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June 2015 KENANDY’S NEXT GENERATION ERP: ENABLING GROWTH, POWERING INNOVATION What do Star Trek and Enterprise Resource Planning (ERP) have in common? Apart from each being a bold adventure, both have experienced a rebirth as a next generation. In recent reports, Mint Jutras describes the next generation of ERP in terms of new technology that enables: new ways of engaging with ERP custom configuration without programming more innovation better integration The next generation of Star Trek continued the original journey but was faster, more technologically enabled and more in tune with the evolving needs of the galaxy. When Sandy Kurtzig came out of retirement in 2010 and founded Kenandy, she may not have been thinking about Star Trek but she clearly wanted to explore new worlds in her entrepreneurial journey and boldly go where no ERP for manufacturing has gone before. Using new technology, Kenandy designed its new ERP from scratch with a singular purpose in mind: to deliver a robust solution quickly that would also keep pace with the rapidly changing world in which we live. DOES KENANDY QUALIFY AS NEXT GENERATION ERP? Not every ERP solution on the market today qualifies as a “next generation” ERP. The depth and breadth of functionality has increased over the past three decades, which makes it harder for a new entrant to compete in the market. The “basics” are table stakes, but they aren’t so basic anymore, particularly in the world of manufacturing where Kenandy competes. While other industries might be able to survive with back office functionality that is limited to accounting or human resource management, manufacturing requires a much broader set of features and functions. Indeed, ERP for manufacturing has evolved from material requirements planning (MRP) to manufacturing resource planning (MRP II), to the full operational and transactional system of record of the business (ERP). Even the manufacturing of a simple product can be quite complex when you run lean, but strive to be responsive to your demanding customers. Any ERP vendor today must compete on functionality, but that is not what makes a solution “next generation.” It is the underlying technology and the Data Source In this report, Mint Jutras references data collected from its 2015 Enterprise Solution Study, which investigated goals, challenges and status and also benchmarked performance of enterprise software implementations used to actually run a business. At this time almost 400 responses have been collected from companies of all sizes, across a broad range of industries.. Definition of ERP Mint Jutras defines ERP as an integrated suite of modules that provides the operational and transactional system of record for your business. However most ERP solutions today do much more.

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Page 1: Kenandy Next Generation ERP Finalclouderp.kenandy.com/rs/904-USR-691/images/wp... · Kenandy’s!Next!Generation!ERP:!Enabling!Growth,!Powering!Innovation! Page2!of!14! power!itdelivers.!But!technology!andfunctionality!are!closely!related,!

 

 

            June  2015  

 

 

KENANDY’S  NEXT  GENERATION  ERP:  ENABLING  GROWTH,  POWERING  INNOVATION  

What  do  Star  Trek  and  Enterprise  Resource  Planning  (ERP)  have  in  common?  Apart  from  each  being  a  bold  adventure,  both  have  experienced  a  rebirth  as  a  next  generation.  In  recent  reports,  Mint  Jutras  describes  the  next  generation  of  ERP  in  terms  of  new  technology  that  enables:  

• new  ways  of  engaging  with  ERP  • custom  configuration  without  programming  • more  innovation  • better  integration  

The  next  generation  of  Star  Trek  continued  the  original  journey  but  was  faster,  more  technologically  enabled  and  more  in  tune  with  the  evolving  needs  of  the  galaxy.  When  Sandy  Kurtzig  came  out  of  retirement  in  2010  and  founded  Kenandy,  she  may  not  have  been  thinking  about  Star  Trek  but  she  clearly  wanted  to  explore  new  worlds  in  her  entrepreneurial  journey  and  boldly  go  where  no  ERP  for  manufacturing  has  gone  before.  Using  new  technology,  Kenandy  designed  its  new  ERP  from  scratch  with  a  singular  purpose  in  mind:  to  deliver  a  robust  solution  quickly  that  would  also  keep  pace  with  the  rapidly  changing  world  in  which  we  live.  

DOES  KENANDY  QUALIFY  AS  NEXT  GENERATION  ERP?  Not  every  ERP  solution  on  the  market  today  qualifies  as  a  “next  generation”  ERP.  The  depth  and  breadth  of  functionality  has  increased  over  the  past  three  decades,  which  makes  it  harder  for  a  new  entrant  to  compete  in  the  market.  The  “basics”  are  table  stakes,  but  they  aren’t  so  basic  anymore,  particularly  in  the  world  of  manufacturing  where  Kenandy  competes.    

While  other  industries  might  be  able  to  survive  with  back  office  functionality  that  is  limited  to  accounting  or  human  resource  management,  manufacturing  requires  a  much  broader  set  of  features  and  functions.  Indeed,  ERP  for  manufacturing  has  evolved  from  material  requirements  planning  (MRP)  to  manufacturing  resource  planning  (MRP  II),  to  the  full  operational  and  transactional  system  of  record  of  the  business  (ERP).  Even  the  manufacturing  of  a  simple  product  can  be  quite  complex  when  you  run  lean,  but  strive  to  be  responsive  to  your  demanding  customers.  

Any  ERP  vendor  today  must  compete  on  functionality,  but  that  is  not  what  makes  a  solution  “next  generation.”  It  is  the  underlying  technology  and  the  

Data Source In  this  report,    Mint  Jutras  references  data  collected  from  its  2015  Enterprise  Solution  Study,  which  investigated  goals,  challenges  and  status  and  also  benchmarked  performance  of  enterprise  software  implementations  used  to  actually  run  a  business.  

