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Monday, November 9, 2009

El proceso de la subasta

Trataremos de ilustrar mejor el servicio de subastas que ofrece FreeFlow a sus clientes de las industrias electrónica y de telecomunicaciones. La descripción general del proceso de un evento de liquidación de inventario inicia con FreeFlowAuctions, donde los miembros (que no pagan tarifas de suscripción, pero que deben ser aprobados previamente por el fabricante) pueden visualizar el inventario descontado para hacer una oferta y comprarlo directamente de los fabricantes. FreeFlow, junto con sus asociados estratégicos, desarrolló un modelo de precios objetivo que conforma el proceso subyacente de oferta del sitio de subastas. Así, se asignará un precio objetivo a todo el inventario que se anuncia en el sitio; con este precio, la parte ofertante se asegurará de cuál es la recuperación mínima esperada para ciertos productos. Al hacer una oferta que sea igual o superior al precio objetivo, los miembros ofertantes se asegurarán de que obtienen este inventario automáticamente, suponiendo que el inventario todavía está disponible.

Sin embargo, cuando hacen una oferta inferior al precio objetivo no se les puede garantizar la asignación, y el inventario permanece en el sitio de subastas hasta que el asociado estratégico decida si acepta dicha oferta o espera que otro miembro haga una oferta igual al precio objetivo. Se responde a todas las ofertas iguales al precio objetivo dentro de 24 horas. Si se reciben varias ofertas para un mismo inventario dentro de un periodo de 24 horas, el asociado estratégico (es decir, el vendedor o el fabricante) decidirá si asigna el inventario a quien realice la oferta más alta o al que la haya realizado primero, en caso de que todas las ofertas sean iguales. Una vez que se acepta una oferta, se contacta con el miembro ofertante que se seleccionó y, al recibir una orden de compra y el respectivo pago, se despacha el inventario desde las instalaciones del asociado estratégico usando su propio transportista. Se aplican tarifas estándar de flete a todos los despachos que salen de las instalaciones del asociado, y el comprador debe asumir estos costos.

Todos los usuarios nuevos (en este caso, compradores prospecto) deben abrir una cuenta con FreeFlowAuctions, y este es un proceso relativamente fácil. Sólo hay que introducir algunos detalles rutinarios (nombre de la empresa, dirección, dirección de correo electrónico, etc.), y cada solicitante selecciona su identificación de usuario y su clave de acceso. Pero, además de restringir el acceso a los compradores o agentes aprobados únicamente, este paso permite que el fabricante evalúe a cada solicitante desde un punto de vista comercial y de cumplimiento. Cuando un usuario logra registrarse satisfactoriamete, debe hacer clic en la pestaña Search Product(buscar producto) para buscar los productos disponibles y después introducir los criterios de búsqueda. Si bien hay que hacer clic en alguna pestaña para poder obtener algún resultado, es mejor introducir el fabricante y la identificación de la pieza, ya que las pestañas de descripción sólo darán resultados cuando el nombre que introduce el usuario es parte del nombre del producto. La pestaña Packaging(empaques) tiene dos categorías distintas: Generic Boxed (productos genéricos en caja) (clasificados como material renovado, producto que ha sido devuelto pero que legalmente no se puede vender como nuevo) yRetail Boxed (productos de menudeo en cajas) (un producto nuevo que tiene el sello de fábrica). El proceso de búsqueda de componentes mediante la pestaña Search Component(buscar componente) es casi la misma, pero los motores de búsqueda de componentes son Packaging (por ejemplo, bobina, cinta, tubo, etc.), Component Type (tipo de componente) (SDRAM, lineal, lógico, chips, etc.) yManufacturing Date (fecha de fabricación).

Una vez que el usuario o el ofertante ha localizado el producto o el componente que le interesa, puede introducir una oferta que se coloca con base en el precio objetivo que solicite el fabricante (en este caso el vendedor). Cuando se hace una oferta, FreeFlowAuctions responde dentro de las 24 horas siguientes mediante un mensaje de correo electrónico que indica si la oferta tuvo éxito. Si se acepta la oferta, el miembro debe enviar una orden de compra a través de las cuentas de fax o correo electrónico. Al recibir dicha orden de compra, FreeFlow arregla todo para que el fabricante embarque el producto y proporciona los detalles de rastreo del mismo. El fabricante proporciona el número de rastreo al subastador y se coloca en el sitio web junto al embarque. Una vez terminado esto, FreeFlow solicita el pago del comprador (el valor mínimo de los pedidos es de 3,000 dólares [USD]). Es posible realizar pagos de hasta 4,000 dólares (USD) con tarjeta de crédito (Visa o Mastercard únicamente) y, cuando se trata de montos superiores, se usa un giro electrónico. Hay un convertidor de moneda en línea para los miembros que lo necesiten.

Subasta de gestión de activos de inventario

La empresa se conocía inicialmente como Web Component Trading (WCT) y funcionaba como WCTbid.com, pero a finales de 2005 cambió su nombre a FreeFlow. El nombre nuevo subraya el enfoque de la empresa en identificar el inventario en riesgo de sus clientes y en permitir que fluya libremente a través de los canales de ventas. A mediados de 2006 decidió aumentar sus raíces de liquidación y reciclaje de inventario y anunció FreeFlowAuctions.com, una solución alojada y en línea de subastas privadas que los clientes pueden utilizar para estandarizar su proceso de planifiación de ventas y operaciones (S&OP) de identificación del inventario que está en riesgo. Esta estandarización hace que todas las partes participantes actúen para mover el inventario que está detenido antes de que pierda su valor en el mercado y que automaticen la disposición del mismo. Con esta solución, las empresas usuarias deben poder manejar mejor su inventario activo y detenido para maximizar la rentabilidad del ciclo de vida de sus productos, ya que pretende permitirles que reduzcan la cantidad de reservas financieras necesarias y la cantidad general de deducciones (que a veces representan varios millones de dólares [USD]) y que mejoren sus resultados netos con cada trimestre.

FreeFlowAuctions tiene un tablero relativamente fácil de usar y se integra con el proceso de planificación de ventas y operaciones de una empresa usuaria, permitiendo cargar las listas automáticamente y aprobar las capacidades de enrutamiento. Tiene también un acceso de seguridad por clave de acceso con el cual los ejecutivos pueden controlar las capacidades de actualización de las cantidades y los precios del inventario. Gracias a este tablero, los ejecutivos pueden visualizar las métricas clave, tales como rendimiento de los ingresos de los productos, rendimiento en recuperación de precios y análisis de los márgenes de los inventarios activo y detenido por región o por producto. Tiene también disparadores automáticos que notifican a los ejecutivos cuando se realizan cambios críticos y permiten reducir el tiempo necesario paa obtener las aprobaciones para las liquidaciones de inventario por teléfono o fax. FreeFlowAuctions también permite que la dirección tenga registros de las auditorías que contienen la historia y las transacciones de las ofertas por los productos.

Esta solución contrasta con la práctica que tradicionalmente ha dominado a muchas empresas que siguen tratando el inventario que está en riesgo caso por caso, dejando pasar así la oportunidad de maximizar la rentabilidad del ciclo de vida de cada uno de sus productos. Es decir que la plataforma de FreeFlowAuctions pretende ayudar a los clientes a implementar procesos operativos decisivos de forma regular y repetible, con el propósito de lograr este objetivo. Así, FreeFlow creará el sitio de subastas para sus clientes y se responsabilizará por él y por la venta. La empresa usuaria subcontrata a FreeFlow para que realice todo el proceso administrativo, y ellos asumen los riesgos y no otorgan crédito a ninguna de las partes que participan en el proceso de subasta.

Acercamiento al flujo libre de inventario

La respuesta al fin del ciclo de vida de los productos de una empresa puede ser la conveniencia de un mercado por red interna que esté disponible 24 horas al día, 7 días a la semana. Las empresas que ofrecen sus productos en un portal de subastas en línea pueden vender su exceso de inventario al mejor postor, mientras que los compradores pueden comprar los artículos que necesitan a precios realmente reducidos.

¿Cómo manejar el inventario en exceso y obsoleto?

