ERP Providers Serving the Midmarket - Fivetags Consulting LLC.
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ERP Providers Serving the Midmarket - Fivetags Consulting LLC.
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<strong>ERP</strong> <strong>Providers</strong> <strong>Serving</strong> <strong>the</strong> <strong>Midmarket</strong><br />
by Simon Jacobson<br />
Market Services Report<br />
<strong>ERP</strong><br />
2007 Technology and<br />
Vendor Landscape Series<br />
Smaller doesn’t mean less complex or responsive. As midmarket firms innovate<br />
and tackle <strong>the</strong> increased complexities of being demand driven, <strong>the</strong>ir business<br />
applications must follow suit. These firms are making new investments in <strong>ERP</strong><br />
packages, and <strong>the</strong> vendors are taking notice.
Acronyms and Initialisms<br />
A&D Aerospace and defense<br />
ASP Application service provider<br />
BI Business intelligence<br />
BOM Bill of material<br />
BPM Business process management<br />
CP Consumer products<br />
CRM Customer relationship management<br />
DDSN Demand-driven supply network<br />
EAM Enterprise asset management<br />
EMEA Europe, Middle East, and Africa<br />
<strong>ERP</strong> Enterprise resource planning<br />
ETO Engineer to order<br />
EVM Earned-value management<br />
GTM Global trade management<br />
HVAC Heating, ventilation, and air conditioning<br />
IP Intellectual property<br />
IPO Initial public offering<br />
ISV Independent software vendor<br />
M&A Merger and acquisition<br />
MES Manufacturing execution system<br />
MRO Maintenance, repair, and overhaul<br />
© Copyright 2007 by AMR Research, Inc.<br />
AMR Research® is a registered trademark of AMR Research, Inc.<br />
MRP Materials requirements planning<br />
MRP II Manufacturing resource planning<br />
MTO Make to order<br />
MTS Make to stock<br />
PLM Product lifecycle management<br />
PPM Project portfolio management<br />
R&D Research and development<br />
RFI Request for information<br />
RFQ Request for quotation<br />
S&OP Sales and operations planning<br />
SaaS Software as a service<br />
SCM Supply chain management<br />
SFA Sales force automation<br />
SMB Small and midsize business<br />
SOA Service-oriented architecture<br />
SOX Sarbanes-Oxley Act<br />
UI User interface<br />
VAR Value-added reseller<br />
VMI Vendor-managed inventory<br />
XML Extensible markup language<br />
No portion of this report may be reproduced in whole or in part without <strong>the</strong> prior written permission of AMR Research. Any written<br />
materials are protected by United States copyright laws and international treaty provisions.<br />
AMR Research offers no specific guarantee regarding <strong>the</strong> accuracy or completeness of <strong>the</strong> information presented, but <strong>the</strong> professional staff<br />
of AMR Research makes every reasonable effort to present <strong>the</strong> most reliable information available to it and to meet or exceed any<br />
applicable industry standards.<br />
AMR Research is not a registered investment advisor, and it is not <strong>the</strong> intent of this document to recommend specific companies for<br />
investment, acquisition, or o<strong>the</strong>r financial considerations.<br />
This is printed on 100% post-consumer recycled fiber. It is manufactured entirely with wind-generated electricity and in accordance with a<br />
Forest Stewardship Council (FSC) pilot program that certifies products made with high percentages of post-consumer reclaimed materials.
<strong>ERP</strong> <strong>Providers</strong> <strong>Serving</strong> <strong>the</strong> <strong>Midmarket</strong><br />
by Simon Jacobson<br />
In order to thrive in <strong>the</strong> midmarket, <strong>ERP</strong> providers must offer integrated<br />
functionality suitable to <strong>the</strong> geography- and industry-specific needs of <strong>the</strong>ir<br />
customers through multiple sales channels that drive a high-volume license<br />
business.<br />
Executive<br />
Summary<br />
<strong>ERP</strong> spending was up by 18% in 2006. Globalization and <strong>the</strong><br />
emergence of demand-driven supply networks (DDSNs) require<br />
midmarket organizations to fur<strong>the</strong>r participate in <strong>the</strong> value chains<br />
facilitated by <strong>the</strong> large enterprises atop <strong>the</strong> industries <strong>the</strong>y serve.<br />
Demand-driven transformation has rendered most current business models, not to<br />
mention <strong>the</strong>ir supporting business applications, ineffective and obsolete. The success<br />
of <strong>the</strong> <strong>ERP</strong> providers will be predicated on <strong>the</strong>ir abilities to serve <strong>the</strong> needs of <strong>the</strong><br />
midmarket customer and build a high-volume business with multiple sales channels.<br />
This Report examines how <strong>the</strong> available landscape of providers is prepared to support<br />
<strong>the</strong> evolving requirements of midmarket firms.<br />
Key findings<br />
• <strong>Midmarket</strong> firms have business environments as equally complex as those of large<br />
enterprises.<br />
• Go-to-market strategies must evolve to support <strong>the</strong> new customer demands and<br />
drive volume license sales.<br />
• <strong>ERP</strong> products must deliver integrated industry- and geography-specific functionality<br />
to support customer business.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
The<br />
Bottom<br />
Line<br />
Vendors featured<br />
in this Report:<br />
Activant Solutions<br />
Cincom<br />
CMS Software<br />
Deltek<br />
Epicor<br />
Exact Software<br />
Glovia<br />
Glovia Services<br />
IFS<br />
Infor<br />
IQMS<br />
Lawson<br />
Microsoft Business<br />
Solutions<br />
NetSuite<br />
Oracle<br />
Plexus Systems<br />
QAD<br />
Sage Software<br />
SAP<br />
SoftBrands<br />
SYSPRO<br />
© 2007 AMR Research, Inc.<br />
1
<strong>Midmarket</strong> firms have business environments as<br />
equally complex as those of large enterprises<br />
Globalization has put many organizations on a journey to transform <strong>the</strong>ir traditional,<br />
forecast-based push supply chains into broader, end-to-end DDSNs. Instead of a linear<br />
supply chain, organizations now have complex supply networks of suppliers, co-packers,<br />
outsourced manufacturers, retailers, and distributors that must operate in concert to<br />
profitably respond to customer demand. With this transformation, new pressures have<br />
emerged:<br />
• Increased product variances—This<br />
includes diversified, demand-driven product<br />
configurations personalized by <strong>the</strong> customer.<br />
• Shorter new product development and launch cycles—Innovation<br />
means<br />
companies that get products to market faster receive first-mover advantage. However,<br />
products also have shorter lifecycles once in <strong>the</strong> market.<br />
• Increased regulatory compliance oversight—It’s<br />
not only <strong>the</strong> Sarbanes-Oxley Act<br />
(SOX) with which companies must contend, but also <strong>the</strong> abundance of environmental<br />
and industry-specific requirements, such as TREAD or 21 CFR Part 11, and<br />
emerging global trade compliance initiatives.<br />
• Demand sensing—Large<br />
enterprises invested heavily to understand and get closer to<br />
customer demand to increase <strong>the</strong>ir responsiveness. <strong>Midmarket</strong> companies are often<br />
expected to cope with <strong>the</strong> same product complexity and demand volatility as large<br />
enterprises.<br />
These pressures affect not only manufacturers, distributors, and retailers, but also<br />
internal company functions such as logistics and supply chain, customer management,<br />
product development, and back-office functions. They demand a reshaping of some<br />
business processes and supporting IT applications. The pressures of globalization affect<br />
companies of all sizes, from standalone midmarket organizations to divisions of large<br />
Fortune 2000 firms.<br />
For some large enterprises, <strong>the</strong>re are sites and divisions that were rolled under <strong>the</strong> corporate<br />
umbrella as part of an M&A scenario. Based on some company reporting structures,<br />
those sites and divisions are defined as midsize. These scenarios tend to be reliant<br />
on legacy MRP that is ei<strong>the</strong>r standalone or integrated with best-of-breed investments,<br />
both of which are ei<strong>the</strong>r outdated or simply not feature-rich enough to support <strong>the</strong> new<br />
demands of <strong>the</strong> business.<br />
The new need is for modern <strong>ERP</strong> applications, configured with ei<strong>the</strong>r industry-specific<br />
functionality, localizations, or both, to break down barriers between departments<br />
within a company. The applications should bring various pockets of <strong>the</strong> organization<br />
toge<strong>the</strong>r—front and back office as well as operations functions—with a consistent,<br />
single version of <strong>the</strong> truth that will, in turn, allow <strong>the</strong> company to operate in a more<br />
agile, predictive fashion.<br />
2 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Defining <strong>the</strong> midmarket<br />
AMR Research defines <strong>the</strong> midmarket as companies with less than $1B in annual<br />
revenue. We use <strong>the</strong> following parameters to segment out <strong>the</strong> upper midmarket, lower<br />
midmarket, and small and midsize business (SMB) ranges (see Table 1).<br />
Table 1: <strong>Midmarket</strong> segments<br />
Segment<br />
Annual<br />
Revenue<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
Head<br />
Count<br />
Number of<br />
Companies<br />
Upper midmarket $250M to $1B 500–2,500 60,000<br />
Lower midmarket $50M to $250M 100–500 1,200,000<br />
Small to midsize business $10M to $50M 20–100 55,000,000<br />
Source: AMR Research, 2007<br />
Our 2006 <strong>ERP</strong> spending study shows that midmarket organizations are investing in<br />
<strong>ERP</strong> to support <strong>the</strong>ir globalization efforts.<br />
Figure 1: Most important business issue addressed with <strong>ERP</strong><br />
Globalization<br />
Lean manufacturing<br />
Business intelligence<br />
Visibility and control<br />
E-business<br />
Consolidation<br />
Supplier collaboration<br />
Shared services<br />
Outsourcing<br />
New customer requirements<br />
Regulatory compliance<br />
5%<br />
5%<br />
5%<br />
5%<br />
7%<br />
8%<br />
10%<br />
13%<br />
13%<br />
14%<br />
15%<br />
15%<br />
Source: AMR Research, 2007<br />
© 2007 AMR Research, Inc.<br />
3
<strong>Midmarket</strong> companies, not having large IT budgets, have traditionally lagged large<br />
enterprises in technology adoption. They’re prudent with <strong>the</strong>ir IT expenditures.<br />
Decisions of whe<strong>the</strong>r <strong>the</strong>y will upgrade <strong>the</strong>ir current packages or implement completely<br />
new, modern business systems are not taken lightly.<br />
In <strong>the</strong> SMB and lower midmarket segments, IT resources are not deep. The IT<br />
responsibility might be a secondary role for <strong>the</strong> CFO or office manager, often making<br />
<strong>the</strong> demands on a technology provider strict. Also in <strong>the</strong>se segments, by virtue of <strong>the</strong>ir<br />
size alone, companies are often single sites, small distribution, or manufacturing and<br />
warehousing environments.<br />
The upper midmarket is often spread across a wider set of facilities and geographies.<br />
The IT departments are bigger and possess deeper IT resources, such as developers,<br />
programmers, and consultants, to assist in deploying and managing business<br />
applications across multiple sites or geographies.<br />
<strong>Midmarket</strong> organizations demand <strong>the</strong>ir <strong>ERP</strong> providers deliver <strong>the</strong> following:<br />
• Localized technology that can adapt with <strong>the</strong> business over time as it grows or<br />
expands<br />
• Easy-to-deploy, integrated, industry-specific functionality that can support all facets<br />
of <strong>the</strong> business, not to mention drive organizational buy-in and promote usage<br />
•<br />
A predictably low total cost of ownership<br />
• A clear long-term product strategy, as <strong>ERP</strong> investments are intended to last an<br />
organization 15 to 20 years<br />
4 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Vendor landscape in transition<br />
As opportunities at <strong>the</strong> high end of <strong>the</strong> market decrease, large enterprise vendors eye<br />
<strong>the</strong> midmarket as <strong>the</strong>ir next logical growth segment, making <strong>the</strong> space a hotly contested<br />
battlefield. <strong>ERP</strong> vendors already claim large revenue percentages from different<br />
segments of <strong>the</strong> midmarket (see Table 2).<br />
Table 2: Customer segmentation by midmarket segment<br />
Vendor<br />
Total<br />
Customer<br />
Count<br />
SYSPRO 6,000 33% 33% 33% 0%<br />
* MAS 90/200 and MAS 500 products only<br />
Source: AMR Research, 2007<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
SMB<br />
$10M to<br />
50M<br />
Lower<br />
