I have watched a number of your videos, and I have to say you are spot on every time. I have worked in the IT industry for 35+ years, and with ERPs for about 25 years, and I have never seen the objective, honest perspective in this area like you show in your videos. Very impressive, and a great resource for those who might be at risk of getting the wool pulled over their eyes by some unscrupulous vendors or consultants. Well done!
according to my own company limited experience with ERP systems, i can say that "your advice is a highly professional and unbiased advice" we did all these steps before we impliment the new ERP system and i can feel the value of your your advice. thanx for everything dear Mr. Eric kimberling.
Eric, Think your channel is GREAT! I'm a career accountant and have been around Netsuite pretty much since its inception. One thing I would like to comment on is: cloud is more expensive than on prem. I disagree. Maintaining on prem every year is costly. Just think about the cost of even 1 person annually. Never mind security, updates, hardware etc etc. If I can't walk into a prospect and show them an ROI home run--I have no reason being in the room. Look forward to your additional posts.
Gene, thank you for the feedback! I agree that maintenance of on prem can be costly. I just too often see those $ getting shifted to cloud vendors rather than realizing true net savings.
The licensing and hosting costs for cloud are extremely high. They don't offer those services for free. I think some people are understating reality. Based on my experience, I see no savings whatsoever in cloud over on prem. On paper, sure. But in real life - nope. And with on prem, you are not beholding to the vendor's inflexible change schedule. There are benefits and downsides to both, but cost savings is not something that cloud should be sold on as a benefit. Eric is right on this - costs are shifted, not saved.
Agree Have similar observation... thanks ! Only comment i would make is point solutions if not fully thought through you will many islands of information that cannot be integrated properly
Move to cloud is unstoppable. So that is the main driver. It makes business sense as companies try to outsource the IT and focus on thier main business. It has nothing to do with vendors pushing. Subscription is a pricing model. Yes it may seem expansive but only if one has the base IT costs not considered as TCO , because company does have its own IT. Pricing models can impact even on prim systems too. So yes it is a complex decision matrix at this time.
Perhaps in the future we will be talking about Enterprise Resource Systems. Combining tons of different specialized software into one functioning cohesive whole, instead of resource planning being its own isolatable thing.
Excellent vidoe... I do agree particularly in emerging economies companies do not have refined processes or skills to get a deserved roi on the investments .. as a result either projects do not complete or done without properly mapped to their processes.....
you need to negotiate a good agreement with your saas provider. dealing with a customer now. on prem--way more expensive (I disagree Eric). The cruel fact: I will get rid of half the IT department when I'm done. I should have said "redeploy" the department but. . . . Great channel.
If you develop in house it will save hundreds of thousands over decades - and it will give you an advantage over your competitors rather than a system that your competitors have which you then have no competitive advance
Custom dev has such a negative stigma associated with it. That’s the biggest obstacle to what you suggest, but that could very well be the best answer for many companies!
Custom development of something that actually offers competitive advantage probably makes sense. Custom development of something like a general ledger or inventory system makes little sense. Remember also that packaged systems have benefited from the input of thousands of people / companies when it comes to business processes. Packages many times make sense for a company's "plumbing" while "faucets" may be better served by building something custom on top of the plumbing that actually leads directly to competitive advantage. Saving money is good, but being able to quickly respond competitively is important. You could spend years just getting to a starting point with custom development of basic stuff.
Hi Eric, I also resonate Gene here. Your arguments miss an important nuance on improving as is and org. remodeling. If you are on a «legacy system» that will in the future need to be swapped for a continous updated cloud solution; putting more processes into that and utilizing more functionalities increases ROI, but also increase dependencies and in the end the complexity of future upgrades. Get on a continous updated platform first and then lock in your processes. Model your organization and processes on a future proof solution. It is like reupholster all your livingroom furniture the day before you get a new couch you never seen before...