At  this  time  almost  400  responses  have  been  collected  from  companies  of  all  sizes,  across  a  broad  range  of  industries..  

 

Definition of ERP Mint  Jutras  defines  ERP  as  an  integrated  suite  of  modules  that  provides  the  operational  and  transactional  system  of  record  for  your  business.  However  most  ERP  solutions  today  do  much  more.  

 

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power  it  delivers.    But  technology  and  functionality  are  closely  related,  because  it  is  the  power  of  the  technology  platform  that  allows  solution  providers  to  deliver  more  features  and  functions  faster.  Selecting  the  right  platform  on  which  to  build  ERP  is  therefore  critical.  

While  the  platform  may  not  be  immediately  visible  to  the  end  user  of  the  software,  it  is  dangerous  to  ignore  it  and  the  power  of  technology.  You  probably  never  knew  how  the  USS  Enterprise  achieved  warp  speed,  but  you  knew  that  it  could.  You  didn’t  know  how  the  transporter  beam  worked,  but  you  knew  what  happened  when  Captain  Kirk  said,  “Beam  me  up,  Scottie.”  While  neither  were  the  only  ways  to  get  from  point  A  to  point  B,  both  added  speed  and  efficiency.    

While  Kenandy  chose  to  build  an  ERP  solution  from  a  clean  sheet  of  paper,  in  order  to  compete,  it  needed  to  find  a  way  to  add  both  speed  and  efficiency  to  the  development  process.  Kenandy  chose  to  build  on  the  Salesforce  Platform  to  deliver  both.  And  in  doing  so,  its  customers  also  benefit  from  speed  and  simplicity,  which  together  yield  efficiency.    

ERP  THAT  EMPOWERS  PEOPLE  Speed  and  efficiency  are  prerequisites  for  delivering  on  the  first  element  of  next  generation  ERP:  providing  new  ways  of  engaging  with  enterprise  software.    

Traditionally,  users  have  engaged  with  ERP  through  a  hierarchical  series  of  menus,  which  require  at  least  a  rudimentary  knowledge  of  how  data  and  processes  are  organized.  Hopefully  this  organization  reflects  how  the  business  processes  and  the  enterprise  itself  are  structured,  but  with  a  hierarchy  of  menus,  there  are  no  guarantees  that  navigation  is  intuitive  or  that  business  processes  are  streamlined  and  efficient.  

When  processes  within  ERP  are  clumsy  and  inefficient,  employees  spend  more  time  trying  to  work  around  the  system,  rather  than  working  with  it.    

Figure  1:  What  happens  when  ERP  is  hard  to  use?  

 Source: Mint Jutras 2015 Enterprise Solution Study

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Our  2015  Enterprise  Solution  Study  asked  survey  participants  what  was  most  likely  to  be  their  response  when  ERP  is  hard  to  use  (Figure  1).  Cynics  like  to  refer  to  ERP  not  as  “enterprise  resource  planning,”  but  as  “Excel  runs  production.”  We  found  this  to  be  reality  for  23%  of  our  survey  population,  although  that  percentage  may  be  understated  as  an  additional  23%  would  seek  to  replace  the  solution,  and  let’s  face  it,  that  doesn’t  happen  overnight.  In  the  meantime  we  suspect  more  than  a  few  resort  back  to  the  universal  comfort  tool:  Excel.  But  across  the  board,  we  surmise  that  all  of  the  reactions  shown  in  Figure  1  negatively  impact  efficiency  and  productivity.  

Sandy  Kurtzig  and  her  Kenandy  team  strive  for  a  different  goal,  where  ERP  empowers  everyone  in  the  organization.  For  that  to  happen,  you  need  to  reach  both  up  and  down  the  corporate  ladder.  

Traditionally,  a  small  percentage  of  employees  of  any  company  ever  put  their  hands  directly  on  ERP,  and  this  select  group  almost  never  included  top-­‐level  executive  decision-­‐makers.  But  the  speed  of  required  decision-­‐making  and  the  consumerization  of  IT  are  making  this  unacceptable.    

While  the  percentage  of  employees  with  direct  access  to  ERP  used  to  be  very  small,  Mint  Jutras  research  shows  that  today  that  percentage  is  holding  steady  at  about  50%,  and  this  does  not  include  those  who  have  access  only  through  self-­‐service  applications  for  functions  like  requested  paid  time  off  or  benefits  administration.    

We  are  also  seeing  evidence  of  increased  executive  engagement.  While  in  the  past  it  was  very  unusual  for  top-­‐level  executives  to  lay  their  hands  on  ERP,  the  Mint  Jutras  2013  ERP  Solution  Study  signaled  a  turning  point  and  our  2014  study  showed  this  trend  continuing,  with  a  30%  jump  in  executives  with  full  access  to  ERP.  In  2015  we  see  this  trend  continuing  with  the  majority  (74%)  of  all  respondents  indicating  that  all  executives  have  direct  access,  but  not  all  executives  are  equally  likely  to  fully  engage.  

