Venture Capital Funding Mistakes in Tech – ReadWrite
Venture Capital funding is the holy grail for many startups. It turns dreams into reality. It also provides a runway for young companies that want to scale. However, securing funding is complex and precarious when growing a business. Finding VC support is rife with false starts, pullouts, and miscommunications, especially for inexperienced entrepreneurs. It’s a cutthroat world. Without expert guidance, Venture Capital funding mistakes can ruin a burgeoning organization. But get it right, and it sets a company on the right path to success.
As a former top Wall Street tech analyst and the founder of two Indian unicorns (online marketplace ShopClues and automobile marketplace Droom), I know these funding pitfalls well. I witnessed many of these pitfalls — and they happened to me.
Firsthand Funding Mistakes in Tech
There is no replacement for firsthand experience. But I also could have avoided some Venture Capital funding mistakes if I had known about them beforehand. So here I’ve created a list of missteps and how you can recover from them, as well as problems that were not directly my fault and how I navigated them.
I hope this advice is helpful to you on your entrepreneurial journey.
One in the Hand is Worth Two in the Bush
Venture Capital funding mistakes will happen. There is no way around this truth. That’s why it is essential to do your due diligence beforehand. But prepare for missteps.
For example, when I decided to launch ShopClues from my Silicon Valley apartment, I was able to secure a $1.4 million commitment in a matter of weeks from eight of my closest friends. The money was a godsend. It allowed me to launch my company right away. Or so I thought…
Shortly after raising the financial commitment from my friends, I happened to meet one of the most elite VCs in the world by chance. He liked my idea, and he liked me. The VC convinced me to spend multiple fundraising cycles with him instead of taking the $1.4 million. He said I would most definitely need more capital down the line. After two months of back-and-forth, he gave me a term sheet for $5 million. He also told me that getting a term sheet from him equaled receiving an admission letter from Harvard. I thought I had officially arrived.
At that time, I had already onboarded two other top team members. They expected to move to India with me to launch ShopClues. After the term sheet, everyone’s moving date and confidence became more aggressive. But there was a problem. While we had the term sheet, nothing progressed with the VC. I had just convinced two families to take a considerable gamble moving to India based on stalled funding.
I called the VC and told him I needed a clear answer — yes or no — about his funding. There were too many families whose lives hung in the balance. But, unfortunately, the answer was no. In an instant, my Harvard admission letter vanished. I had to act fast.
Making Quick Decisions
First, I asked my team to move to India while I stayed in the US to secure any funding that I could. Then, with hat in hand, I went back to all of the investors who initially offered me $1.4 million. I was very lucky; not a single investor said no. During that time hustling up funds, I also secured another $550,000.
In short, until the ink is dry on the contract, promised funding is no funding at all. So it’s better to go with the funding you have versus the money promised. In an instant, an entrepreneur can be scrounging for more money. And do not be afraid to apologize to those you’ve wronged.
Prepare for Valuation Surprises
That funding adventure is enough to give many entrepreneurs a panic attack. But it was not the only time I got a funding surprise from an elite Venture Capitalist fund. During a Series A round, a different VC gave me a term sheet and all necessary documents. As we reviewed the documents and planned our next steps, the VC came back to us at the 11th hour and said our valuation was way too high. Our well-laid plans disappeared immediately.
It’s important to anticipate these differences in valuation. They will happen, and entrepreneurs look unprepared if caught flatfooted. For this reason, I had other investors ready. I quickly pivoted, renegotiating the terms with a slightly lower valuation that also included a lower stake for that specific VC.
This clawback kept both sides happy. It also allowed me to find additional funds that gave my first five team members a material Employee Stock Ownership Plan (ESOP) instead of allocating this money to these investors. It’s always worthwhile to support early-stage employees. They are taking a massive risk to bring your vision to the world.
Entrepreneurs Occasionally Get “Ghosted” Just Like a Bad Date
A year after I founded ShopClues, I received a term sheet from a prominent VC via email. Initially, the VC was very aggressive and seemed passionate about working with us. This is the dream: finding VCs who match a startup’s energy with their own enthusiasm. Needless to say, we were excited.