El reto de un hombre puede ser la oportunidad de otro. Esto nos hace pensar nuevamente en FreeFlow (www.FreeFlow.com), que es un proveedor privado de servicios de negocios y de tecnología patentada cuya misión es ayudar a los clientes a hacer que la rentabilidad del ciclo de vida de sus productos aumente mediante la identificación proactiva y la reducción sistemática del inventario en exceso y en riesgo. Esta empresa, que se fundó en 2001, que funciona con sus propios fondos y que ha sido rentable prácticamente desde sus inicios, ha logrado servir a muchos fabricantes de alta tecnología reconocidos gracias a la solución que ofrece por suscripciones y lista para usarse. Gracias a la solución que ofrece FreeFlow, muchos de sus clientes han logrado márgenes superiores, aumentado su producción de inventario y su flujo de efectivo mientras han evitado conflictos con sus canales de distribución y reducido los costos generales de logística inversa. Pero lo más importante es que han obtenido estas ventajas con rapidez y con la cantidad mínima de gastos generales, ya que la solución de FreeFlow no requiere que se cuente con personal interno de tecnología de la información (TI), además de que usa un modelo de precios en el que se va pagando conforme se vaya usando, y esto produce un retorno de la inversión más inmediato y aparente.

En pocas palabras, algunas de las formas en que este proveedor realiza una identificación proactiva del inventario que está en riesgo son el establecimiento de precios y mercados objetivos, mercados privados alojados en línea y soporte de servicios de negocios previos y posteriores a las subastas. Las empresas que hacen uso de la tecnología de FreeFlow pueden promover su inventario con sus clientes, subastarlo entre liquidadores y reprocesarlo a través de empresas de reciclaje. Con dicha tecnología, los clientes pueden controlar todo aquéllo que sucede en línea y que está patentado por FreeFlow. Esta empresa, que arrancó durante una depresión económica en la habitación de la casa de la suegra del director general, en Talee, Irlanda (actualmente espera sus nuevas oficinas generales de 2,000 metros cuadrados de superficie), actualmente tiene sus oficinas generales en San José, California, en los Estados Unidos. Hace poco, la empresa aumentó sus operaciones al abrir sus oficinas den Hong Kong, China, a principios de 2006. Gracias a esta expansión a Asia y a que tiene oficinas en Estados Unidos y Europa, FreeFlow goza de una presencia mundial estratégica en tres ubicaciones clave, además de que ha logrado mejorar el servicio que proporciona a los clientes de la cadena de suministro global.

FreeFlow predica la subcontratación de TI a sus clientes, por lo que demuestra usar sus propios recursos al atribuirle su éxito a variar su modelo de costos (pro ejemplo, la empresa siempre ha tenido un equipo de ventas motivado y que trabaja por costos variables) y a recurrir a la subcontratación siempre que sea posible. Así, este proveedor realiza su administración de forma interna, pero subcontrata la TI, el desarrollo web y la programación. Durante los primeros días de la empresa, el fundador no podía permitirse contratar muchas personas, así que recurrió a varios ejecutivos de alto nivel con quienes había trabajado y les ofreció acciones en el negocio, así como una comisión basada en los negocios que generaran las empresas de alta tecnología (usuarios prospecto) que le presentaran. Ahora, la empresa cuenta doce años consecutivos en los que ha duplicado su producción. Algunos clientes de las soluciones de gestión de activos de inventario alojadas de FreeFlow son Microsoft, Apple, Motorola, 3Com, Fujitsu, Logitech, Creative Labs, Trimble, ScanDisk y otros asociados proveedores de logística, como ModusLink y ArvatoUSA. Aproximadamente el 70 por ciento de los ingresos de FreeFlow se generan en los Estados Unidos y el resto en Europa y Asia. La empresa planea continuar sus operaciones sin recurrir al esquema de empresa conjunta.

En octubre de 2006, FreeFlow anunció que su fundador y director general, Alan Scroope, había sido nombrado Empresario emergente del año por Ernst & Young en Irlanda. Se le reconoció por la innovación que ha realizado FreeFlow y su tecnología patentada que transforma los procesos de negocios de sus clientes mediante la automatización de la identificación y la liquidación de su inventario en riesgo. Este premio vino inmediatamente después de dos premios de la industria que recibió FreeFlow por ser pionero en este tipo de tecnología. De forma concreta, la revista Manufacturing Business Technology (MBT) seleccionó a la empresa como uno de los cuarenta proveedores de software emergentes del 2006. Este permio reconoce a los proveedores de TI empresariales líderes según criterios dinámicos tales como estadísticas de crecimiento, clientes obtenidos recientemente, innovación en los productos y dirección general de la empresa. Además, Gartner reconoció a FreeFlow como mejor proveedor de servicios en su evento 2006 Fall RetailVision, que se lleva a cabo a nivel mundial para los canales de menudeo para consumidores.

Algunos problemas de cumplimiento con los reglamentos ambientales

En nuestros días, los fabricantes están cada vez más expuestos a enormes presiones que son el resultado de la necesidad de reducir los costos y aumentar la eficacia. Para empeorar las cosas, al reducirse los ciclos de vida de los productos, la fabricación y la distribución se están volviendo más complejas. Para el fabricante, esto se convierte en la necesidad de manejar mejor las demandas y las expectativas de los clientes y responder en consecuencia. Además, los fabricantes de equipo eléctrico y electrónico deben apegarse a un número cada vez mayor de reglamentos estrictos en materia ambiental. Algunos de estos reglamentos ya se han implementado en la Unión Europea (UE) y los Estados Unidos. En Japón, China y otros países, hay reglamentos que están pendientes. Como sucede en muchas otras industrias, el costo del cumplimiento puede ser muy alto, pero el costo de la falta de cumplimiento puede ser mucho más alto. Así, los ganadores de la industria deben hacerse de las capacidades necesarias para adaptar sus negocios a los requisitos de estos reglamentos -desde el diseño hasta la generación de reportes de cumplimiento, y desde la localización de las fuentes y el aprovisionamiento hasta el servicio y las reparaciones- para poder evitar las costosas penalizaciones y los retiros de sus productos del mercado, optimizar sus procesos para cumplir con los cambios a estos reglamentos, crear marcas de confianza y proteger los intereses de sus accionistas.

Estos fabricantes deberán recurrir a alguien que les ayude a cumplir con estas políticas tan estrictas e importantes de las industrias electrónica y de alta tecnología. La opción más lógica son los proveedores de servicios privados y especializados en el mercado que ofrecen plataformas de subastas para ayudar a las empresas a deshacerse de su inventario en exceso y obsoleto, quienes se asegurarán de que cumplen con estos reglamentos nuevos. Idealmente, estos proveedores deben mantener cierto número de sociedades con empresas de gestión de transporte y reciclaje. En agosto de 2005 entró en vigor una política en materia ambiental que cubre a los estados miembros de la UE. Se trata de la Directiva sobre residuos de equipos eléctricos y electrónicos (WEEE) 2006/96/EC, que establece las normas de reciclaje y reutilización para varias industrias, desde aparatos electrodomésticos hasta productos de cómputo. La directiva WEEE asigna al fabricante (productor) toda la responsabilidad de recuperar los productos y reciclar hasta el 75 por ciento del contenido material por peso. Los fabricantes que no cumplen con esta directiva deben pagar una penalización del 2 por ciento de sus ingresos anuales. Es decir que la directiva WEEE establece reglas de recolección, tratamiento, reciclaje y recuperación de residuos electrónicos en la UE. Declara que los fabricantes e importadores de equipos electrónicos deben manejar y pagar por el reciclaje de los residuos de equipos eléctricos y electrónicos.

Además, la directiva WEEE declara que los fabricantes de productos electrónicos, excluyendo a los minoristas y los distribuidores, son responsables de ofrecer programas de devolución de todos los equipos eléctricos y electrónicos vendidos en los estados miembros de la UE, así como Noruega y Suiza. La directiva define, recomienda medidas y establece hitos reglamentarios para la recolección, el tratamiento, la recuperación y el financiamiento de diez categorías de equipos eléctricos y electrónicos desechados. Estas diez categorías van desde equipo para tecnología de la información (TI) y telecomunicaciones, aparatos granndes y pequeños y herramientas, juguetes y equipo de entretenimiento. Desde luego que la reutilización de los productos (es decir, la reventa o la reutilización de aparatos enteros para su funcionamiento original) debe tener prioridad sobre el reciclaje. Cuando se trata de equipo de TI y de telecomunicaciones y aparatos electrónicos de consumo que no tienen una opción de reutilización, hay que comprobar que el 75 por ciento del peso del producto puede reciclarse. Los productos nuevos deben marcarse con símbolos que indiquen que no deben tirarse a la basura, y los fabricantes deben proporcionar la información necesaria para desarmarlos. La fecha objetivo para inciar estos programas era el 13 de agosto de 2005. Desde entonces, los estados miembros de la UE se han visto obligados a crear las condiciones necesarias para financiar la recolección, el tratamiento, la recuperación y el desecho ecológico de los residuos de equipos eléctricos y electrónicos. Han tenido que establecer sistemas de recolección distintos para evitar que se desechen dichos productos en los basureros municipales. Así, los distribuidores deben asegurarse de que la gente puede devolverles los residuos de equipos electónicos sin cargo alguno, y los fabricantes deben establecer y operar sistemas de devoluciones de forma individual o colectiva.

