Business Continuity in a Technology-Dependent World: Part 2

Business Continuity in a Technology-Dependent World: Part 2
Failover Plan Considerations, and Distinguishing Data Loss from Downtime

Designing a failover plan
Business continuity solutions are not one-size-fits-all. At the outset, it is important to look at two key metrics. The first is called the recovery point objective (RPO), and it basically determines how frequently backups should be taken based on how much data a company is willing to lose. What would happen if email correspondences were lost? What systems, software applications, key documents and user clearances must be kept absolutely current in order to run the business?

The second is the recovery time objective (RTO), which determines how long a company can afford to be offline during and after a disaster. Totally recreating a company’s IT environment is not as simple as buying a new server and feeding in information from a backup source. Complex configurations, hardware availability and other business issues can make the process a slow one.

These metrics vary from organization to organization, yet in every case five basic building blocks are necessary for successful business continuity.

• Effective hardware engineering. Properly designing a failover system ties directly to RPO and RTO. Hardware must be engineered to deliver a fast (enough) return to operations. It also should be relevant to the individual company’s situation. An organization with five production servers does not necessarily require five replicated servers, but it needs enough capacity to run the business. Additionally, any offsite backup storage and servers must truly be remote – another location within the building is not adequate.
• Functioning and up-to-date software. This one may seem obvious, but it is important. If data backup and storage software applications are not properly installed and maintained, even the best failover plan will fail.
• Proper planning and communication. Failover systems only work if people know when and how to access them. Who will authorize the switch to the replicated servers? Do employees know how to log into the system? From the outset, companies need to put a clear and well-communicated plan in place. It is imperative that all failover procedures are well documented and accessible.
• Regular process review and testing. No organization wants to be faced with testing their recovery capabilities for the first time when disaster strikes. Business continuity plans should be put through their paces regularly with both planned and unplanned drills. Additionally, a designated team should review the plan regularly to be sure it accommodates any operational and staffing changes.
• Ongoing monitoring. Are backups completing successfully? Are they being corrected if there is an issue? Hardware and software should be checked frequently, on a set schedule.

A note on data loss, downtime and the cloud
Every company understands the importance of backing up its data. The most cautious organizations traditionally run two sets of in-house servers – one for production and one for replication. They also conduct full backups to tapes at regular intervals, and store those tapes off-site as an important last resort for data recovery in the event that a fire, flood or other disaster destroys the in-house equipment.

While this process protects against data loss, having a current copy of a company’s information alone does nothing to prevent downtime. This is an important distinction of business continuity, which ensures that data is not only available but instantly recoverable – enabling an organization to keep functioning during a disaster vs. simply recovering from it after the fact. Until now, only companies with big budgets could afford to maintain the remote backup servers and workstations needed to ensure truly seamless operation.

Now, replicated cloud servers provide a comprehensive platform for data storage as well as access. In the event of an interruption, the cloud server and everything on it is immediately available. They also provide built-in cost savings. Cloud solutions are relatively inexpensive. And users can cut expenses significantly by eliminating redundant in-house and external servers, as well as the pricey “juke box” devices designed to store hard copies of backup tapes. And in terms of access, employees can work from anywhere they have an Internet connection.

Moving the plan forward
Orchestrating an effective business continuity solution requires understanding an organization’s distinctive needs and designing a system to accommodate them. With so many moving parts, this process can be challenging. However, it is well worth the effort.

Many companies choose to work with technology partners who can help them map out, implement and monitor their failover plan. This works to ease the decision-making burdens of choosing the right backup model, identifying critical data and functionality, and ensuring successful backups.

The bottom line is that proper planning can protect against devastating losses and provide peace of mind that operations can continue uninterrupted in nearly any situation.

Business Continuity in a Technology-Dependent World: Part 1

Business Continuity in a Technology-Dependent World: Part 1 
Failover Plan Considerations, and Distinguishing Data Loss from Downtime

In today’s technology-dependent business world, when access to data and software is interrupted, whether by a temporary power outage or a full-scale disaster, the ability to conduct business is, too. In an age where data is king, the idea that it can be lost so easily should be enough to encourage businesses to take steps to protect it.

This leads us a sobering statistic. The Disaster Recovery Preparedness Council’s 2014 Annual Report found that nearly three out of four companies they surveyed failed from a disaster recovery preparedness standpoint. This benchmark survey found that these businesses:

• Lost one or more of their mission critical software applications.
• Lost one or more of their virtual machines.
• Lost critical files.
• Experienced days of datacenter downtime.

Data loss has very real financial implications. The same benchmark study found that 20 percent of companies surveyed had suffered $50,000 to $5 million in downtime losses. The toxic combination of lost productivity and low employee morale, unrecoverable digital assets, and low consumer confidence can cost thousands of dollars.

