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February 2024

Episode #478: The Future of ERP Systems — Second interview with Aaron Harris

What does the future hold for accounting/ERP systems? There is no one better on the planet to answer this question than Aaron Harris, Sage's Global CTO. Aaron is responsible for Sage’s technology strategy and software architecture. He has more than 20 years of high-tech engineering experience in business applications and software development strategies. Previously a founding leader of Sage Intacct, acquired by Sage in 2017, Aaron led the company’s product vision and technology direction, establishing Sage Intacct as the innovation leader in cloud financial management solutions.

Use these show notes to follow along with the audio:

Segment one

  • Aaron Harris was primarily responsible for coding Intacct which we know today as Sage Intacct. I’m sure there are more than a few fans out there in the TSOE world.

  • Generative AI has Aaron’s attention today. For example, month end close means submitting timesheets and approving expense reports. Nobody likes it. Making it easier to interact with software will come from Gen AI.

  • “Large language models have the capability to not just perform a task but to understand a complex set of instructions. And, they know how to write code.” —Aaron Harris

  • In Aaron’s view “getting rid of the close” in accounting requires software to automate tasks and means we need to give ownership of the orchestration to the AI where there is a strong relation between the AI and people. 

  • “It doesn’t matter what you automate, a human is always accountable.” —Aaron Harris

  • “The death of the monolith” is something Aaron referenced today. It’s a complex topic but easiest to think about in the shift away from a single point of interaction and towards more and more APIs.

 Segment two

  • As an early advocate of SaaS, Aaron thinks it will take some time for business models to evolve. This is in contrast to the 37Signals editorial Ron and Ed talked about in prior weeks.  

  • A summary from Aaron: The value our customers derive from business applications in the future is from the value of automation and not from the ability for a customer, for example, to process an invoice. 

  • "The best way to predict the future is to invent it." —Alan Kay

  • AI is going to bring the learning cost to zero and make software more accessible for everyone. “Everybody is more productive when they are given access to Gen AI.” —Aaron Harris

  • “AI is going to get adopted very rapidly because developers see the opportunity to work in completely different ways that are almost magical.” —Aaron Harris

Segment three

  • “Teens in AI” is a group that Aaron is VERY passionate about. They bring machine learning experts and data scientists into communities and hold hackathons with teenagers, especially girls. Check them out here https://www.teensinai.com/ 

  • “A lot of the work that goes into building solutions based on large language models is balancing all of the data and building mechanisms to detect and root out bias.” —Aaron Harris

  • The excitement was so spectacular around AI that the takeup is not quite as fast as one might think. Aaron talked about this concept with Ed during segment three of the show today.

  • One of the “bets” that Aaron has been making with people: Within 6 months, we will start to see AI agents using our (Sage) products.

Segment four

  • What about quantum computing? Does Aaron Harris think it is right around the corner or will be 30 years away…forever? He genuinely doesn’t know but is excited about recent progress in the field.

  • One of the pillars of the Alan Turing institute is “AI for good” which is why Aaron and the team at Sage are having conversations with them about working together https://www.turing.ac.uk/

  • Atlanta is the heart and soul of Sage in North America which is why Sage has partnered with Morehouse college. More here: https://www.sage.com/en-us/news/press-releases/2023/04/global-software-firm-sage-and-morehouse-college-partner-to-expand/ 

  • The death of the monolith is one of Aaron’s long term predictions. He also thinks we will have our own AI assistants that have access to our financials, travel services, and other important date. 

  • A big THANK YOU to Aaron Harris, the Sage Global CTO, for joining us today to share some of his views on technology and even make some predictions about the future. Learn more about Sage here: https://www.sage.com/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #477: The Time Tax — The Crime of Stealing Customers' Time

Inspired by an article by former TSOE guest B. Joseph Pine II, and James H. Gilmore, Ed and Ron explored how businesses--including professional firms--can stop wasting the customer's time. Strategies for helping customers save time, and invest it well were explored.

Unlike our show notes editor, artificial intelligence doesn’t file for PTO. With that, here are some links referenced in the show and the AI generated notes:

Show links

AI notes

Professional Services and Time Tax Discussion

Ed and Ron had a wide-ranging discussion about various topics, from their allergies to a radio show they were preparing to host. They also discussed a colleague, Greg, who was planning a camping trip. The discussion touched upon an article about hourly billing, which Ed agreed to review. The concept of "time tax" was introduced, which refers to wasting customers' time. Ed and Ron discussed the idea in the context of professional services and linked it to the work of Joe Pine and James Gilmore, authors of "The Experience Economy". They concluded that professional firms can provide serial transformations, adjusting their services based on the customer's needs. The importance of not wasting customers' time in business operations was also highlighted, with examples from UPS and Amazon. There was some confusion towards the end regarding a planned break, which was clarified during the meeting.

Time Spent With Clients: Pricing and Experience

Ed and Ron engaged in a wide-ranging conversation about charging for time spent with clients. They explored alternative pricing options, such as contractor, consultant, and coach. The discussion also touched on the importance of providing a memorable experience, with Ron emphasizing that experiences offer time well spent and can lead to increased customer value and spending. They contrasted Uber and Airbnb, noting that while Uber saves time, it doesn't necessarily provide time well spent. They also discussed the role of customer service and hospitality in various sectors. Towards the end, they emphasized the importance of time management in business operations and the concept of time well invested. It goes beyond simply spending time with customers but involves enriching their lives and helping them achieve their aspirations.