Wednesday, October 28, 2009

Enterprise Asset Management Systems: Your Manufacturing Organization’s Underrated Superstar

For all you baseball fans living in the US and Canada, you can probably appreciate that we are quickly approaching what is referred to as “the dog days of August.” This is when the pennant races are close, and almost every game has added significance for a team’s chances of making it to the playoffs.

As I was enjoying one of those rare idyllic days lying in the backyard hammock and reading the sports page, it occurred to me how the good teams are not just about one or two great players. Rather, they are comprised largely of players whose natural athletic ability may not necessarily match that of the few superstars on the team, and who may not be found basking in the limelight, but who consistently work hard and practice on a daily basis. These are the players that, when given the opportunity, can deliver the key play or get the big hit when the game is on the line.

This made me think about how in a manufacturing environment, the most unlikely areas can contribute in a critical situation. In many organizations, it is the maintenance department that, much like the unsung heroes of the baseball team, manages to keep aging equipment running flawlessly. When a machine unexpectedly breaks down, it is this department that knows what is required to repair it. And just like the baseball season, summertime is a busy time for maintenance departments, as companies choose to use the summer holiday period to shut down in order to install, repair, or replace equipment in their production facility.

In this blog post, I thought it would be a good idea to take an inside look at the challenging world of enterprise asset management (EAM), and find out how this unheralded software can give your company the winning edge.

Factors Leading to Critical Failure of Assets

  • poor maintenance practices
  • undocumented maintenance logs
  • poor budget planning
  • inability to track known rates of failure for equipment

What Is EAM

Because competition within industries is fierce, any downtime in a facility can make the difference between profit and loss for the organization’s bottom line. In many organizations that are capital equipment-intensive (i.e., mining, oil and gas, utilities, aerospace manufacturing, etc.), the ability to plan maintenance or replacement of such physical assets as machinery is controlled through an EAM system.

An EAM system generates analytical data to optimize machine-operating efficiency, and calculates costs to support and maintain single pieces or a series of physical assets. EAM also works closely with the computerized maintenance management system (CMMS). CMMS provides predictive maintenance schedules and, by analyzing available inventory, assigns physical resources (inventory and labor) to a scheduled work order for equipment pieces. This generates replenishment purchasing requisitions for maintenance, repair, and overhaul (MRO) spare parts.

In the diagram below, you can see how EAM works as part of a three-pronged approach with EAM, CMMS, and production to gather data for analysis. This analysis helps managers to decide whether to repair equipment, schedule resources, or plan for new capital equipment purchase and installation.

image 1

Benefits of EAM

  • Ensures compliance with government-legislated health and safety programs by demonstrating tool and machinery reliability through the tracking of all historical maintenance.
  • Develops life cycle management systems to identify known or predictive mean time between failure (MTBF) and root cause analysis.
  • Allows the ability to implement continuous process improvements in the areas of tools and identification, to properly calibrate tools and equipment as part of a predictive maintenance program. This is done with the help of radio frequency identification (RFID).
  • Allows the ability to schedule maintenance and installation of new equipment and to manage repair budgets and schedules, through integration of EAM with CMMS.
  • Enables streamlined procurement management policies for MRO spare parts.
  • Enables trend analysis to determine when maintenance is cost-prohibitive and to plan for replacement of capital equipment.

EAM Products to Consider

At TEC’s web site, you can review different vendors’ products as well as obtain white papers and vendor comparison reports. In this section, I offer a brief overview of some EAM products worth consideration.

Saturday, October 3, 2009

EIM/ECM 101: Cutting through the Confusion

EIM/ECM 101: Cutting through the Confusion

If you’re like many people who’ve been put in charge of looking for your company’s next compensation solution, you may be somewhat bewildered about the different applications available. There has long been a confusion surrounding enterprise incentive management (EIM) and enterprise compensation management (ECM) solutions. The reason is that, technically, both types of solutions enable some of the same results—one of which is to provide a payment to an employee for services rendered. However, the reasons behind these payments can differ substantially (e.g., commissions versus bonuses versus spiffs, etc.).

Before You Start

Before you know which kind of solution you should be looking for, you must define what you’re trying to accomplish. What are your long-term goals for implementing such a system? Are you looking to minimize the amount of manual work done with spreadsheets? Are you trying to reduce operational costs and increase the accuracy of entries through automation? Is compliance an issue? Is the current economic situation forcing you to change your rewards strategy?

Putting Together a “Rewards Strategy”: Your Compensation Action Plan

Putting together a strategic incentive compensation plan should be your first move. Defining your goals and determining your needs are just a few of the necessary steps you’ll need to take. Developing a manageable compensation plan—one that helps motivate employees and boost productivity— is a very complex challenge, however; and there are many factors to consider. Companies often have poorly defined and confusing compensation structures, which work against creating the excitement needed from sales staff to make it a success.

There are generally four components to developing a successful sales compensation plan: salary, commission, bonus, and sales incentives. A well-constructed sales compensation plan should include all four components. It’s important to build a plan that is straightforward and easily administered—not one that is complicated and confusing. Luckily, there are many different types of systems available today that can help you do just that.

What Type of System Do I Need?

Even the best-designed incentive compensation plans can fall apart if they’re not managed and administered properly. For your plan to be a success, you will need to determine what type of system will best suit your needs. To help ensure you’re looking for the right type of compensation solution for your business, I have broken the possibilities down into two distinct areas. This will help you understand the different types of solutions available for creating and managing your organization’s compensation plan(s).

What is Enterprise Incentive Management (EIM)?

EIM is geared toward paying sales staff. It is often referred to as sales compensation management (SCM), sales performance management (SPM), or possibly even incentive compensation management (ICM). It’s no wonder people are confused!

EIM applications are designed to allow organizations to set up commissions for their sales people that are based on the performance of the company. An EIM application allows businesses to design and track, as well as pay, sales commission plans. Complicated commission structures can be often overwhelming for a sales manager; however, implementing an automated EIM solution considerably reduces the number of manual calculations managers often find themselves doing. In many of today’s sales departments, EIM applications are replacing the traditional compensation-tracking programs (which were comprised of complicated spreadsheets and financial data reports).

Today’s EIM solutions make the commission payment process entirely automated, allowing businesses to

• align compensation with company goals
• use incentive management to promote a pay-for-performance culture (performance-driven)
• reduce turnover
• achieve better cost control
• increase sales force production
• influence performance
• minimize the risk of mathematical errors

EIM helps managers create exciting incentive plans that can calculate and track commissions, as well as other types of rewards. Employees can track their performance by accessing these plans through employee portals—right from their own desktop or smartphone.

Incentive management includes (but is not necessarily limited to)

• salary
• commission management (including split commission)
• kickers and spiffs
• territory alignment
• quota management

In addition to enterprise incentive management functionalities, these types of solutions often include tools for

• recruiting
• administering benefits
• paying multi-tiered commission plans

As with any new system implementation, however, you can probably expect to get some negative feedback from your sales force—at least in the beginning. Change is difficult at best, and until your employees see the measurable results of implementing such a system, they probably won’t be too happy with it at first.

One thing is certain: an automated EIM solution will make your executives happy! Built-in analytics provide tracking against budget reports, and a variety of customized reports can be generated with the press of a button. EIM systems also offer a solid return on investment (ROI), usually within six months, by reducing payment errors and increasing the productivity of the sales, finance, and IT departments.

