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Why Acumatica’s customers are modernizing how we think about ERP

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Turns out modern ERP plays a key role in digital change after all. At the Acumatica R2 launch event, fresh customer stories showed what a journey to modern ERP looks like.

This week, diginomica was on the ground in Boston for Acumatica’s R2 launch event. Acumatica blends the launch with a day for analysts, where we get the brain dump on what lies ahead. And, the fun part: a chance to pester the Acumatica leadership team with finickyburning questions.

Acumatica is one of the vendors pushing envelopes on what modern ERP should look like. And no, I don’t view “modern ERP” as an oxymoron. Contrary to trendy analyst advice, “ring fencing” a legacy ERP system while pursuing digital isn’t going to work – not in the long view. I’ve told part of that story in this piece: What are the top five cloud ERP benefits? A use case review.

There is more to come on this, via an on-site podcast and Acumatica show review I taped with diginomica contributor Brian Sommer (also see Sommer’s R2 event piece (Acumatica 2017 R2 launch review – with growth comes new responsibilities).

Customer stories put modern ERP under the field glare. Here’s fresh scenarios from the event. Before I review them, keep in mind Acumatica has a midmarket ERP focus. However, some of their customers are aggressive with transaction volume, which puts Acumatica’s cloud scale to the test.

SeneGence – high order volume on the Azure cloud

During a customer review session, Acumatica CEO Jon Roskill spoke about SeneGence, a “nutraceutical,” aka vitamin supplements (and more) company based out of California: “Their business just exploded beyond whatever they were imagining.”

Story highlights:

  • When SeneGence started with Acumatica two and a half years ago, they were doing about 100 orders an hour at peak. Last fall, that number was up to 2,000 orders an hour at peak times. By spring 2017, that number was peaking at 5,800.
  • SeneGence projects to be doing over 20,000 orders in the peak hours by the end of the year.
  • SeneGence had a bunch of applications they wanted to integrate with Acumatica, so they chose the private cloud deployment option in Azure.

Acumatica’s consumption-based pricing is based in chunks, so SeneGence has gone from a “small” to what’s called a “4XL”: Roskill:

They’re now running a 4XL, which we did quite a bit of work around benchmarking and proving to them that we can run that kind of capacity.

Analysts new to Acumatica are always curious about the ability to move between the on-prem, private cloud and public cloud options. SeneGence’s reason for running Acumatica on private cloud?

One of the reasons they did that is they felt like they had more control of their database, in terms of what they were trying to do with the SQL/Azure component of it.

Bob Davis Sales – flexible ERP licensing for growth

One of Roskill’s core views on the ERP midmarket is that smaller companies can still have highly complex requirements. That certainly holds for Bob Davis Sales, which provides wholesale distribution of oil and gas products for drilling rigs, mostly in the south/central US. Though they only have 13 employees, Bob Davis Sales books almost $50 million in revenues, with complex distribution and parts tracking. During a customer video, they explained their need for scale and their results to date.

Story highlights:

  • Bob Davis Sales evaluated ERP systems including Intacct, SAP, Sage (prior to acquiring Intacct), before narrowing to NetSuite and Acumatica.
  • Two main reasons for choosing Acumatica: unlimited user licenses which would encompass staff growth. And: Acumatica’s customer service made an impression.
  • Early benefits include: significantly streamlined invoicing time, consolidating from three to one operational systems, and “Efficiencies in our inventory, invoices, all across different lines of our business.

They went on to say:

It’s just been a very easy transition; the products are easy to learn, and we’ve already seen all kinds of benefits… [We’re] getting answers much faster than we were ever able to get in our previous system, and that goes a long way in creating that customer base…  Just the unlimited user licenses and the customer service you get alone is well worth it.

xByte Technologies – an Acumatica and AI use case

Of the top five cloud ERP benefits in this piece, the most potent is data visibility. Often, the best way to capitalize on data visibility is with real-time dashboards – something that Acumatica customers are also discovering. But beyond those dashboarding benefits lies a whole new phase: digital transformation/business model change.

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