<strong>Midmarket</strong><br />
$50M to<br />
$250M<br />
$250M<br />
to $1B<br />
Upper<br />
<strong>Midmarket</strong><br />
$1B or<br />
More<br />
Activant Solutions 15,000 15% 23% 33% 29%<br />
Cincom 1,400 5% 10% 30% 55%<br />
CMS Software 570 10% 65% 10% 15%<br />
Deltek 12,500 25% 55% 15% 5%<br />
Epicor 20,000 15% 45% 30% 10%<br />
Exact Software 180,000 15% 23% 33% 29%<br />
Glovia 1,125 7% 34% 40% 19%<br />
Glovia Services n/a 100% 0% 0% 0%<br />
IFS 2,368 1% 33% 46% 20%<br />
Infor 70,000 10% 29% 28% 33%<br />
IQMS 500 7% 41% 42% 10%<br />
Lawson 4,000 0% 17% 75% 8%<br />
Microsoft Business Solutions 250,000 76% 22% 2% 0%<br />
NetSuite 5,300 50% 40% 10% 0%<br />
Oracle 275,000 8% 20% 48% 24%<br />
Plexus Systems 207 27% 38% 28% 7%<br />
QAD 5,500 8% 12% 30% 50%<br />
Sage Software* 55,000 75% 25% 0% n/a<br />
SAP 24,000+ 5% 26% 36% 33%<br />
SoftBrands 4,500 40% 35% 15% 10%<br />
© 2007 AMR Research, Inc.<br />
5
Oracle and SAP continue to dominate <strong>the</strong> <strong>ERP</strong> market among large global companies,<br />
and now <strong>the</strong>ir sights are set on <strong>the</strong> midmarket. They are aggressively attacking perceptions<br />
that <strong>the</strong>ir products are too big or complex, and are making <strong>the</strong>ir inroads through<br />
rapidly expanding partner networks. As <strong>the</strong>y come downmarket, <strong>the</strong>y face formidable<br />
competition for new business from incumbents such as Infor, Lawson, and Microsoft<br />
Business Solutions.<br />
Vendors such as CMS Software, Cincom, Epicor, Sage, and QAD have called <strong>the</strong><br />
midmarket home. They are broadening <strong>the</strong>ir product portfolios through acquisition<br />
or internal product development to cross-sell back into <strong>the</strong>ir installed bases to defend<br />
<strong>the</strong>ir turfs in specific geographies and sub-industry segments against <strong>the</strong> downmarket<br />
advances of larger vendors.<br />
Software-as-a-service (SaaS) vendors such as Glovia Services, NetSuite, and Plexus<br />
are experiencing success. Alternative approaches, such as hosting, subscription-based<br />
pricing, and SaaS, generate interest from midmarket firms with minimal IT budgets<br />
and support staff. They also attract larger companies that need to react quickly to<br />
structural changes, such as acquisitions and divestitures, as well as those looking for<br />
more manageable or cost-effective applications for smaller plants or divisions.<br />
“The <strong>ERP</strong> Market Sizing Report, 2006–2011” shows <strong>the</strong> <strong>ERP</strong> market continuing to<br />
grow at 18%. However, <strong>the</strong> growth is largely through add-on functionality and not core<br />
<strong>ERP</strong> functions. Core <strong>ERP</strong> license revenue remains steady as companies continue <strong>the</strong>ir<br />
efforts to broadly deploy core applications and <strong>the</strong>n add complementary functionality<br />
in later phases. Vendors are acquiring supply chain, CRM, and o<strong>the</strong>r peripheral<br />
functionality to bolster <strong>the</strong>se efforts. The goal is to create product portfolios and be a<br />
single source of business applications for <strong>the</strong>ir customers and prospects.<br />
6 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
For example, here’s a list of recent M&As in <strong>the</strong> <strong>ERP</strong> segment:<br />
•<br />
In addition to multiple supply-chain-focused acquisitions, Infor acquired<br />
Datastream for enterprise asset management (EAM), Formation Systems for<br />
product specifications management, Extensity for performance management, and<br />
Workbrain for human capital management.<br />
• Epicor acquired CRS Retail Systems for retail operations.<br />
• Oracle acquired Retek for retail operations and Siebel for CRM.<br />
• QAD acquired Precision Software for global trade management (GTM) and Bisgen<br />
for sales force automation (SFA).<br />
The <strong>ERP</strong> vendors <strong>the</strong>mselves have consolidated as well:<br />
• Chinadotcom (CDC) acquired Ross Systems.<br />
• CMS Software and XKO Software merged.<br />
• Consona (formerly Made2Manage) acquired Axis, Cimnet Systems, and Intuitive.<br />
• Infor acquired MAPICS, Geac, SSA, and most recently Hansen.<br />
• Lawson and Intentia merged.<br />
• Oracle acquired PeopleSoft and JD Edwards.<br />
• Sage acquired Adonix and Best Software.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
7
Go-to-market strategies must evolve with customer<br />
demand<br />
Whe<strong>the</strong>r it’s a portfolio provider, consolidator, or single-product vendor, attracting<br />
new customers is crucial for anyone vying for midmarket dominance. While vendors<br />
boast high revenue from maintenance, surviving on this revenue can only sustain<br />
<strong>the</strong> company for so long. In addition to new customers, application license sales are<br />
important for vendors to be successful and relevant in <strong>the</strong>ir target markets.<br />
When it comes to adding new customers, <strong>the</strong> majority of midmarket <strong>ERP</strong> vendors have<br />
complemented <strong>the</strong>ir direct sales forces with indirect or value-added resellers (VARs) and<br />
partner-driven direct channels for larger and more strategic opportunities to get closer<br />
to <strong>the</strong> customer. For example, Microsoft Business Solutions and SMB specialists Sage<br />
and SYSPRO have long relied on indirect channels to help <strong>the</strong>m extend global reach<br />
and volume sales to businesses that a sales executive doesn’t typically prospect.<br />
Table 3: Breakout of direct versus indirect business<br />
Vendor Direct Indirect<br />
Activant Solutions 98% 2%<br />
Cincom 90% 10%<br />
CMS Software 85% 15%<br />
Deltek 90% 10%<br />
Epicor 75% 25%<br />
Exact Software 42% 58%<br />
Glovia 70% 30%<br />
Glovia Services 100% 0%<br />
IFS 75% 25%<br />
Infor 79% 21%<br />
IQMS 80% 20%<br />
Lawson 85% 15%<br />
Microsoft Business Solutions 0% 100%<br />
NetSuite 80% 20%<br />
Oracle 56% 44%<br />
Plexus Systems 92% 8%<br />
QAD 81% 19%<br />
Sage Software 60% 40%<br />
SAP 68% 32%<br />
SoftBrands 88% 12%<br />
SYSPRO 10% 90%<br />
Source: AMR Research, 2007<br />
8 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Table 3a: Breakout of indirect business type<br />
Vendor<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
VAR/Distributor<br />
Indirect Channel Type<br />
O<strong>the</strong>r<br />
(Integrators, ASPs,<br />
Consultants, etc.)<br />
Activant Solutions 100% 0%<br />
Cincom 100% 0%<br />
CMS Software n/a n/a<br />
Deltek 85% 15%<br />
Epicor 90% 10%<br />
Exact Software 83% 17%<br />
Glovia 100% 0%<br />
Glovia Services n/a n/a<br />
IFS 96% 4%<br />
Infor 80% 20%<br />
IQMS 100% 0%<br />
Lawson 40% 60%<br />
Microsoft Business Solutions 98% 2%<br />
NetSuite 100% 0%<br />
Oracle n/a n/a<br />
Plexus Systems 70% 30%<br />
QAD 100% 0%<br />
Sage Software 97% 3%<br />
SAP 85% 15%<br />
SoftBrands 100% 0%<br />
SYSPRO 100% 0%<br />
Source: AMR Research, 2007<br />
© 2007 AMR Research, Inc.<br />
9
The expectations of midmarket firms are changing. They prefer a single source for<br />
most of <strong>the</strong>ir business system and supporting services—and rightfully so, considering<br />
<strong>the</strong>ir constrained IT budgets and resources. In <strong>the</strong> upper midmarket where firms are<br />
more likely to have multinational or multisite operations, companies will often enlist a<br />
consultant to help with system selection as part of <strong>the</strong> overall services engagement. At<br />
<strong>the</strong> lower end of <strong>the</strong> midmarket and in several small business channels, <strong>the</strong> VAR often<br />
acts as <strong>the</strong> full IT provider, bundling in hardware along with <strong>the</strong> software and services.<br />
While <strong>the</strong> price point will continue to be a competitive differentiator, configuration of<br />
industry and geographical specifications in advance of customer delivery will perhaps<br />
be a greater differentiator going forward, as <strong>ERP</strong> applications must support profitable<br />
growth by <strong>the</strong> companies using <strong>the</strong>m.<br />
Preconfigured products will fit <strong>the</strong> needs of <strong>the</strong> customer<br />
Today’s go-to-market strategies must focus on providing <strong>the</strong> customer with industryspecific<br />
or localized product out of <strong>the</strong> box versus lengthy onsite blueprinting and<br />
implementation efforts that only delay customer value and adoption.<br />
Consider <strong>the</strong> following examples:<br />
• Deltek focuses its products for professional services firms and government contractors<br />
that manage more project-driven environments with different lead times and datacapture<br />
requirements than manufacturing-intensive industries.<br />
• Epicor has created industry templates on top of its Epicor Manufacturing product<br />
(formerly <strong>the</strong> Vantage and Vista products) to apply relevant functionality to general<br />
discrete, automotive, and A&D environments. The company also delivers retailspecific<br />
functionality through its CRS acquisition.<br />
• Within Infor’s massive <strong>ERP</strong> catalog, industry-specific functionality is delivered two<br />
ways. First, <strong>the</strong>re are <strong>the</strong> industry-specific products like Infor <strong>ERP</strong> TRANS4M for<br />
<strong>the</strong> automotive industry and Infor <strong>ERP</strong> Adage for <strong>the</strong> process industries. Second,<br />
Infor provides industry-specific functionality feature packs for mass-market products,<br />
such as Infor <strong>ERP</strong> LN.<br />
• SoftBrands has created industry-specific templates for several SMBs in regulated<br />
industries such as food and beverage, as well as in emerging economies like China.<br />
• In addition to providing support for project-driven environments in discrete<br />
industries, IFS also supplies sophisticated maintenance, repair, and overhaul (MRO)<br />
and aftermarket services capabilities for A&D companies.<br />
10 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
•<br />
Companies like Lawson and Oracle provide functionality for retailers. Lawson’s<br />
S3 product supports specialty retailers with purchase order, financials, and HR<br />
functionality. Oracle’s Standard Edition (SE) comes as a patch for customers of<br />
Oracle Retail version 12. The functional footprint consists of functionality from<br />
Oracle’s merchandising, price management, trade management, sales audit, invoice<br />
matching, allocations, and retail-intelligence applications.<br />
Some vendors have identified <strong>the</strong>ir channels as logical extensions of <strong>the</strong>ir own internal<br />
research and development (R&D) resources to develop preconfigured applications<br />
or application extensions that encompass ei<strong>the</strong>r an industry-specific or localized<br />
requirement, localized functionality, or both. For example, large enterprise providers<br />
Microsoft, Oracle, and SAP have empowered <strong>the</strong>ir channels and indirect partners<br />
through formalized partner programs to develop product configurations. The<br />
companies <strong>the</strong>n certify <strong>the</strong>ir partners to sell into <strong>the</strong> market.<br />
Lawson offers <strong>the</strong> QuickStep applications that are preconfigured and industry focused.<br />
They also contain preconfigured, industry-specific business processes and functionality<br />
as well as detailed documentation. QuickStep uses <strong>the</strong> Intentia StepWise implementation<br />
methodology and is built on <strong>the</strong> standard M3 product (formerly Intentia’s Movex). It’s<br />
currently available for distribution, food and beverage, fashion and apparel, and EAM.<br />
While prepackaged applications carry industry-specific functionality and localizations,<br />
<strong>the</strong>y also bear <strong>the</strong> promise of quick implementations that don’t involve lengthy blueprinting<br />
processes. This addresses <strong>the</strong> potential concerns midmarket executives have to<br />
deploying an <strong>ERP</strong> product from <strong>the</strong> same vendor that sells to <strong>the</strong> leading companies in<br />
<strong>the</strong>ir target industries.<br />
Building partner ecosystems toward volume sales in <strong>the</strong> midmarket<br />
The strength and capability of partner ecosystems to support <strong>the</strong> volume model will be<br />
major competitive differentiations for midmarket <strong>ERP</strong> providers. For <strong>the</strong> <strong>ERP</strong> vendors<br />
that traditionally have one product line with in-depth features and options for <strong>the</strong> markets<br />
where <strong>the</strong>y hoped to compete, often doing <strong>the</strong> localizations and customer-specific<br />
customizations <strong>the</strong>mselves, <strong>the</strong> market transition to portfolio providers and technology<br />
platform consolidation shatters any notion of success predicated on a one-size-fits-all<br />
approach. The diversified industry and sub-industry functional requirements, specific<br />
local requirements, varied customer sizes, and geographic concerns, combined with <strong>the</strong><br />