Vendors in the EIM space include

• Authoria - Authoria Incentive is an EIM solution that can help businesses significantly enhance compensation planning and administration. Authoria’s automated solution provides a quick ROI by increasing accuracy, improving effectiveness, and reducing cost. {read more}

• Callidus Software - TrueComp addresses the challenges faced by compensation administrators, including retroactive changes to compensation plans; territory assignments or organizational reporting structures; modeling and forecasting future compensation expenses; quota management for the entire organization; and researching and resolving disputed sales credit situations. {read more}

• Varicent - Varicent SPM incorporates features and processes of financial planning and budgeting software, while adding specifics to address sales operations and pay-for-performance plans. This approach provides users with insight into overpayments and errors in commissions, and allows them to perform “what-if” analyses on sales trends. {read more}

• NetCommissions - NetCommissions can help companies improve sales force productivity by providing online sales commission management solutions. NetCommissions delivers sales commission management solutions that help produce timely and accurate payments, and provide customers with an integrated, comprehensive, and motivating user experience. {read more}

• Synygy - Synygy’s Sales Compensation Management software consists of a set of integrated modules created by Synygy that do not require patching together with third-party applications. Each type of plan is defined by or associated with a set of data objects, participant objects, compensation objects, and report objects. {read more}

What is Enterprise Compensation Management (ECM)?

ECM is geared toward paying salaries and bonuses, which are considered part of the human resources (HR) function. A compensation plan describes the rules and structure of conditions of a company’s employees’ compensation and how it is treated in the compensation administration process. Compensation rules often include eligibility, guidelines, and proration. ECM provides the tools to manage, measure, and reward not only individual contributions, but team contributions as well.
Compensation management and related employee performance management (EPM) are most often the key components in a broader suite of talent management applications.

Today’s ECM solutions make the compensation payment process entirely automated by allowing businesses to

• create centralized and decentralized budgets
• plan and administer compensation adjustments at the manager level
• plan and administer compensation adjustments within a predefined budget
• define pay grades/scales and salary structures to identify the internal value of jobs and positions within the organization
• administer long-term incentives

Compensation, however, is driven by the needs of the business and not by those of HR. These types of applications are used by HR professionals to measure workforce performance, and improve their ability to assess and deploy talent. Compensation management software provides the modeling that allows for fair compensation of employee competencies and performance, and is used as a strategic tool for retaining talent.

Compensation management includes (but is not necessarily limited to)

• salary
• bonus (regular and one-time payments)
• grants

In addition to enterprise compensation management tools, ECM often includes tools for generating

* service awards
* leads
* health and wellness programs
* online education/training programs
* safety programs
* recognition and customer loyalty programs
* long-term incentive (LTI) programs

Like with managing incentives, HR personnel often find themselves working with complicated spreadsheets (working in constant reactive mode, rather than in a proactive mode). Compensation management solutions alleviate this labour-ridden task by taking the guess work out of the equation.

Vendors in the ECM space include

• Laserbeam - LaserComp helps simplify compensation management for the enterprise. It enables compensation analysts to create plans, model impact, manage approval, and provide consistent results across the organization. LaserComp extends the capabilities of payroll and other human resource management systems (HRMS) to manage compensation administration. {read more}

• CornerstoneOnDemand - Cornerstone provides a suite of learning and talent management software and services to support HR and company initiatives, such as talent readiness planning, leadership development, career planning, employee onboarding, pay-for-performance programs, enterprise compliance and certification management, channel partner training, customer training, and employee engagement programs. {read more}

• Halogen - Halogen eCompensation is a web-based application that can make managing your base salary, pay-for-performance strategies, incentive compensation, and stock option programs easier—regardless of the size of your organization. Halogen eCompensation helps organizations improve their accountability, foster a performance-oriented culture, and complete their compensation plans on time. {read more}

• SuccessFactors - SuccessFactors provides performance and talent management solutions that help organizations realize their potential through their talent. It provides an affordable, integrated solution for companies of every shape and size. Its capabilities include recruiting, performance, compensation and succession planning, and more. {read more}

Recap: So What Are the Major Differences between EIM and ECM?

Incentive management shares certain functional elements with compensation management. However, incentive management is usually integrated with a CRM application to budget and execute compensation strategies affecting sales personnel, distribution and channel partners, and call center employees. It tracks and rewards the attainment of revenue goals and customer satisfaction objectives.

Compensation management software, on the other hand, is generally used by HR and compensation managers to model and implement compensation plans for salaried or hourly employees.

Saturday, August 22, 2009

Enterprise Asset Management Systems: Your Manufacturing Organization’s Underrated Superstar

For all you baseball fans living in the US and Canada, you can probably appreciate that we are quickly approaching what is referred to as “the dog days of August.” This is when the pennant races are close, and almost every game has added significance for a team’s chances of making it to the playoffs.

As I was enjoying one of those rare idyllic days lying in the backyard hammock and reading the sports page, it occurred to me how the good teams are not just about one or two great players. Rather, they are comprised largely of players whose natural athletic ability may not necessarily match that of the few superstars on the team, and who may not be found basking in the limelight, but who consistently work hard and practice on a daily basis. These are the players that, when given the opportunity, can deliver the key play or get the big hit when the game is on the line.

This made me think about how in a manufacturing environment, the most unlikely areas can contribute in a critical situation. In many organizations, it is the maintenance department that, much like the unsung heroes of the baseball team, manages to keep aging equipment running flawlessly. When a machine unexpectedly breaks down, it is this department that knows what is required to repair it. And just like the baseball season, summertime is a busy time for maintenance departments, as companies choose to use the summer holiday period to shut down in order to install, repair, or replace equipment in their production facility.

In this blog post, I thought it would be a good idea to take an inside look at the challenging world of enterprise asset management (EAM), and find out how this unheralded software can give your company the winning edge.

Factors Leading to Critical Failure of Assets

  • poor maintenance practices
  • undocumented maintenance logs
  • poor budget planning
  • inability to track known rates of failure for equipment

What Is EAM

Because competition within industries is fierce, any downtime in a facility can make the difference between profit and loss for the organization’s bottom line. In many organizations that are capital equipment-intensive (i.e., mining, oil and gas, utilities, aerospace manufacturing, etc.), the ability to plan maintenance or replacement of such physical assets as machinery is controlled through an EAM system.

An EAM system generates analytical data to optimize machine-operating efficiency, and calculates costs to support and maintain single pieces or a series of physical assets. EAM also works closely with the computerized maintenance management system (CMMS). CMMS provides predictive maintenance schedules and, by analyzing available inventory, assigns physical resources (inventory and labor) to a scheduled work order for equipment pieces. This generates replenishment purchasing requisitions for maintenance, repair, and overhaul (MRO) spare parts.

In the diagram below, you can see how EAM works as part of a three-pronged approach with EAM, CMMS, and production to gather data for analysis. This analysis helps managers to decide whether to repair equipment, schedule resources, or plan for new capital equipment purchase and installation.

image 1

Benefits of EAM

  • Ensures compliance with government-legislated health and safety programs by demonstrating tool and machinery reliability through the tracking of all historical maintenance.
  • Develops life cycle management systems to identify known or predictive mean time between failure (MTBF) and root cause analysis.
  • Allows the ability to implement continuous process improvements in the areas of tools and identification, to properly calibrate tools and equipment as part of a predictive maintenance program. This is done with the help of radio frequency identification (RFID).
  • Allows the ability to schedule maintenance and installation of new equipment and to manage repair budgets and schedules, through integration of EAM with CMMS.
  • Enables streamlined procurement management policies for MRO spare parts.
  • Enables trend analysis to determine when maintenance is cost-prohibitive and to plan for replacement of capital equipment.

EAM Products to Consider

At TEC’s web site, you can review different vendors’ products as well as obtain white papers and vendor comparison reports. In this section, I offer a brief overview of some EAM products worth consideration.

IFS EAM

IFS’s product offerings include over 30 modules of enterprise solutions, many of which that can be purchased as either an overall integrated solution or as a bolted-on best-of-class solution. IFS has a unique add-on available that includes both IFS EAM and IFS ERP called IFS OEE (with “OEE” standing for overall equipment effectiveness). This solution performs analytics while equipment assets are running (which avoids downtime), and it makes the necessary adjustments to maintain an optimum level of production. IFS EAM allows organizations to proactively manage assets and maintenance activites. It combines unique features to permit data modeling on equipment in order to determine whether equipment is near the end of its production life cycle. For further details, visit IFS’s vendor showcase.

