Ideas Blog

If you are a CIO, CFO, Advisor or Business Owner then SaaS has become an increasingly compelling choice over software. Online accounting is on the shopping list rather than the future wishlist. The questions are increasingly about how to change rather than is it secure. Not adopting SaaS has switched from being viewed as “risk averse” behaviour to one of “please explain why we are spending a fortune on software licenses”. Ask yourself “can I outperform the Cloud and SaaS providers on security if I take that risk on myself in house and manage and host my own software and data?”

SaaS contains a lot of sugar and spice. It turns CapEx into OpEx. It gives you capacity to burst workflow and users. It enables work from home for parents. Small business owners can take that holiday, do the online accounting payrun from afar and keep up to date. It’s liberating technology. If you aren’t a believer ask yourself why every major software company around the world is busily trying to reinvent themselves. They are busy getting their pilots license so they can fly into the cloud.

Choose an online accounting system based on credentials. Being a traditional software company is far from an appropriate credential to do cloud based applications well. Do you want to back an old dog trying to learn new tricks? Choose SaaS providers who are profitable, there are many. Most important of all is to look at their breed. Do they have a history of free tax updates? Do they let you export your data? Do you get stung for high support costs? Many new SaaS providers along with the old software companies fail on this. What’s their motive? Barriers to exit? What are their ethical genetics like in light of this?

Look for SaaS companies that will let you fly like you’re in an A380, that has the scale and all the mod cons and features you expect in this new age. One that you can trust.

Photo by VSZ

Twitter Founder, Jack Dorsey, has his new payments system called Square which is now out in the public domain. It looks great but begs the question when will we be able to drop the credit cards all together for payments? We have devices and they can be set to pin access only. We have apps on those devices which also can be secured so in essence the Credit Card is superfluous in the next decade in my opinion. I think what he has done is brilliant. The no credit card approach will win in the end, and hopefully it’s a good guy like Jack.

I often get asked how a business can minimise the time spent (and thus money) “doing” their accounts.

The first step is to get online to create access, convenience and remove tasks that you otherwise have to do such as backups, upgrades and installs.

Secondly, and more importantly, you need to change your thinking to “generating” your accounts. You accounts can be a smooth, automated pipeline of transactions. It doesn’t have to be data entered.

Many businesses I meet still “do” their accounts while they should be generating them. This is about connecting and automating your accounts using a variety of techniques that are NOT limited to bigger businesses. The reality is that there will always be an element of data entry but it can be massively reduced to a small fraction of your work-flow.

There really is only 3 ways of generating your accounts. Most other methods are a variation on these themes or a hybrid of them.

We are interested in our customers saving time so if you have any questions post a comment or get in touch. We are firstly in the business of selling time savings, secondary to that is the accounting software.

REAL TIME – Straight through processing

“Are you serious Saasu? I’m a consulting business, it can’t be automated.”

Even a consulting businesses where you would think it’s hard to automate you can achieve 60-80% automation of transactional work flow. If you think about it (look at your statements), you pay for the same things over and over. Mobile, phone, internet, rent, electricity, wages etc. Often the frequency is consistent and it may only be the amount that varies. These transactions can all be automated to the point where there is no data entry (constant amount) or a followup edit (change amount). Expenses on credit cards can be captured by importing credit card data and bank statements. You simply clear what isn’t needed and apply account codes to the remainder.

This is the best by far on a cost per transaction capture analysis we’ve done of the variety of methods. We call this “exceptions based accounting”.

Highly transactional business models should automate as much as they can using recurring Sales and Purchases for all your normal recurring revenue and fixed costs. If applicable, connect your point-of-sale (POS), e-commerce website, project management and CRM systems to Saasu via the API or using a Connector. Transactions can occur in real time automatically. Contacts can update across systems. New customers can be created, invoiced, payment processed and emailed paperwork automatically without human cost, resources and risk.

Saasu provides customers with shopping carts, software connectors and payment gateway connections to assist in creating a straight through processing business model.

NEXT DAY – Feeds and Import

This method works well for micro enterprise but starts to fall apart as you grow the business or as your business becomes more technically complex. e.g. inventory, time and project based businesses. It doesn’t scale for complexity or compliance.

Under this method you export you bank statement from online banking and import it into your accounting file. Nearly all accounting systems have this feature including Saasu, Sage and Quickbooks. Systems like Banklink and Xero have taken it a step further by providing a service to do this import step for you on a next business day basis or weekly basis. For micro a enterprise this is about an extra $360 per year above Saasu’s pricing. Bank fees may also be charged by your bank account on a per-transaction basis for data feeds. Feeds aren’t real time but they are convenient and close enough for micro businesses. To a degree you are trusting the bank or card company’s data to be correct.

DELAYED – Data entry

Data entry is by far the most expensive and unfortunately the most common. Data entry should be about exceptions so bookkeeper and accountant skills can be reserved for advice and higher level tasks. A good bookkeeper is the difference between order and disorder, fear and anxiety. Automate as much as possible and have your bookkeeper or admin staff be you assistant CFO to your business rather than spend your dollars on them just doing mundane data-entry that can be done by a computer.

I was going through my e-mail this morning and noticed that I use the “Starred” feature in Gmail to remind me when I promise something to a customer. At Saasu we have started tracking promises using Saasu activities.

I guess as business people we all probably have some room for improvement in fulfilling on promises. Are we tracking our promises well enough? To-do lists capture many of them but what about those fleeting promises that are actually bigger than you think?

You would think all businesses would be great at tracking promises. Especially since most people are very worried about what people think of them and their business. Integrity is probably one of the most important values in a business.

The reason our businesses are less than perfect at keeping and tracking promises is because our businesses a built on people. Those people are only human, they forget, make mistakes, run out of resources to deliver on promises etc. So systems can help with this problem.

At Saasu we track defects, support and feature requests daily. All of which are promises. When we miss promise dates I personally feel it so we are always trying to improve on the system. Sure we could stop promising but that’s just a cop out. Our customers are paying us money to develop, improve and keep ahead.

Create an Activity type called Promises in Saasu.

One way we are doing this is by using Saasu activities to start tracking Promises. You can do this also. Create a Tag called Promise and give it type Activity. Put all your promises into Saasu as Promise Activities. You then have an easy way to list/print/track your promises, due dates and attribute them to the right people.

Anyone got any other ways they track their promises, work or personal?

Pic: Discoodoni on flickr.com

Clone, Connect, Automate – saving time and reducing errors is just the beginning.

One the of great things about SaaS is the ability to opt-in permanently (or on a transaction by transaction) basis to information from a counter-party such as supplier, customer, employee or other legal entity you ‘trade’ with in a broader sense.

We call this automated exchange of information ‘Transaction Cross-Docking’ or TCD, just like the traditional cross-docking of pallets of physical materials in warehouses (more…)

Sources of quality ideas and ways to manage them

Are you starved for new ideas or do you find yourself seeing so many ideas out there that sometimes you feel the information floods over you? Either way, there are idea sources and filtering techniques that can help.

Do you find yourself so time poor that you can’t spend 2 hours reading a high quality book on a new concept or global trend? In 20 minutes with the right material (there is some right here) you can get the same outcome.

Any idea or piece of information can be slotted into three clear realms or stages of knowing that a gentleman called Plato did some groundwork on without the benefit of technology to accelerate his learning:

1. What you know you know
2. What you know you don’t know – or know a little about but not enough to be of much use
3. What you don’t know you don’t know – blind spots to which you are completely oblivious

Opportunity exists in that final point, we would like to share some quality sources with you.

Solving Blind Spots

TED – Supported by BMW. It is the university degree that doesn’t exist yet, snippets of greatness. Leaders in their field give you emotional and passionate slide show and video dumps in 20-30 minute waves. Their life is devoted to ideas and theories. Fascinating describes TED well. These people are consumed by their passion for an area of life or business. You will learn about cutting edge ideas changing our lives and the next generation’s too. For example visual technologies, organic design and other potentially profound concepts that will alter your thinking and maybe reconsider your business model and outlook on your industry or even your life.

Slideshare – You will need to do some surfing but there are some fantastic presentations in this website. One example on brand management is a ‘must read’.

Are you information efficient? Apply a ROI test to your information gathering

How many of your books, magazines, blog reads fall into this last category of filling you blind spots? This is a time saving filter we can all use to decide what we read and don’t. Reading content you know about is still important because occasionally you hit the blind spot needle in the haystack. You do pay a higher price to get it, your time.

Be critical, assess what you read regularly, assess what you attend in terms of conferences and the like. We are very quick in business to apply measurement to assess spending money on projects, advertising and marketing. This applies equally to time, valuable time spent on learning, reading and watching.

The big problem with technology is that it can be so darn good you want to use it all. Making matters worse, it’s cheaper and cheaper so there are less purchase barriers.

Like all consumption, too much technology will give you business lethargy. Wasted time, wasted investment and the scary one – redundant technology (that’s the kind you stopped using almost as soon as you paid for it).

The golden rules of technology investment:

1. Use a few really good technologies to keep it simple.
2. Make sure you make full use of those technologies.
3. Be prepared to change a technology for a better one.

Use A Few Really Good Technologies To Keep It Simple

What is the turning point where buying technology stops generating productivity gains. I’d argue it is a lot sooner than you think. Complexity costs money and distractions cost money. What is a really good technology:

Good Engineering and Design

The automotive industry has proven this time and again. Engineer and design well and the market will be all over your business to buy your goods and services. People will pay disproportionate amounts of money versus the practical gains. Does Hyundai really underperform a BMW when taking you from A to B. No, but the BMW driver is willing to pay for the design and engineering difference that gives them sheer driving pleasure. You can have 3 or 4 Hyundai’s for the same money. The point being it is disproportionate assessment of value by the consumer. People don’t buy on price, it’s a 2nd or 3rd order consideration.