However, this dream quickly became a nightmare. After multiple follow-ups, it was clear that the actual term sheet and deal-closing documents were never coming—months of effort for nothing. We were “ghosted” by a potential funding partner. It was like a bad date.
By this point, I had been pursuing and securing funding for two years. This new lesson was important: VCs can vacillate between rabid interest and ignoring a startup. Do not take it personally. Vet each funding opportunity on its own merits. By diversifying funding sources, entrepreneurs mitigate the sting of being ghosted. Funding will never be easy, and the process never progresses in a straight line.
Embrace Financial Constraints
More often than not, startups that begin with a lot of promise fizzle out quickly. Then, after back-to-back rounds of fundraising, these once-promising businesses receive positive reception from consumers. They also secure strong media coverage. During this honeymoon period, it seems nothing will go wrong.
But this is a false sense of security. When everything is going right, a significant problem hides in plain sight: massive cash burn. Millions in VC funding feels like it will last forever. But time and time again, startups prove they know nothing about financial planning. Busted businesses that wasted their VC funding litter the tech industry.
It is absolutely critical to seize the consumer market, but not at the expense of financial instability. Entrepreneurial leaders must pay heed to the financial constraints of their companies. This means reining in spending to ensure survival, sustenance, and success. The old adage “penny wise, pound foolish” hides kernels of truth. Finding the balance between frugality and knowing when to spend big is extremely important for a young business with outside funding.
Do not be afraid to seek external consultation if internal financial planning knowledge is lacking. Execution laser-focused on numbers is paramount to creating a scalable business. If you’re spending too much VC money right now, make painful cuts immediately. Please do not wait until it’s too late.
Realize There are Things VC Funding Cannot Buy
As an entrepreneur, there is always something to learn. All of these lessons have an immense, oversized impact on employees. They also affect a business’s place in the market at large. This is stressful, painful, exciting, and anxiety-inducing — often all at once. I learned to weather volatility and uncertainties. These attributes made my business more resilient. However, they also brought a number of factors into sharp relief. For example, VC funding cannot change the most critical aspects of a company’s success. What a game-changing realization!
Vision, obsession, and eccentricities cannot be bought. They are not transferable. Entrepreneurs sometimes get stuck thinking that money solves all problems. But an imperfect employee with a strong drive and unique outlook cannot be replaced. Running a startup is never a straight line. Murphy’s Law lurks behind every corner. Knowing that a hand-assembled team supporting an entrepreneur’s vision is ready to get its hands dirty when Venture Capital funding mistakes are made is priceless.
Do Not Relinquish Control for Additional Funds
Years of hard work, brainstorming, dead ends, and successes built your business. But, while outside funding most definitely helps pave the road to success, it can also put you on the road to ruin.
A VC deal that sounds too good to be true often is. Do not trust anyone with 100% of your vision. In short, never relinquish full control of your business to an outside entity.
Professional investors do not always have a company’s best interests in mind. Business leaders trust these VCs to bring them wealth. But not all of these professional investors have the passion, commitment, and dedication to match entrepreneurial drive. In fact, they may take for granted what an entrepreneur has built. Some of these VCs also have competing interests or petty grievances between themselves.
A company can spiral out of control if it gets caught between the childish in-fighting of its outside funders. Watch for these issues when speaking to unknown VCs.
Leave Your Entitlement at the Door
When everything seems to be going right, even the most even-keeled businesspeople grow an ego. It’s just human nature. However, entrepreneurs must work hard to avoid a sense of entitlement at all times. Ignoring this advice is one of the worst Venture Capital funding mistakes.
For example, graduates from prestigious academic institutions often carry a misplaced sense of entitlement. This can be detrimental to their success. But, on the other hand, these fresh-faced entrepreneurial hopefuls believe that having a certification from a high-profile institute automatically results in investor interest.
An excellent academic track record certainly impresses those mapping your progress. However, the ultimate litmus test of entrepreneurs is the strength of their ideas and the ability to execute those ideas profitably.