Infor EAM Enterprise Edition

Infor EAM delivers a unified solution for monitoring and managing the performance, maintenance, and deployment of company assets. With Infor EAM, the maintenance and plant engineering practitioner is able to perform maintenance optimization, staff productivity analysis, budget forecasting, and strategic planning. There are five separate modules which, combined together, form a complete EAM solution.

* maintenance
* inventory/warranty
* uptime
* reliability risk management
* strategic planning

For further details, visit Infor’s vendor showcase.

A Final Thought

Today’s manufacturers are fighting for any edge that will lower their costs and that will allow them to meet the challenges of global manufacturing and ever-stringent regulatory and compliance legislation. One paradigm shift has been to conduct maintenance based on an actual condition, and not on aggregate rates of failure. This departure from the traditional approach is a result of systems now being able to track real-time performance of equipment. Through EAM, condition-based maintenance (CBM ) is now a reality, and it will permit your maintenance department to perform like champions.

What’s in a name? or Enterprise systems’ reincarnations (Part II)

While the Part I of this topic focused on Consona Corporation (former M2M Holdings), this time the discussion continues with the recently minted Solarsoft entity, privately owned by Marlin Equity Partners. True, in Part I, besides Infor, I could have also mentioned as old news the renaming of Verticent ERP Plus (formerly PowerCerv [evaluate this product]) as part of the ASA International parent and SoftBrands (formerly Fourth Shift and AremisSoft), but these companies have not that candidly professed their appetite for more acquisitions.

In any case, in April 2007 Canada-based CMS Software merged with the United Kingdom (UK)-based XKO Software Limited, a provider of specialist enterprise software. CMS has been in the enterprise resource planning (ERP) business for over 20 years, and, naturally, it has always looked for ways to improve the services and products it delivers to its customers. As the market increasingly demands consistent local service delivered on a global basis, the company hoped to enhance its ability to meet that demand via the merger.

But, when CMS and XKO merged they knew that they would eventually need to find a new name for the combined business. Namely, both firms were relatively well known in their local markets but the names have lost their original meaning and communicated little to new customers in new markets. According to the letter sent to all customers and partners, putting together a six-letter acronym didn’t make sense, so the company held an internal contest and the name “Solarsoft” was chosen, as suggested by a member of the staff.

The name was reportedly liked for its power and simplicity and, critically, the company could acquire the domain name. After careful consideration, the management felt the time was right to re-name XKO and CMS. Thus, from early November 2007 CMS Software, Inc. has been doing business as Solarsoft Business Systems. In the UK XKO has been re-named Solarsoft Business Systems Limited. The old names have been retired, except for Mattec Corporation, the manufacturing execution system (MES) subsidiary, and the joint venture business in China, which will not change their names at this time.

Since Solarsoft is in its early developmental stage compared to Consona or Infor, it intends to extend its manufacturing and distribution ERP software range through a series of point solution acquisitions over the next year or so. While time will only tell what possible target purchases these will be (given that someone has recently said that the current ERP market is like a post-Thanksgiving turkey — all good stuff has already been picked), Shawn McMorran, CEO of Solarsoft, says that the company intends to build on the recently dubbed Solarsoft Open Services Architecture (SOSA) framework to offer integrated systems across front and back office operations, including supply chain integration, e-commerce and process automation.

SOSA (not the once popular baseball player!) is a web services architecture that builds on the simple client/server model that powers the World Wide Web (WWW). Using flexible Extensible Markup Language (XML) messages, SOSA applications are envisioned to be easily integrated across the network within an organization or with trading partner systems across the Internet. All Solarsoft customers will eventually leverage SOSA to deploy a suite of plug-in applications to extend their core ERP platform beyond the back-office.

Such an open architecture framework was required since Solarsoft ERP systems are built on vendor platforms from former CMS technology partners IBM and Microsoft. In addition, via former XKO, Solarsoft also supports a range of UNIX implementations including AIX and open source Linux. XKO is best known in Europe for various systems aimed at managing finance, inventory and production in businesses ranging from builders’ merchants through fast moving consumer goods (FMCG) distributors to high-tech engineering firms. The company has grown organically and through acquisition since its formation from the merger of KSE and Xavier Computer Group in 1999.

Regardless of the underlying technology used, a future standard architecture (i.e., SOSA) must ensure that all platforms work together with a suite of value-added options offering flexible configurations for the targeted manufacturing, distribution and wholesale & merchant sectors. For now, it appears that the vendor will group its offering into three platform-based product suites:

1. mVP, building on the Solarsoft CMSm5 ERP [evaluate this product] foundation;
2. iVP, building on the Solarsoft CMSi5 ERP [evaluate this product] foundation; and
3. xVP, or a cross-platform solution that will most likely enable tailored integration of former disparate XKO systems and future acquisitions.

The last offering seems the least defined at this stage, but we will have to wait to see how this noble concept will work in all product cases, since there is always some significant time and work to take place before a concept comes to realization. Also, we should wait and see whether Solarsoft acquisition strategy will be close to those of Infor or Consona. The company just acquired VantagePoint Systems, Inc. (TSX VENTURE:VPG), the lesser-known packaging manufacturing industry ERP provider. It is too early to judge whether Solarsoft is bottom-feeding or has a well-devised strategy of targeting some defendable niches.

This brings us to another general issue for all those companies that have been (and still want to be) on an acquisition trail: can they really continue without running out of steam. But, that is a topic on its own. For now, dear readers, what is your opinion on the strategy of the above-mentioned, recently renamed acquisitive companies? Which of them are (or are not) in for a brighter future?

Information Security 101: an Introduction to Being Compliant and Protecting Your Assets

Internet access, and collaborative tools (whether a phone system’s conferencing capabilities, or document-sharing applications) are “must-haves” for most businesses today.

But by now many managers know that you shouldn’t stop at just implementing these tools and then going ahead, footloose and fancy-free, with using them. As with any other asset, you need to protect not just the technology that enables these tools and applications, but also the information that these tools allow users to share.
To ensure the confidentiality of private information—and help ensure compliance with regulations and internal policies—information security software is now also a “must have.”

A recent survey by Milford, Massachusetts (US)-based Enterprise Strategy Group revealed that the majority of organizations (59 percent of those that responded) do not even have a formal policy in place to define the sharing of data, particularly intellectual property.

What does this mean? Many companies “are flying by the seat of their pants and hoping not to get burned,” when it comes to data breaches, says Jon Oltsik, senior analyst with ESG.

But those who do get a little too close to the fire may find that not only the seats of their pants get scorched, but that they come close to losing the shirts off their backs too, as costly compliance violations add up. And never mind the costs that result from trying to stay on top of compliance by continually checking internal controls. And never mind the possibility of serving time in the slammer if the compliance violation is severe enough.

And, oh, never mind the damage that can be done to the reputation of your company in the face of public disclosure of your compliance violations.

It follows, then, that one of the first steps in boosting your security measures is to create a security and compliance policy. This internal policy should be a working document that clearly states your company’s security and data classification policies, (and that includes, depending on your industry or business activities, a functional definition of intellectual property).

Once that’s done, you need to make sure all employees know about those policies. One of the final steps to ensuring your assets are covered (think of it as flame-retardant for the seat of your pants) for data breach: install an up-to-date information security system that helps you enforce those policies and that helps maximize data protection.

In order to choose the right information security system, you’ll need to identify the ways that users may currently be allowing sensitive information beyond the confines of your organization. And with e-mail, Internet access, and other collaborative tools, the ways data can be leaked, manipulated, or lost are numerous.

And as for compliance—many organizations are still struggling to get their heads around the cumbersome (and potentially costly) US Sarbanes-Oxley Act (SOX) of 2002.

Which Companies Need to Be Particularly Concerned with Data Security?

Companies in any manufacturing industry that need to ensure the confidentiality or secrecy of recipes or processes

· Companies in any industry known for innovation or thought leadership

· Enterprises in any industry needing to maintain records for auditing in accordance with SOX

· Hospitals and other health care facilities dealing with thousands of pieces of confidential patient data on a daily basis.

· Companies at the end of the supply chain, involved in accepting credit card payment by phone or Internet

How Can Information Security Specifically Address Your Data Confidentiality and Compliance Needs?

