MAKING IT CLICK: CHOOSING APPROPRIATE TECHNOLOGY TO RUN YOUR GOOD - PowerPoint PPT Presentation

An An NG NGFN N Webina inar MAKING IT CLICK: CHOOSING APPROPRIATE TECHNOLOGY TO RUN YOUR GOOD FOOD BUSINESS July 24, 2014

Presentation Outline Technical Orientation  Welcome / Introduction  John Fisk Wallace Center at Winrock International Community-Based Food Business  Financing Questions and Answers  Upcoming Opportunities, etc. 

W ALLACE C ENTER AT W INROCK I NTERNATIONAL • Market based solutions to a 21 st Century food system • Work with multiple sectors – business, philanthropy, government • Healthy, Green, Affordable, Fair Food • Scaling up Good Food

NATIONAL GOOD FOOD NETWORK: VISION

NATIONAL GOOD FOOD NETWORK: GOALS Supply Meets Demand • There is abundant good food (healthy, green, fair and affordable) to meet demands at the regional level. Information Hub • The National Good Food Network (NGFN) is the go to place for regional food systems stories, methods and outcomes. Policy Change • Policy makers are informed by the results and outcomes of the NGFN and have enacted laws or regulation which further the Network goals. http://ngfn.org | contact@ngfn.org

Networki ng Conference s Webinars Peer to Peer Research Study Communi New Info Hubs ty of New Regional Audience Practice Networks s Technical Assistance Strengthen Food Hubs 6

Presentation Outline Technical Orientation  Welcome / Introduction  Choosing Appropriate  Technology to Run Your Good Food Business Saloni Doshi New Venture Advisors Questions and Answers  Upcoming Opportunities, etc. 

Making IT Click: Choosing Appropriate Technology to Run Your Good Food Business NGFN Webinar July 24, 2014 Saloni Doshi Associate Denver, CO

Objectives Lay foundations to help food hubs: 1. Assess their technology needs 2. Structure a search for technology solution(s) 3. Evaluate and select the right technology solution(s) for their needs What we’re not doing today: • Evaluating specific software systems • Troubleshooting specific challenges • Discussing how to best work with software provider 9

My background • Strategy consultant • Food hub feasibility and business planning • Technology development strategy • Technology selection for startups and Fortune 500 companies • Food entrepreneur, evaluator and user of tech systems • Researcher of food systems tech landscape 10

My background What I’m not: • Technology entrepreneur • Developer • Food hub operator or grower 11

Your background Majority of attendees are: • Food hubs, some with in-house processing • Nonprofits • Producers Other categories: • Technology providers • Consultants • Technical assistance providers • Funders 12

Your background Outsourced Different solutions for Single ERP system that addresses different needs – majority of needs across business QuickBooks, QB inventory – purchasing, inventory, invoicing, module, Salesforce, logistics, ecommerce. May have Wordpress, etc QB separately. Strategic Tactical In-house system designed to “Manual” solutions, meet unique model. often using Microsoft Addresses many needs across Office or Google business – purchasing, applications inventory, invoicing, logistics, ecommerce. 13 In-house

Technology philosophy • Technology should enable your business strategy – it is not the solution • Investments in technology are best made after strategic and operational foundations of a business are stable • Technology should be adapted to meet a business’s processes needs, not vice versa • Don’t waste time reinventing the wheel 14

Selection considerations Data and IP ownership Functionality needs Integration Ease of use Deployment approach Pricing structure Total cost of ownership Security and data protection Platform and architecture Responsiveness, flexibility Open source versus closed Return on investment 15

Technology search process ASSEMBLE Identify expertise Select individuals Establish roles needed TEAM Build process flow Requirements “Ideal” state for NEEDS - Current state - “Ideal” state other needs, ASSESSMENT - Gaps, issues - Prioritization prioritization Assess features BUILD PIPELINE Identify potential Consider in-house through meetings, software solutions development AND RESEARCH demos EVALUATE AND Gather feedback Develop model for Free trial period SELECT from team ROI, evaluation