People often mistake overconfidence as solid leadership. However, it usually ends up cementing an image of arrogance in the eyes of colleagues, peers, juniors, and VCs. It’s also a huge turnoff for potential investors. These VCs are not just funding your idea. They are also funding their belief in you. Reputational damage sets those seeking funding back to Square One, so check your ego at the door.
Funding is Not All that Matters
Funding is one of the most critical aspects of a burgeoning startup. However, you can be fooled and blinded by the money itself. Securing capital for your venture is important, but the ability to spend it wisely is equally critical. Make every penny count by ending lousy spending habits. Do not splurge on trivial things that do not benefit the company in the long run.
Personally, I believe splurging is as unwise as it gets. But I’ve learned this lesson the hard way. I’ve experienced tunnel vision before. Unfortunately, it negatively affected important parts of my business.
Spend time understanding the current market thoroughly before planning to allocate VC funds. Many relatively new businesses fail due to improper fund management, despite having raised significant amounts of capital.
Extravagance to “seem” successful is the single worst mistake an entrepreneur can commit.
Treat VC money like your own — and carefully and shrewdly divvy it out. Then, use data and shrewd analysis to figure out the best ways to utilize it. Possible options include strengthening infrastructure, growing your team, and expanding the company’s geographical presence in a well-thought-out, calculated, and measured way.
If you burn money for the wrong reasons, hire an intelligent CFO who can speak the truth to power. They will keep the company on the right track.
I feel blessed to have launched two successful Indian Unicorns during the past decade. But I’ve encountered my own share of VC challenges.
I hope the Venture Capital funding mistakes I’ve made help other entrepreneurs on their VC funding journeys. There is no one right way to do it. However, the wrong way can turn a little mistake into a big problem.
Be prepared, be flexible, and most of all, be resilient. When wooing Venture Capital firms, find the best match between vision and a fruitful funding partnership.
Image Credit: RODNAE Productions; Pexels; Thank you!
How Emerging Technology Is Helping Teams Save on Development Costs
Software developer pay spans a notoriously wide range, but few would argue that U.S.-based development costs are “cheap.”
According to a U.S. News & World Report analysis, the median U.S. software developer earned $120,730 in 2021. Experienced devs can easily command $200,000 per year in cash compensation alone, with incentive pay and company benefits adding significantly to that total.
You most likely know this already. You also most likely know that complex software development projects take months and involve multiple developers and engineers. “Cost spiral” doesn’t begin to describe the situation.
You don’t need to be reminded how important it is to cut DevOps costs wherever possible. Your bosses and shareholders (perhaps one and the same) remind you enough.
Fortunately, emerging technologies and tools are making it easier than ever to reduce software development expenses without compromising output, efficiency, or quality. It’s no exaggeration to say that these new capabilities are revolutionizing software development and helping DevOps teams save money across the board.
Let’s take a closer look at four types of emerging capabilities: next-generation project management tools, cloud computing services, task automation tools, and ephemeral development environments. Each offers potentially game-changing opportunities for teams looking to work faster, smarter, and more efficiently.
Using next-generation project management tools to drive software development efficiency and collaboration
Signs of bad project management include missed deadlines, poor quality control, and infighting within teams that need to collaborate closely. These and other direct results of poor project management are harmful to the broader organization (and to the careers of those responsible for them).
Yet poor project management has a direct financial cost as well. This goes back to what we’ve already discussed: the high cost of labor in a product development environment and, specifically, the very high cost of labor in a software development context. Every day that passes without an anticipated deliverable is a day that brings unanticipated costs. And while every project budget has some built-in wiggle room, said costs eventually become unacceptable.
The good news is that software development teams can turn to an already-existing library of scalable, easy-to-use project management tools that easily map to DevOps use cases. Your team may already use some basic project management tools to manage workflows and keep track of deliverables, timeframes, and responsibilities. Still, if you haven’t surveyed the landscape and assessed individual tools’ capabilities relative to your team’s needs, you’re likely not maximizing their potential.
Look for project management tools with the following capabilities:
- Use cases specifically designed for your specific development framework. For example, Jira’s project management tool is specifically tailored to Agile development teams.
- Relevant integrations with third-party apps, from general-purpose tools like Google Docs (where your spreadsheets likely live already) to DevOps, cloud storage, and even CRM software.
