Part I of this blog topic introduced MCA Solutions and its flagship Service Planning Optimization (SPO) solution for planning and optimizing spare parts [evaluate this product]. That blog post also tackled MCA’s notably good times during 2007. In the meantime, an informative post on MCA was also published by the Sourcing Innovation blog.
A related 2007 milestone at MCA included a significant expansion with both new and existing customers in core markets, including aviation and defense (A&D), high-tech, and semiconductor manufacturing. Specific wins included the first joint effort with SAP for a large commercial aircraft manufacturer, expanded work with the US Navy to include planning for the entire naval aviation fleet, and successful deployments at new medical and capital equipment customers.
In addition to working with the largest corporate customers, MCA also cited growing revenue in the mid-market. With its SPO OnDemand Software as a Service (SaaS) offering, MCA hopes to bring to smaller service organizations the same capability that service leaders in the Fortune 500 are seeing value from, but with a much lower upfront software and information technology (IT) infrastructure investment.
These benefits are attributed to lower monthly costs and faster implementations. The vendor will be expanding this offering in 2008 to make it even more appetizing and faster to deploy. The most recent win with the OnDemand SPO solution at Unisys Corporation might be a sign of succeeding with on-demand model at larger corporations as well as appealing to the mid-market. Read the rest of this entry »
Part I of this blog post analyzed the white paper entitled “Manufacturing Outsourcing: Seven Common Pitfalls to Avoid” , authored by Symphony Consulting and Arena Solutions. It also established an intrinsic connection with product lifecycle management (PLM) software technology as a global sourcing collaboration enabler.
Indeed, several macroeconomic trends seem to be helping the PLM market, starting with the rampant offshoring of facilities and/or expansion of outsourcing and contract manufacturing overseas. There are also escalating mergers and acquisitions (M&As) within multiple business sectors and the inexorable spate of regulatory and compliance mandates within many industries and geographic regions.
This dovetails into the relentless pressure for companies to innovate and bring ever more functional (if not even “ever-cooler”) products, that have ever-shorter lifecycles, ever more quickly get to the market, and thus differentiate, especially in the electronics/high-tech and consumable packaged goods (CPG) sectors. Read the rest of this entry »
A number of TEC blog posts have discussed benefits but also the inevitable caveats of white papers (including all too common vendors’ self-serving marketing fluff and buzzword verbiage), and about their (un)intended audiences. These posts have even caused some heated debates with other blogging sites and experts on white papers, and I am going to stay away from all that here.
My intention here is rather to acknowledge that, as part of my daily routine of doing research on vendors and their strategies and offerings, I’ve read a ton of white papers in the last decade or so. And yes, these have ranged from vendors’ blatant bragging about their capabilities (a la the “Every man thinks his own geese swans” proverb) to some exceptional ones that were quite educational and established someone’s expertise in something.
One latter example would be the white paper entitled “Manufacturing Outsourcing: Seven Common Pitfalls to Avoid” and authored by Symphony Consulting and Arena Solutions. Why? Read the rest of this entry »
Part I of this blog post introduced the burning issues of food safety and the ensuing need for traceability. To the end of providing entire food supply chain traceability and information visibility, mid-March, during its CUE 2008 annual user conference, Lawson Software announced the availability of Lawson M3 Trace Engine 3.0, the first version offered within the US market.
The application is designed to help companies in the food and beverage (F&B) industries improve product quality and help prevent and manage potential food safety and quality risks. It specifically helps companies strengthen and simplify the process of tracking ingredients and finished products through complex global food supply chains. Read the rest of this entry »
Let me start this blog post with a huge disclaimer: I have no intentions of wilfully beating up on SAP whatsoever!
Sure, the enterprise applications titan has lately been embroiled in an intellectual property lawsuit with archrival Oracle over improper use of support data through its TomorrowNow third-party support (recently discontinued) subsidiary.