portfolio-provider nature that <strong>the</strong> vendors <strong>the</strong>mselves have fostered, make <strong>the</strong> partner<br />
channel all <strong>the</strong> more valuable going forward as vendors compete to capture <strong>the</strong> new<br />
business opportunities in <strong>the</strong> midmarket. A volume sales model is needed in order to<br />
effectively capture mindshare, attract new customers, and maintain customer loyalty.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
11
Large enterprise vendors that eye <strong>the</strong> midmarket as <strong>the</strong> next opportunity for volume<br />
growth employ sophisticated multitiered partner programs to help <strong>the</strong>m extend <strong>the</strong>ir<br />
sales and marketing efforts to <strong>the</strong> midsize enterprise. The Microsoft Business Solutions<br />
customer base is predominantly midmarket companies, and Microsoft has always relied<br />
on a mature network of resellers to act as its go to market.<br />
Table 4: Oracle, Microsoft, and SAP partner program breakouts<br />
Components of <strong>the</strong>se programs include <strong>the</strong> following:<br />
•<br />
•<br />
•<br />
•<br />
•<br />
Vendor Product Partners<br />
Partner-certified applications, with ei<strong>the</strong>r specific localizations or industry-specific<br />
product configurations, on top of core product offerings<br />
Discounting and special pricing considerations<br />
Committed co-marketing resources from <strong>the</strong> vendor<br />
E-learning and o<strong>the</strong>r training resources<br />
<strong>Midmarket</strong><br />
Customers<br />
Microsoft Business Solutions Dynamics AX 2,000 10,000<br />
Oracle JD Edwards<br />
Dynamics NAV 2,900 55,000<br />
Dynamics GP 2,200 (400 ISVs) 40,000<br />
PeopleSoft<br />
E-Business Suite<br />
n/a 19,000+<br />
SAP All-in-One 1,046 10,223<br />
Business One 1,316 14,667<br />
Source: AMR Research, 2007<br />
Access to online communities to network with o<strong>the</strong>r partners to share best practices<br />
While <strong>the</strong>se programs share some high-level characteristics, <strong>the</strong> following explains how<br />
<strong>the</strong>y differentiate from one ano<strong>the</strong>r.<br />
12 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Oracle<br />
Oracle’s SMB scope is typically firms with less than $500M in revenue—an area where<br />
<strong>the</strong> company already has over 19,000 customers (50% of which have less than $100M<br />
in annual revenue). For firms with annual revenue between $500M and $1B, Oracle<br />
promotes a hybrid strategy of direct and partner sales and services.<br />
Earlier this year, <strong>the</strong> company announced Accelerate as a midmarket-focused branding<br />
initiative. However, <strong>the</strong> Accelerators <strong>the</strong>mselves are not new, but based on business<br />
flows Oracle <strong>Consulting</strong> has employed for some time as a method to speed customer<br />
implementations. Specifically, Oracle prepackages <strong>the</strong> business flows and designs<br />
preconfigured business processes to fit a customer’s business directly, ranging from<br />
off <strong>the</strong> shelf or prepackaged, for processes such as order to cash, to partner tailored.<br />
The latter includes partner-designed customizations, enhancements, modifications,<br />
localizations, and integration points for a specific industry or localization.<br />
Oracle already has over 1,230 established business process accelerators and over<br />
80 specific localizations. Accelerate Solutions are positioned as a tailored product<br />
combining Oracle applications, business flows, and partner intellectual property<br />
(IP) to apply to <strong>the</strong> midmarket product portfolio: E-Business Suite, JD Edwards<br />
EnterpriseOne, Siebel, and <strong>the</strong> PeopleSoft Enterprise products. Oracle has wisely<br />
arranged <strong>the</strong> program to avoid product overlap in target industries and sub-segments,<br />
so Siebel and PeopleSoft products, for example, won’t compete against each o<strong>the</strong>r in<br />
sub-industry segments.<br />
The Accelerate program has <strong>the</strong> potential to act as a strong recruitment engine. It<br />
can reengage and reattract consulting and services firms that had strong practices in<br />
PeopleSoft, JD Edwards, and <strong>the</strong> o<strong>the</strong>r acquired products—practices that have perhaps<br />
waned in recent years. It can also reengage current Oracle customers running ei<strong>the</strong>r<br />
legacy or heavily customized versions of <strong>the</strong> applications. This has <strong>the</strong> potential to<br />
drive upgrades to ei<strong>the</strong>r a partner-driven Accelerate application with standardized or<br />
industry-specific business processes or to license a more current version of an Oracle<br />
application (see “Oracle’s New Branding Accelerates <strong>Midmarket</strong> Battle”).<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
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SAP<br />
To support <strong>the</strong> company’s indirect efforts for its midmarket All-in-One and Business<br />
One products, SAP launched a formal partner program called PartnerEdge in mid-<br />
2005. The program is predicated on building integrated applications and extensions on<br />
SAP’s core <strong>ERP</strong> offering. It provides partners with incentives not just for sales, but also<br />
for measurements such as customer satisfaction, customer referenceability, and training.<br />
Here are some notable statistics since <strong>the</strong> program launched:<br />
• For All-in-One, <strong>the</strong>re are currently 660 partner-developed and certified applications<br />
that are localized for just over 50 countries. All-in-One is based on SAP <strong>ERP</strong> and<br />
includes SAP Best Practices, which are preconfigured business scenarios. Partners can<br />
<strong>the</strong>n use <strong>the</strong>se best practices as a starting point to configure specific customer applications<br />
or to build ones for specific micro verticals. They are packaged this way to reduce<br />
<strong>the</strong> overall efforts and costs of implementing an SAP <strong>ERP</strong> product. Although each<br />
company is different and unique in <strong>the</strong>ir processes, <strong>the</strong> goal of <strong>the</strong> partner-driven applications<br />
is to fit about 75% of customer requirements with <strong>the</strong> preconfigured template.<br />
• SAP provides a software developer kit for partners to use for its Business One product,<br />
which resides on a different code set than All-in-One. The company currently has<br />
over 350 partner-developed applications.<br />
Microsoft<br />
Microsoft’s partner program is mature, since <strong>the</strong> firm has always enlisted an indirect<br />
partner model for <strong>the</strong> Microsoft Business Solutions group. Partners are tiered and<br />
rewarded with commensurate resources from Microsoft accordingly. In addition to<br />
<strong>the</strong> new certification program for independent software vendors (ISVs), Certified for<br />
Microsoft Dynamics, Microsoft also grants Microsoft Gold Certified Partner and<br />
Microsoft Certified Partner status. The company seeks to build horizontal functionality<br />
that can be consumed across industries into its core products. It will <strong>the</strong>n rely on<br />
partners to develop any industry-specific or localized functionality on top of <strong>the</strong> core<br />
product. Across <strong>the</strong> Dynamics Axapta (AX), Navision (NAV), and Great Plains (GP)<br />
lines, <strong>the</strong>re are over 6,000 partners worldwide providing over 90 specific localizations.<br />
In 2005, <strong>the</strong> company launched its Industry Builder Initiative (IBI) to enlist Dynamics<br />
AX partners to help construct integrated systems tailored to <strong>the</strong> upper end of <strong>the</strong><br />
midmarket. These partners focus on vertical investments in five key industry areas:<br />
manufacturing, distribution, retail, professional services, and public sector. The IBI is<br />
also mainstreamed into <strong>the</strong> Dynamics price list. At this year’s Convergence user conference,<br />
Microsoft Business Solutions unveiled Sure Step, a common implementation<br />
framework. Sure Step not only replaces <strong>the</strong> individual, product-focused, rapid implementation<br />
tools, but also integrates with <strong>the</strong> products <strong>the</strong>mselves to drive a structured<br />
method of increasing <strong>the</strong> repeatable processes that drive productivity. Sure Step can<br />
14 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
also provide Microsoft Business Solutions’ product development teams with ongoing<br />
feedback on implementation time frames, product adoption, and benefits so <strong>the</strong>y can<br />
continue to drive continuous improvements into <strong>the</strong> R&D process. Since Convergence,<br />
major Microsoft Business Solutions partners, such as Columbus IT and Tectura, have<br />
applied <strong>the</strong> Sure Step methodology into <strong>the</strong>ir customer engagements.<br />
Challenges of partner programs<br />
While <strong>the</strong> partner programs bear tremendous fruits, especially for driving volume<br />
license sales, <strong>the</strong>re are still challenges:<br />
• Convincing VARs and distributors to migrate from selling one or two licenses with<br />
multiple services engagements on top to a volume model is a challenge that, in some<br />
cases, forces <strong>the</strong> partner to shift its business model.<br />
• Ensuring VARs don’t compete with one ano<strong>the</strong>r in flooded markets and geographies<br />
is a concern.<br />
• Establishing long-term reseller viability and localized support capabilities is essential.<br />
Several local VARs and distributors have small staffs or are lifestyle companies that<br />
might not share <strong>the</strong> same growth plans as <strong>the</strong> vendors <strong>the</strong>y support.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
15
Technological and functional (r)evolutions: products<br />
must support <strong>the</strong> entire business<br />
The midmarket <strong>ERP</strong> providers are mature vendors, <strong>the</strong> majority of which in business for<br />
over 20 years. Several of <strong>the</strong>m have roots in manufacturing operations, and <strong>the</strong>ir abilities<br />
to support a single manufacturing or distribution site have never been challenged. The<br />
question, however, is whe<strong>the</strong>r or not <strong>the</strong>y have evolved to cater to today’s customer needs<br />
in order to truly thrive in <strong>the</strong> midmarket.<br />
The adoption of service-oriented architectures (SOAs) and continued migration toward<br />
modernized user interfaces (UIs) have made <strong>the</strong>ir way to <strong>the</strong> midmarket, and <strong>the</strong><br />
vendors are indeed responding.<br />
The impact of SOA<br />
For midmarket companies, <strong>the</strong> promise of SOA is that it makes it quicker and cheaper<br />
to assemble, deploy, and sustain technology that not only catapults <strong>the</strong>m from being<br />
technology laggards, but also provides a competitive advantage. SOA is an engine for<br />
rapid, less-expensive methods for maintaining software investments, reconfiguring new<br />
business processes, or upgrading entirely. By service-enabling <strong>the</strong>ir architectures, users<br />
are in a better position to support <strong>the</strong>ir evolving business processes by taking advantage<br />
of broader functionality that might not be available in <strong>the</strong>ir current configurations.<br />
<strong>ERP</strong> vendors as a whole have shifted from a message about <strong>the</strong> revolutionary new<br />
capabilities of SOA to one that emphasizes an evolutionary and nondisruptive approach<br />
to introducing new technologies. Applying this to <strong>the</strong> midmarket can help convince<br />
risk-averse buyers that were wary about new architectures to move forward, especially<br />
now that <strong>the</strong>y demand <strong>the</strong>ir <strong>ERP</strong> systems support most of <strong>the</strong> critical business<br />
processes and key company data.<br />
Vendors with <strong>the</strong> biggest challenge and opportunity to use SOA are <strong>the</strong> ones that ei<strong>the</strong>r<br />
carry large product portfolios or large amounts of customers that maintain legacy<br />
applications. SOA can provide <strong>the</strong>se vendors with <strong>the</strong> best of both worlds:<br />
• Customers that are happy paying maintenance, with increased opportunities for<br />
upselling and cross-selling new licenses<br />
• Customers that can configure new business processes on top of current configurations<br />
and legacy data sources<br />
Vendors continue to build and acquire products for specific target markets. In many<br />
cases, <strong>the</strong>ir acquisitions have also given <strong>the</strong>m redundant and overlapping product<br />
lines, which can present a major marketing and messaging challenge. In <strong>the</strong> long term,<br />