- Sophisticated calendar views that enable visual-oriented team members to “see” their project responsibilities at a glance.
- Powerful developer APIs that allow you to customize the project management interface to your needs and produce efficiency-oriented outputs.
Ideally, your team relies on one core project management tool to manage everything it’s working on together, with individual developers free to use additional tools to manage their personal workflows.
That may require you to cut out a less optimal tool (or several) and disrupt legacy use cases, but it’s better to rip off the Band-Aid now before a bona fide productivity crisis hits. Further down the road, untangling competing and deeply entrenched workflows will surely prove more costly and more disruptive.
Leveraging cloud computing services for projects with multiple stakeholders
Like project management software, cloud computing services no longer count as revolutionary. If your team is small, it might use GSuite for cloud-based storage and collaboration. If it’s larger, it might use Microsoft Azure or Amazon Web Services (whose incomprehensible value only underscores the critical importance of cloud computing).
And so you’re already aware that cloud computing services make development more efficient by enhancing collaboration, reducing duplication of effort, and sharply cutting reliance on onsite database hosting, file storage, and data processing.
Your team can and should use cloud computing services in additional ways that even more directly improve DevOps efficiency and cost control:
- Containerization: Containerization enables software deployment on any computing infrastructure. Bundling app code and file libraries in a self-contained, platform-agnostic unit eliminate the need to match platform-specific software packages (i.e., Windows-compatible) with the correct machines. Containerized deployment is more portable, more scalable, and more resilient — and it’s only possible in the cloud.
- Microservices (vs. monolithic architecture): Microservices break up the development architecture into many small, agile units that communicate via API. Rather than an inflexible “monolith” that needs to be reworked as it scales, microservices can be scaled internally (or new ones created) as needs arise. Like containerization, it’s a much more flexible, agile, and ultimately low-cost way to manage complex DevOps workflows.
Automating repetitive tasks throughout the development lifecycle
Task and workflow automation tools are improving at an incredible clip, and the advantages of next-generation automation are particularly impressive for DevOps teams. As just one example, telecom giant Ericsson drove significant cost savings by automating key aspects of their software development pipeline and transitioning to a continuous deployment model, according to a study published in Empirical Software Engineering.
Transitioning to continuous deployment is a time- and cost-intensive process that may not be practical for smaller teams, at least not in the near term. But your team can leverage task automation in many other ways.
Testing automation deserves special mention here. Automated testing and QA solutions like Robot Framework and Zephyr (respectively) reduce the need for repetitive, labor-intensive poking and prodding by human devs whose efforts are better spent elsewhere. By finding bugs and quality issues earlier in the development workflow, they also reduce the need for costly and time-consuming fixes further along in the process.
Increasingly, code generation itself is automated, thanks to tools like Eclipse. These generative tools will only improve as processing power increases and training sets expand. Consequently, this sets the stage for a near-future scenario where devs will need to manually write far less code. That, in turn, will allow DevOps teams to stretch dev resources further. Additionally, it will free up person-hours for more creative or problem-focused work.
Utilizing ephemeral environments to improve development speed and quality
Finally, software development teams can achieve efficiency and cost improvements at virtually any scale by utilizing ephemeral environments. These are temporary staging environments that can be created at will, generally for a single-purpose feature test or bug fix, and then eliminated when no longer needed to keep costs low.
Ephemeral environments offer clear advantages for development teams. They reduce pull request backlogs, a notorious sticking point (and cost driver) for larger teams. They’re isolated, which reduces the risk of bug-inducing branch conflicts. They’re fully automated, which frees up engineers to deal with more important matters. And because they enable more targeted, granular testing, they speed up the development process overall. They also reduce the risk of an unacceptable issue breaching the main code branch. Repairs on the main code branch are much more time-consuming and costly.
The result is a faster, more efficient workflow that scales with your team in response to demand. For example, Uffizzi’s on-demand ephemeral environment tool helped Spotify add 20% more features to every release of its popular Backstage developer portal platform. Backstage grew rapidly after initial open-sourcing in 2020 and now averages some 400 active pull requests per month. The transition to ephemeral environments slashed average pull request completion times across the platform.