Apparently  not  all  ERP  solutions  have  made  the  transition  to  being  truly  easy  to  use.  Although  those  that  are  delivered  in  the  cloud  as  software  as  a  service  (SaaS)  are  clearly  ahead  of  the  game  in  terms  of  luring  top-­‐level  executives  to  fully  utilize  this  new-­‐found  power  (Figure  2).  With  the  benefit  of  “access  anytime,  from  anywhere,”  those  running  SaaS  solutions  are  16%  more  likely  to  directly  connect  all  of  their  executives.  And  executives  at  companies  with  SaaS  solutions  are  56%  more  likely  to  engage  with  ERP  on  a  regular  basis.  

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Figure  2:  Executive  Access  to  ERP  

 Source: Mint Jutras 2015 Enterprise Solution Study

So  how  does  Kenandy  empower  people?  By  making  software  that  is  easy  to  use.  But  “ease  of  use”  means  different  things  to  different  people.  Recognizing  this,  Mint  Jutras  asks  study  participants  to  select  the  top  three  factors  that  most  influence  “ease  of  use.”  With  all  the  talk  of  the  impact  of  the  millennial  generation,  Mint  Jutras  inserted  a  demographic  question  in  our  study  this  year  that  allows  us  to  categorize  each  participant  by  generation.  While  we  have  been  asking  what  “ease  of  use”  means  for  several  years  now,  proving  consistently  that  efficiency  and  productivity  trumps  what  some  vendors  call  “beautiful  software,”  this  segmentation  gives  us  a  new  perspective.    

Figure  3:  “Top  3”  Factors  Influencing  Ease  of  Use  

Source: Mint Jutras 2015 Enterprise Solution Study

While  efficiency  (minimizing  time  to  complete  tasks)  still  takes  the  lead  for  all  three  generations,  it  does  so  with  a  wider  margin  in  the  Baby  Boomer  generation  (Figure  3).  “Intuitive  navigation”  goes  hand  in  hand  with  minimizing  

Defining the Generations

üBaby  Boomers:  born  between  1943  and  1964  

ü  Generation  Xers:  1965  to  1981    

üMillenial:  born  in  1982  or  after  

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time  to  complete  tasks  for  the  Baby  Boomer,  who  is  quite  accustomed  to  having  to  hunt  and  peck  for  data  and  answers,  sometimes  in  vain,  in  early  systems.  But  “beautiful  software”  (a  visually  appealing  user  interface)  was  virtually  tied  for  first  for  Millennials,  who  take  intuitive  navigation  for  granted.  This  generation  has  probably  never  used  software  that  required  a  user  manual.  While  Baby  Boomers  and  Gen  Xers,  having  worked  around  weaknesses  in  legacy  solutions  for  year,  can  get  the  job  done,  however  inefficiently,  Millennials  are  quite  dependent  on  technology.  This  makes  the  negative  impact  on  the  business  far  worse.  

While  Baby  Boomers  are  most  likely  to  approve  the  final  decision  on  software,  all  generations  are  likely  to  be  involved  in  the  evaluation  and  ultimately  all  will  be  (should  be)  users.  So  it  is  important  to  appeal  to  all  generations.    

Kenandy  relies  on  the  Salesforce  Platform  to  deliver  a  user  experience  that  is  appealing  to  all.  Born  in  the  cloud,  it  is  appealing  to  the  younger  work  force  that  has  grown  up  on  the  Internet.  And  in  making  the  solution  appealing  to  the  Millennials,  it  also  makes  it  easier  for  the  older  crowd  to  use.  It  recognizes  there  are  “mobile”  and  “social”  users  as  well,  both  of  which  are  addressed  by  the  platform.  

The  Salesforce  Platform  provides  a  simple  user  interface,  using  a  single  screen  approach.  Its  popularity  with  (non-­‐technical)  sales  teams  (using  Salesforce)  is  a  tribute  to  this  simplicity.  No  sales  person  is  going  to  read  a  manual.  If  it  is  not  intuitive,  it  doesn’t  get  used.  And  yet  more  and  more  companies  today  are  successful  in  requiring  the  use  of  sales  force  automation  (like  Salesforce)  as  a  prerequisite  for  getting  paid.  No  opportunity  in  the  system  means  no  commission.  

And  yet  ERP  is  not  sales  force  automation.  While  selling  is  not  necessarily  easy,  the  process  of  managing  contacts  and  opportunities  is  far  simpler  than  processes  like  planning,  scheduling  and  production  or  managing  cash  flow.  So  while  ERP  can  inherit  features  such  as  web-­‐based  access  and  intuitive  navigation,  it  must  go  further  than  this  to  really  provide  new  ways  of  engaging  a  very  diverse  audience.  Different  disciplines  and  different  types  of  users    -­‐  and  yes,  even  different  generations  expect  different  experiences.  Those  who  spend  the  day  heads  down  doing  data  entry  require  the  ability  to  minimize  clicks  and  tabs,  search  extensively  and  even  type  ahead.  This  type  of  audience  might  prefer  what  Kenandy  refers  to  as  a  “grid  design.”    

On  a  different  note,  a  sales  or  support  person  out  in  the  field,  communicating  through  a  mobile  device,  needs  to  maximize  the  value  of  the  limited  real  estate  on  a  small  screen,  but  still  have  immediate  access  to  a  full  view  of  a  customer,  including  history.  And  an  executive  needs  a  customized  collection  of  key  performance  indicators  (KPIs)  displayed  graphically,  which  takes  advantage  of  touch  technology  to  drill  down  to  the  detail.  

