Web-Based Systems

August 2008 Franchising World
Most companies are missing opportunities by ignoring Web-based systems.
By Dave Hooper and Jerrod Sessler, CFEIt is rare to find a CEO or chief financial officer that speaks fluent “geek.” Conversely, the “techies” tend to spend money on systems, software and solutions without a strong understanding of the bottom line. Most companies are missing the boat with regard to Web-based operational systems. This isn’t simply talking about having a Web site or even having some common functions on that Web site. That was possible 15 years ago. This is about running an entire business via a Web-based application. A single system is a lofty goal some may say. But ask only the hand full of franchisors who are doing it and they will exclaim how great their world is. Every system and process can see and communicate with other parts of the organization without redundancy and with full-tilt efficiency. Change can be difficult no matter how logical. Today, the memories of relying on paper, fax, snail mail, and phones alone are not too distant. It won’t be long however, when relying on these along with desktop software will be a thing of the past as businesses jump on board with Web-based single systems. Thousands of companies have leveraged them for years.
Top 10 advantages of Web based integrated single-systems
1. Ax operating costs: Financial benefits include avoiding expensive hardware excesses; reducing legal and compliance costs, including auto report generation, compliance tracking and franchise disclosure document processed online; and all tools are integrated, such as POS systems, customer relationship management systems, newsletter templates, accounting solutions and supply manager. A radical reduction to carbon footprints and drastic cuts to information technology wrap up this list of benefits.
2. Point and click: A system must be powerful enough to run an entire business, but easy enough for the entire staff. Web-based systems are usually as simple to use as a Web site, and most people have had some experience with them. A good rule of thumb is “If it requires training, then it needs to be fixed.”
3. Hardware or software: Because these systems run on any Web browser and are custom-built with your business in mind, one doesn’t need an IT expert to install, update or maintain anything associated with this system.
4. Give redundancies their walking papers: Everyone in an organization is more productive, especially if his work is integrating with that of everyone else. Single systems enable individuals to thrive. When individuals excel, the business yields the benefits.
5. Real-time is priceless: No more waiting and wondering if they received it. Edit or add information as often as necessary and benefit from real-time technical updates.
6. Accurate reporting … seriously: With all franchises using the system, information is tracked and stored, making reporting capabilities limitless. Want to know what a specific region’s sales were today while you’re on vacation in Aruba? Just log on and run a report. The numbers people love this benefit the best.
7. Accessibility and flexibility: Anyone can access all the company information from anywhere with an Internet connection. It also works on any available computer, including PCs and Macs. The Internet is designed for flexibility. Online systems have the capacity to adapt to current technologies while at the same time be as flexible as needed.
8. One single system: It is much better than accessing manual files and opening multiple software programs at the same time. Until someone has experienced the power of having several applications all working within one integrated single system, he won’t know what he is missing.
9. Communication with ease: Share information in real-time with the system. Franchisees can network and get support through their fellow franchisees in real-time instead of yearly at the conventions.
10. Lock it down: Why risk being one hard drive away from a catastrophe? Data is far more secure housed in a bank-grade hosting facility being continually backed up than it is on a personal computer. There is also the advantage of having complete control over who accesses the system, and which features can be used, but no server to manage.
Going beyond software to rely instead on Web-based applications is becoming more accessible with many applications on the market to separately install and run on any computer. Right now, purchasing separate applications is fairly standard: one each for customer relations, accounting, marketing, inventory, franchise sales, POS, newsletter and e-mail marketing are a few examples. There are even Web-based, help-desk applications available.During the most recent International Franchise Association annual conference in Orlando, a variety of technology companies were offering separate and integrated systems. All of these Internet-based advancements are great. However, especially in franchising where compliance and brand identity can make or break a company, single-system integration is critical. Imagine an entire organization (franchisor, home office staff, franchisees, potential franchisees) all having every one of these applications separately installed on every one of their personal computers. That sounds nearly impossible. But now imagine instead each system running independently, buzzing along together, connected through the Internet. All the data the sales team is generating is privy to all the data franchisees are generating (if the franchise company prefers it) and the list goes on. With franchisors and franchisees working within the same system, a single system that is integrated, real-time information can be generated and customized to specific specifications. “We looked for a single-system that could evolve with us as a new franchise,” said Julie Burleson, CEO and founder of Young Chefs Academy. “Looking at the big picture, we expected customization to pay for itself in the long run, but what we didn’t expect was to see such immediate results. And it’s pretty easy to get used to. We can’t imagine going back to how so many franchises are still doing business. We have exactly what we need, with the freedom to easily add new features so our franchisees always have the latest advancements.”
If Integration is the Goal then Architecture is the KeyLeaders who understand their businesses can easily find others that can create code. The tough part is finding the person who or team that can stand in the middle and understand both: what is needed and what is possible. This is the starting point. Don’t get a management team all excited about building a single system without one of these people. Companies will need someone who can come in and evaluate the business for a few days and then draw up the building plans for a single system. The single-system concept is about connecting members of a franchising organization in a way that not only makes sense, but boosts productivity and in a way that is profitable.
Dave Hooper is the chief technology officer of eFranchiseManager and can be reached at dave@efranchisemanager.com or 310-295-1218. Jerrod Sessler, CFE, is CEO of HomeTask and can be reached by contacting Diane Morton at 206-763-6800 or dmorton@hometask.com.