More than half of companies that suffer from catastrophic data loss as a result of a natural disaster will eventually close. They simply cannot recover the lost assets, which may include customer data, onsite financial documents, application files or other critical information. And if a business cannot be brought back to normal operations in a little over a week, the chances for survival plummet.

Organizations can mitigate this risk by having a business continuity plan in place well before the imminent threat of a disaster. Business continuity, above all things, is something that should work when you need it to. Working with an IT solutions or business technology consulting firm to design a fool-proof solution against data loss is highly advisable.

The bare minimum requirement of any disaster recovery plan is the replication of data to an offsite location. Further, in order to preserve and maintain the vitality of a business after a major natural disaster, executive management must also have plans in place to operate – even if data is temporarily unavailable.

The good news? Advancements like cloud computing are changing the way mission-critical information is stored and accessed, providing a real “win” for business continuity in terms of both efficiency and cost. Now companies of all sizes can enjoy uninterrupted (or nearly uninterrupted) technology-reliant functions – provided they have a well-crafted business continuity plan in place.

To Be Continued… 

Is it Time to Change Your ERP System?

Another share, this time from our friends at Acumatica. Our last post provided information about the benefits of Cloud ERP for small- and mid-size businesses. But how do you know when the time is right to make the move? Acumatica President Jon Roskill in a recent blog post writes: “Are you wondering if there’s ever a good time to change your ERP system? You’re not alone.” He then discusses why companies hesitate – and seven indicators that they should to stop thinking about it and take action. Take a look.

SMBs and the Benefits of Cloud ERP

What benefits does cloud-based enterprise resource planning bring to small and mid-size businesses? In a recent blog, Laurie McCabe, founder and partner at SMB Group, does a great job drilling down to the core advantages, which include cost efficiency, simplification and agility – among others. See what she has to say here. Frankly, we couldn’t have said it better ourselves.

IBS/Acumatica Partnership: Good Things are Happening

Good things are happening here at IBS, including a new partnership with Acumatica. Our alliance makes us both a reseller and development partner with this emerging cloud-based accounting software provider.

Why is this a big deal?

First, it opens an integration path to generate powerful new solutions within the IBS enterprise property management and accounting system. In fact, we are working with Acumatica on the development of a new, property management-specific module. This will allow our clients to leverage the cloud as it is meant to be leveraged now and in the future. Additionally, the IBS add-on product will be marketable by other Acumatica reseller partners, extending our reach on a national scale.

Second, we also are offering Acumatica’s general accounting system to small and mid-size businesses across a range of industries, which opens new paths for business development. This software and technology are second to none, offering a secure, browser-based, easy-to-use solution built on tools that take full advantage of the cloud environment.

In our increasingly mobile and interconnected world, the cloud will drive technology for years to come. One of the great things about this platform is that it levels the playing field in terms of access and affordability. For the first time, small and mid-size businesses can take advantage of the most robust enterprise resource planning (ERP) products. Who needs cloud ERP software? Acumatica this month launched a series of articles on this topic. The first installment, available here, is well worth a read.

Want to learn more about our new partnership with Acumatica? Take a look at our recent announcement.

To Wi-Fi or not to Wi-Fi?

Offering a Wi-Fi hotspot is an amenity that commercial tenants and multifamily residents appreciate, but property owners and managers should be aware that allowing access to an unsecured Wi-Fi that ties into a management office network creates significant security risk and greatly increases exposure to hacking and data theft. Simply put, do not do it.

At a minimum, property operators should set up a guest network and encrypt their existing network with Wi-Fi Protected Access (WPA) or Wi-Fi Protected Access II (WPA2). These security protocols are designed to protect wireless computer networks. For additional security, turn off the “SSID broadcast” on the private Wi-Fi network. That way, when visitors search for Wi-Fi access, the network will not show up on their “available networks” screen.

As a best practice, set up a separate wireless access point for dedicated tenant or resident use. This is the most secure option and will keep private business information safe from anyone using the public Wi-Fi hotspot.

For either scenario, it is always a good idea to retain local support to help set up networks and test their security features. This is affordable – but a small price to pay to avoid potential data theft. Additionally, owners and managers providing Wi-Fi on the same network that powers their property management system should know how to reboot their system so they can be back up and running quickly in the event of a blackout or glitch.

Many property management and accounting software providers today offer their systems via secure, cloud-based platforms. This inherently protects enterprise data from in-house security breaches by moving it off the client’s network. Additionally, cloud system users have a separate log-in, so “getting to” the data requires access to both the in-house and provider networks – providing two layers of protection.