I manage a food chain business with about 6 branches in deferent cities. The work is almost all paper & old school so I thought that i need a system to view deferent info directly like storage, purchases, sales opening & closing , customer data and branch info to compare and organize branches , importers & employees What is your advise for me. Thank you
Mohammed al5alde Have you looked at NetSuite or Infor Retail? Both have financials, inventory mgmt, point of sale, etc. I’m happy to brainstorm ideas, so feel free to email me at eric@thirdstage-Consulting.com if you would like more independent advice. Top 10 ERP Systems for 2020: ruclips.net/video/saqmQhVALnM/видео.html
Eric, Excellent video making a thinking process of why to invest big amount of money trying to deploy "miracle" software to enhance the business but the root causes are other topics not related to the technology used. A kind of diagnosis and deep understanding of the current business status vs business objectives need to be made to decide the possible options. Excellent massages from your side, congratulations.
I have been reviewing your RUclips videos and they are informative. The company I work for is a Motor Vehicle Insurance Company. We are looking for an ERP system to implement however I cannot find something suitable for an Insurance company. I am inclining to Microsoft D365 however I will appreciate any recommendation you can give
Thank you for your feedback, Stafford. Please feel free to email me if you would like to discuss in more detail: eric.kimberling@thirdstage-consulting.com.
I stopped the video at 4:37. Reason: I saw a couple other videos by you and while they were well informed. This one was completely off the point and extremely misinforming. I have felt it too often that the client doesn't have someone to guide them internally on the ERP implementation and they look at ERP vendors with a pinch of distrust but suc content out there is completely off the mark and I am not sure if the creator of this content knows enough about cloud based ERP or even the AI, IoT benefits at all.
Assuming every industry would benefit from AI or some high-level cloud integration of their production statistics is a bit unrealistic. The whole point of this video is that you are not supposed to rush into having some fancy ERP just because that's what some big companies do.
Over the next decade - IT systems will be developed in house as easy as the old paper based systems were developed - these clunky ERP systems are already dead
Google ecosystem already makes that kind of possible (to an extend), you just need some very basic knowledge of google-script/java script. This trend is likely to continue, the google ecosystem keeps growing and the latest solutions they started offering make it even more accessible.
In-house development is bad idea for most businesses. History shows us that It is always a transitional method for something entirely new .. ERP is not a new area.
@@rizwanmuhammad6468 ERP is dead - children are now learning programming languages, software is becoming easier, in house development will be as common as word processing
@@BarryMaskell We have seen that movie before. Trust me. I have been around. There was a time when all enterprises had software development groups who developed every tool imaginable for their own consumption and edge. But economics doesn't support that model as soon as a proper solution is offered by a 3rd party at the right price (TCO), companies yield to the power of economics. Have built so many systems and replace so many of those myself a couple of decades ago. And now things are happening at cloud speed. Continuous development and continuous integration of highly sophisticated software that is not the company's core business does not make any economic sense. What you are talking about is a higher degree of customization that is required for the future as businesses are becoming more and more unique. And agility is needed to update and upgrade on an individual basis. Yes, that is why ease of use and flexibility booth have to be part of design consideration. People knowing programming language were always there this is nothing new. If at all, demand has outstripped the supply of software engineers. You can see the impact of that on programmers and software engineers' salaries increases in the last 2 decades. It is not a technology issue as much as an economics issue and focuses on your core business issue. As a Service is an operative word. you don't build, you don't even buy, you rent. I agree that the current ERP systems suck and are outdated. It makes sense as most of them were developed and deployed 20 years ago. The time has come for a tech refresh in that space. Hence the opportunity.
I have watched a number of your videos, and I have to say you are spot on every time. I have worked in the IT industry for 35+ years, and with ERPs for about 25 years, and I have never seen the objective, honest perspective in this area like you show in your videos. Very impressive, and a great resource for those who might be at risk of getting the wool pulled over their eyes by some unscrupulous vendors or consultants. Well done!
Thanks, Don...I’m glad you enjoy the perspective!
according to my own company limited experience with ERP systems, i can say that "your advice is a highly professional and unbiased advice" we did all these steps before we impliment the new ERP system and i can feel the value of your your advice.
thanx for everything dear Mr. Eric kimberling.
