 1705 and older

OneDrive sync on Windows

Microsoft is now aligning the OneDrive sync on Windows systems with the Windows operating system support lifecycle policy.  In short, OneDrive sync on Windows will only be supported on supported versions of Windows beginning in January 1, 2022, If your version of Windows is no longer being supported, then the OneDrive sync on those machines will no longer receive updates or fixes of any sort.

  • Windows 7 and Windows 8.1 will be supported until January 10, 2023
  • Windows 8 reached end of support on January 12, 2016

If you are running the OneDrive sync app on Windows 8.1, you will no longer receive feature updates but will receive security fixes until January 10, 2023.

If you are running the OneDrive sync app on Windows 7 (and are participating in the Extended Security Update (ESU) program), you will continue to receive critical and important security updates until January 10, 2023. Extended Security Updates don’t include new features, customer-requested non-security updates, or design change requests.

If you are running the OneDrive sync app on Windows 8, you will no longer receive updates or fixes of any kind, as Windows 8 is no longer supported.

Businesses concerned with keeping their systems up and running should take care to ensure that PCs and servers are updated with current, supported operating systems and application software. Ignoring PC updates and Windows upgrades can create unnecessary disruption and leads to lost productivity and lost profits. For PCs, Windows 10 or 11 is the OS to be running. For Windows servers, Server 2019 is the most current version.

Mendelson Consulting’s NOOBEH Cloud Services team knows how important it is to keep your core operating software and applications current, compatible and supported. That’s why we only deploy modern servers and current operating systems on the Microsoft Cloud platform, ensuring our hosted clients have the foundation they need to keep workers performing and operations running.

jm bunny feetMake Sense?

J

Posted on

Considering Deploying Microsoft365 for Your Entire Organization? Success is in the details.

Technology is ever advancing, and even the smallest of businesses must keep in step to remain competitive. Efficiency is the key to modern, effective operations, yet keeping teams aligned and working towards the common goal can be tougher than ever when members are remote working. Microsoft solutions can help the business increase productivity and modernize their operations, and at the same time provide stronger security and enhanced protection.

For just about every business, it makes sense to consider using Microsoft 365 services. But there are a lot to choose from, and not all services work as you might expect, so here is a little information that might help with making service selection a little easier.

Does it make sense to implement Microsoft Teams for intra-company calls, meetings, and collaboration?

Teams is great for calling your co-workers, sharing screens, presenting content, and collaborating in workgroups or with the whole company. But be warned that Teams meetings don’t work for everyone, particularly those outside your organization or for users that don’t have useful Internet connectivity.

  • To use Teams with people outside the company, or even for users that don’t have Internet connectivity, you’ll need to also have a calling plan for each user.
  • A calling plan allows Teams to connect a phone number to the Teams meeting, creating a means for non-Teams users and those without internet to connect to the meeting audio.

Should you migrate employee email inboxes to MS365 (Outlook Desktop and/or Outlook Online)?

Using Microsoft for email services make a ton of sense, especially with the advanced phishing and threat protection that comes standard with the service. It is pretty much foolproof for most businesses and is a great value. If your business is migrating to Microsoft from a legacy email platform or from a different mail provider, there are a few things to consider.

  • Many companies use their desktop Outlook email folders as a sort of file cabinet, storing and categorizing emails for future use. In older MS Exchange environments, Public Folders were also used, enabling company-wide access to certain email folders and the file attachments within.
  • MS365/Office365 email services don’t support public folders, and every email box comes with a storage quota. If the business is used to saving lots of emails, then it might create difficulties with mailbox management.
  • Outlook Desktop still has limitations on the file size it can reasonably handle. This means that Outlook, when connected to hosted Exchange mail (Microsoft365), should run in cached mode, keeping only recent data in the Outlook file on the computer and leaving the rest of the mail on the server. Mail on the server is still available for search by Outlook; the program will simply search in the local data file first.

Can you, or should you, migrate your company’s files to the Microsoft cloud?

Keeping your files on the “cloud” is a concept that sounds convenient, but it isn’t quite as straightforward as it sounds. In this case, the idea is to migrate files from PCs and servers to Microsoft OneDrive or SharePoint, where the files can be available to all users regardless of where the user is working from.

  • Putting a big hard drive on your PC or server can be relatively inexpensive. “Storage is cheap” we hear quite often. Yet all storage facilities are not alike. It might be a cheap option to add a big hard drive or USB drive to your local system but paying for storage space on the web becomes a different deal. You may find that safe, protected storage for your files is not quite as inexpensive as you thought, especially over time. When you must pay every month for the storage you use, you rapidly realize why file housekeeping is essential.
  • File and folder permissions do not translate from your Windows file system to a SharePoint or OneDrive. You must create your own groups and set file and folder permissions as you want them AFTER the data is uploaded to the cloud platform.
  • Once the files are in the cloud platform, each user must determine what and how the files will sync with their local computers. There may be an option to “sync on demand” (depends on device platform) that can allow users to selectively sync files to/from their computers, but the fact remains that the data is being downloaded to the local computer so that it can be worked on. This still means that the local computer must have the necessary software installed, and the PC should be protected with backup, anti-virus and anti-malware and MFA.
  • Database files cannot work in a web file location. This means that programs that have associated database/data files must still have their files located on a network server for users to access them. QuickBooks, tax software, trial balance software, workpapers and fixed assets, inventory management or manufacturing, and more may require the server to serve the application and/or data to the users. This means that servers and networks and the need to manage the network and the individual computers remains in full.
  • If all other data is stored on the cloud platform, then you now have data and resources to manage both places.

