BizSlate: Weaving QuickBooks Into ERP for Small Businesses

Laurie:  Hi, this is Laurie McCabe from SMB Group and today I’m talking to Marc Kalman, who is the CEO and founder of BizSlate, which provides inventory management solutions for small businesses. So, welcome Marc!

Marc:  Thank you. Glad to be here today.

Laurie:  Thanks for coming. We’re here at the QuickBooks Connect conference, a very appropriate place to be talking about small business solutions. I’m wondering, before we get into the specifics of what BizSlate does, can you tell us about your role how the company got started?

Marc:  Sure Laurie. I’ve been in the supply chain technology field my entire career. I started off as a software engineer right out of college, did that for about nine years and had the opportunity then to move into more of the practitioner side of things where I was an EDI (electronic data interchange) analyst for a while, I was a supply chain specialist at companies like Coach Leatherware, and then I had the opportunity to direct a team for a nine division accessories business in New York City. From there, I started my last company, which was, and still is a successful EDI provider, Easy Come Software.

What we found was, because of our unique way of addressing the market for small businesses, we were upwards of 90% more efficient than any of our competitors as far as a supply chain capabilities around EDI were concerned. That led to our customers calling up after a while saying, “Hey Marc, this is great what you’re doing for us in the world of EDI. While in our case it might be 70% or 80% of our business, it’s two customers and we have a thousand customers and we’re using QuickBooks and we want to see our inventory and we can’t keep track of things correctly. And people are traveling and need access to real-time information quickly to make important decisions and keep up with the market.”

So it caused me to look at what was going on in the supply chain space for small businesses and I saw that it was a big problem. I’m very passionate about the space, I’ve been involved with it for a very long time and decided, you know what? I’m going to go do something about it and so here we are.

Laurie:  So, what specifically does BizSlate do?

BizSlate_Logo2Marc:  So, we obviously we do integrate with QuickBooks, predominantly focusing on QuickBooks Online right now. That seems to be the direction that QuickBooks is pushing everybody towards anyway, and we want to be the forefront of that.

Laurie:  Right. And new companies are starting more with cloud-based offerings.

Marc: Exactly. We are web-based, and we focus on helping small businesses improve how they manage everything–customers, orders, vendors, inventory, logistics of the supply chain–and give them the tools that they need to succeed this very intense, omnichannel market.

Laurie:  Does it plug right into QuickBooks, Marc?

Marc: It does, seamlessly. We connect right to QuickBooks through APIs, so as you process documents in our system, let’s say like you post invoices or you receive inventory, if you go into QuickBooks you would instantly see those transactions.

Laurie:  It sounds like it kind of fleshes out QuickBooks beyond accounting and basic financials into what other companies would call ERP or Enterprise Resource Planning, with functionality that manufacturers or distributors might need.

Marc:  Correct. And you know, QuickBooks is great from an accounting system perspective. But certain businesses, particularly product-related businesses that have to track inventory, as they evolve, the operations aspect of QuickBooks doesn’t always keep up with the rate of growth. This causes companies to start looking outside of QuickBooks, at companies like MAS 90 or Dynamics. And until now, QuickBooks really hasn’t had a lot of defense against that. In fact we just did a demo for someone earlier and they said, “You know, QuickBooks plus BizSlate equals NetSuite.”

Laurie:  What are you finding in terms of the sweet spot of customers that are interested in BizSlate? I would expect you have a lot of QuickBooks users that say, “I like QuickBooks but I need more.” Any other kinds of people coming by that are interested?

Marc: There are two key areas that customers are attracted to us. One is what you just described, where someone is using QuickBooks, loves it, or their accountant wants them to stay on QuickBooks. They don’t want to have that disruption of having to change the whole system, they just want to expand functionality. We give them a nice path to be able to do that with a system that will help them not just today, but sustain them for the future. Also, the power that we offer is at a very affordable price. So we also find companies that use solutions like NetSuite that maybe aren’t capitalizing on all of the capabilities that NetSuite offers, or it’s too complex, it’s too big, it’s too expensive. This is an opportunity for them to get the same efficiency but easier, and more affordably.