· Create levels of authorized access to vulnerable data, and ensure limited access with private passwords

· Establish secure communication channels between terminals or remote offices with electronic data interchange (EDI) and virtual private networks (VPNs)

· Mitigate the risk of both internal and external data breach with firewalls and data encryption methods

· Automatically analyze potential new threats to the system, and send alerts to the appropriate administrators

· Aid in compliance with SOX, and other regulations, such as the requirements created by the Payment Card Industry (PCI) Security Standards Council, the Health Insurance Portability and Accountability Act (HIPAA), the Gramm-Leach-Bliley Act (GLBA), or in Japan, the Financial Instruments and Exchange Law (J-SOX) and the Protection of Personal Information Law

· Capture, monitor, and keep financial file logs (from financial reporting systems) for at least one year, for SOX audits

Information Security Slip Ups—or Why Chains around Your Computer Hardware Won’t Keep Your Data Safe

* When hackers access the credit card numbers (or other confidential personal information) of your customers, it can cost you from $90 to $305 USD for each breached record. For US-based retail chain TJX, which let nearly 100 million credit card numbers get into the virtual sticky fingers of hackers, the damage has been dear indeed. (This may happen more often than you realize… bought jeans or a watch over the Internet lately? Lingerie? Books? How about a CD or DVD? In addition to the company cited above, the same or a similar issue has plagued Guess, Victoria’s Secret, Barnes & Noble, Tower Records, Eli Lilly, and even—gasp!—Microsoft, to name but a few. )
* Never underestimate the wrath of an employee spurned… a woman employed as an administrative assistant recently deleted $2.5 million (USD) (and seven years’) worth of architectural drawings to seek revenge (or would that be pre-venge?) on her employer, whom she believed was planning to fire her. The woman used her own account credentials to access the files, which it took her about four hours to delete. The files have since been restored. But clearly, this firm could have benefited from an information security package that would have ensured that the administrative assistance did not have authorization to access the files in question.
* The spouse of an employee at Pfizer performed an unauthorized installation of a peer-to-peer (P2P) protocol on a company laptop, which led to a flood of exposed employee data. In attempt to make amends, the company felt obliged to offer the more than 17,000 affected employees a years’ free credit monitoring, at a reported cost of $25,000 (USD). Again, had the company been aware of the potential risks of mobile devices such as laptops, and the need for not just passwords but security features that prevent the download of unauthorized programs or applications, this breach could have been prevented. Pfizer is probably thanking its lucky stars the damage wasn’t more costly, and that customer information was not part of the breach.

What an Information Security System Can Do to Tackle These Risks:

* Strengthen encryption methods, so that even remotely hosted private or confidential data cannot be (so easily) cracked
* Make sure that your information security solution can protect you against structured query language attacks, and that the vendor agrees to provide upgrades that will help protect you against new viruses, trojans, and malware.
* Limit or deny use of vendor-supplied password defaults, to minimize the possibility of password breaches
* With data forensic abilities, information security solutions can respond to threats and analyze events in order to better predict potential future security breaches

Want More Information about How to Find the Best Information Security Software for Your Needs?

* Visit Technology Evaluation Center’s (TEC’s) Information Security Evaluation Center to find out more benefits of implementing info security
* Find out about the ways firewall software can target your security needs
* Download sample request for proposal (RFP) templates for information security and firewall
* Read articles about information security by industry experts

Any comments, questions, or advice about Iiformation security? Let everybody know below.

Surviving Amid “ERP Sharks” as a “Visionary Vendor for the Pragmatic User

Maybe just for the sake of change (or some fun), let me start this blog post as a quiz question. It could go like this:

Can anyone name the mid-market incumbent manufacturing and distribution-oriented enterprise resource planning (ERP) vendor that has a global presence (through regional territory distribution centers and a global reseller network in the United States [US], Canada, Africa, Asia-Pacific, Australia and the United Kingdom [UK]), an install base of 12,000 companies in over 60 countries, and the channel consisting of a few hundred value added resellers (VARs) that contribute to about 85 percent of its revenues?

As some helping tips, the privately-held vendor was incorporated in 1978 in South Africa, and has since grown organically (with no major acquisitions thus far) to about $60 million in revenues. Well, for those (rare few I suspect) that have guessed we are talking here about SYSPRO, may I boldly suggest an audition for the “Jeopardy” (or like) quiz show?

In any case, for nearly 30 years, SYSPRO has been offering a broad range of extended-ERP solutions for small and mid-sized manufacturing and distribution organizations (the sweet spot being the companies with US$10 million to US$250 million in revenues).

I believe that SYSPRO has survived largely unscathed through all the mayhem and carnage in its market via the right combination of product and technologies, plus a successful “partner-dominant” go-to-market strategy that can (and should) be leveraged more aggressively going forward.

Recently, SYSPRO has founded and has been targeting a new information technology (IT) buyer category. For such buyers, it has espoused a strategy called PragmaVision –- a “chasm-crossing” bridge that provides a visionary, yet feasible enterprise applications roadmap for mid-market technology buyers.

As described well in Goeffrey A. Moore’s “Crossing the Chasm” bestseller book, there is a typical gap between early adopters (i.e., visionary buyers, which are somewhat keen to try out new technologies, appreciate product’s potential for competitive advantage and have more influence than innovators, but are also a small market segment) and the early majority (i.e., pragmatists that are a large percentage of the market, and that buy into new technologies only after there is a clear, easy understanding of the benefits by all peers).

SYSPRO believes strongly that these buyers demand a unique combination of robust and scalable yet current technologies that provide near-zero risk and high return on investment (ROI). “PragmaVists,” as SYSPRO calls them, buy into new technologies only after there is a clear, easy understanding of the benefits. They also happen to make “the bulk” of all IT purchases, but they do not love technology for technology’s sake and require an evolutionary and stable strategy to control their “mission critical” systems. They also desire a proven track record from their vendor and demand strong references from people they trust.

In other words, a pragmatic prospective customer wants from its vendor:

1. a vertical market expertise;
2. a strong and integrated product suite;
3. broad but tried-and-true technology options; and
4. a large and satisfied customer base (of peer companies).

While the last criterion is easily met via the above figure of 12,000 installations, to the end of the verticalization demand SYSPRO targets four vertical manufacturing and distribution sectors (and their sub-sectors or micro-verticals):

1. Food;
2. Medical Devices:
3. Electronics/Hi-Tech; and
4. Industrial Machinery/Equipment.

As an example of vertically-oriented functionality, for Medical Device manufacturers, the vendor offers the following capabilities:

* The US Food & Drug Administration (FDA) and other regulatory compliance;
* Lot and serial number traceability;
* Digital signatures;
* Multi level Bills of Material (BOMs) with Routings and Structures;
* Asset utilization; and
* Integrated service and customer relationship management (CRM).

Generally speaking, SYSPRO provides quite a well-rounded enterprise applications choice for mixed-mode manufacturers and distributors. For distribution companies [evaluate this product], SYSPRO offers a strong 24/7, 360-degree view of order and inventory, serial number and lot tracking, order fulfillment, sales analysis and customer service.

For discrete manufacturing companies [evaluate this product], SYSPRO offers real-time, finite production scheduling, shop floor controls and choices of engineer-to-order (ETO) [evaluate this product], assemble-to-order (ATO), made-to-order (MTO) and/or mixed mode manufacturing [evaluate this product]. The product is also applicable for both discrete and process manufacturing [evaluate this product] environments.

The namesake SYSPRO suite is a role- and Web-based, with solutions in the following 11 categories:

1. Financial Management [evaluate this product];
2. Distribution;
3. Manufacturing;
4. Analytics;
5. CRM [evaluate this product];
6. E-Commerce;
7. Advanced Factory Scheduling;
8. Reporting;
9. Regulatory Compliance;
10. Technology Solutions (i.e., to develop custom SYSPRO e.net extension solutions based on a service-oriented and open architecture); and
11. Lean Operations.

SYSPRO also offers a number of vertically-oriented and differentiating capabilities that are not typically found in traditional ERP systems. Such so-called “killer applications” would be:

* Embedded electronic data interchange (EDI);
* Trade Promotion Management;
* Material Yield System (for Cut-to-Size/Shape industries);
* Integrated Forecasting & Inventory Optimization; and
* Visibility & Tracking Functionality (pervasive across the entire suite).