What does the new Microsoft365 Cloud PC mean for small businesses?

  • The new Cloud PC from Microsoft365 can solve a tremendous problem for the very small business in that it can become the IT infrastructure and it is fully cloud platform.
  • Cloud PC is meant to replace your local PC as your operating environment. Rather than installing software and storing data on your local device, the idea is that your software gets installed on your Cloud PC and your data is stored, ideally, in your OneDrive, or maybe on the drive of your Cloud PC.
  • This makes the Cloud PC a perfect solution for that single user that needs to run their QuickBooks or other applications from anywhere.
  • The thing with the small business Cloud PC is that it cannot be networked. It may be able to “see” and work with your local device hard drive or even mapped drives that your local device is connected to, but it isn’t able to work with a network server or share like a local PC would.
  • This means that you may be able to store and retrieve files from servers or other drives on your local PC or network, but you won’t be able to access databases or other server or network-based applications that need the network to function.
  • This also means that you can’t share data on one cloud PC to another cloud PC… they aren’t networked together.

Why NOOBEH’s Cloud Service model is better

There’s a reason why businesses adopt NOOBEH QuickBooks on Azure services, and the benefits are as great as ever. Businesses work with NOOBEH and our QuickBooks on Azure services because we have the flexibility to do what the business needs, and to offer a comprehensive approach that doesn’t leave applications, services and data hanging around on local networks or unprotected computers.

Where the Microsoft365 Cloud PC is a great answer for the single-user, NOOBEH’s cloud servers are designed for multiple users needing access to common applications and/or data. Multi-user QuickBooks desktop applications, Sage or AccountEdge, MISys Manufacturing or Acctivate Inventory, ShipGear or Starship, Fedex or UPS and much more… we host the applications that businesses use every day.

NOOBEH keeps the applications and data securely running on private Microsoft Azure cloud servers. Centralized, server-based management of applications and data means that software does not have to be installed and maintained on individual computers, so the need for local PC backups and anti-virus and malware protection is also minimized. All users work on the same version of the same software, and everyone accesses the same data in real time. Version control issues and sync problems are entirely avoided when everyone is working in the live system with live data, and Microsoft’s Azure platform ensures that issues due to transient hardware failures are a thing of the past.

When the company has workers that must operate from their local computers, NOOBEH can enable a solution to keep SharePoint in sync with the cloud server, ensuring that workers on and off the server are able to reach the most current version of the files. Users working in QuickBooks can interact directly with SharePoint files and folders by using the native Windows File Explorer where users operating on their local PCs access SharePoint via OneDrive or via the web. This approach delivers the best of both worlds to businesses who need more flexible modes of operating.

Contact us today to find out more about how we can help your business do more in less time, improve efficiency and work more effectively with a system that works where and when you need it.

jm bunny feetMake Sense?

J

Posted on

Finance Department Participation in Supply Chain Management

When most businesses approach Supply Chain Management, the focus is on the item or product – the physical thing that ultimately gets delivered somewhere, somehow. What many businesses do not consider is that the orchestration and timing of “supply chain” activities can have significant impacts on financial performance, reporting and cash flow. The current processes could just be working just “okay”, and not delivering the financial benefit that might be obtained through modernization of technologies and transformations in approaches. The key is to get the right people involved.

One big aspect of seeking to integrate electronic commerce and collaboration with customers, suppliers and payment services is the recognition that supply chain activities involving orders, invoices, payments, and remittances are directly related to finances, revenue recognition and cash management.

For any project to be successful, it should include execs from both the supply chain and finance areas so that all concerns relating to event timing may be addressed to allow proper treatment in the financial statements. After all, the same things that trigger supply chain activities (orders etc) are the same documents which drive finance. When the information is accurate and timely, and when the inefficient manual processes can be replaced with electronic workflows, the business is best positioned to improve cash flow and overall financial performance as well as business value.

Unfortunately, few business owners have a real understanding of the costs associated with manual entry activities and how the direct financial impacts they have. The speed and accuracy of processing orders and invoicing customers means faster cash in, and leveraging the speed of electronic data interchange with suppliers so that “just in time” orders may be placed and logistics processes more fully enabled means cash out when necessary and not ahead of time.

“… using a digital transaction for payments allowed [businesses] to hold on to cash longer and better control the timing of the release of funds, something more difficult to control when mailing a physical check. Check fraud remains rampant across many industries. According to an AFP payment fraud and control survey, 70% of U.S. organizations reported check fraud in 2019, responsible for more than $18 billion in losses.” –

source: What Every CFO Needs to Know About Supply Chains; Study published by DiCentral and Lehigh University; 2012

For example, there are many studies which show that purchase orders that are not sent digitally are most often manually processed, and that this manual processing may be done by any number of departments in the company – but most often the job falls to finance. Rather than looking to eliminate the manual entry of data and the errors and delays that come along with it, businesses execs first looked to where the lowest labor cost rests and had them handle the extra data input.

A digital strategy that transforms inefficient manual process into efficient electronic workflows is the better solution. While many companies have approached streamlining of activities by exchanging manual entry operations for data file formatting and imports, they still have not solved the problem as would be with an integration that takes even less human time and effort.

The real goal of any business improvement effort is to improve overall business value. By bringing in finance along with supply chain execs to the “digital transformation” discussion, the business is much better positioned to make real progress in areas that directly impact cash performance as well as long-term business value. It comes down to having all the information and being able to weigh the risks against the potential rewards to be gained from the contemplated changes.

jm bunny feetMake Sense?

J