Laurie: Is there a sweet spot in terms of company size for BizSlate?

Marc:  We are primarily focusing on businesses that are fifty million in revenue or less. Industry-wise, we have a lot of traction in apparel, footwear, also housewares, consumer goods, and electronics

Laurie:  A lot of companies are targeting small businesses who are outgrowing QuickBooks. So why BizSlate? What makes you different?

Marc:  That’s one of my favorite questions. Because we get it. We understand small businesses. Small businesses today are understaffed and overworked. People are doing fifteen different jobs at the same time and that’s on a good day. They don’t have time to sit in front of a computer processing documents. Every single person at that company needs to focus on the growth and profitability of that organization. It’s actually detrimental to the business in a very aggressive market to have people who are wasting time on a lot of data entry.

When some vendors target small businesses, they just don’t understand what these small businesses need. They say that they do, but they don’t. These providers, what they say is, “Well, for a small business it has to be affordable,” right? It does. Has to be easy, and it has to be easy, right? But to get there, the typical provider does that by removing value. But this removes ROI. So where BizSlate is different is we bring enterprise value, the kind of tools, the intelligence that small businesses really need to be able to capitalize on the market. But we do it in a way that is affordable and easy and gives them tools that to really rev the business up and focus on things that are more important to the company.

Laurie:  I think you hit the nail on the head. Time is usually the most precious resource for many small businesses. So how long on average does it takes somebody to get up and running on BizSlate, and how do you help them get productive more quickly?

Marc:  Every customer’s a little different. There are different levels of complexity. We start our promise to our customers with ease of use by making sure that the software itself can be learned and trained and used without anybody ever having to teach somebody something. Now that said, that doesn’t mean we don’t support our customers. In fact, I believe we’re one of the few, if not only, providers of this type that offer free unlimited phone support.

Laurie:  That’s a big deal.

Marc: Because we want to make sure our clients succeed, it’s not just about selling software here.

Laurie:  Yes, in a subscription model you really want to keep them once you get them.

Marc:  Exactly. And we’re passionate about small business, I come from the space. Half the employees at BizSlate come from the space. We are really here to make a difference and we want our clients to be successful. As great as our software is, we want to be known for the service that we offer and really make a difference.

Laurie:  Last but not least, is there anything here at QuickBooks Connect that you’re highlighting that you’d like to just give a shout out for?

Marc:  We have two very exciting themes here at the show. Number one, we just found out that we were selected as one of the top twenty cloud providers of 2015 by CIO Review magazine.

Laurie:  Congratulations.

Marc:  Thank you, we’re very excited. Also we’re just finishing up QuickBooks partner certification. In about a week or two, we should be listed on so everybody will be able to find us.

Laurie:  That’s great. It looks like you’re having a good time at the show too.

Marc:  I’m having a great time. I’m meeting lots of great people, having great conversations, and excited to see that there’s a lot of interest for what we’re doing.

Laurie:  Well Marc, thank you so much for talking to me today and sharing this information so people can learn more about BizSlate and connect with you.

Marc:  Thank you.

Building a Successful Corporate Culture: Tips from Glassdoor’s 2014 CEO of the Year

This video interview was recorded on September 16, 2015, and originally posted on SMB Group Spotlight.

Laurie: Hi, this is Laurie McCabe from SMB Group and I’m talking with Rob Reid, CEO at Intacct, who was honored with the Glassdoor CEO of the Year award last year in the small and midsized company category. This is the second part of a two-part video series and in this part, I’m talking to Rob about some of his tips and perspectives on business as someone who’s founded and run a lot of successful businesses, what are some of the key areas that you could focus on to advance your business and get ahead.

Rob:  You know, I a lot of people ask me so, how were you able to create this organization and have a culture that seems to really be working? The first thing I’d pass on is you need to have a really compelling mission. The mission must be customer-centric, and driven by why you’re doing it, not how you’re doing it. When people come to Intacct, most think, oh they do accounting and finance management and ERP and I’m like, no. We’re helping change the world. For instance, we work with the Nike Foundation, and they go on in and help improve women’s’ ability to start businesses in Africa. How does Intacct help empower that? As Nike instituted programs across Africa, they found a lot of inconsistency in the success rate of women starting their own businesses. Intacct has gone in and we broke down village-by-village what was happening. So Nike could see what was working and change their program for higher success rates. That’s the kind of mission we have.

Laurie: Helping companies understand what levers they need to pull to create success

Rob: The other tip, and this seems obvious to most people, but organizations need to hire the right people. It’s like “Ah, yeah, yeah. Hire the right people.” But what you have to do is you have to hone in on the individual’s traits. What we do at Intacct is we look at first, is, are you a customer-centric type of individual? Do you care about others? Do you care about the customer? Do you care about your fellow employees? Do you care about our partners? If people inject in the interview process say, “Well, tell me about my budget responsibility” or “Tell me about how many people are going to be reporting to me” or “Tell me about how fast I’m going to be able to move up in the organization?” they may not fit in.

Laurie: Like “me, me, me”?

Rob: Yeah, this means “No, no, no!.” What we want to hear is, “Tell me how I can contribute. Tell me about how other people here and how they work together to have a bigger meaning.” We also look for people who are just naturally curious. Because if you’re naturally curious, you’re going to attack the status quo. If you attack the status quo, we go back to that other point of trying to improve whatever we’re working on. There are a lot of times where you work hard, and it’s like “Look at what we did!” And we’re like, “That’s great. Now how are we gonna do better?” And they go, “Oh yeah. Oh yeah! Yeah, let’s go do better!” We really try to look at how can we hire the talent that aligns for our mission. Now, what we’ve done at Intacct may not be right for others. But you need to think about what are the traits that you need in an individual in your organization? We’ve found that team players, that are customer-centric and very curious, are the best fit. Intacct has the highest customer satisfaction rating in the whole ERP industry, not just cloud, not just midmarket, according to both G2 Crowd and Entrust Radius. We’re off the charts in comparison to everybody else. I interview every person, making sure that they’ve got the right traits and the right kind of behaviors and the right attitudes. You know, in our industry we’re lucky enough that we have really intelligent people so most people walking through the door are smart, they’re motivated, now are they gonna fit in to be able to take it to the next level?

Laurie:  Culturally. Yes, culture’s really important.

Rob: You know, my son was in crew in college. It isn’t all about just the strength of pulling the oar, it’s pulling it together in unison. If one person hits that water a little bit differently, guess what? The boat starts to go in a different direction. So that’s one of the things that we are trying to achieve at Intacct, is making sure everyone’s pulling together. It’s amazing what you can do when you’ve got a true team all pulling.

Laurie: I’m sure it makes a difference for the customers too, and that’s why Intacct’s customer retention’s so high.

Rob: So there’s another thing that is really important. That’s to have clear, defined goals and objectives. And getting them written down, and mutually agreed upon. It allows you to hold people accountable. When I talk with others and they’re saying, “Yeah you know, it just doesn’t feel like we’re achieving the kind of success we’d like to have.” It’s one of the first things I ask them is, does everybody in the organization have written objectives? Whether it be weekly, monthly, quarterly, whatever it might be, whatever’s right for that organization, get it in writing and mutually agreed upon.

Laurie: I love that because I think too many times we all have our own assumptions and we don’t make sure that they’re synced up.

Rob: Right. Then one other thing is that we’re dealing mainly with knowledge workers and they like to be stimulated by more than just work and we really like to have a work life balance. It’s not just work.

Laurie: Hallelujah!

Rob: It’s work and life so we encourage that our employees take time with their families. We encourage that they give back to their community. The organization invests in a lot of different community types of programs and you know, I think that then our employees feel like we’re really, we really do care, which we do. And having an empathetic, caring, curious organization is just a wonderful thing.

Laurie: Rob, these are great perspectives, great insights into Intacct and its culture that other companies can learn from. I really appreciate your time and thank you for talking to me today

Rob: It was super seeing you again, and thank you Laurie.

Automation and Insight: Intacct’s Focus for Dreamforce 2015

This video interview was recorded on September 16, 2015, and originally posted on SMB Group Spotlight.

