Lineagen Case Study

The Company

lineagenLineagen is a fast growing company whose mission is to accelerate and enhance the evaluation of medical conditions so that the best possible outcomes can be achieved for patients and their families. Among other offerings, Lineagen offers FirstStepDx PLUS a customized genetic testing service for individuals with autism spectrum disorder (ASD) and other disorders of childhood development plus a portfolio of scientific programs in ASD, multiple sclerosis (MS), and chronic obstructive pulmonary disease (COPD).

As Lineagens business flourished, they outgrew many of their older information systems. Additionally, financial control and accurate information became increasingly important. They needed a system that included role-based security, dashboards based on user responsibilities, and more detailed reporting. Board level financial reports were often compiled on spreadsheets. Closing financial periods was time consuming, often taking weeks, with users entering transactions during the period-close process.

Lineagen also found itself spending valuable time and resources managing aging IT infrastructure including servers, server software upgrades, server security, and backups.

The Results

Spring2 implemented NetSuite, the leading cloud-based erp package and helped migrate historical financial data to facilitate accurate reporting. The solution provided a number of benefits including:

  • Focus on strategic business initiatives – NetSuite provides a secure cloud-based solution that eliminates the need for costly hardware and infrastructure. In addition, software updates happen automatically behind the scenes at no additional cost. Lineagen could reallocate resources from IT maintenance to growth initiatives.
  • Efficient and reliable financial control – Users are able to quickly get the data that they need based on their role. For example, the AP clerk can see a dashboard perspective of outstanding payments and invoice aging. Financial reports are generated by the system eliminating the need for double entry into Excel. Financial period closing is significantly faster and more accurate, utilizing features such as a soft close that restricts new transactions while closing is in process.
  • Better IT expense management – fast growth requires careful expense management. NetSuites subscription model made expense forecasting more predictable.
  • Remote access – efficiency improved as key remote users have 24/7 access to the system from any location.

Those resources were better spent focusing on managing growth and the core components of the business.

Better financial reporting – been using Excel spreadsheets for board reports – now these will come out of the system

Add-hoc queries – quickly get data without having to go to IT person.

Close financial periods faster and more accurately – was taking many days – now have a soft close – cleaner closing process.

The software is securely hosted in the cloud and

Antiquated financial package that doesn’t meet their needs including role based security, user dashboards, role tailored experience, reporting.

Converted to a for-profit company – change in model needed to make financial structural changes on GL bases

Trouble closing out financial years – was taking weeks – no soft-close making it so others could not enter transactions while close in process.

Data quality issues – Peachtree (lower-end accounting solution)

Hardware was old – trying to keep up with back-ups, server not stable, small but fast growing company did not want to put money into hardward infrastructure – wanted invest that in the business r&D.

Results

Cloud

People administering software don’t have to be in the same location – the database person livees in Park City

Ability to quickly get GL/AP data based on their role – ap cleark can see outstanding payments, invoice aging on a quick look dashboard perspective

Better financial reporting – been using Excel spreadsheets for board reports – now these will come out of the system

Add-hoc queries – quickly get data without having to go to IT person.

Close financial periods faster and more accurately – was taking many days – now have a soft close – cleaner closing process.

Better data quality

Migrating historical AP detail so they can get detailed reporting out of NetSuite

Cost – rather than larger cash outlay – monthly expense – takes off of balance sheet – monthly expense – predictable cost and expense – focus on building product other than software purchase.

Faced with software that needed to be upgraded and lacked key functionality, hardware that needed to be replaced, and reliance on key remote personnel,