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This  was  a  particularly  important  factor  to  Scott  Fetzer  Electrical  Group  (SFEG)  in  selecting  a  new  solution.  France  Power  Solutions,  Northland  Motor  Technologies  and  Kingston  Products  were  each  part  of  Scott  Fetzer,  a  Berkshire  Hathaway  company,  before  they  were  merged  into  one  consolidated  enterprise.  The  resulting  company  offers  a  diverse  set  of  products,  used  in  a  broad  array  of  applications,  from  lighting  signs  to  powering  devices  that  range  from  medical  equipment  to  household  appliances.  Prior  to  the  consolidation,  each  had  been  using  versions  of  on-­‐premise  ERP  that  was  difficult  to  use,  difficult  to  change  as  business  needs  evolved,  and  failed  to  deliver  the  visibility  needed.  If  the  newly  formed  organization  was  to  compete  effectively  it  would  need  a  modern,  “next  generation”  ERP.    

SFEG  chose  Kenandy  to  fill  the  bill.  “We  were  up  and  running  on  Kenandy  four  months  after  signing  the  initial  agreement,”  said  Rob  Goldiez,  General  Manager  of  SFEG.  Because  the  old  system  had  been  hard  to  use,  only  a  few  key  people  knew  how  to  update  data.  “People  tended  not  to  use  it  and  the  data  quickly  became  out  of  date.  Today,  even  those  who  resist  change  are  finding  it  hard  to  resist  how  much  faster  and  more  efficiently  Kenandy  lets  them  do  their  jobs.”  

Primus  Power,  another  Kenandy  customer,  had  a  similar  experience.  A  producer  of  innovative  energy  storage  solutions  based  on  advanced  battery  technology,  the  venture-­‐backed  company  is  based  in  Hayward,  California.  Mark  Collins,  Senior  Director  of  Operations,  explained  that  the  need  for  usability  was  so  important  to  the  company,  “We  would  have  gladly  given  up  depth  of  functionality  for  usability  if  we’d  had  to.  Fortunately,  with  Kenandy,  we  didn’t  have  to  give  up  anything.  By  the  time  we  realized  we  needed  an  ERP  system,  it  was  already  too  late,  so  the  speed  of  implementation  was  critical.  Getting  users  up  and  running  was  fast  and  easy.  Kenandy  is  really  intuitive.  It  is  easy  to  navigate  and  use.  The  demos  were  so  clear  we  didn’t  need  to  spend  a  lot  of  time  on  training.”  

The  Salesforce  Platform  also  enables  collaboration  by  connecting  people  to  the  business  and  to  information.  For  years,  salesforce.com  made  a  big  deal  out  of  its  “social”  capabilities  but  the  manufacturing  community  is  just  now  appreciating  social.  While  a  hot  topic  among  pundits  and  industry  “influencers,”  the  perceived  value  was  lost  on  many,  particularly  in  manufacturing.  Traditionalists  distinguish  between  a  business  event  and  a  social  event,  between  a  business  conversation  and  a  social  chat,  between  a  business  colleague  and  a  friend  or  social  acquaintance.  Many  didn’t  “get”  that  social  is  really  just  shorthand  for  new  and  improved  ways  of  getting  and  staying  informed  in  a  collaborative  way.  And  who  doesn’t  want  that?  

Primus  Power  is  also  benefiting  from  Kenandy’s  mobile  and  social  capabilities.  It  uses  Salesforce  Chatter,  integrated  with  Kenandy,  to  foster  communication  in  clarifying  questions  on  specific  documents  such  as  purchase  orders  and  invoices.  Mark  Collins  adds,  “I  no  longer  have  to  phone  the  buyer  asking  if  he  

“Even  those  who  resist  change  are  finding  it  hard  to  resist  how  much  faster  and  more  efficiently  Kenandy  lets  them  do  their  jobs.”  

Rob  Goldiez,  General  Manager  of  SFEG  

“We  would  have  gladly  given  up  depth  of  functionality  for  usability  if  we’d  had  to.  Fortunately,  with  Kenandy,  we  didn’t  have  to  give  up  anything.”  

Mark  Collins,  Senior  Director  of  Operations,  

Primus  Power  

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has  placed  an  order,  or  bug  the  warehouse  guy  to  see  if  a  delivery  has  arrived.  All  of  us  can  see  what’s  happening  in  real  time.”    

And  Primus  Power  is  also  taking  advantage  of  Kenandy  on  mobile  phones  and  tablets  on  the  manufacturing  floor  and  in  the  warehouse.  

By  building  an  ERP  on  the  Salesforce  Platform,  these  social  and  mobile  aspects  are  built  in.  Kenandy  doesn’t  need  to  use  its  own  precious  development  resources  for  that.  It  can  concentrate  on  what  it  knows  best:  ERP  for  product  companies.  And  yet,  in  spite  of  its  collective  knowledge  and  expertise,  it  is  important  not  to  develop  a  solution  like  ERP  in  an  ivory  tower.  And  therefore  Kenandy  needs  to  actively  engage  not  only  with  its  prospects,  but  also  its  customers.  For  that  type  of  engagement,  it  needs  to  build  an  active  community.  