Laurie: Today I have the opportunity to talk to Rob Reid who is CEO of Intacct, which is a cloud-based financial management solutions company. We’re here at Dreamforce 2015 for this SMB Spotlight. Rob, I’m delighted to be speaking with you.

Rob: It’s a real pleasure. It’s always good to see you.

Laurie: Thanks and likewise! Before we kind of get into some of the specifics of what Intacct is focusing on at Dreamforce, can you provide a quick review about Intacct–who you are and what you do?

Rob:  Sure. At Intacct we deliver ERP solutions for midmarket firms. We focus on being best in class and complementing other best in class applications like Salesforce. So connecting the front office and back office seamlessly is one of the things that we really focus on at Intacct . We’re doing that for midmarket firms that are typically going through a lot of growth that want to automate their processes so they can invest in their mission. You know, so maybe they can hire more engineers, or if they’re a not for profit going on out and really helping the world. We help them eliminate some of the costs of running the business so that they can go and attempt the big things.

Laurie: Yes, helping midmarket companies to automate a lot of backend processes. So how did you arrive at this focus?

Rob: So you know the industry has pretty much segmented for while when we got into the market several years ago. There were solutions initially for enterprise corporations, such as Oracle and SAP. And because there are millions of very small businesses in the United States and across the world, businesses like Intuit went after that arena. And requirements are significantly different between what a large enterprise needs and what an owner/operator needs. But in the middle market, in the past, it was pretty much Microsoft and Sage with offerings there to help those organizations grow and to try to become larger companies. And unfortunately, Microsoft and Sage didn’t migrate to the cloud too quickly. The cloud changes the economic model, it’s a more cost-effective, easy to use type of environment, and enables much better reporting than ever before. So organizations like Intacct went on in to that sector to take advantage of cloud, and it’s been working great for us. We’ve been achieving 40% growth for the last four to five years. We now have 9,000 customers in locations all over the world in every continent other than the Arctic, and it’s just working for these organizations.

Laurie: Here at Dreamforce, you have some announcements or focal points that you’re highlighting here at Dreamforce. Could you talk about that?

Rob: I’d be glad to. At Dreamforce we’re showing Intacct Subscription Billing capability, which allows you to automate the subscription billing practices that you have. So many different industries are moving to subscription billing, they need an adaptive way to do the monthly billing and then connect that from a revenue recognition perspective. So we offer Intacct Subscription Billing, on top of the Salesforce1 platform. It’s totally integrated in with Salesforce, so there’s a seamless flow from the front office into the back office, so you’re accurately billing your customers. In turn, customers are happier, and will pay the bill faster. We’ve tied the revenue recognition requirements in and automated the whole overall process.

Laurie:  You’re absolutely right, even products now are on subscriptions, like on Amazon I have certain things set up for subscription, like vitamins, because I know that I’m going to need them every so often. I think that subscription capability is going to be key for a lot of companies.

Rob:  I’m glad you brought that up about getting your vitamins and other consumer things, but I want to clarify that our subscription billing solution is really focused on B2B type organizations. There are solutions from our partners that do a great job for the B2C area.

Laurie: So you integrate with partner solutions to handle the subscription billing in a B2C environment. Ok, what else is Intacct focusing on here?

Rob: In addition to automation to help organizations take out costs, they need to know exactly what’s going on with regard to revenue and their overall performance. They need to get information to the management team and all the employees about what’s going on in real time. They need empirical data to make both strategic and tactical decisions. If they can see what’s happening, they can spot opportunities and go after them. Or if all of a sudden there’s a new issue starting to bubble, you’ll see it and you can hone in on it. So we have delivered the Intacct Visual Board Book to give organizations the ability to see not just gap performance measures, but the operational measures that go on all the time. In today’s world, many times the operational measures are more important than the gap measures.

Laurie: If you can see where you’ve got either an opportunity or an issue and fix that or address it right away it’s gonna make a big difference.