however, <strong>the</strong> increased product volume bodes well for SOA as a catalyst to provide<br />
customers with <strong>the</strong> best-in-class functions from multiple products (see “<strong>Midmarket</strong><br />
<strong>ERP</strong> <strong>Providers</strong> Must Accelerate SOA Adoption, Part 1: Educate <strong>the</strong> Masses”).<br />
16 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
The opportunity for SOA in <strong>the</strong> midmarket has not gone unnoticed by application infrastructure<br />
providers like IBM and Progress Software. IBM has a sizeable installed base of<br />
technology in <strong>the</strong> midmarket, with vendors using <strong>the</strong>ir WebSphere middleware. Lawson<br />
and Infor both have large numbers of customers that run applications on <strong>the</strong> AS/400<br />
and iSeries platforms, and have aligned with IBM to help <strong>the</strong>se customers evolve <strong>the</strong>ir<br />
IT infrastructures. Lawson uses <strong>the</strong> entire IBM stack on all client platforms. Progress<br />
Software, meanwhile, provides vendors <strong>the</strong> full technology stack to promote <strong>the</strong>ir SOAs,<br />
with customers of Infor, Epicor, and QAD using <strong>the</strong>ir OpenEdge product to do so.<br />
Additionally, <strong>the</strong> midmarket <strong>ERP</strong> providers <strong>the</strong>mselves are starting to get <strong>the</strong>ir stories<br />
heard in <strong>the</strong> market:<br />
• In late 2006, SAP unveiled its business process platform, <strong>the</strong> end result of its journey<br />
from client-server to an SOA. It’s basing a majority of future product releases on this<br />
platform.<br />
• Oracle’s Application Integration Architecture satisfies <strong>the</strong> growing midmarket demand<br />
for integration of its acquired applications, such as G-Log and Demantra, with <strong>ERP</strong><br />
products from JD Edwards and PeopleSoft as well as E-Business Suite. It also creates<br />
a roadmap to future Fusion Applications. The Process Integration Packs and business<br />
process management (BPM) tools provide companies an opportunity to implement<br />
cross-functional business processes on top of standard enterprise applications.<br />
• Microsoft-based vendors Epicor and SYSPRO have been down <strong>the</strong> SOA path for<br />
quite some time. SYSPRO componentized its product so functionality can be<br />
consumed on any device or in tandem with a development language as a way to add<br />
functionality and extend its product into its customers’ supply networks without<br />
<strong>the</strong> need for extensive programming or alterations to <strong>the</strong> core system. Epicor has<br />
anchored its SOA strategy on Microsoft .NET and Progress Software’s OpenEdge<br />
platforms to expose <strong>the</strong> functionality in its existing products through web services.<br />
This creates opportunities and provides broader capabilities to manufacturers,<br />
professional services firms, distributors, and financial service organizations.<br />
• Exact’s Macola ES product is anchored by its e-Synergy BPM product that, while<br />
sold as an add-on to Exact’s <strong>ERP</strong> products, is done so in a bundled fashion. It shares<br />
<strong>the</strong> same database structure as Exact’s <strong>ERP</strong> products, making it easy to orchestrate<br />
and monitor new business processes.<br />
• IFS provided SOA long before it became a mainstream term. The company<br />
componentized <strong>the</strong> architecture of <strong>the</strong> IFS Applications product through web services<br />
to foster interoperability between its multiple modules, allowing customers to add on<br />
functionality without having to worry about costly coding or services arrangements.<br />
• Lawson’s System Foundation project syn<strong>the</strong>sizes <strong>the</strong> core technology foundations<br />
between S3 and M3 products to provide a common technology base. Lawson’s<br />
Landmark is a development tool that provides a capability to create applications<br />
without coding. The company is using Landmark to build new application modules<br />
that can integrate with both <strong>the</strong> M3 and S3 products.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
17
•<br />
Infor’s Open SOA is a unique approach. Instead of providing an event-enabled bus<br />
or hub to foster application interoperability, <strong>the</strong> company is seeking to enable events<br />
within <strong>the</strong> application and deliver a true building-block way of tying toge<strong>the</strong>r a<br />
heterogeneous IT architecture. This approach should work well for its customer base,<br />
which is at diversified stages of <strong>the</strong>ir application lifecycles.<br />
Empowering employee productivity with new user interfaces<br />
The concept of extending SOA to create new UIs that can ultimately support individual<br />
roles and increased end-user personalization has not been fully embraced by <strong>the</strong><br />
majority of midmarket <strong>ERP</strong> vendors. It is, however, a burning need for midmarket<br />
companies. While <strong>the</strong> movement from green screens is complete for <strong>the</strong> most part,<br />
many of <strong>the</strong> UIs still support single-direction data capture through cumbersome forms<br />
and multiple screens. While this might be suitable for some accounting and back-office<br />
functions, front-office and operational functions require relevant, role-based access to<br />
company data to foster efficient decision making. Customers also have interest in a<br />
web-based UI or a familiar Microsoft-Office-like interface.<br />
Consider <strong>the</strong> following examples:<br />
• QAD entered a relationship with Microsoft in 2006 to use .NET as <strong>the</strong> technological<br />
underpinning of its new UI. The company’s initial push was to deliver stronger analysis<br />
and reporting. In <strong>the</strong> past, its bidirectional integration hasn’t been strong, but using<br />
.NET as a common standard UI for its existing products, as well as some of its recent<br />
acquisitions, is a sound strategy. The .NET UI also promotes end-user customization.<br />
It’s also a potential kernel to drive upgrades from green screens, which many headsdown<br />
transactional users still see, to QAD Enterprise Applications 2007, <strong>the</strong> firm’s<br />
most current software version.<br />
• SAP’s newest version of its All-in-One product is built atop SAP <strong>ERP</strong> 6.0, which<br />
leverages <strong>the</strong> NetWeaver business client to help drive more simplistic, role-based UIs.<br />
The new UI features power lists of commonly consumed tasks in which users might<br />
engage. It also offers precanned business processes, such as order to cash, that will<br />
ultimately limit <strong>the</strong> amount of screens a user goes through to complete a task, thus<br />
streamlining <strong>the</strong> business process.<br />
• Microsoft Business Solutions developed a plethora of role-based interfaces for SMBs<br />
to help provide role-specific content and data for individual roles, such as production<br />
planners and sales representatives. At this year’s Convergence conference, Microsoft<br />
Business Solutions unveiled <strong>the</strong> new Microsoft Dynamics Client for Office and<br />
SharePoint, which provides a single portal framework to perform all <strong>the</strong> integrations<br />
to Office applications.<br />
18 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
• Lawson, with help from design partner frog design, has created a new Smart Client<br />
UI available with version 7.1 of its M3 product. The UI uses Microsoft .NET 3.0<br />
featuring <strong>the</strong> Windows Presentation Framework, which is a universal framework for<br />
creating UIs across desktops, web pages, operating systems, and mobile devices. The<br />
Smart Client desktop provides a configurable canvas where users can access transaction<br />
panels or functionality from <strong>the</strong> M3 product through portlets (or, as Lawson<br />
calls <strong>the</strong>m, iBrixes) that is driven through IBM’s WebSphere middleware. In addition,<br />
users may place widgets on <strong>the</strong> desktop to provide access to searches, user help,<br />
RSS feeds, and world clocks.<br />
• SaaS provider NetSuite uses a role-driven dashboard as its standard UI, and Plexus<br />
built arguably one of <strong>the</strong> cleanest UIs for shop-floor data entry. This makes <strong>the</strong>m<br />
a formidable competitor against not just <strong>ERP</strong> providers vying for ownership of <strong>the</strong><br />
shop floor, but also incumbent MES and quality management providers as well.<br />
SaaS and alternative pricing models to hit mainstream<br />
Several midmarket <strong>ERP</strong> vendors offer hosted and managed services options for <strong>the</strong>ir<br />
products. The emergence of pure SaaS and <strong>the</strong> unique pricing scenarios that accompany<br />
it will appeal to midmarket companies such as professional services organizations and<br />
o<strong>the</strong>r project-oriented businesses, in addition to manufacturers and distributors. While<br />
firms might grapple with <strong>the</strong> data <strong>the</strong>y are comfortable letting reside beyond <strong>the</strong>ir<br />
firewalls, especially financial data where any manipulation or adjustment can carry painful<br />
ramifications, <strong>the</strong> fact that entry has no real barrier and vendors are creatively pricing <strong>the</strong>ir<br />
products makes SaaS intriguing for <strong>the</strong> midmarket as well as divisions of large enterprises.<br />
As <strong>ERP</strong> vendors begin to alter <strong>the</strong>ir business models to offer SaaS-based products, some of<br />
<strong>the</strong> larger companies may find it useful for fast-track deployments, smaller or very autonomous<br />
business units, or even as a helpful option when <strong>the</strong> business has a strong sense of<br />
urgency, but a limited appetite for capital expenditure. SAP’s not-yet-released SaaS offering,<br />
code-named A1S, has already sparked a flurry of inquiry about SaaS. It helped elevate<br />
vendors like Plexus and NetSuite, which have been offering <strong>the</strong>ir products through a SaaS<br />
model for some time, as well as new SaaS market entrant GSInnovate from Glovia Services.<br />
As vendors increasingly start to embrace pure SaaS approaches where <strong>the</strong> vendor hosts<br />
and manages <strong>the</strong> software itself, potential threats to <strong>the</strong> indirect channel loom. For<br />
partners with low license transactions but high volumes of services engagements, <strong>the</strong> low<br />
upfront license costs and fixed implementation time frames SaaS carries could threaten<br />
business models. Additionally, a vendor that offers hosting and application management<br />
services could also pressure channel partners, especially ones that have built <strong>the</strong>ir models<br />
on an application service provider (ASP) or hosting service. But for low-cost markets like<br />
Eastern Europe and Asia where <strong>the</strong> vendor might not have feet on <strong>the</strong> ground, it’s still a<br />
strong approach.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
19
The functional evolution from MRP purveyor to <strong>ERP</strong> provider<br />
Today’s <strong>ERP</strong> offerings are far more functionally rich and arguably easier to use than<br />
<strong>the</strong>ir MRP and MRP II predecessors, both of which are rigid and designed with<br />
single manufacturing or distribution sites in mind. They support just discrete or<br />
processes at a high level, with base financials, order management, and manufacturing<br />
functionality. There was little out-of-<strong>the</strong>-box support for <strong>the</strong> plethora of manufacturing<br />
styles—engineer to order (ETO), repetitive, assemble to order, configure to order, flow<br />
environments, make to stock (MTS), or contract manufacturing—let alone industryspecific<br />
or localized functionality.<br />
Enter <strong>ERP</strong>, a business management system that integrates multiple sites and facets of<br />
<strong>the</strong> business, including planning, manufacturing, and sales and marketing, through<br />
a common corporate database. It automates a huge range of business processes, such<br />
as order management, inventory policy and material flows, logistics, budgeting, and<br />
enterprise-wide revenue management.<br />
The growing needs of midmarket businesses demand that <strong>ERP</strong> expands from <strong>the</strong> back<br />
office to <strong>the</strong> front lines and provides integrated functionality to support <strong>the</strong> following:<br />
•<br />
•<br />
•<br />
•<br />
•<br />
•<br />
Financials and revenue management<br />
Business intelligence (BI) and performance management<br />
Lean manufacturing<br />
Supply chain management (SCM)<br />
Customer management<br />
Manufacturing operations<br />
Financials and revenue management<br />
Core financials and revenue management functions, such as general ledger, accounts<br />
receivable, and accounts payable, are capabilities that <strong>the</strong> majority of offerings we<br />
profiled feature as core. The majority of vendors provides localizations and support for<br />