The genie is already out of the bottle - it’s called Claris FileMaker - 1 in house developer - 80,000 clients 250 iPads 400+ staff
Eric, Think your channel is GREAT! I'm a career accountant and have been around Netsuite pretty much since its inception. One thing I would like to comment on is: cloud is more expensive than on prem. I disagree. Maintaining on prem every year is costly. Just think about the cost of even 1 person annually. Never mind security, updates, hardware etc etc. If I can't walk into a prospect and show them an ROI home run--I have no reason being in the room. Look forward to your additional posts.
@dubeei4u agreed. anywhere, anytime, any platform. Netsuite recently introduced 2FA which is a pain for some privileged roles. but I get it.
Gene, thank you for the feedback! I agree that maintenance of on prem can be costly. I just too often see those $ getting shifted to cloud vendors rather than realizing true net savings.
The licensing and hosting costs for cloud are extremely high. They don't offer those services for free. I think some people are understating reality. Based on my experience, I see no savings whatsoever in cloud over on prem. On paper, sure. But in real life - nope. And with on prem, you are not beholding to the vendor's inflexible change schedule. There are benefits and downsides to both, but cost savings is not something that cloud should be sold on as a benefit. Eric is right on this - costs are shifted, not saved.
Wish I'd have seen this before going down the ERP road.
Like buying a car in the first year, the kinks are not all worked out yet. Likely it will have recalls. ERP is still new technology. good points Eric.
ERP is not a new technology… it’s just a way of collecting and processing data. It’s very well defined and not new by any means.
Agree Have similar observation... thanks ! Only comment i would make is point solutions if not fully thought through you will many islands of information that cannot be integrated properly
Move to cloud is unstoppable. So that is the main driver. It makes business sense as companies try to outsource the IT and focus on thier main business. It has nothing to do with vendors pushing. Subscription is a pricing model. Yes it may seem expansive but only if one has the base IT costs not considered as TCO , because company does have its own IT. Pricing models can impact even on prim systems too. So yes it is a complex decision matrix at this time.
do not epr. erp is bad.
Hen what do you do?
Perhaps in the future we will be talking about Enterprise Resource Systems. Combining tons of different specialized software into one functioning cohesive whole, instead of resource planning being its own isolatable thing.
Eric,
Thank You for this video. Currently evaluating my business to see if we need ERP system or stick with QB PoS and add on to it.
Excellent vidoe... I do agree particularly in emerging economies companies do not have refined processes or skills to get a deserved roi on the investments .. as a result either projects do not complete or done without properly mapped to their processes.....
Thank you, Syed. I agree with you!
you need to negotiate a good agreement with your saas provider. dealing with a customer now. on prem--way more expensive (I disagree Eric). The cruel fact: I will get rid of half the IT department when I'm done. I should have said "redeploy" the department but. . . . Great channel.
Very informative, good job Eric✌️
Glad you enjoyed it!
If you develop in house it will save hundreds of thousands over decades - and it will give you an advantage over your competitors rather than a system that your competitors have which you then have no competitive advance
Custom dev has such a negative stigma associated with it. That’s the biggest obstacle to what you suggest, but that could very well be the best answer for many companies!
Custom development of something that actually offers competitive advantage probably makes sense. Custom development of something like a general ledger or inventory system makes little sense. Remember also that packaged systems have benefited from the input of thousands of people / companies when it comes to business processes. Packages many times make sense for a company's "plumbing" while "faucets" may be better served by building something custom on top of the plumbing that actually leads directly to competitive advantage. Saving money is good, but being able to quickly respond competitively is important. You could spend years just getting to a starting point with custom development of basic stuff.
Hi Eric,
I also resonate Gene here. Your arguments miss an important nuance on improving as is and org. remodeling.
If you are on a «legacy system» that will in the future need to be swapped for a continous updated cloud solution; putting more processes into that and utilizing more functionalities increases ROI, but also increase dependencies and in the end the complexity of future upgrades.
Get on a continous updated platform first and then lock in your processes. Model your organization and processes on a future proof solution.
It is like reupholster all your livingroom furniture the day before you get a new couch you never seen before...
Thanks, Fredrik. I appreciate the feedback! I especially like the analogy - it’s a good one.
