ERP Document Management advices
Opportunities and pitfalls from an expert’s perspective
For twenty years, he has worked with document management in ERP systems. His company, Tabellae, which he owns with his partner Stefan Reina, has grown to become one of the world’s largest Output Management consultancies.
Lennart Garbarsch and his team have advised on and implemented solutions for over 600 customers worldwide, utilizing both Best-of-Breed and Best-of-Suite approaches.
In this interview, he shares his knowledge and experi ence, discussing opportunities and pitfalls in a time when cloud, evergreen, and standard have set the stage for a new ERP era.
“Documents are just something that comes out of the ERP system”
How often do you see documents being overlooked at the start of an ERP project and then developing into a potential risk for the customer?
“Many companies that are upgrading their ERP solution have been using the same documents for five to ten years. Some of the documents might date back to when the old system was introduced.”
“In this situation, I see a clear tendency to think that you just must have the same in the new system without considering the company’s current and future needs. I meet a lot of CIOs and CFOs who think that documents are ‘just something that comes out of the ERP system’. But the fact is that it’s an anthill that’s bigger than most people realize.”
“In my experience, documents get pushed to the side, and there’s a lack of focus on what kind of output is going out to the ‘customer’s customers.’ Legal requirements can also be easily overlooked. Documents and data must flow between different systems, and if you don’t plan for this from the start, you often end up with a more expensive ERP project that may risk being delayed. For example, if some data is missing on a label that needs to go on a product, you can’t go into production. And that can be very costly.”
It’s risky to underestimate ERP documents
Where does the risk lie? Are documents being underestimated? Are the possibilities of coding documents into the ERP system overrated?
“There is definitely a risk in overestimating what you can do with a standard ERP system. If you are almost religiously focused on using the ERP standard and coding solutions within the ERP system, there is a high risk that something will go wrong and that you will have to find another solution later in the project to meet the company’s needs.”
“Another issue is that if you choose coding, you move the documents, which are related to the customers’ relationship with their customers – from being a commercial task to being a task for developers.”
“Every time you need to change a comma in a document, you will have to involve the developers. Additionally, there’s the whole testing part if you have a lot of code. Wise people say that for every 100 hours you spend customizing the system, it costs 700 hours in maintenance.”
“Standard is a dream world that doesn’t really exist. And if you don’t recognize your needs, you quickly end up hand-coding your company’s external ERP documents”
Lennart Garbarsch, CEO and partner at Tabellae
It’s important not to be too fixed on requirements specification
It’s all about making the right choices in your ERP project. What makes a good ERP partner in your eyes?
“A really good partner is someone who is not only focused on making money, but also on ensuring the customer’s success and who likes to sit on the customer’s side of the desk and understand their business.”
“For the project to succeed, it’s also important not to be too fixed on a requirements specification. Then there is a risk of creating a solution that doesn’t cover all the company’s future needs.”
If the documents don’t work…
Why are documents generally business-critical?
“Obviously, if you can’t get an invoice out, there’s no revenue, and if you can’t print a label
and a delivery note, you can’t get goods out.”
“But even internal documents are critical. In a production or distribution company, there are
documents that determine whether the next process can start. Certificates and, for example,
labels with danger symbols are also critical, and you realize their importance when they don’t
work.”
Standard ERP is a dream world that doesn’t really exist
How do you see Best-of-Suite and Best-of-Breed?
“As an ERP customer, I would actually do a lot to stay within standard.”
“That’s also what you’re told by Microsoft and your ERP partner. It’s a good idea to avoid unnecessary license costs. Third-party products can also make updates more complex. So, there’s both a financial and an architectural aspect to consider.”
“The thing is, standard is often a dream world that doesn’t really exist in practice. And if you stick to standard, you quickly find yourself having to code your documents.”
“It’s important to remember that we’re not just talking about documents from ERP. There are also documents from other systems, such as CRM or the MS CE platform. So, the question is whether you want multiple tools for the different platforms or one tool so that all documents look the same?”
Lack of document security can be costly
Document security – is it also a slightly overlooked area?
“There is a difference between data and documents when it comes to security. While data flows between systems, documents are sent via email or EDI. And once the documents leave the company, there is not the same level of security.”
“What we are seeing is that the invoice can be hacked, and the bank account number changed. Then the invoice is forwarded to the recipient, who then pays to the wrong account. And by the time it’s finally discovered, thrity days may have passed due to the payment deadline.”
“Yes, document security is overlooked. It is passed over in silence. But there are ways to secure yourself, and I would recommend that you focus on this. Otherwise, you could lose a lot of money – per invoice!”
Different countries have different document requirements
Compliance – where is it particularly challenging?
“Several large companies must comply with an EU directive, which also affects smaller businesses that are suppliers. Of course, you must be able to meet the technological requirements.”
“There may also be specific requirements for invoices that are important to meet. For example, if you are delivering to China, part of the invoice must be transferred to the authorities, who can then follow the cash flow. And that needs to be supported.”
“In general, there are more and more compliance regulations in many countries. There are variants of standards and ways in which the different fields are interpreted. It can be quite extensive to understand, but it’s necessary. Otherwise you can’t do business.”
Testing is important in an evergreen world
Cloud and evergreen – how do continuous automatic system updates affect Output Management?
“The less you tamper with the ERP system, the easier it is to get through testing – both during implementation but also in the maintenance phase. Every time you make a change, you must make sure it works both before and after the update. And while many test cases can be automated, it’s still an extensive task that places high demands on the organization.”
“The scenario is different with evergreen (and cloud) than in the ‘old days’. Back then, you could decide when to upgrade. Now you need to be prepared for updates as they come. This has to be considered when deciding whether to stick strictly to Best-of-Suite or supplement with Best-of-Breed to have the fewest possible adaptations to the system.”
Challenges when customizing documents for customers
The documents themselves are rapidly evolving to be designed on the customer’s terms. Is the trend moving towards “individualized standardization”?
“Yes, this also affects the choice of document management, because I don’t know how you would even meet these needs by coding in the ERP system”.
“In a Best-of-Breed solution, you can customize a document and put it into operation immediately. If it needs to be coded, it’s a completely different story. Then it enters a different heavy and lengthy workflow and release planning.”
Architecture must support strategy
So, scalability is also an important factor when it comes to documents?
“It’s important to have a robust setup if you plan to expand your business with several companies, possibly in other countries.”
“Scalability and robustness are crucial when a company grows, is acquired, and/or integrated with another company or group.”
“Many ERP solutions start with one or two sites. Then they roll out to multiple sites in a global rollout. Here, it’s important that the solution’s architecture supports the process and has a high degree of robustness.”