major currencies and geographies native to <strong>the</strong>ir products. However, for geographies<br />
with complex tax and accounting rules, such as Latin America, partners still have<br />
a role for <strong>the</strong> localizations and currency support. Since core financials are nearly<br />
commoditized, how vendors provide financial capabilities for supporting business<br />
processes is <strong>the</strong> next evolution.<br />
20 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Consider <strong>the</strong> following:<br />
•<br />
For companies looking to incorporate EAM into <strong>the</strong>ir overall fixed-asset strategy,<br />
vendors such as IFS, Infor, Lawson, Oracle, and SAP have created integrations with<br />
<strong>the</strong>ir <strong>ERP</strong> modules.<br />
• Support for industry-specific accounting practices and processes is readily available.<br />
Epicor, Infor, QAD, and Plexus all have integrated automotive release accounting.<br />
Activant has integrated several transactions specific to <strong>the</strong> wholesale distribution<br />
industry. IFS, Deltek, and Oracle provide capabilities for earned-value management<br />
(EVM) calculations in A&D environments.<br />
• <strong>Midmarket</strong> <strong>ERP</strong> providers that have embraced lean manufacturing have developed<br />
tighter integration with financial functions to support accelerated backflushing<br />
capabilities.<br />
BI and performance management<br />
SOX and an abundance of industry-specific compliance initiatives have driven <strong>the</strong> need<br />
for better BI and performance management capabilities. Until now, <strong>the</strong> approach from<br />
vendors serving <strong>the</strong> midmarket has been to rely on a third-party BI specialist to provide<br />
ei<strong>the</strong>r <strong>the</strong> full analytics capability or presentation technology that is <strong>the</strong>n embedded and<br />
resold with <strong>the</strong> <strong>ERP</strong> product. This approach has not changed. The majority of vendors we<br />
examined embed or resell analytical technologies from standalone BI vendors like Cognos<br />
into <strong>the</strong>ir products. They are now designing industry-specific and role-based templates on<br />
top of <strong>the</strong> partner technology to better suit <strong>the</strong> needs of clients and prospects.<br />
Here are some examples:<br />
• In addition to using Cognos, Deltek has embedded technology from Actuate to<br />
create specific reports for government contractors and o<strong>the</strong>r project-driven firms that<br />
have different BI requirements than manufacturing-centric organizations.<br />
• Ra<strong>the</strong>r than partner, Lawson has chosen to develop its own capabilities. The<br />
company has developed its own BI tool, Lawson Business Intelligence (LBI), which it<br />
is actively reselling into <strong>the</strong> M3 customer base and its traditional S3 customer base,<br />
as well as being sold with new Lawson licenses.<br />
• Microsoft Business Solutions’ Dynamics family of products—AX, NAV, and<br />
GP—provide diverse options for performance management. For Microsoft Dynamics<br />
AX, <strong>the</strong>re is native integration to Microsoft’s Business Analysis Services, SQL<br />
Reporting Services, and PerformancePoint Server. The next version of Microsoft<br />
Dynamics AX will include role-tailored home pages or role centers and also a native<br />
report-writing tool.<br />
• Infor is one of <strong>the</strong> largest Cognos resellers, but it also has a series of performance<br />
management technologies acquired in both <strong>the</strong> Extensity and SSA acquisitions.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
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21
Lean manufacturing<br />
The concepts of lean manufacturing are not new to midmarket organizations, but<br />
<strong>the</strong> demands and complexities of today’s DDSNs are. These demands have moved<br />
lean from just its manufacturing-centric focus to more outside-in-facing constructs,<br />
such as demand shaping for promotions and pricing strategies and demand sensing<br />
for forecasting. Regardless of <strong>the</strong> manufacturing methods used by companies, <strong>the</strong>re<br />
is <strong>the</strong> need to expand lean thinking to support better short-term demand visibility<br />
and planning, tighter sales and operations planning (S&OP) processes, better supplier<br />
collaboration (scheduling, management, and communication), and overall performance<br />
management measurements for regulatory compliance and financial management (see<br />
“East Meets West—Lean Manufacturing and <strong>ERP</strong> Are a Better Fit Than You Think”).<br />
Several <strong>ERP</strong> vendors have evolved <strong>the</strong>ir lean thinking to support <strong>the</strong> ongoing focus of<br />
lean:<br />
• Cincom links lean execution to <strong>the</strong> ordering and configuration process beyond pure<br />
lean manufacturing operations support. This is accomplished through a guided<br />
selling front end with its Quote-to-Order product, which contributes efficient<br />
demand shaping and sequencing into <strong>the</strong> actual production environment. Within<br />
production, Cincom’s Demand Suite uses visibility into constraints to produce levelloaded<br />
production plans and sequences to manage material flows and production<br />
execution. Additionally, <strong>the</strong> Demand Suite is event enabled through Cincom’s .NETbased<br />
Environ middleware. This pegs line and order updates to <strong>the</strong> central planning<br />
mechanism to synchronize changes in production to any order changes, eliminating<br />
intermediaries in connecting individual manufacturing orders to sales orders.<br />
• IQMS relies on a central scheduling mechanism to drive <strong>the</strong> majority of activities<br />
its application EnterpriseIQ supports for small-to-midsize discrete manufacturers.<br />
Specifically, <strong>the</strong> scheduling mechanism is centered on a calculator that, upon order<br />
receipt, takes into effect current constraints for labor, raw materials, and work centers<br />
to identify if a manufacturer can deliver as promised to <strong>the</strong> customer demand. It also<br />
te<strong>the</strong>rs <strong>the</strong> output directly to <strong>the</strong> production schedule.<br />
• Oracle’s lean support is in <strong>the</strong> E-Business Suite and JD Edwards EnterpriseOne<br />
products, which are capable of supporting multiple manufacturing styles on a single<br />
instance.<br />
• Microsoft Business Solutions and SAP have acquired <strong>the</strong>ir lean support: eBECS and<br />
Factory Logic, respectively.<br />
For a more comprehensive overview of how <strong>ERP</strong> providers support lean manufacturing,<br />
please see “Lean Planning and Execution Software: Extending Lean Thinking Across<br />
<strong>the</strong> Enterprise.”<br />
22 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Supply chain management<br />
The supply chain arena is where <strong>the</strong> largest deltas of integrated versus add-on<br />
capabilities exist. The demands of <strong>the</strong> global value chain necessitate that companies<br />
migrate from intracompany processes, such as core MRP, warehouse management,<br />
and distribution support, to focus on intercompany processes, such as sourcing and<br />
procurement, global trade, and transportation management. The following are some<br />
success stories:<br />
• Infor has arguably assembled through acquisition a massive arsenal of supply chain<br />
functionality with which to complement its existing <strong>ERP</strong> products. For example,<br />
<strong>ERP</strong> products such as Infor <strong>ERP</strong> LN, Infor <strong>ERP</strong> LX, and Infor <strong>ERP</strong> SyteLine<br />
provide basic warehouse management functionality integrated with <strong>the</strong> base product.<br />
If customers seek more automated functionality to support complex warehousing<br />
scenarios as well as yard management or automated pick-pack-ship pieces, Infor offers<br />
a series of warehouse management system and transportation management system<br />
add-ons, such as <strong>the</strong> EXE and Provia products from <strong>the</strong> SSA acquisition.<br />
• Oracle’s JD Edwards EnterpriseOne product provides sophisticated supply chain<br />
planning capabilities, with roots dating back to <strong>the</strong> Numetrix product, and<br />
PeopleSoft 9 has role-based RFI and RFQ functionality. Additionally, as transport<br />
costs continue to fluctuate and increased emphasis on inbound and outbound<br />
distribution and replenishment continue, we expect <strong>the</strong> interest in Oracle’s<br />
Applications Unlimited will pay <strong>the</strong> dividends. As interest mounts in <strong>the</strong> midmarket,<br />
Oracle’s acquired supply chain assets will grow, like Oracle Transportation<br />
Management (formerly G-Log) and Demantra. In fact, <strong>the</strong> majority of JD Edwards<br />
customers were already using Demantra’s assets prior to Oracle’s acquisition.<br />
• QAD’s acquisition of Precision Software provides companies with GTM<br />
functionality (multimodal shipping, trade compliance, and international trade<br />
management) to complement its demand management and distributed order<br />
management modules for inventory optimization and sourcing.<br />
• SAP has an extensive library of preconfigured best practices for SCM. It has also<br />
enhanced <strong>the</strong> sourcing and procurement capabilities in <strong>the</strong> All-in-One product to<br />
support scenarios such as commodity parts and mass RFQs. The company also<br />
provides capabilities to sort by best price and delivery time. However, more complex<br />
processes and functions are needed, such as automatic bidding, optioning, and<br />
e-RFQ integration with <strong>the</strong> SAP supplier relationship management module.<br />
• SoftBrands’ FourthShift Edition for SAP Business One te<strong>the</strong>rs sourcing and<br />
procurement capabilities directly to its MRP engine for blanket orders.<br />
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© 2007 AMR Research, Inc.<br />
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Within <strong>the</strong> SCM arena, wholesale distribution has become an intriguing growth area<br />
for several midmarket <strong>ERP</strong> providers. Distributors are in a unique spot to position<br />
<strong>the</strong>mselves as providers that small and midsize retailers can work with to take<br />
advantage of a highly competitive supply chain. Specifically, distributors can reduce<br />
costs through volume purchasing, aggregate supply bases for easier replenishment,<br />
increase supply visibility, shorten cycle times and increase turns, execute vendormanaged<br />
inventory (VMI) or distributor-managed inventory programs, synchronize<br />
replenishment with demand pull signals, and help manage effective new product<br />
introductions and promotion execution. However, to truly reinforce a position of value,<br />
distributors need to upgrade <strong>the</strong>ir systems. Gaining better visibility through an upgrade<br />
will allow <strong>the</strong>m to better manage inventory replenishments across <strong>the</strong>ir whole networks<br />
while communicating effectively with <strong>the</strong> manufacturer and retailers.<br />
Consider <strong>the</strong> following:<br />
• CMS Software merged with XKO Software Ltd in order to link XKO’s wholesale<br />
distribution capabilities with CMS’s manufacturing capabilities in both <strong>the</strong> CMSi5<br />
and CMSm5 products.<br />
• Infor’s acquisitions of daly.commerce, NxTrend, and Aperum gave <strong>the</strong> firm <strong>the</strong><br />
opportunity to create an entire unit focused solely on <strong>the</strong> distribution industry. It<br />
also created significant cross-selling capabilities for Infor customers in <strong>the</strong> consumer<br />
products (CP) industries that have private-labeling operations, as well as several<br />
automotive tier suppliers that also have large aftermarket channels.<br />
• Activant’s entire product portfolio focuses exclusively on wholesale distributors and<br />
retailers in <strong>the</strong> lumber, HVAC, automotive aftermarket parts supplier, and industrial<br />
equipment industries. Activant’s laser focus on specific industry sub-segments is one<br />
of its major differentiators and a major driver of its customer loyalty. For example,<br />
its Falcon product is targeted specifically at wholesale and professional lumberyards,<br />
and its Vision product is focused on <strong>the</strong> warehouse-to-store models for retailers in <strong>the</strong><br />
automotive spare parts aftermarket supply chain.<br />
• Microsoft Business Solutions’ Dynamics NAV product provides distributors with<br />
integrated financials, inventory management, and customer service functions. It also<br />
has a broad channel network behind <strong>the</strong> product to provide localizations and specific<br />
industry functionality.<br />
24 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Customer management<br />
For several <strong>ERP</strong> vendors, customer management represents a significant growth<br />
opportunity. Historically, midmarket firms have not made sizeable investments in<br />