This  was  something  Sandy  Kurtzig’s  prior  company  was  very  good  at  –  so  good  in  fact  that  the  MANMAN  (ASK’s  product)  community  has  outlived  the  company  and  lives  on  even  today.  Can  Kenandy  replicate  this  kind  of  success?  Odds  are  in  favor  of  doing  just  that.  The  MANMAN  community  was  built  on  word  of  mouth,  local  and  regional  user  groups  and  an  annual  conference.  Not  only  does  Kenandy  hope  to  be  able  to  deliver  a  full  customer  list  for  references  (as  ASK  did  for  many  years),  but  also  has  many  more  tools  at  its  disposal  to  support  that  community,  including  a  one-­‐stop  customer  portal  (called  the  Kenandy  Community).  Its  ability  to  engage  with  the  community  either  as  a  whole,  or  personally,  one  customer  at  a  time,  has  never  been  more  technology-­‐enabled.  

PERSONALIZING  WITH  CLICKS  NOT  CODE  

The  Kenandy  team  has  decades  of  experience  with  both  ERP  and  manufacturing.  It  knows  how  inherently  complex  that  world  can  be.  While  all  manufacturers  face  similar  challenges,  they  also  have  unique  ways  of  dealing  with  those  challenges,  and  in  doing  so,  actively  seek  differentiation  in  their  individual  markets.  What  company  today  doesn’t  believe  it  is  unique  in  some  way?    

Being  different  used  to  mean  customization  and  with  traditional,  older  generation  ERP,  this  meant  programming  changes,  mucking  around  in  source  code  and  building  barriers  to  upgrade  and  innovation.  To  qualify  as  a  “next  generation”  ERP,  most,  if  not  all  of  this  customization  must  be  done  without  ever  touching  a  line  of  source  code.  Configuration,  tailoring  and  personalization  should  replace  customization.  

Kenandy  likes  to  say  it  can  personalize  with  “clicks,  not  code.”  This  means  adding  fields,  changing  workflows,  rearranging  the  screens.  This  is  an  absolute  necessity  in  a  Kenandy  environment  because  it  is  delivered  only  as  multi-­‐tenant  software  as  a  service  (SaaS).  In  a  multi-­‐tenant  environment,  multiple  

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companies  use  the  same  instance  of  (hosted)  software.  Of  course,  data  is  protected  from  access  by  other  companies  (tenants),  but  any  “customization”  is  generally  delivered  through  configuration  settings,  which  vary  per  company.    Mint  Jutras  research  finds  multi-­‐tenancy  is  one  of  those  features  that  most  end  users  don’t  understand  and  don’t  necessarily  care  about.  But  they  do  care  about  the  benefits  it  delivers:  massive  scalability  and  flexibility  of  an  elastic  cloud.  But  they  are  unwilling  to  sacrifice  their  ability  to  be  unique.    

So  what  kind  of  customization  might  be  required  to  satisfy  this  requirement?  Mint  Jutras  posed  this  question  to  survey  participants.  Respondents  were  allowed  to  select  any  or  all  of  the  options  presented.  Their  responses  are  shown  in  Figure  4.  

Figure  4:  What  level  of  customization  do  you  need?  

 Source: Mint Jutras 2015 Enterprise Solution Study

Interestingly  enough,  the  vast  majority  of  these  requirements  can  be  satisfied  by  a  next  generation  ERP  solution  without  ever  touching  a  line  of  code.  Kenandy’s  architecture  allows  you  to  modify  business  processes  and  the  user  experience,  including  screens,  dashboards  and  even  the  device.  This  doesn’t  require  programmers.    

Primus  Power  appreciates  how  fast  and  easy  it  is  for  users  to  tweak  the  system  without  coding.  For  example,  they  designed  their  own  shortage  report  to  show  the  data  they  wanted,  including  room  for  notes  and  links  to  the  purchase  order.  “So  now  the  buyer  doesn’t  have  to  keep  repeating  the  same  information  and  sending  endless  emails,”  said  Mark  Collins.  “We’ve  been  able  to  quickly  gain  this  kind  of  efficiency  because  Kenandy  is  user-­‐driven  rather  than  developer-­‐driven.”  

“We’ve  been  able  to  quickly  gain  this  kind  of  efficiency  because  Kenandy  is  user-­‐driven  rather  than  developer-­‐driven.”  

Mark  Collins,  Senior  Director  of  Operations,  

Primus  Power  

Multi-tenant versus Single-tenant SaaS

Multi-­‐tenant  SaaS:  Multiple  companies  use  the  same  instance  of  hosted  software;  configuration  settings,  company  and  role-­‐based  access  personalize  business  processes  and  protect  data  security.    

Single-­‐tenant  (or  Multi-­‐instance)  SaaS:  Each  company  is  given  its  own  instance  of  the  (hosted)  software,  but  may  share  common  services,  such  as  an  integration  platform,  and  security.  

 

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Simplicity  and  this  “Do  It  Yourself”  aspect  were  also  among  the  primary    reasons  Blue  Clover  Devices  selected  Kenandy.  These  features  became  obvious  to  Blue  Clover  during  its  trial  run  of  the  system.  

“I  immediately  saw  how  easy  it  is  to  add  and  extend  capabilities  with  Kenandy,”  said  Pete  Staples,  President  and  Co-­‐founder.  “I  was  convinced  that  this  was  something  we  could  manage  pretty  much  on  our  own,  and  that  had  a  strong  appeal  to  us.”    

Since  implementing  Kenandy,  Blue  Clover  has  found  it  easy  to  add  its  own  customized  objects,  including  samples,  test  reports  and  regulatory  certificates.  These  new  objects  are  not  only  connectable  and  searchable,  but  also,  all  customizations  are  protected  when  Kenandy  does  its  upgrades.  