Rob: Yes, and since we’re here at Dreamforce, there are a lot software companies here, and the change in monthly recurring revenue is actually the most comprehensive way to look at a software company’s health. Looking at revenue from the past, you’re always looking at things in the rearview mirror. When you’re seeing changes in real-time, you know exactly what’s happening. For instance, one of the challenges for most subscription-based software companies is the cost of customer acquisition. Well at Intacct, we’re providing you that information in real-time. Our Visual Board Book it’s keeping track of cash, it’s keeping track of what your customer lifetime value is, all that’s automated and provided visually. Everything is data-driven so that you make the right decisions. So as important as it is to have a financial management system to automate your processes, I think it’s even more important to be able to have the empirical data to make the right decisions.

Laurie: Right, have the insights and get everybody on the same page instead of everybody having a different opinion about what to do.

Rob: You know, you and I have known each other for a long period of time. I’ve been in Fortune 500 companies and I’ve never had more information to make the right decisions than I have right now at Intacct. We use Salesforce, we use Intacct, we use Marketo, we have about 30 different cloud solutions that we’ve integrated in together. We’ve got dashboards on everything and know what’s going on in the real-time.

Laurie: So these capabilities help you grow a business and sustain a business.

Rob: Yes, and that draws us back to that midmarket. According to The Economist, 89% of all the jobs created in our economy since the Great Recession are in the midmarket. The midmarket is driving our economy today. In fact, enterprise level new jobs have gone down 10% since the Great Recession. So we’re helping growth-oriented midmarket organizations take it to the next level. It’s just really an exciting time.

Laurie: We have known each other a long time Rob, and I know you have a lot of experience in business, and you were also honored with the Glassdoor CEO of the Year award last year. I’m looking forward to Part 2 of this interview, where we’ll talk about your management tips for midmarket businesses over and above automation and analytics.

Sage’s Everest: Building Mind and Market Share With A New Generation of SMBs

everestAt last week’s Sage Summit, one of the featured speakers was renowned British explorer, entrepreneur and adventurer Justin Packshaw. Among other achievements, Packshaw spoke about the challenges he and his team of 10 climbers faced to successfully reach—and then descend—the peak of Mount Everest, the highest mountain on the planet.

Watching Sage’s new (as of November 2014) CEO Steven Kelly interview Packshaw, I couldn’t help but think about the uphill battle that Sage has faced in attracting net-new customers to its accounting and ERP software solutions over the past several years. While many rivals were quick to bring innovative cloud, mobile and social capabilities into their solutions, Sage has taken a slower, more conservative approach. As a result, although Sage has done a fairly good job of retaining existing customers, it has struggled to gain mind and market share with new generation of cloud and mobile savvy SMB customers that it needs to fuel substantive growth.

Making the Case for the New Sage

Steven KellyKicking off the event, CEO  Kelly made his case for a newly energized and more engaged Sage. At the 50,000 foot level, Kelly:

  • Pledged Sage’s commitment to “being the best technology company for small businesses,” by providing small businesses with help to run their businesses, give them more control, and help them make the right choices.
  • Positioned Sage at the forefront of the “golden triangle” of accounting, payroll and payments solutions to make small businesses “100% compliant, 100% of the time.”
  • Reiterated that Sage “loves on premises, hybrid and cloud solutions” and will support all of these models to give businesses choice.
  • Vowed that “end of life” is not part of the Sage vocabulary. Sage won’t force existing customers to go to the cloud before they are ready; instead, it will provide pathways and tools that enable customers to control the pace of their migration.
  • Asserted that the term ERP (enterprise resource planning) really means “expense, regret and pain,” and that Sage will also banish this term from its vocabulary (which by the way, got a pretty big round of applause).

All of the above should be welcome news for existing Sage customers, who have stayed the course through numerous changes in Sage strategy, management and products over the past few years. But, it doesn’t offer much in the way of helping Sage attract net-new customers So how will Sage ascent its Everest? 

Sage Live: Poster Child for the New Sage

sageliveKelly’s roadmap for new growth focuses on rapid, global new solution development for next-generation business decision-makers who are already sold on a cloud and mobile first world. Sage One, Sage’s offering for sole proprietors and very small businesses from pen and paper and spreadsheets, is part of this, but Sage Live  (formerly Sage Life) is really the poster child for Sage’s new approach tailored to the “office of the future.” Notably, Sage Live was designed and developed in six months from when Kelly gave the team its marching orders.