<strong>the</strong>se capabilities. However, as business models change and companies move from not<br />
just making and selling products but also servicing <strong>the</strong>m, <strong>the</strong>re is a need to connect<br />
front-end, order, and customer information capture, with back-end processes for order<br />
fulfillment and execution. For several vendors, providing customers a unified view<br />
of business-critical information across all organizational functions, including sales<br />
and marketing, operations, and production, while maintaining stable management of<br />
revenue and costs upon order intake is important.<br />
Here are some examples:<br />
• Oracle is providing integrations for JD Edwards customers to Siebel on demand,<br />
in addition to having already extended <strong>the</strong> core CRM functionality in <strong>the</strong><br />
EnterpriseOne product to support warranty management and customer service case<br />
support.<br />
• Microsoft Business Solutions’ Dynamics CRM package is offered alongside <strong>the</strong><br />
Dynamics <strong>ERP</strong> packages. It’s integrated with Microsoft Office, which, for many<br />
small companies, provides a familiar UI. The Dynamics AX <strong>ERP</strong> product also has a<br />
specific field-services offering that uses Microsoft’s mobile technologies.<br />
• SAP is packaging industry-specific CRM functionality as part of <strong>the</strong> overall best<br />
practices offerings used to bring its All-in-One product to market. For example,<br />
midmarket firms in <strong>the</strong> industrial machinery and component industries will receive<br />
<strong>the</strong> Variant Configurator as part of <strong>the</strong>ir best practices configuration, while CP<br />
companies will see more trade promotions and warranty management capabilities in<br />
<strong>the</strong>ir best practices bundles.<br />
• In addition to SAP, vendors such as Cincom and IFS offer product configurators<br />
for highly engineered and complex discrete environments. In a few industrial<br />
environments, Cincom’s Sales Configurator, which has a rules-based guided selling<br />
engine, is used to augment SAP’s Variant Configurator to handle complex sales,<br />
product configurations, and high order volumes.<br />
• For Infor <strong>ERP</strong> customers, <strong>the</strong> company offers add-on CRM capabilities, including<br />
inbound and outbound marketing. It also offers sales and service through <strong>the</strong><br />
Ironside and Epiphany products acquired from SSA, as well as <strong>the</strong> <strong>ERP</strong> packagespecific<br />
CRM functionality.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
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For SMBs, te<strong>the</strong>ring CRM to e-commerce capabilities is important to help firms reach<br />
new customers through <strong>the</strong> Internet. Consider <strong>the</strong> following examples:<br />
• Sage is integrating its MAS 90/200 and 500 <strong>ERP</strong> product lines with <strong>the</strong> entire<br />
portfolio of Sage CRM products (ACT!, SageCRM.com, and Sage SalesLogix) to<br />
assist SMBs in driving customer service, SFA, and order-processing efficiency.<br />
• SaaS provider NetSuite has combined its strengths in customer management with<br />
e-commerce and order management to provide firms with a full view of <strong>the</strong>ir<br />
customers.<br />
• SAP acquired Praxis Software Solutions to extend Business One’s CRM capabilities<br />
for providing integrated web storefront, e-commerce, and online customer service<br />
and sales functionality.<br />
• SYSPRO’s latest CRM package provides dashboards for companies to track <strong>the</strong><br />
performance of <strong>the</strong>ir marketing and customer support functions.<br />
Manufacturing operations<br />
Manufacturing is not a new domain for midmarket <strong>ERP</strong> providers. Several firms grew<br />
up in manufacturing environments, with deep roots as MRP and plant-centric <strong>ERP</strong><br />
providers. A majority of manufacturing organizations are starting to consider overdue<br />
investments in manufacturing operations to cope with <strong>the</strong> new demands on <strong>the</strong>ir<br />
capacity from diversified product portfolios, regulatory and quality requirements, and<br />
shorter lead times. To protect <strong>the</strong>mselves from best-of-breed ISV competition, vendors<br />
must focus on operational excellence and look beyond basic MES functions, like<br />
collecting production data against a bill of materials (BOM), to include and integrate<br />
functions such as quality management, operations intelligence, and EAM.<br />
Consider <strong>the</strong> following examples:<br />
• Plexus Systems provides integrated MES and quality management functionality that<br />
several automotive tier suppliers have used to support traceability reporting, closedloop<br />
quality management functions, as well as part and process traceability efforts.<br />
• QAD developed a just-in-time-sequencing module for its automotive customers in<br />
addition to acquiring long-time partner FBO Systems for EAM functionality.<br />
• Several vendors are incorporating deeper quality management functionality into <strong>the</strong>ir<br />
offerings. IQMS offers integrated quality management capabilities for medical device<br />
manufacturers. Cincom is using its long-time partnership with quality management<br />
vendor Pilgrim Software and reselling its SmartSolve quality suite into highly<br />
complex discrete manufacturing scenarios. Epicor and QAD have partnered with<br />
IQS, ano<strong>the</strong>r pure-play quality management vendor, to bring quality management<br />
functionality to its medical device, automotive, and A&D clients.<br />
26 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
•<br />
Infor has good momentum in cross-selling <strong>the</strong> Datastream EAM product. Its Open<br />
SOA strategy will allow for more discrete industry customers to take advantage of<br />
its Visual Quality Management product and process industry customers to use <strong>the</strong><br />
Fygir production scheduling product. It will also allow for using newly developed<br />
capabilities in <strong>the</strong> future.<br />
• IFS provides functionality for supporting MRO and aftermarket depots in <strong>the</strong> A&D<br />
industry and o<strong>the</strong>r complex discrete manufacturing environments.<br />
• CDC Software’s recent CDC Factory release offers integrated MES, quality, and<br />
operations intelligence capabilities for process manufacturers.<br />
• Oracle’s JD Edwards EnterpriseOne version 8.12 incorporates specific traceability<br />
constructs for food and beverage manufacturers and Plant Manager’s Dashboard for<br />
operations intelligence.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
27
Conclusion and recommendations<br />
The <strong>ERP</strong> market is growing with a renewed focus on <strong>the</strong> midmarket that will impact<br />
<strong>the</strong> vendor landscape going forward. Oracle and SAP will continue to build market<br />
share through multichannel approaches that involve agile partner ecosystems predicated<br />
on driving volume license sales. Microsoft is gaining momentum with its indirect<br />
channel, and as Microsoft Business Solutions is absorbed into <strong>the</strong> Office applications<br />
group, users will continue to be comfortable purchasing <strong>the</strong> company’s products.<br />
Vendors with architectures based on Microsoft technologies that have been winning<br />
business under <strong>the</strong> auspices of being “more Microsoft than Microsoft” should take note<br />
that, in <strong>the</strong> past two years, Microsoft Business Solutions has been silently assembling all<br />
<strong>the</strong> components of <strong>the</strong> Microsoft portfolio. It will be able to offer completely integrated<br />
IT offerings and applications to <strong>the</strong> midmarket, and could potentially leap-frog its<br />
competition.<br />
Incumbent vendors that call <strong>the</strong> midmarket home must retool and innovate <strong>the</strong>ir<br />
business models to defend <strong>the</strong>ir turf and drive volume models to respond to <strong>the</strong> new<br />
competitive pressures. Companies with high revenue from maintenance from <strong>the</strong>ir<br />
installed bases must drive new license sales ei<strong>the</strong>r through upgrading customers on<br />
legacy configurations, cross-selling acquired functionality back into <strong>the</strong> installed base,<br />
or new logo acquisition. Not doing so will turn <strong>the</strong>m into ripe acquisition targets.<br />
While consolidation is inevitable, acquirers still have <strong>the</strong>ir challenges:<br />
• The acquiring company must communicate that product ownership has changed<br />
hands to <strong>the</strong> acquired customer base.<br />
• Communicating product roadmaps and answering all questions from customers<br />
regarding <strong>the</strong> destiny of acquired products specifically calls for unveiling and<br />
discussing any and all plans to develop, upgrade, and add new functionality that will<br />
continue to suit customer demand.<br />
• Multiple acquisitions require integrating acquired products toge<strong>the</strong>r or rationalizing<br />
stockpiles of applications.<br />
28 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Recommendations for users<br />
It’s a buyer’s market, so take advantage! Vendors want your business and, for <strong>the</strong> most<br />
part, have evolved <strong>the</strong>ir offerings to provide a broad range of functionality and flexible<br />
pricing options to support your company. Users should do <strong>the</strong> following:<br />
• Examine <strong>the</strong> stream of maintenance revenue of your current or prospective<br />
providers and be sure to understand <strong>the</strong> <strong>the</strong>ir overall growth. Firms running legacy<br />
applications or products with frequently changing ownership should also understand<br />
<strong>the</strong> detailed product roadmaps and support plans from <strong>the</strong> current owners.<br />
• Understand <strong>the</strong> health and dynamics of your vendor’s channel and partner strategy.<br />
This includes understanding <strong>the</strong> qualification processes for partner-driven application<br />
configurations as well as support plans if partners are acquired or go out of business,<br />
especially in distributed locales.<br />
• Beware of MRP providers in <strong>ERP</strong> clothing. Seek vendors that offer integrated<br />
functionality supporting industry best practices and localized configurations that<br />
best scale with your business for <strong>the</strong> long term.<br />
Recommendations for providers<br />
Regardless of being a consolidating force or not, midmarket <strong>ERP</strong> providers must offer<br />
<strong>the</strong> necessary integrated functionality suitable to <strong>the</strong> geography- and industry-specific<br />
needs of <strong>the</strong>ir customers in order to thrive. This involves <strong>the</strong> following:<br />
• For vendors with single product lines that appeal to multiple industries, focus on <strong>the</strong><br />
industries and market sub-segments with your highest concentration of customers.<br />
To remain relevant, evolve your products with as much integrated out-of-<strong>the</strong>-box<br />
functionality for <strong>the</strong>ir specific needs.<br />
• For companies managing multiple products and sizeable installed bases, be proactive<br />
in your communications of product roadmaps, enhancements, and support plans.<br />
Involve customers in feedback sessions to share best practices, desired functionality<br />
upgrades, and understand usage patterns that can help drive upgrades and migrations<br />
to newer product versions with <strong>the</strong> specific features customers want.<br />
• A volume license business will be <strong>the</strong> ultimate success factor and drive <strong>the</strong> highest<br />
volumes of new customers. However, this is not a change that happens overnight.<br />
For several VARs and distributors, this shift represents a dramatic adjustment<br />
to some business models, especially for partners that sell low volumes of licenses<br />
followed by multiple, higher margin service engagements. Structure your indirect<br />
efforts to support a volume business model by creating incentive programs for<br />
VARs and resellers that create templates atop your core product and use fixed-bid<br />
implementations.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
29
Appendices<br />
Appendix A: Vendor product matrix<br />
AMR Research examined <strong>the</strong> following vendor product offerings. Vendors declining<br />
participation were CDC Software and Consona.<br />
30 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Table 5: Product offerings examined for this research<br />
Vendor and Products Current Version<br />
Activant Solutions<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
Target Market<br />
(No. of Employees)<br />
Eagle v16 √ √<br />
0–50 50–249 250–1,000<br />
Falcon v5.07 √ √ √<br />
Vision v7 √<br />
Prophet 21 v11 √ √ √<br />
Cincom<br />
CONTROL Control 2007 √ √<br />
CMS Software<br />
CMS i5 5.2 √ √<br />
CMS m5 2.1 √ √<br />