Staples  goes  on  to  say,  “Kenandy  is  like  Legos  whereas  the  traditional  ERP  systems  are  more  like  a  stack  of  lumber  and  blueprints.  With  Kenandy,  it’s  fundamentally  easier  to  put  things  together  and  make  them  work.”  

Kenandy  also  allows  you  to  extend  the  solution  with  your  own  added  applications  built  on  the  platform  or  purchase  pre-­‐built  extensions  from  the  Salesforce  AppExchange.    

MANAGING  CHANGE  BEYOND  THE  INITIAL  IMPLEMENTATION  While  this  level  of  personalization  and  configuration  is  important  when  Kenandy  is  first  being  implemented,  it  becomes  even  more  so  as  life  goes  on.  Today’s  product  companies  are  bombarded  with  change,  whether  as  a  result  of  growth,  regulatory  requirements  or  just  the  desire  for  continuous  improvement.  Change  doesn’t  halt  once  you  implement  ERP.  In  fact,  the  need  for  change  may  accelerate  as  new  functionality  and  new  technology  opens  doors  for  growth  and  improvement.  

And  yet  managing  change  has  traditionally  been  an  obstacle  to  achieving  the  goals  of  an  ERP  solution.  Mint  Jutras  has  found  this  to  be  one  of  the  toughest  challenges  with  the  majority  (73%)  rating  it  as  moderately  to  extremely  challenging.  

The  ability  to  handle  this  kind  of  change  was  the  primary  reason  Big  Heart  Pet  Brands  (formerly  Del  Monte  Foods,  now  part  of  the  J.M.  Smucker  Company)  selected  Kenandy  to  support  its  acquisition  of  Natural  Balance  Pet  Foods.  “One  of  the  main  reasons  we  selected  Kenandy  was  that  we  wanted  a  flexible  system  that  easily  adapts  to  business  changes,  such  as  acquisitions,  while  also  offering  enterprise-­‐class  capabilities,”  said  David  McLain,  Senior  Vice  President,  Chief  Information  Officer  and  Procurement  Officer,  Big  Heart  Pet  Brands.  

Kenandy  attributes  this  post-­‐implementation  agility  to  the  flexibility  and  extensibility  of  the  platform  and  Stuart  Kowarsky,  Vice  President  of  Operations  at  Natural  Balance  seems  to  be  a  big  fan.  “At  Natural  Balance  and  in  our  

“One  of  the  main  reasons  we  selected  Kenandy  was  that  we  wanted  a  flexible  system  that  easily  adapts  to  business  changes,  such  as  acquisitions,  while  also  offering  enterprise-­‐class  capabilities.”  

David  McLain,  Senior  Vice  President,  CIO  and  Procurement  

Officer,  Big  Heart  Pet  Brands  

“I  immediately  saw  how  easy  it  is  to  add  and  extend  capabilities  with  Kenandy.  I  was  convinced  that  this  was  something  we  could  manage  pretty  much  on  our  own,  and  that  had  a  strong  appeal  to  us.”  

Pete  Staples,  President  and  Co-­‐founder,  Blue  

Clover  Devices  

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corporate  systems,  we’re  replacing  a  patchwork  of  applications  with  one  unified,  extensible  solution  that  will  grow  and  scale  with  Big  Heart's  needs.”    

But  Kenandy’s  ability  to  accommodate  change  is  not  only  attributable  to  the  platform,  but  also  to  how  it  has  architected  the  solution  on  top  of  that  platform,  with  a  unified  data  model  that  takes  full  advantage  of  the  power  of  business  objects.      

“WIDE-­‐BODY”  OBJECTSTM  Legacy  ERP  solution  data  models  consisted  of  an  extensive  number  of  tables.  Joining  those  tables  together  reflected  relationships  between  data.  For  example,  a  sales  order  header  table  might  need  to  be  joined  to  line  items.  In  turn,  those  line  items  needed  to  be  joined  with  the  products  being  delivered,  and  any  number  of  associated  tables  for  validation,  like  units  of  measure,  product  categories,  inventory  locations,  planning  and  replenishment  codes,  etc.  The  sales  order  also  had  to  be  joined  with  customers,  shipments,  and  invoices.  It  didn’t  take  long  for  the  number  of  tables  and  joins  to  proliferate  almost  exponentially,  making  a  change  to  any  one  element  a  labyrinth  of  changes.    

Kenandy  replaces  that  myriad  of  tables  with  a  unified  data  model  called  ”Wide-­‐Body”  Objects.TM  These  objects  will  sound  quite  familiar:  orders,  invoices,  customers,  etc.  But  by  packing  lots  of  information  into  each  object,  it  significantly  reduces  the  number  that  needs  to  be  managed.  Kenandy  has  around  100  Wide-­‐Body  Objects.    

For  example,  invoice,  credit  memo  and  adjustments  share  similar  data  structures  and  therefore  can  be  expressed  as  a  single  object,  distinguished  by  embedded  fields.  Adding  fields  is  a  simple  process  and  only  has  to  be  done  in  one  place.  Changing  workflow  steps  is  equally  simple  because  the  workflow  connects  directly  to  the  objects.  Also,  these  Wide-­‐Body  Objects  are  reusable  and  it  is  a  simple  process  to  make  these  changes  by  pointing  and  clicking.  No  database  administrator  (DBA)  required.  