Ephemeral environments can also help smaller development teams achieve the same economies of scale as larger teams. For example, moving to a continuous deployment model might seem out of reach for small teams under the old “bottlenecked” shared environment framework. Start by streamlining this process and freeing up department resources for longer-term strategic work. Ephemeral environments (and other process automation tools) make such shifts possible.
It’s no accident that Uffizzi’s out-of-the-box ephemeral environment solution supercharges the continuous integration/delivery process.
Opportunities abound now, with more to come
Change is already here for software teams accustomed to the old way of doing things. These four emerging or expanding technologies and tools —
- Next-generation project management software
- Expansive and flexible cloud computing services
- Increasingly intelligent and capable task automation tools
- Scalable, on-demand ephemeral environments for better testing and QA
— are making life easier and development faster for DevOps departments around the world. Their capabilities and use cases will only expand as time goes on.
These four technologies aren’t the only emerging opportunities for software developers and the companies that employ them, however. Around-the-bend and over-the-horizon capabilities could change the tech industry in even more fundamental ways:
- AI-driven platforms for developers, like TensorFlow, that promise to dramatically speed up development timeframes and allow teams to do much more with much less
- Infrastructure as Code (IaC) capabilities that break down silos between DevOps teams and the rest of an organization and create trusted, reliable code frameworks that ultimately reduce developer and maintainer workloads
- Low- and no-code application development, which — while possibly overhyped in the short term — could further break down barriers and enable faster, more collaborative action
- Augmented reality tools and apps, whose potential impact remains speculative but which will likely play an increasingly important role in software and product development over the next decade
In the coming years, odds are you’ll integrate all four of these capabilities into your DevOps workflows by then. You’ll most likely take advantage of other emerging technologies and tools in the near future too. These may even include some we don’t yet know about. As the pace of innovation accelerates, staying one step ahead of the competition — and doing right by your firm’s stakeholders, financially and otherwise — means watching closely for new tech that can speed up your development timelines and reduce overall DevOps costs.
Published First on Due. Read Here.
Featured Image Credit: Photo by Pixabay; Pexels; Thank you!
Eco-Friendly Fleet Maintenance Trends and Strategies
As the world becomes increasingly aware of the impact of climate change, many businesses are seeking ways to mitigate their carbon footprint and embrace more sustainable practices. In the transportation industry, fleet maintenance is a key area where businesses can make significant strides in reducing their environmental impact.
The Big Issues With Today’s Fleet Maintenance
There are several environmental issues associated with today’s fleet maintenance practices. Here are some of the biggest:
Greenhouse Gas Emissions
Fleet vehicles are a significant source of greenhouse gas emissions, contributing to climate change. The emissions from fuel combustion and the use of heavy-duty vehicles can have negative impacts on air quality, water quality, and human health.
Hazardous Waste Disposal
Many fleet maintenance activities generate hazardous waste, such as used oil, solvents, and other chemicals. If not disposed of properly, these can contaminate soil and water, posing a risk to human health and the environment.
Fleet maintenance requires significant resources, including energy, water, and raw materials. The extraction and processing of these resources can have negative impacts on the environment, including habitat destruction, deforestation, and water pollution.
Fleet maintenance activities can be noisy, especially in urban areas. This can have negative impacts on wildlife and human health, contributing to stress and hearing damage.
Land Use and Habitat Destruction
The construction and maintenance of fleet facilities, such as maintenance yards and parking lots, can require significant amounts of land. This can lead to habitat destruction and loss of biodiversity.
Overall, fleet maintenance has significant environmental impacts, and addressing these issues will require a comprehensive approach that includes the adoption of sustainable practices, the use of alternative fuels and technologies, and the implementation of environmentally responsible waste management practices.
7 Eco-Friendly Fleet Maintenance Tips
Aligning a company’s fleet maintenance approach with larger green initiatives and eco-friendly mission statements has never been more practical. Here are several helpful tips and strategies to get you started:
1. Switch to Alternative Fuels
One of the most effective ways to make fleet maintenance more eco-friendly is to switch to alternative fuels. Traditional gasoline and diesel-powered vehicles produce a significant amount of greenhouse gas emissions. Alternative fuels, like electricity, biofuels, and even hydrogen, produce fewer emissions and can help reduce a company’s carbon footprint.