As if this wasn’t enough, SAP is being sued again, and this time over an allegedly failed software implementation. Namely, in late March, Waste Management Inc. filed suit against SAP with claims of fraud (or gross over-promise, if one wants to sound a bit gentler here). Read the rest of this entry »
Part III of this blog series analyzed the relatively recently launched Deltek Vision 5 [evaluate this product] and Deltek Costpoint 6 [evaluate this product] suites. It also tackled the related potential opportunities for Deltek. For one, key up- and cross-sell opportunities should come from:
- Additional modules, especially from the newly minted Deltek EPM [evaluate this product] suite: The majority of new Deltek customers initially purchase a single module or a select few modules of the suite (e.g., project management, financials, human resources [HR] or timesheets) and add more modules a few years after implementing the initial modules; and
- Migration from entry-level and/or legacy products to Costpoint or Vision: Deltek GCS Premier [evaluate this product] is a low-cost entry-level application suite designed for smaller contracting firms. As GCS customers outgrow these systems, there is opportunity for migration onto Costpoint. Similarly, we expect legacy Deltek FMS, Sema4 and Advantage customers to migrate onto Vision or Costpoint (depending on industry), as their scalability requirements exceed system capabilities. These legacy products were designed for small professional services firms.
As for focused geographic expansion, due to largely offering products that support only English, Deltek’s initial focus will logically be on English-speaking countries such as Canada, the UK, Australia and New Zealand. International geographies have so far represented only a few percentiles of total revenue, but the company plans to generate 20 percent from international markets over the next three to five years, mostly via expansion into the UK and Australia/New Zealand. Read the rest of this entry »
Besides the ongoing (seemingly never-ending) presidential campaign and celebrity scandals/gossip, food safety is very much in the news. Indeed, incidents of outbreaks, contamination, product recalls and whatnot flood TV channels as breaking news every now and then. Consumers, governments and the various members of the food supply chain are rightly concerned about food safety, and there has been increasing pressure for food and consumer product goods (CPG) supply chain traceability, in a pervasive manner.
Consumers and governments (both becoming ever-more educated and informed on one side, but still confused on the other side) are concerned about the safety of the food supply and protecting the public. While demanding more product choice and delivery speed, consumers have been voicing fears over food safety in the wake of recent salmonella outbreaks (remember the contaminated spinach or major chocolate recall cases?), cases of pet deaths due to poisonous imported pet food, lead-tainted imported children’s toys, anti-freeze tainted imported toothpaste, and so on…
The ever-longer and global food supply chain (often called “from farm to fork”) includes crop farmers/growers (utilizing fertilizers and pesticides), feed processors, livestock farmers (that might feed and treat animals accordingly [or not]), manufacturers (primary and value-add food processors), packaging and labeling sites, distributors, retailers, and food service companies (restaurants and cafeterias).
These supply chain member companies have to be concerned about the consumer safety issues, plus the potential negative and even fatal impact on their brands and businesses. For instance, high-and-mighty retailers customarily want ever higher service levels from suppliers (without any negative publicity), while the overall industry itself wants to protect “brand” value and reduce recall costs. Read the rest of this entry »
Part II of this blog series analyzed the relatively recently launched Deltek EPM suite, which came as a result of three focused acquisitions. It also analyzed the suite’s resulting potential cross- and up-sell opportunities and its prospective additional revenue for Deltek in a standalone manner. However, Deltek has not been sitting still when it comes to continually enhancing its core products either.
Deltek Vision 5 Series
For example, the new Resource Planning module of Deltek Vision 5 [evaluate this product] was devised to allow project managers to assign staff to projects and immediately see the impact on labor utilization. The managers can then modify resource assignments to meet project needs, whereby color coding provides focus on resources.
The new module also offers real-time insight into employee billing rates and actual labor charges. It provides visibility to align resources for upcoming projects in order to increase overall resource utilization. The available tools give project managers a view of employee utilization by project or across all projects by day, week, month or year. In addition, the enhanced Resource Search feature allows for projection of future staffing allocation. Read the rest of this entry »
Consona claims to be one of the market’s rare CRM offerings that is both operational and collaborative, with many years of a broad range of consulting, technical, and business process services that have created the related methodology and blueprint.
Consona CRM Portfolio
The vendor believes that it offers the best value for price in the market due to the extensive product’s flexibility and adaptability, ease of customization, configuration, integration and upgrades, and due to the depth of the product’s extensibility.
These capabilities come from the combination of Onyx Adaptive CRM (i.e., BPM, BI, SFA, customer service, customer data management and customer data integration [CDI]), KNOVA (i.e., self-service and knowledge management [KM]) and the partnership with Million Handshakes (part of Portrait Software) for marketing automation. Read the rest of this entry »
While most discussions about the Software as a Service (SaaS) market revolve around the likes of Salesforce.com, NetSuite, Google, IBM, Oracle, Microsoft, OpSource, etc., the name Progress Software Corporation (NASDAQ: PRGS) rarely comes to mind, unjustifiably.