Tuesday, August 4, 2009

How a supplier provides the agility to the systems of company of Post-execution

Agresso saw an occasion unexploited in the vulnerability of the majority of the current solutions of the planning of entrepreneurial resource of par (ERP), which cannot really address the fast change within a company. Basic information on Agresso and its world of businesses of Agresso of product (ABW) 5.5 can be found in the system and the Post-execution of company Agility-No longer necessarily Oxymoron?. For information on the occasion Agresso addresses, sees the agility of Post-execution of the systems of company: An analysis and modeling approaches with the agility Post-execution in systems company.

Part two of the systems and the Post-execution of company of series Agility-No longer one Oxymoron?

We realize that the slogans of platform like data capture unlimited, indicating of principal execution, and alarm of the possibilities for the report and the analysis ; combined the process of businesses, the course of operation, and the report in a model simple and unified ; or financial operation and not - financier of intelligence in a lockstep, a block-model of average Lego little without concrete examples. For this purpose, the best illustration of Agresso of 'capacity of S to incorporate architectural flexibility-without accounts and Master of register of obstruction data-is the possibility of creating a structure of account of register without secondary-registers of the whole. This is contrary with conventional approaches with financier analyzes, who is to create the complex structures of register with several secondary-registers (for example, with a structure of account resembling x/xx/xx/xx/xxx/xxxx/xxx) in order to adapt to all the report and possible datum fields of analysis, with combinations like , of funds , of committee , center of cost , department , assessment , of division , subjective of account and so on. For example, offer of the multiple dimensional possibilities CODED it supporting up to eight segments of variable code length of account, which allow the income and the expenditure detecting a level of analysis strongly detailed, whereas the hierarchies and the devices of groups of account add the practically unlimited pyramidal increase of account to meet the investigation, report, and needs for drilldown (see the financial applications of collaboration of composition).

Agresso 'approach of S to the analysis is rather than almost any financial information can be rolled up via the principal constitutive blocks, beginning with attributes mentioned in the part one of this series. They are the basic building blocks of the application software package of ABW, and form the way in which the system can be adapted to the customer requirements to answer a series of needs for information. In a general way, the attributes define which analysis must be captured on entering transactions, but they can also be organized in hierarchy of report to make it possible information to be looked in various dimensions. The definition of attribute of outside-of-the-box covers all the principal data (in other words, fixed or static head) in the application (such as the category of cost, the type of capital, the direction, the place, the employee, the center of cost, the department, the event, the type of expenditure, the project, the funds, the type of recipient, and the property).

However, the users can add their own definitions to the need to provide the analysis most appropriate to their business. Thus, by using only the standard functionality, the application can be conceived in function, since the validity of the attributes can be limited to certain definite ranges of date, or certain User groups, while the linkages defined between the attributes allow a being of attribute for had by others. Like another improvement, each attribute or single category of analysis can have multiple values. Using this service, it is possible to analyze adjustments separately each standard of accountancy, if wished, to provide another layer of analysis, a responsibility, and an order. Moreover, attributes can be held for the User groups specific or limited to the date defined for the user different extends, which in the manner it is feasible to keep adjustments of end of the year, for example, separated from the temporary adjustments.

Systems and Post-execution of company Agility-No longer one Oxymoron?

In mid-2006, Agresso, one of the five principal suppliers in the whole world of the solutions nobody-power stations of the planning of entrepreneurial resource (ERP), transformed a more aggressive entry into market of the North-American software, where it has currently approximately hundred customers. It was mainly because the supplier saw an occasion unexploited in the vulnerability of the majority of the current solutions of ERP of par, which cannot really address the fast change within a company. With a hearth on organizations of maltreatment in rapid-change the mode, Agresso is deployed in 100 countries, with more than 10.000 sites in 2.400 organizations of user and approximately 1.1 million users.

Part one of the systems and the Post-execution of company of series Agility-No longer one Oxymoron?

For information on the occasion Agresso addresses, sees the agility of Post-execution of the systems of company: An analysis and modeling approaches with the agility Post-execution in systems company.

Agresso North America is a completely had subsidiary company of unit 4 Agresso, based in Sliedrecht (the Netherlands). Agresso 'North-American offices of S are in Victoria, Colombia-British (Canada); Dallas, Texas (US); and Los Angeles, California (US). In short, the head office of Agresso of unit 4 was an international producer of management software of company and a supplier of security software since 1980, when the pilot professionals a dozen joined forces, sharing a passion and a vision to develop the software punt--independent and standard-based which turns around the processes of businesses of the customer. Since then, the unit 4 Agresso became almost 2.300 professionals, and now provides the management software of company to more than 30.000 customers in almost 100 countries. The company was with dimensions on the Dutch Stock Market (EURONET: U4AGR) since 1998. With branches in eleven European countries, the USA, and Canada, and with sales volumes in the whole world, the supplier carried out approximately $450 million (of USD) in the incomes in 2005.

The head office of the 'activities of S are cut in two independently run divisions: management software of company, and Internet and safety, coming respectively from the old group and the old Dutch unit 4 (the fusion of Agresso of supplier of Norwegian ERP of specialist in safety and management software in company in Internet between these two suppliers having taken place in 2000). The division of management software of company develops, of the sales, instruments, and supports the management software of company for management, the support, and the optimization of the processes of businesses, and for the optimization of operational management. The security solutions of sales of division of Internet and safety of the thirds, and provides services for the execution and the maintenance of the data protection. On the market for economic applications, the unit 4 Agresso has a principal international position in the public sector, and the service of the services to the companies, with the world of businesses of Agresso of product of flagship (ABW). This division, which organically raised 16 percent in 2005, also contributed approximately 52 percent of incomes, with 82 percent flat beating seam of incomes of company before interest, tax, depreciation, and damping (EBITDA), and 78 percent of the company of 'employees of S.

Generally Agresso wants to be distinguished on the market by means of a combination from knowledge specialized and detailed from a certain number of markets chosen, with the standardization of the products on the basis of technology tried-and-true which is interoprable with other principal solutions of businesses of company. Thus, since Agresso never envisages to offer only to each one, it shows the specialization in the mediums of the businesses chosen, which mainly eliminates the need for software excessively adapted to the customer requirements. On the one hand, its principal helps of product ABW give to the organizations with the range of the user (in what are the service of the services, the projects, and much of various kinds of reports/ratios of primary customer of importance) the necessary functionality for the management and the order of their processes of businesses, which become of this fact more effective, more transparent, and more easily handy.

ABW is the strategic international continuation of product in the group of Agresso of unit 4, organically established ground to the top (in opposition to being the result of acquisitions of the disparate products and technologies). The homogeneous and organic nature of the continuation provides a communal ground glance and, of feeling and each role has a simple user interface (UI) and unified safety. The characteristics of the product of the innate analytical possibilities, since (opposite with much of packages of par which must be based on the third machines to extract and operate the information of management) it is basically a powerful warehouse of data with possibilities integrated to satisfy the financial needs and not - financial complexes for information. The analytical possibilities are carried out with attributes, which will be explained later this series. For now, it is enough to indicate that its indigenous, model Warehouse Information process of businesses, and models of the delivery of analytics and report are inextricably dependent in a virtual cycle.

With the best power to interlace these three components, Agresso 'strategy of outward journey-with-market of S is dynamic companies nobody-power stations aimed in the semi-market (the supplier 'the soft spot of S) that, because of standardization, consolidation of industry, change of management, and the objectives of businesses of rapid-growth, requires the agility of post-execution. Agresso calls this target BLINC, for undertaken alive IN the change.

ABW found acceptance significant in the private service sector (for example, of the services, the engineering services, the services to the companies, and marketing and of the media) and public sector (local government, government organizations, health care, more raised education, etc). A less known fact is than Agresso has a dominant position in the public sector in Sweden, in Norway, and with RU, whereas it is successful in the public sector of other countries also, though mainly in Europe up to now. The company with the experiment in almost 2.400 organizations nobody-exchanges (of which more half are in the public sector), and persistent attachment with postings to support the challenges and the ambitions of the organizations nobody-exchanges. In 1992, Agresso gained its first customers of phase in the public sectors of Norway, of Sweden, and RU, to reach 250 customers from here 1997. The 2000s early saw its first transborder shared achievements of services and achievements of capital in Oslo and Stockholm (capitals of Norway and Sweden, respectively). Also the projects of the note included achievements for the Ethiopian project of water in Africa, and for the House of Commons with RU.