Photo by The Aga

Automation Creates Time Where It Didn’t Exist

I always say to people,

Experiences and time are limited in life, money isn’t.

The number one thing you all want more of in your life and seem powerless to get it is time. Automation using technology buys time. Dishwashers, Email Campaign engines, Cars (automate walking) and Finance Engines like Saasu.com) are just a few obvious ones

Total Cost of Ownership (TCO) Is Not The Goal – Terminal Effect On Equity Value Is More Important

Good technology has a low total cost of ownership. What rubbish! Care about your terminal effect. It may cost you ‘x’ to buy, train, support, implement but this is not the terminal effect on the value of your business. This terminal value is the present value of all effects on your business over time if you discount them back to today. You don’t have to do the maths, just understand the concept and your mind will think differently. This can mean extremely obscure effects like not dual keying a contact from a business card into your accounting and CRM system. This one task might save a sales person 10 minutes a day being 2,000 minutes a year. That’s just one person. When I say total I mean total, you need to look at the knock-on effects the technology causes, the productivity gains and costs associated. Go way beyond software sales peoples TCO rubbish.

Make full Use Of Those Technologies

At some point you need to stop adding technology to you business process, stick to what you have got and concentrate on getting stuff done, better, faster and cheaper using what you have. For a practical way to do this just get a piece of paper and a pencil. Write a list in order of the work flow, production line or whatever is appropriate. Pick a couple of things in that list that cause you problems, delays, losses and then get a second bit of paper and write a list (in order) of what you need to invest/do to fix them. Keep work on the worst parts of your technology solutions and you will end up producing a Nintendo Wii or an Apple iPod product like result.

Be Prepared To Change A Technology For A Better One

Sometimes you need to make the time investment and move to a newer technology that will pay you a return over time just like any good investment. If you suffer from procrastination or short-term thinking you probably don’t do this one very well. The reality is it takes an upfront investment in time and money. Its the ant’s preparation versus the grasshopper’s complacency.

This isn’t rocket science, it’s quite the opposite, you buy the rocket scientists that will help you create time where it didn’t exist and build quality into your product or service in a continually improving way.

Two major global developments in the SaaS (Software as a Service) world show the blue sky is really here today.

1. Citibank goes Salesforce.com

The turning point has arrived for the move to Software-as-a-Service (SaaS) as a global business trend with Citigroup dropping Microsoft, SAP and Oracle for 30,000 staff in order to switch to Salesforce.com as their CRM. Read more on Reuters.

The world’s largest bank is not alone. Citibank joins a handful of other major companies with over 20,000 staff using Salesforce.com including Japan Post which has 60,000 users on Salesforce.com according to the press release.

Salesforce.com claim to be the world’s largest on-demand (SaaS) customer relationship management system. By our estimates they are on track to beat US$800m revenue over the next year.

2. Someone big goes Google Docs

Just as interesting is a rumour just in from Menlo Park USA that Google is about to sign a single corporate account with 30,000 staff to switch from Microsoft Office to Google Docs and the corporate version of Gmail (which we think is cool).

If you haven’t seen Google Docs personal edition or the business version called Google Apps for my domain you should, they are excellent productivity tools and enablers for moving from old style software to full SaaS, just like Saasu.com is financial management. The easiest way to start with just a personal email account (you can work up to the other stuff) is called Gmail.

For those who did not see the earlier launch, Saasu.com already integrates instantly with Salesforce.com right now.

It’s funny where you pick up great insights. I was watching a national gardening program and one of the winners of their annual Gardener Of The Year prize was asked by the host how she succeeded in building such an amazing garden. Her answer floored me…

I just keep improving the worst part.

Well it seems obvious now, to the point of making me feeling a bit sheepish. I love this bit of wisdom. It fits the Saasu philosophy of simplifying life so perfectly. Why waste time deciding where to focus, there are so many forks to take.

It is a different approach, there could be inefficiencies. When landscapers build gardens they get the volume discount on time and effort. For example, if you are landscaping an entire garden at once you’ll need less waste skips and get more efficiency into the big clearing and weeding exercise. You can create inefficiencies through not doing things in bulk. My first business I owned as a teenager was a landscaping business and I learnt this lesson quickly.

So do the potential advantages outweigh the disadvantages in your business?

I think you have to list them and evaluate. As an example in our web application business:

• It would have us concentrate on one thing at a time.
• It would lower communication burden.
• Including lowering interruptions. See my post called Business Interruptus
• As a result the documentation and email levels might drop.
• Mapping dependencies and impacts on other parts of the business would be simpler.
• If we were looking for one thing to improve/add we would be much more picky about it.
• It would mean shorter periods between releases.
• The management time expense could drop if you believe multiple parallel projects suck management time. I certainly do!

What would this approach do for your business, your product, your daily time allocation for work or family?

Bacn is simply spam you asked for. It’s the dozens of emails you get that you would like to get (sometimes) but they still annoy you and more importantly they chew up your precious time.
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