A future tech visionary was quietly being shaped in Northern California’s modest homes and military families. While today, Steve Murphy is the CEO of Epicor, an end-to-end ERP software solution with $1 billion annual recurring revenue, Murphy’s middle-class upbringing played a pivotal role in shaping the values and work ethic that would eventually lead him to helm one of the most influential companies in the technology sector.
“My dad, a military officer turned accountant, instilled in us the fundamentals of accounting from a very young age,” Murphy recollected in an exclusive conversation with edge/.
“One summer, when I was just 11, he bought a local business that sold ice cream, popcorn, and hot dogs. He asked if we would work there, and I agreed. That’s when I learned double-entry bookkeeping and accounting. These lessons in understanding fixed and variable costs were invaluable.”
This early exposure to business operations and financial literacy gave Murphy confidence and ignited a passion for entrepreneurship.
“Whether running the concession stand or fixing a lawnmower, these experiences were crucial in building my business confidence and willingness to take risks,” he reflected.
“I learnt a lot about the practical aspects of business management, which instilled a strong work ethic and a sense of responsibility.”
The seeds of curiosity and mechanical inclination planted in those early years blossomed into a deep interest in technology. “Taking apart a lawnmower engine or a motorcycle and putting it back together was incredibly satisfying,” Murphy said. “This curiosity led me to study mechanical engineering, where I could dive deeper into understanding complex systems.”
At the University of California, Murphy, however, faced the rigorous demands of a competitive academic environment. “The first two years were tough with the ‘weeder’ classes designed to be difficult,” he admitted. “But working part-time jobs to support myself, I navigated through, becoming more focused and determined in my final years.”
The hands-on approach to learning at UC Davis was particularly beneficial. Murphy emphasised, “The practical experience I gained by applying theoretical knowledge to real-world problems was invaluable. This practical experience was beneficial when I started my career at Procter and Gamble, where I had to solve complex engineering challenges in a fast-paced industrial environment.”
After graduating, he joined Procter and Gamble, where he honed his engineering skills in various factories and plants. “Working at Procter and Gamble was an eye-opener. I saw how both good and bad ERP systems impacted operations,” he explained. “It was clear that system failures could have devastating effects on production lines and employee morale.”
This experience underscored the importance of robust systems and practical knowledge. “Listening to the people on the ground, who had practical insights, was a lesson that stayed with me,” Murphy emphasised. “Their real-world experience often provided solutions not covered in technical manuals.”
With a few years of engineering, Murphy broadened his horizons with an MBA from Harvard Business School. “I wanted to prepare for higher leadership roles, and Harvard’s rigorous program was the perfect fit,” he shared. “The case study method provided practical insights into real-world business problems, enhancing my leadership and strategic thinking abilities.”
Harvard Business School exposed Murphy to a diverse and competitive environment, allowing him to learn from some of the brightest minds in the field. “The two years at Harvard were a sacrifice but worthwhile,” he reflected. “It provided me with a solid foundation in business management and the opportunity to build a strong professional network.”
After graduating, he considered working in investment banking but chose to work for Accenture in logistics and operations strategy. “This role was almost perfect as it combined finance, analysis, and engineering, giving me a comprehensive understanding of how businesses operate,” he explains. “My time at Accenture allowed me to work on projects that aligned well with my background and interests.”
One of his significant contributions at Epicor was the development of cognitive ERP, a system that leverages data to provide insights and automate tasks. “Our chief technology officer, Vaibhav Vohra, played a crucial role in this development,” Murphy noted. “Cognitive ERP enhances decision-making and efficiency, making it accessible to non-technical users through natural language processing.”
A customer-centric approach to cloud migration led to a billion in annual recurring revenue (ARR). “We never forced migrations and focused on releasing high-quality products, even if it meant delaying releases,” he explained. “Maintaining customer satisfaction and retention was key.”
The cognitive ERP system leverages data to provide insights and automate tasks, making it accessible to non-technical users through natural language processing. “Cognitive ERP utilises the vast amount of data within the system of record to offer advanced analytics and workflow automation,” he explains. “This enhances the system’s ability to assist users in making better business decisions.”
Cognitive ERP also helps reduce the time and effort required to generate reports and insights, thereby increasing productivity. “The system’s ability to understand and process natural language queries makes it accessible to a wider range of users, further enhancing its utility,” Murphy added.
Reflecting on the lessons learned from his journey, Murphy emphasised the importance of learning from failures. “We often learn more from failures than successes, provided we are willing to admit our mistakes,” he says. “Promoting from within and creating career paths for employees helps maintain stability and a strong company culture.”
As for his advice to today’s technical leaders, Murphy underscored the importance of maintaining a technical edge. “Stay involved in the technology without micromanaging your team,” he advised. “Balance helping your team with knowing when to step back. This fosters innovation and ensures you remain grounded in the practical realities of your industry.”
“I learned a lot from my early experiences, whether running a concession stand, fixing lawnmowers, or working at Procter and Gamble,” he reflected. “These experiences taught me the importance of practical knowledge, listening to people on the ground, and learning from failures.”
He recalled a notable failure during his early career at Procter and Gamble. “I designed a plant-wide electrical system that caused system failures due to under-design,” he shares. “I had ignored advice from experienced workers who warned about power surges. This failure taught me to value practical experience and listen to those in the field.”
Another significant learning experience came during an acquisition. “We underestimated the time required to integrate the new technology, leading to delays and customer dissatisfaction,” he explains. “This highlighted the importance of realistic planning and understanding integration requirements.
“Encouraging a culture of continuous learning and improvement helps the team stay motivated and aligned with the company’s goals,” he added.