Built as a multi-tenant cloud-based accounting solution. Sage Live is aimed  squarely at growing small businesses who need more power than entry-level accounting solutions offer, and want cloud, mobile and collaborative capabilities out-of-the-box. Pricing starts at $30/user/month for full users (such as finance and accounting users) and $15 per user/month pricing for more casual business users. Slated for U.S. release now, and for UK availability at the end of the summer, Sage Live is designed to be a global solution.

The Salesforce1 Shortcut

Sage choose to build Sage Live on Salesforce1, the largest cloud development platform in the world, to gain development and go-to-market efficiencies, including:

  • A rapid development environment and tools to design, build and bring the solution to market.
  • The ability to embed Salesforce1 mobile and collaborative functionality, such as Chatter, directly into the Sage Live solution.
  • An enormous partner ecosystem to add features and functions for specific markets. For example, Kimble PSA announced its integration with Sage Live at the event. With a partner-centric approach from the get-go, Sage Live doesn’t need to become a clunky, monolithic solution.
  • The same look and feel as Salesforce, giving Sage a natural entrée into Salesforce’s 95,000 SMB installed base customers. 

Customer-Centric Design

Salesforce1’s platform also made it easy for Sage to pull in its best small business accounting experts from around the world to collaborate on Sage Live. Sage also involved customers in its early adopter program from the beginning, seeking out non-Sage customers–both owners and those in financial roles—for input.

What Sage heard is that they are spending too much time juggling too many spreadsheets. As their businesses grow, they need better tools to budget and forecast, the ability to look at their business through different lenses, and more collaborative capabilities. They want a “one-office approach” with easy cloud and mobile access to real-time information for all users.

In response, Sage Live’s multi-dimensional accounting engine allows users tag records with geographical, product or other information. Users can then easily pull up different views and reports based on the tags. The solution can also be configured for different role-based views or “scoreboards” giving users just the information most relevant to them.

iwatchEmbedded Salesforce1 real-time social and mobile capabilities make it easy for users to collaborate and share information, ala the “business in the moment” example of Sage Live notifications on Apple iWatch.


New and fast-growth SMBs are increasingly gravitating to the cloud for accounting and ERP. SMB Group’s 2015 SMB Routes to Market Study reveals that 29% of SMBs planning to purchase new accounting/ERP solutions are leaning toward cloud deployments. Sage Live provides Sage with a much-needed solution to tap into this market, and meet it’s elusive (to date) challenge of attracting net-new business. 

While some have questioned the wisdom of building on Salesforce1, I believe that this was a good choice for Sage. Salesforce1 has enabled Sage to skip the plumbing work and to build Sage Live much more quickly than it could have from scratch. Furthermore, Sage gains exposure to Salesforce’s large SMB customer base, and an entrée to Salesforce’s extensive developer ecosystem.

In addition, while Salesforce customers have many choices when it comes to accounting solutions, Sage Live is the only small business accounting solution native to the Salesforce1 platform (FinancialForce is native as well, but aimed more at the midmarket).

Finally, armed with a true “net-native” cloud solution, Sage can apply its extensive expertise as a volume SMB marketer to the cloud and mobile first SMB segment. Sage is even opening a new Customer Business Center, exclusively dedicated to digital marketing and sales for the Sage Live solution.

However, this is not enough to ensure success. I see a few areas in which Sage will need to double down, including:

  • Creating a clear, constant drumbeat to articulate why Sage Live is different from other Sage and its competitors’ offerings. Getting on SMB radar is hard in a market where so many vendors are vying for customers that have outgrown QuickBooks and other entry-level accounting solutions. And, since SMBs rank “Figuring out how different technology solutions can help my business” as one of their top three technology challenges in SMB Group’s SMB Routes to Market surveys. Sage will also need to provide in-depth education to make it to SMB short lists.
  • Persuade Salesforce to more actively promote Sage Live. From what I gathered at Sage Summit, Salesforce sales reps will refer customers to Sage Live if they want to integrate accounting and CRM. This is a start, but fairly passive. Sage Live needs Salesforce to play a more active role to kick-start consideration and adoption. Sage will be a Platinum sponsor at Dreamforce, and it will be interesting to see how Salesforce reciprocates.
  • Prove that it can expand traction with developer partners. To further validate its cloud direction and ambitions, and to fill in key gaps for critical customer segments, Sage must quickly recruit high-profile Salesforce developers to the Sage Live fold.

