Tag: infrastructure

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Considerations for Disaster Recovery Planning | Accounting and Business Technologies

Disaster Recovery Planning is currently a leading topic of discussion for business IT administrators and owners, just as issues relating to business and technology operation and continuity have become a central point of discussion for many organizations. After the disaster occurs is the wrong time to determine whether or not your company is adequately protected. Unfortunately, when you need your plan most is when you find that you either do or do not have things well in hand.

Hurricanes, floods and tornadoes have taught many companies some hard lessons ranging from the inability to locate or communicate with employees to the entire loss of the business and surrounding community infrastructure. Certainly, the current situation is a reflection of the worst-case scenario, but it also points out some fundamentally important considerations that a company must incorporate when creating a technology plan for disaster recovery and business continuity.

EMPLOYEES ARE PEOPLE

One of the first things to remember in any disaster is that your employees are people. They have families, homes, lives outside the office, and responsibilities. They have fears and concerns. In short, they are human beings. This is a reality that is frequently overlooked in a disaster plan.

Much consideration may be taken with respect to handling business issues such as customer or vendor communications, technology and systems continuity, etc. But in the event of a disaster where lives are at stake, can the company expect personnel to overlook those personal impacts that present themselves, all in the name of keeping the company going? Probably not, unless perhaps they are in health care, law enforcement, or the military. Even in those cases, caring for family and loved ones may take precedence over job responsibilities. Businesses need to make certain that there are SYSTEMS in place to assist with continuity and recovery, as personnel may be hard to come by.

YOUR BUILDING IS NOT AN ISLAND

Businesses rely on facilities.

Facilities are created from infrastructure.

Infrastructure, more often than not, is not in your control.

Telephone service, connectivity, electrical power, street access to the building, access to the surrounding areas – these are infrastructure elements that you have little control over, if any at all. The loss of infrastructure, however, impacts you significantly. It does not matter how much backup power you have if you have no physical access to the building. And telephone service becomes valueless (frequently) if the power is out.

Redundancy can come in many forms, but creating fully redundant facilities means being redundant with the infrastructure. Opening offices in multiple locations, distributing personnel and resources to various locations – these all come with potentially tremendous cost impacts to the business. There are, however, affordable technologies and services available today which can help mitigate the impact of the loss of a location or facility, and whenever possible these services should be incorporated into your daily processes to ensure portability and a smooth transitioning of systems should the worst occur.

DEGREES OF PROTECTION

Developing an IT recovery and continuity plan is similar in nature to purchasing various types of insurance. The level and cost of protection must be evaluated based on the benefit to be derived, and weighted by the risk. For example, low-cost flood insurance is probably not worth the investment where there is no water. Obviously, there is cost associated with different levels and types of protection, and different situations warrant different types and levels of coverage.

In terms of IT continuity and recovery, the most frequently implemented form of “insurance” is redundancy or the duplication of a resource. Every business, however, has requirements that extend beyond a reasonable ability to fully duplicate. A small flower shop, for example, cannot reasonably afford to implement “alternative business locations” or a remote office in the event of the loss of the primary facility. With this reality in mind, the business must focus on addressing those conditions that are within its reasonable ability to control, as well as those that it can mitigate to some degree.

via Accounting and Business Technologies | Joanie Mann: Considerations for Disaster Recovery Planning.

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The Cloud is Not the End of ERP

With the emergence and general acceptance of “cloud” technologies and services, many in the information technology industry have begun to wonder if the traditional approach to enterprise software – the ERP solution – is nearing its useful life.  Is this the end of ERP?  Well, the hype sometimes becomes the reality, and businesses are moving in droves to software-as-a-service to find the cost and efficiency benefits promoted in the sales materials, and they’re finding them.  Look at Sage’s acquisition of Intacct as an expression of increased focus on cloud-based solutions. This activity around the cloud and cloud-based software-as-a-service represents a major change in how people access and consume information technology and business services, a change that’s being driven by the huge momentum of the overall growth of “cloud”.  The market is moving to a customer-centric subscription model, where the legacy approach was more in tune with the “purchase it once and use it forever” mentality, and customer relationships were largely centered on upgrade cycles.

“As an economy and a culture, we are rapidly moving away from owning tangible goods and, instead, gravitating towards becoming members of services that provide us with experiences  – such as listening to a song, using a car, watching a movie or collaborating with our colleagues.

Of course, this cultural transformation has profound implications for business models. Why? Success is no longer gauged by counting how many units of your product you have sold. Rather, success is measuring how many customers are using your service on a recurring basis and how successful you are monetizing those recurring relationships.”

Forbes.com guest post written by Tien Tzuo http://www.forbes.com/sites/ciocentral/2012/02/09/the-end-of-erp/

While it sounds like the cloud is the right approach for everyone, looking at the variety of real business situations in the market suggests that, as always, one size does not fit all, and more “traditional” ERP solutions may well continue to be the right foundation for many enterprise operations.  Particularly when considering that many businesses already significant investments in platforms and infrastructure, software and data integrations, and operational process support, cloud software solutions may not provide the necessary functionality to support existing business.  Further, integrations that may be available and supported with legacy systems are often not available with cloud-based counterparts, while different integrations based on cloud standards may be present.

For smaller businesses and those in emerging markets, subscription-based IT models may make more sense, especially as popular traditional software makers have introduced their cloud-based counterparts which will likely incorporate the features or functionality of their legacy systems, while taking advantage of the capabilities introduced through cloud integration and interoperability standards.  Strong consideration should still be given to “traditional” ERP solutions, however, as there may be a level of stability, usability, or process support desirable by the business.

Utilizing these traditional ERP systems does not mean eliminating the potential for the business to benefit from cloud solutions.  Rather, cloud platforms and hosting solutions, as well as cloud-based integrations and extensions, are enabling mobility and collaboration around legacy systems, delivering cost and efficiency benefits just as significantly as those who have adopted a full-on “cloud” approach.

“It also makes sense to explore “edge” investments. […] there are significant innovation opportunities outside of core operations. Look to take advantage of the ERP platform’s capabilities in these spaces. Or implement low-cost, smaller-footprint solutions – even if on an exploratory basis. If they are fully adopted later, you can integrate them into the ERP backbone and expose standardized data and processes to the edge.”

from Deloitte’s Tech Trends 2011 report titled “the end of the “Death of ERP” 

So, what does this mean for your business?  It means you need to consider all the possibilities.

First, evaluate cloud-based options, and balance features with cost, time-to-value, and operational requirements.

Then, selectively innovate.  Figure out which areas of the business give you a competitive differentiation and innovate in those areas.

The traditional thinking, which is in line with the traditional ERP approach, is that all of the business functionality has to be incorporated into a single platform solution.  This is certainly no longer the case, and businesses are finding that they now have an ability to take advantage of the benefits of their existing systems while extending and innovating through the use of cloud services.