The best enterprise system providers serve in a consultative role for their clients. We are around this stuff every day and are more than willing to provide guidance on issues like data security. While headlines about major data breaches may prompt a property owner or manager to pause and think about their own network security, these issues are top of mind for us every day.

IBS’s Mike Mullin weighs in as an expert source on this topic in the March issue of UNITS Magazine. Check out the article here.

Improve Client Relations through Technology

Within the multifamily space, a number of popular technology initiatives can foster both cost-saving efficiencies and improved client relations.

Online work orders and payments – Programs that enable residents to enter work orders and pay bills online via an ACH withdrawal or credit card provide great advantages. Money comes in online and is routed electronically, and these payments automatically update the ledger and statements via a company’s enterprise accounting system. Or, if someone submits a work order, it will route to the appropriate person. Residents can check on the progress, and once their job is completed they receive an automated notification. Nobody has to touch anything from the operational side, which can cut down processing expenses significantly, and tenants appreciate the convenience.

Enhanced web portals – Today, savvy multifamily owners are starting to customize their online work order and payment portals with information pertinent to their individual communities and residents, in order to enhance a sense of community and loyalty. This may include adding a town events calendar and discount coupons from local vendors; offering the ability to make online reservations for community lounges, and game and theater rooms; incorporating a guest book feature; publishing newsletters and announcements; and providing package tracking and notification service. Landlords can elevate the sense of “ownership” at their properties by engaging residents in the process of adding and administering certain features. Interest groups and social profiles can help connect two people who are looking, for example, for tennis partners. They can advertise property events and club meetings. Some portals even allow chat capabilities among tenants.

Mobile applications – Mobile websites and guest cards are great illustrations of how tablets and other devices can provide notable operational and marketing benefits. The first enables easy, instant access to current property information via a tablet computer – including unit availability and pricing, selling features like closet size, and upgrades such as stainless appliances and renovated bathrooms. And, as a salesperson walks a property with a potential resident, he or she can use an electronic guest card to capture customer information. This data can then be transferred directly to the company’s property management system, enabling marketing staff to spend less time at their desks and more time engaging their customers.

Today’s rapidly changing technology landscape provides an opportune time to consider features, like these, that can be incorporated into a multifamily enterprise technology system. The end result can bring not only efficiencies that improve bottom-line results but new ways for companies to distinguish themselves from a customer service standpoint.

Intel’s Internet of Things

In a recent IT Business Edge blog, Rob Enderle from technology advisory firm Enderle Group, calls Intel’s Internet of Things (IoT) initiative “one of the biggest efforts to instrument the world.” His post also features long-time IBS client Rudin Management among the pioneering real estate firms leveraging IoT’s potential to achieve real cost savings in the area of energy usage. It really is a fascinating topic, and with maximizing operational efficiency among the business world’s top priorities for 2015 it also is quite timely. You can read Enderle’s full IT Business Edge post here.

Top Real Estate and Accounting Technology Stories of 2015

Looking back over the past year, technology issues and trends seemed to dominate headlines. Which “big stories” will hold the most impact for the real estate and accounting worlds in 2015? Here’s our take:

1. Data security. Following a wave of data breaches, from Home Depot to Sony, security issues, especially around advancements that enhance the safe storage of corporate and client information, will garner high attention.

2. Mobile. As mobile platforms continue to evolve, professionals are focused on getting up from their desks and out into the world. The good news is that the tech industry “gets this” and is working hard to provide tools that make it possible.

3. The Cloud. The biggest challenge here is getting people to understand what The Cloud really is all about, and how it facilitates transacting business. This is particularly true for real estate and accounting – realms where tech adoption tends to be relatively slow.

4. Online payments. The myriad of new ways to make payments and transact business online is a pretty big deal for accountants and accounting-type people. And the capabilities are wide-ranging, from AvidPay’s automated payment process, to Bitcoin’s virtual currency, to the Square’s mobile credit card transactions – and more.

5. Mergers and acquisitions. The payroll marketplace also has become a big deal in the accounting software arena, with a number of notable moves. Among them, Intuit purchased PaySuite and Acrede, Xero acquired Moncilla, and Sage bought PayChoice.

What other news will 2015 bring? Stay tuned.

Tax Season = Filing Requirements at Top of Mind

With tax season right around the corner, filing requirements are top of mind for us here at IBS and for our clients’ accounting teams. Understanding the rules related to form 1099-Misc – one (of the many) confusing IRS reporting requirements for property managers servicing assets owned by LLCs – can be challenging. We came across an article from Landlord Source that does a great job explaining “what’s what.” If you, too, are looking for clarification, check out the story here.