Agresso learned certainly by its vast experiment that the public sector has very different goals and needs the private sector, since the public sector is mission rather than income-conduit. Its mission is to maintain the public (rather than management and the shareholders), and to provide services to the citizens in the sound jurisdiction-is him via the schools (elementary and higher education), the police force or the firemen, the local government, the roadworks, the health care, or the Social services of leisure or serious. Once to be a train of sauce to the juice with the unlimited funds of taxpayer, today the public sector is posed almost everywhere with the meticulous examination and the painful constraints in terms of limited funds, and to the inalienable or expensive skilful personnel, at the same time as the whole of the inhabitants never requiring again services. One expects that each agency reaches its goals without taxes or tariffs carrying out, and has make more with less attitude with the continuous improvement is the day order. The best example is with RU, where one expects that each public entity measures the execution compared to the nationally given standards. This hope required on line the service of all the governmental services, since such an initiative was looked like crucial in Great Britain 'international competitiveness of S.

More and more, the central governments in the whole world require the use of the computers and the automation of Internet to bind and control the agencies under their authority, and to allow a better enabling of the employees and a better supply of services buildings and of responsibility the local authorities, at the cities, cities, cities, and finally, users (citizens). Moreover, the local authorities, the health care, and the first-aid organizations have an obligation to again bring back to their greater governmental units, if they are states, provinces, cantons, or the central boards of directors (which, alternatively, must publish the results with the electorate). Thus, the civils servant not only must provide online services to their customers, but must also be able to seek, amalgamate, and bring back data with regard to success of their agencies and the statute of their progress towards automation of information. They require of a complete sight of information of management constantly to make effective judgements about the resources and of the performance of service. Consequently, of the applications of software in support of the public sector must be integrated through all the processes, and they must support the internal aspects of the agency or the government organization in its management of the data, people, finances, and her detail mission-like good on public which if, at the end of the day, the advantage of the body of the 'charter of S.

Agresso 'hearth of S on companies nobody-power stations and its major arrangement their inherent business challenges and appropriatenesses carried out the supplier to carry out the higher position of leadership of the market (or close to it) in several European countries. Apart from the public sector, the division of management software of company has a firm situation of market in Europe, as a higher European player (in five the principal world ones) on the market of the management of wallet of project (page by minute), and as a one of the eight principal European players of finances (among the twelve principal ones overall) according to Gartner.

With the last release of ABW, the unit 4 Agresso moves to the international market for the companies and the establishments to the range of the user means and large. In this sector, operation project-based, much of human interaction, and the data flows constantly changing are central. For this purpose, ABW 5.5 is a narrowly integrated multidevise, multilingual, and continuation multicompany of the modules that which include financial management, human resources (hour) and delivers of pay, management of supply, cost of project and invoicing, report and analytics, and automation of process of businesses (BPA), with and the management information management of document to its core. The idea behind the product is to authorize all the departments and employees (since in people and of the organizations service-exchanges, of the departments are often of small companies of their own boss, with the deputy responsibility), and to facilitate the transformation of businesses to the need. The result should be decision making improved in various departments, giving of this fact to each one more hour of thinking and of acting strategically. On one moreover high level, the product controls the following processes of its customers of target:

* report-with-record
* rent-with-withdraw
* order-with-money cash
* budget-with-envisage
* obtain-with-pay

As for the genesis of product, 1987 saw the introduction of the functionality of core, the financial management, which contributes always approximately 50 percent of income of licence. Possibilities of hour were presented in 1995. The posterior years saw the introduction of the functionality of page per minute (see the management of wallet of project for organizations of maltreatment: Establishing bond between the management of the projects and the executions), which contributes currently roughly a quarter of incomes of licence of ABW. The 2000s early saw improvements to support deputy responsibilities and decentralized accountancy; the first integration of market; and support in a proactive way of work (constant housing including change).

The supplier had taken more step in internationalization of product, in terms of localization, languages, and whole of police force, by which Asia, the Central Europe, and Europe east are on the screen of radar. Its offer is currently available in nineteen languages. For already provided localizations, had in support of Unicode, a simple centralized installation of Agresso will provide local statutory conditions required to each customer. The company will probably compete with of this fact in the space of semi-market ($50 million to $1 billion organizations [USD], although it can measure to the top with the need), straightforwardly the suppliers traditional in this space, such as the software of Lawson, the systems of Deltek (see the additions of welcomes of supplier of management software of company), the solutions of businesses of Microsoft (put-band), SAP, and Oracle. In some areas, healthy competition can also come from the tastes of CODED, Maconomy, the exact iScala of software (see the total aspirations of software), of Epicor, etc

While ABW developing 5.5. , Agresso tried to concentrate more on enabling and alignment of the people. For this purpose, it there had significant investments of process of hour such as recruitment and the deployment, and in the improved user interface (UI), as in the delivery of information via the desktop machines executtive and increased the report and the tools for analysis. As for the hearth on the mechanisms of linearization of work place and performance of service, the supplier ensured himself that the course of operation was allowed in as much process of businesses like possible, with integration to include more data seizes real-time, and with the facility of improved use and the deployment. Finally and especially, for the quality of information, and the perfection, speed, and the relevance of the measurement of execution, the hearth was on financial possibilities and of project of order (such as the project estimating, saving, and far-sighted) and the intelligence in the form of the opinion and alarms, by its new possibilities of IntellAgent.

Looking at other angle, Agresso wanted the future-proof the offer and lowers its total costs of property (operating burnup) via the considerations such as improved architecture, modellers of course of operation, data models, independence gantry, interworking, Unicode, action to avoid personalization, glance and feeling, and so on. The supplier also wanted to help of the customers to embrace changes by modelling their organization better, and the economic model, the model of the delivery of information (report) and the process model are thus unified, and as a whole act. A better enabling of the people should come via the orientation from role, of, simpler order, facility of use, the adaptable proactive supply courses of operation of information, and an important level of personalization. Finally and especially, the widened participation of user come from the participation in an encouraging way of the external assistance (citizens, students, etc), distributed the responsibility, and the corporative government.

The platform of technology of Agresso uses open standards, and allows him with the personnel to increase their preferred choice of the components popular and easily available of industry, rather than being locked in the solutions of technology which could be today with the mode but out of the favour soon. Agresso offers architecture extensible based on WEB of N-line (with a layer given, the layer of logic of businesses, the layer of extraction, and lay down it presentation) which is in conformity with the framework of Microsoft .NET and Extensible Markup Language (XML) - Division of data based, and is thus in agreement with concepts directed towards the services of architecture (SOA). (For more information, to see the evolution of architecture: Central processing units with orientated architecture towards the services). The platform of technology increases industry and the open standards popular and easily available compared to the databases, with the support of Oracle, of the waiter of Microsoft SQL, and MySQL. It also supports a customer (rich) smart as well as a customer (thin) based on the WEB (for the deployment of outpost), or a mixture of both. The logic of businesses is separately maintained centrally and UI, so that the web client are updated and returned without manual intervention, of this fact also allowing the independence of gate and navigator. The web client is strongly configurable, allowing a range of possibilities of self-service.

Technical architecture is in conformity through a broad range of the industrial standards for the interface, interworking, and integration. Additional possibilities are provided via the blocked access unified to information via the services of Web (for the centralized access of corporation to ABW via the gates, for example). This simplifies integration with other systems, and provides the bottom for future developments, such as the integration gantry-based basically with all the platforms of intergiciel (IBM including WebSphere, Microsoft SharePoint, waiter of application of Oracle, or BEA WebLogic). When it comes to the deployment, no configuration (recording, files of initialization [INI], or arrangements of environment) is not necessary on the customer, due to the centralized possibilities of management and deployment, although it role-based there, safety-occupied presentation. Safety is integrated into all the levels, starting with an opening (unified) simple with the authentification of name of user and password and the authentification integrated by Microsoft Windows. The authentification could imply the numerical certificates customer-based, the authentification of digital fingerprint (biometrics), the infrastructure of public key (PKI), and the support of smart card, and is open to integrate rather simply with other methods of authentification. All the achievable ones (as with the prolongations of .dll or .exe) have a digital signature to avoid that to notch or any other handling not - authorized.