Pricing, Value, and Technology Discussion

Ron and Ed discussed Joe Pine's upcoming book and his previous appearance on their show. They also talked about a LinkedIn post about Ron's book and an article about the potential impact of General AI on legal pricing. The conversation then shifted to the challenges associated with evaluating the value of tasks in their firm and the need to shift the focus to the customer's perception of value. They discussed the pricing model of their company's services and the role of technology in this process. Ron suggested that the issue lies not with the pricing model but with the business model, particularly the billable hour. They also discussed Apple's new product, the Vision Pro, and its pricing strategy.

Shift to Outcomes and AI Pricing Strategies

Ron and Ed discussed the shift from a fee-for-service mentality to a focus on outcomes and professionalism. They highlighted an upcoming talk by Aaron Harris, Global CTO of Sage, on AI and pricing strategies. The conversation also touched on the concept of paid interaction, suggesting that audiences might pay for experiences rather than just time. 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #476: The Conservative Futurist — Interview with Jim Pethokoukis

America was once the world’s dream factory. We turned imagination into reality, from curing polio to landing on the Moon to creating the internet. But as we moved into the late 20th century, we grew cautious, even cynical, about what the future held and our ability to shape it. Too many of us saw only the threats from rapid change. What caused this to happen? More importantly, what can we do to change it? Ron and Ed are thrilled have someone who has squarely addressed these questions. Jim Pethokoukis is the author of The Conservative Futurist: How to Create the Sci-Fi World We Were Promised. Jim is a senior fellow and the DeWitt Wallace Chair at the American Enterprise Institute (AEI), where he analyzes US economic policy, writes and edits the AEIdeas blog, and hosts AEI’s Political Economy podcast. He is also a contributor to CNBC and writes the Faster, Please! newsletter on Substack.

About Jim Pethokoukis

James Pethokoukis is a senior fellow and the DeWitt Wallace Chair at the American Enterprise Institute (AEI), where he analyzes US economic policy, writes and edits the AEIdeas blog, and hosts AEI’s Political Economy podcast. He is also a contributor to CNBC and writes the Faster, Please! newsletter on Substack. Before joining AEI, Mr. Pethokoukis was the Washington columnist for Reuters’s Breakingviews, the opinion and commentary wing of Thomson Reuters. Earlier, he was the business editor and economics columnist for US News & World Report. Mr. Pethokoukis is the author of The Conservative Futurist: How to Create the Sci-Fi World We Were Promised (Center Street, 2023). He has also written for many publications, including the Atlantic, Commentary, Financial Times, Investor’s Business Daily, National Review, New York Post, the New York Times, USA Today, and the Week. His numerous broadcast appearances include CNBC, CNN, Fox Business Network, Fox News Channel, MSNBC, and PBS. A graduate of Northwestern University and the Medill School of Journalism, Mr. Pethokoukis is a 2002 “Jeopardy!” champion.

Use these show notes to follow along with the audio:

Segment one

  • Jim endeared himself to Ron and Ed immediately by guessing the correct origin of President Reagan’s quote at the beginning of the show. File “Moscow University” away for the next TSOE trivia night.

  • Upwing vs downwing economies: Everything these days is left vs right. While useful, they are not the most important way to look at the world. Instead upwing vs downwing is the best way. In effect, do you think we can do better?

  • 1955 - 1973 was broadly the post war decades that were very upwing economies. There was a lot of confidence in technology and its ability to create a better world.

  • So why does Jim define 1973 as the end of the upwing economy? It featured a marked slowdown in productivity growth due to a number of factors: an oil shock, the stock market fell, and a nasty recession. 

  • With respect to the crowding out of talent: The share of spending done on government research vs business used to be 2/3 government. It has flipped around now and it’s important to remember that, broadly, they are doing different things.

Segment two

  • Is innovation overall slowing down? That which is lightly or zero-regulated has been moving very fast. It’s gotten hard in spaces like high speed rail, a reactor, a highway, new housing, and so on. 

  • From Jim during segment two of the show today: When you look at what people expected the economy to do in 60s and 90s, “If they were to see the economy today, they would ask what happened?”

  • This should motivate you to CREATE. From Jim today, “If we do not have the ability to imagine a better future, why take a risk? Why even try?”

  • Bad ideas equal bad policies which equals slow growth. Jim wants to BREAK this cycle and talks about it in his book, The Conservative Futurist https://www.amazon.com/Conservative-Futurist-Create-Sci-Fi-Promised/dp/1546005544 

Segment three

  • “Beware the Precautionay Principle” (episode 284) was a show Ron and Ed did right before the pandemic. Jim introduced Ron/Ed to the Proactionary Principle. In effect, taking no risk is the biggest risk of all https://en.wikipedia.org/wiki/Proactionary_principle 

  • “At worst, AI is a technology only as good as computer+internet. But it could be something more! It will make us wildly more productive in all aspects of our life. If that’s the case, we are talking about the ability to accelerate scientific research across the board.” —Jim

  • “People are focusing on the most mundane potential applications of this technology (AI). You have literally Superman, a super research assistant, who can run through every possible combination in every field of every human endeavor.” —Jim

  • On AI and it’s ability to get better, Jim says, “AI is the worst today it’s ever going to be.”

Segment four

Bonus note

 
 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #475: Punditry Punt

Unfortunately, our Guest fell ill, and could not join us, but don't worry pros play hurt, so Ron and Ed have called an audible, and will be punting to opine on some stuff in the stacks.

Use these show notes to follow along with the audio:

Segment one

  • We start today with “Something happened to business software.” — the opening line from Jason Fried of 37Signals as he introduces a new product pricing model, ONCE. https://once.com/  

  • Here are pricing details on the first product under the ONCE model from 37Signals. It’s Campfire (their group chat offering) https://once.com/campfire 

  • From the ONCE offering Jason Fried says, “The post–SaaS era is just around the corner.” Well, “I doubt it Jason” was Ron’s response. 

Segment two

Segment three

Segment four

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits.