News Release

An Interactive Presence on the Web: Beyond the Online Billboard

Written by:
Geoff Groves, CEO, Bowen & Groves, Inc.

In a manufacturer's perfect world, its customers would have complete, automated, 24/7 access to every aspect of their accounts. They would be able to see quotations, place orders from inventory or those quotations, view the real-time status of jobs and even track the delivery of those jobs once they're completed. Best of all, they would be able to do these things without ever leaving their chairs or even picking up their telephones.

Sound like a $100,000 techno-fantasy? Actually it isn't. A new breed of web-enabled (and modestly priced) off-the-shelf ERP software is putting advanced online customer service capabilities within the reach of even the smallest manufacturers and completely redefining what it means to be "on the web."

From Humble Beginnings: The Birth of the Online Billboard

Like many technological innovations, the World Wide Web took off several years ago with a frenzied mix of hype, expectation and desperation. In an effort to keep up, manufacturers of all stripes and colors clamored to get "on the web," usually without any idea as to what the phrase really meant. What is the net result of this phenomenon? A sea of online billboards - static sites that were essentially online versions of existing marketing materials. While this formula sometimes included updated content (such as press releases), in the eyes of a visitor or customer, it was still just a billboard. People came; people looked, and people left. And more often than not, people never returned.

"Web sites can attract new customers and perform some of the sales process, but after that, most static sites offer nothing to the existing customer," says Jim Connelly, founder of Cedarock Communications (www.cedarock.com), a strategic marketing firm that has developed several interactive websites for manufacturers. "Basically, the site needs to offer something of value. Although this is true of any industry, it's especially true of manufacturers, where customers may need access to a whole range of specialized information on a daily basis," Connelly adds.

Large-scale manufacturers were perhaps the first to see the web's potential in terms of providing this real-time customer service and support. With millions of dollars at their disposal, these firms developed (and continue to develop) customized software that gives their customers the very kind of access that Connelly recommends.

However, for small to mid-size manufacturers, the story has been decidedly different. Without millions of dollars and the technical resources to develop such systems, most of them have either given up on the idea or dismissed consideration in the first place. It is this void that is now driving the current revolution in web-enabled ERP software.

Fast, Easy and Affordable: The New Face of ERP

Intended for the non-system administrator, today's off-the-shelf systems are designed to work right out of the box, with only a bare minimum of setup and administration. Typically, the system runs across two standard Windows PCs. On one machine is the ERP software itself; on the other machine, there is a standard web server package and some type of specialized module that allows the two machines to communicate. It is this link that makes up-to-the-minute information possible. Why? Because in real time, customers are looking directly into the ERP system itself. There, they can see as little or as much as the manufacturer wants them to see through a window that is always current and always updated.

"Providing real-time access through our website has been enormously valuable, both to us and our customers," says Chuck Thudium, President of AT Precision (www.atprecision.com), a machined parts manufacturer located in Northbrook, IL. He first began looking at the possibilities of such a system nearly two years ago. After considering a variety of complex, custom-built solutions (with price tags in the tens of thousands of dollars), the company eventually opted for an off-the-shelf package that cost less than $7,000 installed. According to Thudium, the system has noticeably improved the efficiency of the customer management process, cutting the number of routine service calls from many accounts to practically zero.

"With customers now having self-serve access to an entire array of information via the web, they are able to stay better informed and we are able to decrease the time and money we spend servicing routine inquiries," says Thudium. "It's a win-win situation for everyone."

Such online access also serves as a marketing tool in and of itself, apart from the myriad of benefits it provides to existing customers. Says Thudium, "Many people today form their first impressions on the web, and so we've tried to ensure that our site projects a sophisticated, professional image. Our commitment to online customer service technology is an important part of that image."

Although making such a commitment is becoming easier than ever before, there are still a few issues to consider before going forward. The first and perhaps most important is the system's physical connection to the Internet. Unlike the typical e-commerce site, a manufacturing site seeking to provide real-time access cannot be hosted at a remote location. This is due to the fact that the web portal needs to have constant access to the company's ERP server, which is providing the information.

Hosting a web site in-house is not the technically daunting task that it was previously (thanks to a slew of user-friendly hosting packages and robust security being built-in on the ERP side), but it still requires a dedicated high-speed connection. For most companies, DSL is the most cost-effective choice, providing adequate reliability and speed for well under $100 a month. If budget permits, a traditional T1 line can also be used, although the widespread availability of DSL has made this option much less attractive over the last few years.

Another consideration is the site itself. Regardless of functionality, does it project a professional image? Is it attractive? Does it say to current and potential customers, "this company is worth dealing with?" The web site is the company's online face, and with an increasing number of people using the web as a first step in doing business, its importance cannot be overstated.

ERP for the Masses

Offering advanced real-time customer service features via the web is no longer the exclusive domain of large corporations, nor is it the difficult, costly undertaking that most assume it to be. There are undoubtedly many manufacturers that would, out of sheer self-interest, like to perpetuate that myth - but it is still a myth. The ERP software of the future is secure, affordable, easy to use and it's available today.

About the Author:
Geoff Groves is CEO of Bowen & Groves, Inc., a software development firm specializing in cutting-edge ERP solutions for small to mid-size manufacturers. The company is located in Irvine, California with additional offices in Australia, New Zealand and England. For more information, please call (949) 260-0344 or visit the company Web site at www.bowen-groves.com.

Reprinted with permission from The Ohio Manufacturer & Contractor published by The Manufacturer's Group.