Deltek<br />
Costpoint CostPoint 6 √ √<br />
Vision Vision 5 √ √<br />
Epicor<br />
Manufacturing (formerly Vantage and Vista) v8.03 √ √ √<br />
iScala v2.3 √ √ √<br />
Enterprise v7.3.6 √ √ √<br />
Exact Software<br />
Macola ES Version 372 √ √<br />
Glovia<br />
glovia.com v9.1.1 √ √<br />
Glovia Services<br />
GSInnovate √<br />
IFS<br />
IFS Applications v7.5 √ √<br />
Infor<br />
Infor <strong>ERP</strong> Adage v5.2 √ √<br />
Infor <strong>ERP</strong> LN v6.1 √ √<br />
Infor <strong>ERP</strong> LX v8.3.1 √ √<br />
Infor <strong>ERP</strong> SyteLine 7.5 √ √<br />
Infor <strong>ERP</strong> Visual 6.5.2 √<br />
Infor <strong>ERP</strong> XA 7.7 √ √<br />
Source: AMR Research, 2007<br />
© 2007 AMR Research, Inc.<br />
31
Table 5: Product offerings examined for this research (continued)<br />
Vendor and Products Current Version<br />
IQMS<br />
Target Market<br />
(No. of Employees)<br />
EnterpriseIQ 7.0.13 √ √<br />
Lawson<br />
0–50 50–249 250–1,000<br />
M3 v7.1 √ √<br />
S3 v9 √ √<br />
Microsoft Business Solutions<br />
Dynamics AX v4 √ √ √<br />
Dynamics NAV v5.2 √ √ √<br />
Dynamics GP v10 √ √<br />
NetSuite<br />
NetSuite NetSuite 2007.0 √ √<br />
Oracle<br />
JD Edwards EnterpriseOne 8.12 √ √<br />
E-Business Suite 12 √ √<br />
PeopleSoft 9 √ √<br />
Plexus Systems<br />
Plexus Online √ √ √<br />
QAD<br />
QAD Enterprise Applications 2007 eB3 √ √<br />
Sage Software<br />
MAS 90 <strong>ERP</strong> 4.2 √<br />
MAS 200 <strong>ERP</strong> 4.2 √<br />
MAS 500 <strong>ERP</strong> 7.05 √<br />
SAP<br />
SAP Business One SAP Business One<br />
2005<br />
SAP <strong>ERP</strong> 6.0 All-in-One mySAP <strong>ERP</strong> 2006<br />
All-in-One<br />
SoftBrands<br />
√ √<br />
FourthShift Edition for SAP Business One 8.5 √ √<br />
SYSPRO<br />
SYSPRO <strong>ERP</strong> 6 √<br />
√ √<br />
Source: AMR Research, 2007<br />
32 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Appendix B: Vendor profiles<br />
Activant Solutions<br />
Activant brings four <strong>ERP</strong> products to <strong>the</strong> market: Eagle, Falcon, Prophet 21, and<br />
Vision. The common thread throughout its product line is that each has an eye toward<br />
wholesale distribution environments with specific sub-industry focuses. Falcon is<br />
targeted at wholesale and professional lumber distributors, while Eagle is targeted<br />
at hardware and home centers. Vision is designed to support <strong>the</strong> warehouse-to-store<br />
models that <strong>the</strong> automotive parts aftermarket demands. Prophet 21 has arguably <strong>the</strong><br />
broadest reach of <strong>the</strong> four products, aimed at <strong>the</strong> broader wholesale distribution market<br />
for industrial goods, including plumbing and HVAC equipment as well as lumber and<br />
auto parts.<br />
Since 1973, Activant has provided tailored functionality specifically for wholesale<br />
distribution environments. The company’s products offer fully-integrated accounting<br />
packages that are te<strong>the</strong>red to both inventory and order management functions to help<br />
firms track <strong>the</strong>ir inventories and associated replenishments with efficiency. The majority<br />
of Activant’s customers tend to do minimal customizations to <strong>the</strong> product, making<br />
upgrades a simplistic task that doesn’t cause disruption to <strong>the</strong> business.<br />
Cincom<br />
For over 35 years, Cincom has provided <strong>ERP</strong> software and solutions for complex,<br />
highly engineered discrete environments, such as A&D, trucks and heavy equipment,<br />
and industrial products. In addition to <strong>the</strong> core CONTROL <strong>ERP</strong> product, Cincom<br />
offers Environ, a Microsoft .NET-based technology platform to help clients orchestrate<br />
and manage business processes as <strong>the</strong>y build out <strong>the</strong>ir SOAs. It also offers <strong>the</strong> Quoteto-Order<br />
application that includes sales configuration, product configuration, and<br />
quotation and proposal management.<br />
Cincom also provides quality and compliance management functionality from<br />
partner Pilgrim Software. It also provides specific capabilities focused on complex<br />
lean environments through its Demand Suite application, which uses visibility into<br />
constraints to produce level-loaded production plans and sequences to manage material<br />
flow and production execution.<br />
Headquartered in Cincinnati, <strong>the</strong> company has offices worldwide that serve customers<br />
in North America, Europe, Australia, and Asia.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
Appendices<br />
© 2007 AMR Research, Inc.<br />
33
CMS Software<br />
CMS Software (formerly CMS Manufacturing Systems) provides two products to<br />
market: CMSi5, an IBM iSeries-based product, and CMSm5, a .NET-based product.<br />
The company’s sweet spots are <strong>the</strong> lower midmarket and SMB segment, as both<br />
products support manufacturers seeking a single system without a big internal support<br />
capability.<br />
The firm recently merged with XKO Systems Ltd, a UK-based software provider for<br />
wholesale distribution environments. The merger will bode well for CMS Software<br />
customers in <strong>the</strong> automotive and CP industries looking to manage both production and<br />
distribution in a single system.<br />
Headquartered in Toronto, <strong>the</strong> company has customers in North America, Europe, and<br />
Asia. It has offices in several North American cities, as well as Brussels and Shanghai.<br />
Deltek<br />
Deltek has a unique position in <strong>the</strong> market. The company focuses on providing<br />
software for project-focused businesses that generate revenue from defined, discrete,<br />
customer-specific engagements ra<strong>the</strong>r than from high-volume, mass-production, or<br />
distribution businesses.<br />
Deltek’s products, Costpoint and Vision, provide project and financial accounting<br />
functionality for professional services, A&D, government contractors, professional<br />
services firms, and project manufacturers. In addition, Deltek also offers CRM timeand-attendance<br />
collection, expense reporting, business performance management,<br />
materials management, and human capital management capabilities. The company<br />
continues to add new capabilities to support <strong>the</strong> needs of its clients. In 2006, Deltek<br />
acquired Welcom for project portfolio management (PPM) and EVM, as well as C/S<br />
Solutions for EVM-specific BI capabilities.<br />
Deltek has over 12,000 customers and continues to scale profitably year over year. The<br />
firm brought in senior management with enterprise software experience and filed an<br />
S-1 in May 2007. Almost all of Deltek’s revenue comes from North America, primarily<br />
from its direct sales force. Headquartered in Herndon, Virginia, <strong>the</strong> company has<br />
customers worldwide and offices in Portland, Oregon; St. Petersburg, Florida; Fort<br />
Collins, Colorado; Houston, Texas; Cambridge, Massachusetts; Toronto; London; and<br />
Makati City, Philippines.<br />
34 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Epicor<br />
Epicor is a midmarket veteran with multiple targeted applications. To start, <strong>the</strong>re’s<br />
Epicor Vantage and Vista, which focus on manufacturers and distributors. Epicor<br />
iScala is ideal for multinationals requiring a comprehensive global footprint within<br />
manufacturing, distribution, and hospitality environments. Epicor Enterprise<br />
focuses on <strong>the</strong> business services sector, including financial and professional services,<br />
with Epicor CRS focusing on retail. All products make use of <strong>the</strong> Microsoft .NET<br />
framework, but Epicor also supports Progress, which provides additional flexibility for<br />
customers, allowing <strong>the</strong>m to make SOA a reality. Also, <strong>the</strong> products feature multisite,<br />
multilanguage, and multicurrency support.<br />
Within manufacturing, Epicor targets discrete manufacturers in industries such as<br />
A&D, industrial machinery, and metal fabrication. On <strong>the</strong> distribution side, Epicor<br />
targets CP, industrial equipment, pharmaceutical, and automotive parts supplier<br />
environments.<br />
Epicor has sold applications since 1984 to a loyal customer base of over 20,000<br />
companies. It’s headquartered in Irvine, California.<br />
Exact Software<br />
Exact’s Macola ES, a Microsoft-based product, targets small discrete manufacturers up<br />
to divisions of multinational companies. Macola ES and <strong>the</strong> company’s BPM offering,<br />
e-Synergy, work off <strong>the</strong> same database, offering discrete manufacturers <strong>the</strong> opportunity<br />
to orchestrate and manage workflows for <strong>the</strong>ir finance and manufacturing operations.<br />
Exact Software, founded in 1984, has 180,000 clients in 120 countries. The majority<br />
of its customers are discrete manufacturers. About half of <strong>the</strong> software sales are direct,<br />
with <strong>the</strong> balance coming from a 2,000-member VAR channel that helps <strong>the</strong> firm reach<br />
over 110 countries worldwide. Headquartered in Delft, <strong>the</strong> Ne<strong>the</strong>rlands, <strong>the</strong> U.S.<br />
headquarters is in Andover, Massachusetts.<br />
Glovia<br />
With just over 1,400 customers, Glovia, a division of Fujitsu, has sold applications<br />
to <strong>the</strong> discrete manufacturing industry for over 30 years. The glovia.com product<br />
targets such industries as A&D, electronics, capital equipment, and automotive.<br />
Focused on manufacturing, glovia.com is a multimode product designed to scale from<br />
supporting a single plant, to multisite needs for high-volume repetitive manufacturing,<br />
to complex ETO with project tracking, production scheduling and management, and<br />
cost capability for long, complex, discrete manufacturing environments. Sales are split<br />
between <strong>the</strong> Fujitsu VAR sales team in Asia and <strong>the</strong> Glovia International direct sales<br />
teams in North America and Europe.<br />
Headquartered in El Segundo, California, <strong>the</strong> company has customers worldwide.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
35
Glovia Services<br />
Launched in 2006, Glovia created a separate business unit, Glovia Services, to<br />
capitalize on <strong>the</strong> emerging opportunity in SaaS. It transforms <strong>the</strong> current glovia.com<br />
product to a SaaS system, branded as GSInnovate, and targets manufacturers with<br />
less than $50M in annual revenue. GSInnovate offers a low cost of entry for enterprise<br />
technology to manage processes such as core MRP, order management, sourcing and<br />
procurement functions, and core financials. The ultimate success metric for Glovia<br />
Services is ultimately going to be adoption by SMBs. However, for manufacturers<br />
tasked with updating <strong>the</strong>ir existing systems to handle comprehensive traceability and<br />
genealogy requirements, <strong>the</strong> shorter implementation time frames that a SaaS delivery<br />
model promises might be intriguing.<br />
IFS<br />
IFS offered a component-based architecture for its IFS Applications product before<br />
SOA became an everyday term. IFS’s differentiators are full product lifecycle<br />
management (PLM), including MRO and field service, lean manufacturing, and<br />
project management. The firm has created a unique niche in <strong>the</strong> A&D environment,<br />
offering integrated EAM and MRO capabilities for repair depots and military projectbased<br />
environments.<br />
IFS has approximately 2,400 global customers in Latin America, Asia-Pacific, EMEA,<br />
and North America. The company is headquartered in Linköping, Sweden, with North<br />
American headquarters in Chicago.<br />
Infor<br />
Infor has over 25 <strong>ERP</strong> products in its portfolio, over $2.1B in annual revenue, and a<br />
customer base of over 70,000 customers. It has acquired many of its customers through<br />
acquisitions of o<strong>the</strong>r <strong>ERP</strong> vendors, including SSA (which had products such as Baan,<br />
ManMan, Marcam, HK Systems, Infinium, and BPCS under its umbrella), MAPICS,<br />
Lilly Software, Epiphany, and Geac. Infor also has industry-specific offerings such as<br />
COM, TRANS4M, and XPPS, which are all targeted at automotive tier suppliers.<br />
About half of Infor’s revenue today comes from maintenance, with professional services<br />
and licenses at about 25% each. Infor’s customers are in a diverse set of markets,<br />
including <strong>the</strong> automotive, high-tech, industrial products, CP, and process industries.<br />
Infor has several customers on IBM’s iSeries and Progress Software platforms, and <strong>the</strong><br />
firm is committed to both partners. The company’s event-driven Open SOA strategy<br />
focuses on enabling <strong>the</strong> applications <strong>the</strong>mselves, instead of relying on a specific bus<br />
layer that eases interoperability and carries <strong>the</strong> promise of easier upgrades and access to<br />
best-in-class functionality at a low cost and within <strong>the</strong> project time frame.<br />
Infor is headquartered in Alpharetta, Georgia, and has offices worldwide.<br />