Build process flow The term “food hub” describes a myriad Common business models include of business types • Traditional aggregator • Processor • Broker / sales agent • Ecommerce or marketplace • CSA aggregator 17

Build process flow - framework Business overview Describe your vision and mission, and core operations and revenue streams. List functions Define process • Crop planning • How is the function executed? • Grower • Who is involved in each step? communication • How is information gathered, used and shared • Sales and marketing in each step? • Purchasing • Receiving Current technology • Inventory • management What technology solutions are currently • Order fulfillment being used to track, use and share data? • • Logistics What “non tech” solutions are being used? • • Accounting Who are the users of these solutions? • Food safety 18

Process flow example Preseason crop planning Identify buyer demands, grower capacity, gaps. Price list In-season updates Weekly updates on Avail product, price. upcoming inventory Based on grower Inventory supply, inventory Growers / Full item list, by Buyers “on order”, Vendors Purchase order “committed”, “in Sales order stock”, Based on inventory, “backorder”. JIT, forecasted sales, grower supply Delivery / invoice Product / invoice Order fulfillment Pick lists  pack / check Receive / pick-up Routing, record Payment & Payment & product, verify and and load orders. issues, confirm Reconcile Reconcile sync into inventory receipt Food Hub Food safety and Recall Accounting / Reporting CRM 19 Record temps, track inputs to manage recalls. Maintain revenue, COGS, SG&A, A/R, A/P, payroll. Track pipeline, Maintain all organics certification records. Report on financials, sales, inventory, ops, etc. communication, targets 19

Process flow example Preseason crop planning Historical eval, grower capacity, gaps. In-season updates Market CSA Weekly updates on Limits, sites, etc available product, price Profile, weekly orders Online Purchase order Sub in products, portal Growers / halt service, etc Based on weekly CSA Customers orders and subs Vendors Payment Recurring, single Product payments, etc Order fulfillment Receive, verify product. pick lists  pack / check / Delivery load orders. Site Payment With customer list. coordinator Minimal inventory Routing, record issues, confirm receipt Food Hub Accounting / Reporting CRM Food safety and Recall Maintain revenue, COGS, SG&A, A/R, A/P, payroll. Track sites, vendors, Record temps. Report on financials, sales, inventory, ops, etc. customers, targets 20

Build requirements list Business overview Describe your vision and mission, core operations and revenue streams. Function Process Current tech Ideal state Prioritization • • How is the What technology - In an ideal world, - How would this function solutions are how would this step solution benefit executed? currently being be automated? the business? • Who is involved used to track, use - How would - How high in each step? and share data? technology make it priority is tech • • How is What “non tech” more efficient and for this step? information solutions are being effective? What is the gathered, used used? - Who would be the “trigger” to • and shared in Who are the users primary data make this high each step? of these solutions? inputters and users? priority? - What is the minimum now? 21

Return on investment evaluation Common method for evaluating technology decisions is to assess the cost/ benefit of each option through a return on investment (ROI) calculation. Increase in income / total cost of solution Total cost of Cost and pricing Impact on business ownership implications - Growth in supply - Acquisition price - Ability to pay and revenue - Ongoing price - Impact on cash - Minimize labor Perpetual license flow – early on through SaaS subscription and longer term automation Percent of sale - Implications for - Minimize data - Other costs: Staff other investments issues time, hardware - Meet regulatory and customer req’s 22

Technology landscape ERP: General Online Marketplace Farm Systems • • ACCTivate (B2B, B2C) AgSquared • • • Blue Ocean Systems Farmers Web Farm Works • • • Edible Software FarmLogix FarmKeeper • • FoodConnex Good Eggs • • NetSuite iGrowerTrade • • Produce Pro Local Dirt • Silver Creek ERP: Food Hubs B2C/CSA Exchange Function Specific • • • Delivery Biz Pro CSAware / Local Harvest ADP • • • Food Network Software Farmigo FoodLink • • • Local Food Marketplace Whole Share HarvestMark • • Local Orbit iTradeNetwork • Quickbooks • Salesforce 23