This  simplicity  is  the  result  of  Kenandy’s  addition  of  new  dimensions  to  the  objects  for:  

1. Access:  The  objects  themselves  contain  information  about  their  relationship  to  other  objects.  So  when  you  access  a  sales  order,  for  example,  it  “knows”  about  the  products  and  the  customer  and  all  the  other  related  data.  This  intelligence  is  built  into  the  object  so  you  don’t  have  to  manage  the  complexity  that  can  turn  what  seems  to  be  a  simple  inquiry  into  a  complex  nightmare.  How  does  it  do  that?  It  doesn’t  really  matter.  You  don’t  know  how  the  starship  Enterprise  achieves  warp  speed,  but  you  know  that  it  can.  

2. Variants:  This  is  how  Kenandy  reduces  the  overall  number  of  objects.  The  invoice,  credit  memo  and  adjustment  can  share  a  single  object  

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and  be  distinguished  as  variants.  Fewer  objects  are  easier  to  understand  and  manage.  

3. Lifecycle:  A  single  object  can  progress  through  different  “states.”  A  product  may  be  planned,  work  in  progress,  completed,  or  shipped.  All  of  this  is  captured  in  a  single  object  container.  This  has  the  added  benefit  of  simplifying  audit  trails  and  traceability.  

This  is  a  relatively  simple  philosophical  design  change,  although  it  might  take  a  little  effort  for  an  IT  department  to  wrap  its  collective  head  around  it.  But  once  it  does,  the  implications  and  the  savings  potential  are  impressive.  Think  about  refining  or  changing  business  processes  to  add  efficiency.  Think  about  the  impact  of  large  corporations  going  through  structural  changes,  merging  or  splitting  business  units.  Think  about  how  mergers  and  acquisitions  impact  ERP.    

MORE  INNOVATION  TO  COME    

The  ability  to  enable  change  this  rapidly  also  has  implications  for  the  on-­‐going  development  of  the  product,  which  impacts  the  third  requirement  for  next  generation  ERP:  more  innovation.  

In  deciding  to  build  a  new  product  from  scratch,  Kenandy  avoided  a  lot  of  the  headaches  other  longer-­‐tenured  companies  face.  In  developing  a  new  product,  you  don't  have  to  worry  about  keeping  any  existing  customers  happy  with  product  or  implementation  decisions  they  may  have  already  made.  You  can  start  from  a  clean  slate.  It  is  sort  of  like  building  a  new  house.  It  is  much  easier  to  start  with  an  empty  lot  and  a  design  plan,  than  it  is  to  remodel  an  existing  structure.  

And  yet  Kenandy  set  out  to  build  a  very  big  and  complex  structure.  As  noted  earlier,  the  depth  and  breadth  of  functionality  needed  to  compete  today,  particularly  in  manufacturing,  is  extensive.  And  yet  Kenandy  is  being  used  in  several  companies  today,  some  mid-­‐sized,  but  then  some,  like  Big  Heart  Pet  Brands,  are  quite  large.  

The  platform  itself  comes  with  an  extensive  toolbox  that  accelerates  the  development  process.  The  power  of  the  platform,  combined  with  its  SaaS-­‐only  delivery  model,  supports  agile  development,  managed  around  “sprints,”  a  concept  familiar  to  proponents  of  rapid  application  development.  Innovation  doesn’t  have  to  be  packaged  up  to  be  delivered  every  12  to  18  months,  but  in  shorter  cycles  that  include  scripting  a  scenario,  designing  a  solution,  building  and  testing.  Think  of  these  more  as  a  series  of  short  proof  of  concept  projects,  which  are  continually  being  delivered.  As  a  SaaS  model,  no  customer  is  left  behind  running  an  older  release.  

In  an  interesting  twist  on  “agile”  and  “sprints,”  Kenandy  applies  these  same  concepts  to  the  implementation  process.  New  customers  gain  access  immediately  to  an  instance  of  the  software.  They  can  add  data,  experiment  

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and  test  it  out  in  a  series  of  pilots.  At  the  end  of  the  process,  teams  not  only  have  a  working  environment,  but  also  have  learned  how  to  make  changes  to  business  processes,  again  with  clicks,  not  code.  Nothing  is  cast  in  concrete  as  the  first  (or  any)  “go  live”  milestone  is  achieved,  therefore  it  encourages  and  supports  the  popular  manufacturing  concept  of  continuous  improvement.  

These  were  some  of  the  benefits  Del  Monte  saw  in  its  acquisition  of  Natural  Balance.  Indeed,  Sandra  Kurtzig  was  so  confident  in  Kenandy’s  ability  to  respond  quickly,  she  made  a  commitment  to  Del  Monte  to  go  live  with  Kenandy  at  Natural  Balance  just  90  minutes  after  the  acquisition  was  complete.  No,  that’s  not  a  typo  –  that’s  90  minutes,  not  90  days.  In  fact,  the  system  was  up  and  running  in  less  time  and  represented  a  complete  implementation  including  order-­‐to-­‐cash,  planning  and  production,  procure-­‐to-­‐pay  and  financials.  