Electric vehicles (EVs) are becoming increasingly popular as a sustainable transportation option. EVs produce zero emissions and are typically much cheaper to maintain than traditional vehicles. Hydrogen fuel cell vehicles are also an option, producing only water as a byproduct. Biofuels, which are made from renewable sources like corn and soybeans, can also be used in some vehicles.
2. Use Sustainable Products and Materials
In addition to alternative fuels, businesses can also make fleet maintenance more eco-friendly by using sustainable products and materials. Here are some examples:
Biodegradable cleaning products: Traditional cleaning products can contain chemicals that can be harmful to the environment. Biodegradable cleaning products are a more sustainable alternative as they are made from natural, non-toxic ingredients that break down quickly and safely.
Recycled materials: Using recycled materials, such as oil and tires, can help reduce waste and conserve natural resources. Recycled oil can be re-refined and used again, while recycled tires can be turned into rubberized asphalt, which can be used to pave roads.
Eco-friendly lubricants and fluids: Using eco-friendly lubricants and fluids, such as biodegradable hydraulic fluids and biodegradable grease, can help reduce pollution and protect the environment.
Sustainable packaging: When purchasing products and materials for your fleet maintenance, look for sustainable packaging options, such as products that are shipped in recyclable or biodegradable packaging.
By using sustainable products and materials in fleet maintenance, you can help reduce your environmental footprint and promote sustainability.
3. Conduct Regular Preventive Maintenance
Fleet maintenance software can be a powerful tool for managing preventive maintenance as part of a green fleet management strategy. Here are some steps to help you use fleet maintenance software to perform preventative maintenance:
Set up a preventative maintenance schedule: The first step is to set up a maintenance schedule in your fleet maintenance software. This schedule should include regular maintenance tasks such as oil changes, tire rotations, and other routine maintenance tasks that will help keep your vehicles running efficiently and reduce emissions.
Track vehicle usage: Your fleet maintenance software should be able to track vehicle usage, including mileage, hours of operation, and other relevant data. This information can help you schedule maintenance tasks based on actual use rather than just time intervals, which can help reduce unnecessary maintenance and waste.
Use eco-friendly parts and materials: When performing preventive maintenance, make sure to use eco-friendly parts and materials whenever possible. This can include using recycled oil, eco-friendly tires, and other environmentally friendly products.
Monitor fuel consumption: Your fleet maintenance software should also be able to track fuel consumption for each vehicle in your fleet. By monitoring fuel consumption, you can identify inefficiencies and make adjustments to improve fuel economy, which can help reduce emissions.
Analyze data and adjust your strategy: Finally, use the data collected by your fleet maintenance software to analyze your fleet’s performance and adjust your strategy as needed. For example, if certain vehicles are consistently underperforming or require more frequent maintenance, consider replacing them with more fuel-efficient models.
The good news is that implementing fleet management software into your company’s strategy isn’t nearly as challenging or intensive as you might think. Thanks to artificial intelligence and machine learning, the upfront setup is much faster and more efficient than you may realize. This allows you to get up and running quickly.
4. Implement More Efficient Routing
Efficient routing is another strategy for making fleet maintenance more sustainable. By optimizing routes, businesses can reduce the amount of fuel their vehicles consume and the emissions they produce. This not only helps the environment but can also save the company money on fuel costs.
GPS and fleet management software can help companies optimize their routes and reduce fuel consumption. These tools can provide real-time data on traffic patterns, road closures, and weather conditions, allowing businesses to make informed decisions about their routes.
5. Promote Better Driver Education
Another important aspect of eco-friendly fleet maintenance is promoting driver education. Drivers who are trained in eco-friendly driving techniques can help reduce fuel consumption and emissions. This includes techniques such as reducing idling time, avoiding sudden accelerations and braking, and maintaining a steady speed.