Prior to Kelly’s appointment, Sage had been investing in new technologies to modernize its existing accounting payroll and payments solutions for quite some time. But progress seemed to be slow, and it was clear that simply moving existing solutions would not be enough to fuel significant  growth. With Sage Live, Steven Kelly is already operating at a bolder, faster and more aggressive pace than his predecessors to pursue this growth. Now, having proved it can get on the fast track with product development, Sage’s next—and bigger challenge—is to get on the fast track with marketing and sales.

SAP’s 5 + 1 Strategy to Build SMB Consideration and Adoption of Business One

SAP logoWhen it comes to business management and  enterprise resource planning (ERP) solutions, SAP often isn’t on the radar for small and medium businesses (SMBs). But, while the ERP giant is best known for its large enterprise solutions, SAP Business One is aimed squarely at providing small businesses with a unified business management solution.

In this three-part series, I interview Luis Murguia, who was recently appointed Senior VP and general manager for SAP Business One to discuss how the solution fits into SAP’s strategy, and what makes it a good fit for SMBs.

In this third and final post, Luis talks about SAP’s plans to accelerate consideration and adoption of Business One.

Laurie: Luis, you’re still relatively new to your Business One role. But looking out over the next year or so, what are your goals, and how will you measure success?

pillarsLuis: When I joined the team, we put a plan in place called five-plus-one priorities. Why five-plus-one, why not six? Because this one is very special, so we have five pillars, and one overall priority that is common across all five pillars. The five pillars include:

  1. Continuing to optimize Business One for the cloud is number one. Right now we offer a multi-tenant environment, we want to be able to scale that to serve tens if not hundreds of thousands of customers.
  2. Number two is speeding adoption of the HANA database among Business One customers. HANA provides an incredible source of innovation, helping customers to run much faster in real time.
  3. The third pillar is to accelerate two-tier ERP adoption. Business One is used not only by small businesses, but also in larger companies who use SAP Business Suite at corporate, and use Business One for operations in divisions and subsidiaries.
  4. Fourth is simplification. We are aggressively pursuing simplification if all of our processes. In July we are on target to reduce the number of products on our price list by 70%, to make it easier for our partners and customers to select and configure Business One
  5. The fifth pillar is to raise the dial in terms of volume and building mindshare among small businesses. Our Business One customers are small and maybe not well known, but they are on social media promoting their success so other small businesses can see the value of it.

So those are the five pillars. The plus one is very dear to my heart; I call it people, talent and diversity. Business One will be as good as the people we have working on it. We’re investing a lot of effort in terms of training, developing career paths, and helping employees continually find more challenging more interesting areas to work in to help them grow as individuals and as professionals. So that’s the core pillar that will make Business One stronger. As I said, Business One will be as strong as the people that are a part of the business.

Laurie: That’s very key, but is often not given enough airtime. If your employees are engaged and motivated and able to keep up with new skills, you’re much more likely to get good results! I think you’re right that it’s the glue.

Luis thank you so much, for painting a picture of Business One for us, where it is today, and where you want to take it.

This is the final post in a three-part series examining SAP’s Business One strategy and directions.

Are You Keeping Pace With Your SMB Customers?

The good news for tech vendors: SMBs are bullish on their own growth, and on using technology to help achieve that growth. The bad news: tech vendors may not be doing a good enough job helping SMBs understand, evaluate and buy the tech solutions that will best help their businesses.

SMB Group recently completed our 2015 SMB Routes to Market Study, which provides an in-depth look at U.S. SMB (small businesses: 1-99 employees, medium business: 100-999 employees) technology adoption, the decision-making process, and the buying cycle. Among the findings, we learned that “figuring out how different technology solutions can help my business” is the number one technology challenge for small businesses, and the number three challenge for medium businesses.