36 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
IQMS<br />
IQMS’s main product, EnterpriseIQ, provides SMBs and companies in <strong>the</strong> lower midmarket<br />
an integrated system for managing manufacturing (including integrated quality<br />
management), financials, customer management, and SCM capabilities, such as a sophisticated<br />
production scheduler, and workforce management. Target companies include operating<br />
repetitive and flow-based environments to highly engineered product manufacturing<br />
scenarios in <strong>the</strong> automotive, general discrete, plastics, and medical device industries.<br />
Founded in 1989, <strong>the</strong> majority of IQMS’s customers are in North America. However,<br />
<strong>the</strong> firm has installations in both Europe and Asia-Pacific.<br />
Lawson<br />
In 2005, Lawson and Intentia merged, and <strong>the</strong> complementing synergies both companies<br />
brought to <strong>the</strong> merger are now starting to show in global markets and broader<br />
vertical industry segments. Intentia’s Movex product (now termed M3 for make, move,<br />
maintain) provided Lawson a sought-after manufacturing story for <strong>the</strong> North American<br />
market and <strong>the</strong> opportunity to extend its S3 (for staff, source, serve) product to support<br />
healthcare, financial services, and retail operations in Europe. Both products use<br />
a core technology foundation called Lawson System Foundation, which is built on<br />
IBM’s WebSphere to help drive common component usage across <strong>the</strong> applications.<br />
The products also use Lawson’s own Business Intelligence (LBI) and Business Process<br />
Management functionality. Key differentiators of <strong>the</strong> M3 product are its ability to support<br />
mixed-mode manufacturing and supply chain planning, including <strong>the</strong> integration<br />
of production planning with plant asset maintenance requirements, aftermarket service<br />
capabilities, and attribute management. This functionality is specifically important to<br />
asset-intensive industries as well as <strong>the</strong> food and beverage and fashion industries, with<br />
<strong>the</strong>ir multiple variations of products and need for flexibility.<br />
Lawson is headquartered in St. Paul, Minnesota, and has over 4,000 customers worldwide.<br />
Microsoft Business Solutions<br />
The Microsoft Dynamics family of applications—Microsoft Dynamics AX, Microsoft<br />
Dynamics NAV, and Microsoft Dynamics GP (Microsoft Dynamics SL is also a part of<br />
this product line, but was not evaluated in this Report)—are all targeted at midmarket<br />
companies. Microsoft Dynamics AX is designed for midmarket multinational companies<br />
of usually 50 to 500 users in ETO, MTO, or MTS environments. Microsoft Dynamics<br />
NAV has a large European installed base of manufacturers and distributors in CP, automotive<br />
parts, and industrial equipment industries. Several companies using AX and NAV<br />
are smaller divisions and sites of multinationals, with SAP deployed at <strong>the</strong> enterprise level.<br />
Microsoft Dynamics GP customers are usually 25 to 500 users in professional services,<br />
discrete manufacturing, public sector, and wholesale distribution.<br />
Microsoft is based in Redmond, Washington. It has offices and customers worldwide.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
37
NetSuite<br />
NetSuite provides pure business management applications through a SaaS model<br />
to SMBs and offers integrated <strong>ERP</strong>, CRM, and e-commerce functionality. Target<br />
industries include wholesale distribution and light manufacturing, services firms,<br />
software companies, and online retailers with less than 1,000 employees. It brings<br />
<strong>the</strong>se companies back-office, front-office, and web operations in a single application.<br />
NetSuite’s full product line includes BI and performance management software, <strong>the</strong><br />
SuiteFlex platform tools for customization and software extension, and add-on software<br />
modules such as advanced financials, employee self-service, incentive compensation,<br />
and eBay integration support.<br />
Headquartered in San Mateo, California, NetSuite recently filed its S-1 for an IPO.<br />
Oracle<br />
Oracle brings three core <strong>ERP</strong> product lines to <strong>the</strong> midmarket: JD Edwards<br />
EnterpriseOne, PeopleSoft, and E-Business Suite. The EnterpriseOne product appeals<br />
to <strong>the</strong> industrial manufacturing, CP, automotive, high-tech, and medical device<br />
industries, and differentiates itself from o<strong>the</strong>r products with advanced planning and<br />
scheduling functions like demand forecasting, S&OP support, and lean execution.<br />
PeopleSoft 12 appeals to several midmarket firms with light manufacturing and<br />
complex sourcing needs. E-Business Suite is offered direct to <strong>the</strong> midmarket through<br />
Oracle’s sales organization.<br />
Oracle divides <strong>the</strong> midmarket into three tiers: lower tier (companies with less than<br />
$100M in annual revenue), midtier (companies with $100M to $500M in annual<br />
revenue), and upper tier (companies with more than $500M in revenue). The company<br />
announced its Oracle Accelerate branding initiative earlier this year to target SMBs<br />
with less <strong>the</strong>n $500M in revenue, where Oracle already has 19,000 customers (50%<br />
of which have less than $100M in annual revenue). For firms with annual revenue<br />
between $500M and $1B, Oracle will continue promoting a hybrid strategy of direct<br />
and partner sales and services. The Application Integration Architecture proposed<br />
as part of <strong>the</strong> Fusion Middleware provides customers <strong>the</strong> opportunity to leverage<br />
functionality from <strong>the</strong> firm’s many acquisitions, including G-Log, Demantra, and<br />
Hyperion.<br />
Oracle is headquartered in Redwood Shores, California, and has offices worldwide.<br />
38 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
Plexus Systems<br />
Plexus Systems has been providing its on-demand product, Plexus Online, since 2001.<br />
Plexus Online is designed for discrete manufacturers in automotive, A&D, and medical<br />
devices. It’s delivered to customers through a pure SaaS model that integrates MES and<br />
<strong>ERP</strong> functionality, including workforce management, support for product traceability<br />
initiatives, and several forms of production scheduling and supplier management, such<br />
as electronic kanban and heijunka. Plexus Online also offers specific functions for<br />
certain industries, such as broadcast sequencing capabilities for automotive. It utilizes<br />
a very simple and intuitive UI that is well received by shop-floor personnel. Plexus also<br />
provides a SQL Query Writer and visual composer that allows users to access any table<br />
in Plexus Online to write SQL queries and build and customize screens and reports.<br />
Plexus Systems is headquartered in Auburn Hills, Michigan.<br />
QAD<br />
QAD Enterprise Applications 2007 targets companies manufacturing products in <strong>the</strong><br />
automotive, industrial equipment, CP, electronics, and medical devices industries.<br />
Within its customer base are many large global companies that have ei<strong>the</strong>r SAP or<br />
Oracle deployed at <strong>the</strong> corporate level and use QAD’s products in <strong>the</strong>ir plants and<br />
divisions because of strong vertical industry functionality.<br />
QAD has made several investments to bring productivity options and increased value to<br />
its customers in <strong>the</strong> past:<br />
•<br />
Acquiring EAM, CRM, and transportation management<br />
• Developing add-on modules to support distributed order management, supplier<br />
collaboration, and lean execution<br />
•<br />
Providing a .NET UI<br />
The company also has a .NET-based financials package expected in late 2007.<br />
Headquartered in Santa Barbara, California, <strong>the</strong> company has offices in 27 countries to<br />
support its predominantly direct sales efforts, but it also relies on a network of over 40<br />
reseller partners worldwide.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
39
Sage Software<br />
Sage Software, part of The Sage Group, has an estimated 2.5 million SMBs using<br />
its products in North America, including Sage MAS 90 <strong>ERP</strong>, Sage MAS 200 <strong>ERP</strong>,<br />
and Sage MAS 500 <strong>ERP</strong>. It primarily targets firms with more than $25M in annual<br />
revenue or 100 to 1,000 employees. The majority of Sage’s deployments are at <strong>the</strong> 250employees-or-less<br />
level. The MAS 500 product itself is built on <strong>the</strong> Microsoft SQL<br />
Server and platform, and <strong>the</strong> latest version has a portal that can be driven off Visual<br />
Studio or SharePoint. Sage also provides MAS 90 and MAS 200 customers with data<br />
conversion tools to help upgrades, but <strong>the</strong>y’re mainly used for migrating historical<br />
financial data, customer records, and basic product-related data. Sage also offers built-in<br />
inquiry and analysis tools Business Insights Analyzer and Business Insights Explorer.<br />
The company targets manufacturers, services firms, and distributors.<br />
Sage’s North American headquarters are located in Irvine, California.<br />
SAP<br />
SAP has sold applications to a variety of industries for over 30 years. The company has<br />
a total client base of over 41,000 customers of which approximately 26,000 are small<br />
to midsize businesses. Its two midmarket offerings, All-in-One and Business One, are<br />
sold through resellers. The All-in-One applications are actually owned by <strong>the</strong> partners<br />
that take <strong>the</strong> broad product footprint and apply vertical functionality as well as local<br />
and global capability. While SAP sales representatives cannot sell <strong>the</strong> products directly,<br />
<strong>the</strong>y sometimes enlist a partner in hybrid deal situations, but <strong>the</strong> partner does <strong>the</strong><br />
implementation. Business One is sold indirect.<br />
At <strong>the</strong> SAPPHIRE customer conference earlier this year, <strong>the</strong> company unveiled SAP<br />
A1S, its hosted product, which is targeted to <strong>the</strong> 50-to-500-employees level. While<br />
<strong>the</strong> ideal is to acquire new customers that are not typical <strong>ERP</strong> buyers through a see-it,<br />
buy-it, try-it strategy, <strong>the</strong> product can potentially attract companies running hub-andspoke<br />
deployments of SAP at <strong>the</strong> enterprise level that seek to replace legacy systems at<br />
some of <strong>the</strong>ir distributed midmarket sites.<br />
Headquartered in Walldorf, Germany, <strong>the</strong> company has customers and offices<br />
worldwide.<br />
40 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series
SoftBrands<br />
SoftBrands’ FourthShift Edition for SAP Business One provides sophisticated<br />
manufacturing capabilities atop SAP’s Business One product. It’s sold into companies<br />
that manufacture products in <strong>the</strong> CP, chemicals, medical devices, pharmaceuticals,<br />
electronics, fabricated metals, and industrial machinery and equipment industries.<br />
A major differentiator for SoftBrands against o<strong>the</strong>r vendors is its leveraging of <strong>the</strong><br />
SAP Business One platform to provide customers with an SAP-based manufacturing<br />
application that can be implemented quickly and is easy to use.<br />
SoftBrands has sold applications to <strong>the</strong> discrete and process manufacturing industries<br />
since 1984, and has more than 4,000 clients. With <strong>the</strong> exception of scenarios where<br />
large enterprises are seeking to deploy an SAP-based application at a small subsidiary or<br />
site, SoftBrands sells predominantly through a VAR channel.<br />
Headquartered in Minneapolis, <strong>the</strong> company has customers in North America, EMEA,<br />
and Asia-Pacific, with offices in Mexico, Europe, China, and India.<br />
SYSPRO<br />
SYSPRO 6.0, a Microsoft-based product, targets midmarket companies that<br />
manufacture products in discrete industries such as food, medical equipment, industrial<br />
fabrication and assembly, electronics, automotive, and heavy machinery, as well as<br />
packaging environments for CP firms. With its construction on Microsoft .NET<br />
technology and use of XML, SYSPRO is a strong advocate of SOA for SMBs, and<br />
provides <strong>the</strong>m a means to interface with complementary, legacy, and disparate customer<br />
systems.<br />
SYSPRO has sold applications to <strong>the</strong> discrete manufacturing industry since 1978,<br />
and has over 12,000 manufacturing and distribution customers. The company sells<br />
primarily through its sizeable network of VAR partners, with roughly 10% of sales<br />
being direct.<br />
U.S. headquarters is in Costa Mesa, California, and <strong>the</strong> majority of its customers in<br />
North America and Europe.<br />
<strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series<br />
© 2007 AMR Research, Inc.<br />
41
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