In addition to driver education, businesses can also encourage their drivers to adopt sustainable habits, such as carpooling and using public transportation when possible. This not only reduces the company’s carbon footprint but can also save employees money on commuting costs.
6. Use Telematics Technology
Telematics technology refers to the use of wireless communication systems and GPS technology to transmit data from vehicles to a remote location. This technology allows businesses to track and monitor the performance of their fleet vehicles, including fuel consumption, emissions, speed, and location.
By collecting this data, telematics technology can help businesses optimize their fleet operations to make them more energy-efficient and green. Here are some of the ways that telematics technology can be used to improve fleet sustainability:
Route Optimization: Telematics systems can provide real-time traffic updates, road closures, and weather conditions to help businesses optimize their vehicle routes. By choosing the most efficient route, fleet managers can reduce fuel consumption and emissions while ensuring on-time deliveries.
Fuel Efficiency Monitoring: Telematics technology can track fuel consumption in real-time, giving fleet managers insights into how their vehicles are performing. By identifying patterns of inefficient driving or idling, businesses can take steps to reduce fuel consumption and emissions.
Maintenance Alerts: Telematics technology can also alert businesses when a vehicle is due for maintenance or repairs. By staying on top of maintenance, businesses can ensure that their vehicles are running at peak efficiency.
Driver Behavior Monitoring: Telematics technology can monitor driver behavior, including acceleration, braking, and speed. By identifying patterns of inefficient driving, businesses can provide coaching and training to drivers to help them improve their driving habits.
7. Reduce Vehicle Weight
Reducing the weight of fleet vehicles can also make maintenance more eco-friendly. The heavier a vehicle is, the more fuel it requires to move, which means it will produce more emissions. By reducing the weight of their vehicles, companies can reduce the amount of fuel they consume and the emissions they produce.
This can be achieved by removing unnecessary equipment and cargo from the vehicles, as well as using lightweight materials for vehicle maintenance. For example, aluminum wheels and carbon fiber parts can be used to reduce the weight of the vehicle.
Turn Your Fleet Green
Implementing eco-friendly fleet maintenance practices not only benefits the environment. It can also help businesses save money in the long run. By reducing fuel consumption and emissions, companies can lower their operating costs and improve their reputation as a sustainable business.
Use the tips highlighted above to reorient the way your business approaches fleet maintenance in 2023 and beyond.
Image Credit: by Lê Minh; Pexels; Thanks!
5 Essential Benefits of Choosing an Efficient ERP System
The corporate world is changing at a fast pace, and advanced technologies such as ERP system is at the epicenter of the ongoing digital revolution. Businesses are more dependent on technological tools and enterprise software than ever before. In fact, these tools and software are enabling businesses to drive greater success by enhancing business processes. Are you ensuring that you have the right software and tools to help your business advance swiftly?
There is a plethora of software and solutions to choose from, and each of them comes with its own merits. But what is making a real difference is the integration of Enterprise Resource Planning (ERP) systems that can streamline processes across various verticals in an enterprise.
The use of ERP systems defines a new trend altogether in the modern workplace.
Gone are the days when only multinational companies subscribed to ERP solutions for managing processes at the entire enterprise level. Nowadays even small businesses are bridging ERP systems onboard to facilitate business advancement. To validate, as per statistics, the global market size for ERP software is expected to reach USD 96.7 billion by 2024. Finances Online further explains that more than 52 percent of organizations are highly satisfied with the decision of integrating ERP systems.
Probing further, vertical ERP, small business ERP, generalist ERP, and Open Source ERP is among the most common types of ERP software that businesses are integrating. Moreover, it is also notable that most organizations are showing a keen interest in Cloud-Based SasS ERP systems, given the edge they have over traditional ERP.
All in all, the integration of ERP systems has become one of the most sought-after change management activities in the corporate world. The question is, what are the advantages of ERP software that businesses are subscribing to ERP solutions? Let us find out in this blog.
Key benefits of ERP Systems for businesses
1. Massive optimization of productivity
The ultimate objective of every enterprise is to drive the highest productivity across every vertical. However, when your employees work on recurring and repetitive tasks, not only their individual productivity takes a hit, but the efficiency of the entire organization takes a setback. This explains why businesses increasingly spend on automation tools to streamline repetitive tasks like invoicing. Even marketing automation is one of the thriving corporate trends.