Figure 1: Top Three Technology Challenges for SMBs


SMBs need tech vendors to provide them with a more informative, consistent purchasing experience to help them punch through the confusions knothole. Though the priority rankings differ a bit between small and medium businesses, the top two asks for both small and medium businesses are for vendors to provide a consistent experience across online, mobile, offline and other channels and to more clearly articulate how the solution helps improve specific business goals. Number three for small businesses is the desire fro better real-time online chat/phone support to answer questions, while for medium businesses, its help in connecting with reference customers with similar needs.

Figure 2: Top Ways Tech Vendors Can Improve the SMB Purchasing Experience


The “SMB market” has always been a tough nut to crack as it actually comprises many different diverse markets. In addition to standard employee size and industry segmentation, SMBs vary widely in terms of business maturity, attitudes about technology, and a host of other variables. Furthermore, it’s a very volatile market: about 50% of new businesses fail within the first five years.

Today, these age-old challenges are compounded by the fact that the digital, social and mobile revolution raising SMB buyers’ expectations of tech vendors’ across solutions, marketing, sales add service.

As competition for SMB mindshare and market share continues to rise, tech vendors will need to work smarter to earn SMB dollars. Vendors need to do a better job of understanding the intricacies of the SMB market so that they can personalize content to nurture buyers along the their journey, providing them with an informative, helpful and consistent purchasing and service experience across channels.

Please contact Lisa Lincoln at (508) 734-5658 or for more information about the 2015 SMB Routes to Market Study (including a Table of Contents), or to order.


Taking the Plunge: Triggers for Small Businesses to Move to SAP Business One

SAP logoWhen it comes to business management and  enterprise resource planning (ERP) solutions, SAP often isn’t on the radar for small and medium businesses (SMBs). But, while the ERP giant is best known for its large enterprise solutions, SAP Business One is aimed squarely at providing small businesses with a unified business management solution.

In this three-part series, I interview Luis Murguia, who was recently appointed Senior VP and general manager for SAP Business One to discuss how the solution fits into SAP’s strategy, what makes it a good fit for SMBs, and how the vendor plans to move Business One from being one of SAP’s best kept secret onto SMB short lists for ERP solutions.

In this second post, we talk about the triggers that motivate small businesses to move from entry-level accounting to SAP Business One, and how SAP and its partners help them take the leap.

Laurie: So, SAP Business One provides small businesses with more of their industry-specific needs already configured right out of the gate, and getting it in a cloud model means they don’t have to worry about installing hardware and software. But just the thought of moving from an entry-level or lower end accounting to a more robust ERP system can be very intimidating for smaller companies. So what triggers do you see motivating them to finally take the plunge and move up?

I think a lot of us in most aspects of life; we tend to keep putting Band-Aids on pain. But finally someone says I can’t keep putting on the Band-Aids on this, I need something more comprehensive to manage my business with? I remember the story of the largest manufacturer of white boxes, white label PCs in Brazil. They were very successful in selling to schools, and any place that needed a large number of PCs because they were very price competitive. What triggered ERP adoption for them was the day they delivered the wrong PC configuration to a big customer. They lost a fortune scrambling to produce another batch, and they also realized that they almost lost one of their most important customers because of contractual requirements and remedial penalties.

Laurie: Ouch.

Luis: They were trying to do all this with manual processes and Excel files. But when you are using a lot of Excel files that need to be aligned and synchronized. In this case, they only needed one disconnect to get massive mistakes with the customer’s configuration. So they realized they had to bite the bullet and get their house in order to be much more operationally efficient.

Laurie: Okay, so how do SAP and its partners help small businesses avoid pitfalls when they’re ready to take this leap and implement Business One?

Luis: Well, some of our most successful US partners insist new customers pass a week of product training before they implement Business Because when end-users feel comfortable with the application, this helps guide the implementation and ensures users get value from it right away. So attention to end-user training is really making the difference when it comes to successful implementation.

This post is the second of a three-part series. In the third, we’ll explore SAP’s Business One strategy and goals for the future. 


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