I manage a food chain business with about 6 branches in deferent cities. The work is almost all paper & old school
so I thought that i need a system to view deferent info directly like storage, purchases, sales opening & closing , customer data and branch info to compare and organize branches , importers & employees
What is your advise for me.
Thank you
Mohammed al5alde Have you looked at NetSuite or Infor Retail? Both have financials, inventory mgmt, point of sale, etc. I’m happy to brainstorm ideas, so feel free to email me at eric@thirdstage-Consulting.com if you would like more independent advice.
Top 10 ERP Systems for 2020: ruclips.net/video/saqmQhVALnM/видео.html
Eric Kimberling, Independent ERP Consultant thank you very much really helpful content
You’re welcome!
Eric, Excellent video making a thinking process of why to invest big amount of money trying to deploy "miracle" software to enhance the business but the root causes are other topics not related to the technology used. A kind of diagnosis and deep understanding of the current business status vs business objectives need to be made to decide the possible options. Excellent massages from your side, congratulations.
Thank you, Juan. I’m glad you enjoyed the video!
I have been reviewing your RUclips videos and they are informative. The company I work for is a Motor Vehicle Insurance Company. We are looking for an ERP system to implement however I cannot find something suitable for an Insurance company. I am inclining to Microsoft D365 however I will appreciate any recommendation you can give
Thank you for your feedback, Stafford. Please feel free to email me if you would like to discuss in more detail: eric.kimberling@thirdstage-consulting.com.
Do not erp, erp is bad
Yeap cloud is overated, i can only agree that cloud will cost more than initially cloud vendor advertised.
do not erp erp is bad
I wouldn’t say it’s bad, but just something that has its risks. They can all be mitigated though.
I stopped the video at 4:37. Reason: I saw a couple other videos by you and while they were well informed. This one was completely off the point and extremely misinforming.
I have felt it too often that the client doesn't have someone to guide them internally on the ERP implementation and they look at ERP vendors with a pinch of distrust but suc content out there is completely off the mark and I am not sure if the creator of this content knows enough about cloud based ERP or even the AI, IoT benefits at all.
Assuming every industry would benefit from AI or some high-level cloud integration of their production statistics is a bit unrealistic. The whole point of this video is that you are not supposed to rush into having some fancy ERP just because that's what some big companies do.
@@lucastonoli3256 I don't just mean to point out AI. Infact that wasn't the point here at all. My point was the information in general in the video
Over the next decade - IT systems will be developed in house as easy as the old paper based systems were developed - these clunky ERP systems are already dead
You could be right...that’s an interesting perspective!
Google ecosystem already makes that kind of possible (to an extend), you just need some very basic knowledge of google-script/java script. This trend is likely to continue, the google ecosystem keeps growing and the latest solutions they started offering make it even more accessible.
In-house development is bad idea for most businesses. History shows us that It is always a transitional method for something entirely new .. ERP is not a new area.
@@rizwanmuhammad6468 ERP is dead - children are now learning programming languages, software is becoming easier, in house development will be as common as word processing
@@BarryMaskell We have seen that movie before. Trust me. I have been around. There was a time when all enterprises had software development groups who developed every tool imaginable for their own consumption and edge. But economics doesn't support that model as soon as a proper solution is offered by a 3rd party at the right price (TCO), companies yield to the power of economics. Have built so many systems and replace so many of those myself a couple of decades ago. And now things are happening at cloud speed. Continuous development and continuous integration of highly sophisticated software that is not the company's core business does not make any economic sense. What you are talking about is a higher degree of customization that is required for the future as businesses are becoming more and more unique. And agility is needed to update and upgrade on an individual basis. Yes, that is why ease of use and flexibility booth have to be part of design consideration. People knowing programming language were always there this is nothing new. If at all, demand has outstripped the supply of software engineers. You can see the impact of that on programmers and software engineers' salaries increases in the last 2 decades. It is not a technology issue as much as an economics issue and focuses on your core business issue. As a Service is an operative word. you don't build, you don't even buy, you rent.
I agree that the current ERP systems suck and are outdated. It makes sense as most of them were developed and deployed 20 years ago. The time has come for a tech refresh in that space. Hence the opportunity.
Can I please have your email please?
Eric @ thirdstage-consulting.com