All in all, the greater the automation in an enterprise the higher will be the productivity. Having said that, this is where we must look at one of the greatest benefits of integrating ERP systems. To substantiate, ERP systems come with incredible and reliable automation capabilities that can help your organization achieve its business objectives at a greater pace.
Moreover, with AI integrations as per the latest developments, the automation capabilities of ERP systems are much higher than ever before. To substantiate, as per Netsuite, employers are now happily investing in advanced ERP solutions that come with intelligent AI or machine learning capabilities.
Needless to say, artificial intelligence is the way forward for enterprises, and the blend of ERP and AI is worth embracing. This combination will certainly give your business an unparalleled competitive advantage.
2. Real-time analytics
Having timely access to analytics that can help you constantly enhance processes is nothing short of having a competitive advantage. In fact, everything in the modern enterprise world revolves around analytics. From analytics on customer engagement to analytics on inventory management gaps, you need analytics at almost every step.
This is where ERP comes up with another great feature that you should definitely not ignore. An efficient ERP system can generate real-time quantitative analytics that can lead to better planning, execution, and monitoring. Besides, the best part is that with an ERP, you can create data analytics capabilities in your businesses without even having to hire a dedicated team for data analytics.
Moreover, real-time analytics will also ensure that there is a smoother workflow management and will also aid in effective collaboration between teams. Especially if your project teams work remotely, it is essential that there is real-time sharing of data analytics for project success. ERP does not only automate data generation but also data reporting in a presentable and lucid form. However, in the ultimate sense, the positive impact of ERP is subject to the efficiency of your change management process.
3. Greater cost-efficiency in operations
Irrespective of whether you are a budding startup or an established business, operational costs will always be a top concern for you. The correlation is quite simple, the lower the operational costs the higher will be the profitability. Now, the question is, can ERP help you in bringing down operational costs? Well, the answer is a big yes and it is time you acknowledge that.
To validate, as per Datix, ERP solutions can help organizations reduce operational costs by 23 percent. This clearly indicates that you can save a major chunk of operational costs by investing in the best-in-class ERP solution. The sooner you bring ERP onboard, the greater the savings.
4. Magnification of data security
It is a well-known fact that the contemporary corporate world has a massive dependence on big data. Every business process in the modern corporate world has data engineering and analytics at the forefront of things. Data security has become a top concern, especially when cyber-attacks and data breaches are more advanced than ever before.
One of the most compelling reasons why your business needs ERP is the set of advanced data security features. When an ERP is integrated into business processes, you can set controls for accessibility to confidential data. To explain, you can control who can access sensitive information and who cannot.
Otherwise, in the absence of an ERP system, you will have to spend fortunes on cyber security and data security solutions. ERP gives you multidimensional benefits of optimized business processes along with credible data security measures.
5. Enhanced flexibility
Does your organization have a traditional on-site working style or a hybrid working style? Are you planning to move your employees to permanent work from home? ERP gives you great flexibility irrespective of your organization’s working style. Simply put, ERP can be easily integrated even in remote working cultures or hybrid cultures and will also help you to avoid employee burnout (seodiggerz dotcom “help employees avoid burnout). You can implement an ERP system with great ease and put it to work from the word go.
Besides, ERP systems also offer great flexibility in terms of future scalability. If your business is expanding and you want to add more users in the future, ERP systems offer the room to do so. Room to expand has to be the most important feature you should be looking for when you choose an ERP system. Not every ERP system may come with an effective scope of future scalability. Still, you will find a lot of ERP systems that do offer scalability features and you must choose from them.
ERP systems are changing the way businesses approach their operations and key objectives. Besides, ERP is much more than a planning resource and offers immense value in terms of optimizing business processes.
Integrating ERP for your business can be a real game changer. The sooner you subscribe to it, the more advantageous it will prove to be for your business. Make sure you choose an ERP software that is best suited for your enterprise.
Featured Image Credit: Photo by Erik Mclean; Pexels; Thank you!