BEYOND  ERP:  BETTER  INTEGRATION  

As  Kenandy  and  other  ERP  companies  continue  to  expand  their  solution  footprints,  you  might  start  to  wonder  where  ERP  ends  and  other  applications  begin.  This  is  not  driven  exclusively  by  solution  providers  looking  for  a  bigger  share  of  their  customers’  wallets.  Customers  are  also  demanding  more  and  more  features  and  functions.  Mint  Jutras  has  been  tracking  priorities  in  selecting  ERP  software  for  years.  This  year  we  captured  these  priorities  by  listing  ten  different  criteria  and  forcing  the  participants  to  stack  rank  them  from  1  (least  important)  to  10  (most  important).  

Table  1:  Selection  Criteria  Priorities  

 Source: Mint Jutras 2015 Enterprise Solution Study

Not  only  is  “fit  and  functionality”  at  the  very  top  of  the  list,  but  ”completeness  of  the  solution  for  all  enterprise  functions”  was  a  close  second.  Given  ERP  is  unlikely  to  do  everything  a  company  might  need,  integration  capabilities  have  also  become  that  much  more  important.  

A  whole  cottage  industry  of  sorts  has  sprung  up  around  the  Salesforce  Platform,  with  several  companies  specializing  in  integration.  And  of  course  

Sandra  Kurtzig  was  so  confident  in  Kenandy’s  ability  to  respond  quickly,  she  made  a  commitment  to  Del  Monte  to  go  live  with  Kenandy  at  Natural  Balance  just  90  minutes  after  the  acquisition  was  complete..  In  fact  the  system  was  up  and  running  in  less  time  and  represented  a  complete  implementation.  

 

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Kenandy  and  Salesforce  are  quite  seamlessly  integrated.  An  opportunity  in  Salesforce  can  easily  and  automatically  be  converted  to  a  sales  order  in  Kenandy.  But  you  don’t  have  to  use  Salesforce  in  order  to  achieve  this  level  of  integration.  Kenandy  can  be  integrated  with  any  CRM.    

Integration  is  not  limited  to  CRM  but  might  include  any  number  of  other  applications.  Natural  Balance  for  example  integrated  its  financials  to  Hyperion  running  at  Del  Monte  corporate.  Kenandy  has  published  Web  APIs,  creating  an  open  architecture  by  which  content  and  data  are  shared  between  communities  and  applications.  Integration  is  also  simplified  because  of  the  logic  embedded  into  its  Wide-­‐Body  Objects.    

SUMMARY    

Like  the  starship  Enterprise,  whose  five-­‐year  mission  was  to  explore  new  worlds  and  “to  boldly  go  where  no  man  has  gone  before,”  early  versions  of  ERP  charted  new  territory  for  enterprise  applications.  It  evolved  from  MRP  (material  requirements  planning)  to  MRP  II  (manufacturing  resource  planning)  and  then  boldly  set  out  to  conquer  the  “final  frontier”  of  ERP,  managing  not  a  small  piece  of  the  enterprise,  but  the  enterprise  itself.    

The  new  journey  Kenandy  has  embarked  on,  this  next  generation  ERP,  is  a  far  cry  from  legacy  ERP  solutions  of  the  past.  Not  wanting  to  be  constrained  by  legacy  code  or  preconceived  notions,  it  started  with  a  clean  sheet  of  paper  to  design  a  whole  new  solution.  But  this  new  company  knew  better  than  to  take  a  further  step  back  in  designing  its  own  development  platform.  Instead  it  chose  a  platform  that  has  already  proven  itself  in  terms  of  power,  flexibility  and  reliability.  

When  Sandy  Kurtzig  stepped  down  from  her  first  venture  (The  ASK  Group)  she  left  behind  a  loyal  following  within  the  manufacturing  community,  where  trust  is  not  easily  given,  but  is  hard  earned.  Can  she  attract  the  same  kind  of  following  in  her  new  venture?  In  order  to  compete  in  this  new  era  she  will  need:  

ü A  proven  technology  platform  that  allows  users  to  engage  with  ERP  in  new  and  different  ways,  with  intuitive  and  visually  appealing  user  interfaces,  which  don’t  rely  on  intimate  knowledge  of  how  the  system  or  the  data  is  structured.  She’ll  need  a  platform  that  opens  doors  to  a  whole  new  level  of  executive  involvement…  Check  

ü A  system  that  is  easily  custom-­‐configured,  eliminating  invasive  customization  that  prevents  companies  from  moving  forward  with  updates  and  upgrades…  Check  

ü To  deliver  innovation  at  an  increased  (and  impressive)  pace,  supported  through  the  use  of  web-­‐based  services,  and  object-­‐oriented  data  models…  Check  

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ü Good  integration  capabilities  that  provide  a  seamless  user  experience  across  the  enterprise…  Check  

Product  companies  stuck  on  older  technology  with  limited  functionality  might  well  consider  saying,  “Beam  me  up,  Sandy.”  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

About  the  author:    Cindy  Jutras  is  a  widely  recognized  expert  in  analyzing  the  impact  of  enterprise  applications  on  business  performance.  Utilizing  over  40  years  of  corporate  experience  and  specific  expertise  in  manufacturing,  supply  chain,  customer  service  and  business  performance  management,  Cindy  has  spent  the  past  9+  years  benchmarking  the  performance  of  software  solutions  in  the  context  of  the  business  benefits  of  technology.  In  2011  Cindy  founded  Mint  Jutras  LLC  (www.mintjutras.com),  specializing  in  analyzing  and  communicating  the  business  value  enterprise  applications  bring  to  the  enterprise.