While Progress itself is to blame in part for a less aggressive marketing effort (and for the-best-kept-secret-in-the-market status), it is still puzzling that the Bedford, Massachusetts (US)-based provider of application infrastructure software for the development, deployment, integration, and management of business applications is not more regularly mentioned within the press and analyst circles.
A company that was founded in 1981 and with about US$500 million in revenues in 2007, with over 110,000 customer sites and over 2,000 employees in 90 offices worldwide certainly deserves due attention. This is especially the case given the company’s long espoused goal to maximize the benefits of information technology (IT) while minimizing its complexity and total cost of ownership (TCO). Read the rest of this entry »
Much has been said and written lately, on TEC’s web site as well as on many other peer sites, about the on-demand deployment model, especially about multi-tenant software as a service (SaaS). The opinions there have ranged from an absolute infatuation with the “technology of the 22nd century” or so (thereby rendering the traditional on-premise model completely passe) to much more reserved and cautious stances.
My idea here is to start with a series of blog posts discussing the various quandaries about these subtle (or not) technology choices and nuances, and to also give many protagonists in the market a chance to voice their opinions too.
Today’s topic is sort of “Which model will win at the end of the day, if any?” In my opinion, co-existence of the two deployment models will continue for quite some time to come, since each has its advantages for certain situations. Anyone who thinks one model will dominate for every possible use of software is just not an enterprise software connoisseur, is not a serious person, or is just an aggressive salesperson. Read the rest of this entry »
Part II of this blog topic analyzed Epicor’s forays into the attractive retail sector via the CRS Retail acquisition two years ago. Most recently, with the acquisition of NSB Retail Systems, Epicor has further expanded its functional footprint, market share and geographic presence in the sector. Namely, NSB added over 200 specialty retail logos, thereby more than doubling Epicor’s retail install base.
While many analysts like Gartner, AMR Research or Aberdeen Group have quickly come up with their customary brief alerts, the usual-suspect bloggers have not seemed that interested in this event, with the notable exception of Frank Scavo in his Enterprise Systems Spectator blog post.
I concur with the assertion coming from both Epicor and the above analysts and bloggers that the retail sector is much more promising and with many more “greener pastures” than Epicor’s traditional overcrowded manufacturing and distribution sectors. The retail applications market is indeed large (AMR Research is predicting its size to be over US$10 billion by 2011 from US$8 billion today), growing (at an estimated 7.1 cumulative annual growth rate [CAGR]) and quite fragmented (whereby Top 5 vendors accounted for only 33 percent of the market in 2006, and no vendor currently has over 10 percent market share).
Epicor also cites some favorable trends in the sector, such as that (as with other industries) the adoption of packaged software will become the common technology approach, and that retailers too have become more interested in acquiring an integrated set of applications from a single vendor. Read the rest of this entry »
Even in such a volatile stock market and under investor/regulatory scrutiny, going public as a means of getting some capital investment is still an option — the most recent examples being Deltek and NetSuite. On the established public vendor side, CDC Software, Epicor Software, Lawson Software and Oracle (if not even SAP too) would be examples of mostly unrelentingly acquisitive vendors in the enterprise applications space.
On the other hand, there has been a general feeling lately of a money crunch in the private equity and venture capitalist (VC) world for those software companies that still prefer to remain privately-held and yet acquisitive. Some of these vendors have been discussed in my recent “ERP Reincarnations” posts, Part I and Part II.
In other words, can the likes of Infor, Consona Corporation and Solarsoft really continue without running out of steam? Namely, besides Solarsoft’s continued acquisition activity of late (including the offer to acquire the United Kingdom (UK)-based Chelford Group, where the SSI-World’s versatile TROPOS product is a part of the business), once seemingly unstoppable Infor and Consona have lately taken a noted break. Read the rest of this entry »
Lawson Software (NASDAQ: LWSN), headquartered in St. Paul, Minnesota, the United States (US), and with offices around the world, provides software and service solutions to about 4,000 customers in manufacturing, distribution, maintenance and service sector industries across 40 countries. Its solutions include Enterprise Performance Management (EPM), Supply Chain Management (SCM), Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Manufacturing Resource Planning (MRP II), Enterprise Asset Management (EAM) and industry-tailored applications.
Lawson has not lately been accused of being too exciting, glitzy or so, at least not compared to a decade ago, when its erstwhile slick marketing machine was crafting catchphrases like “self-evident applications (SEA)”, “drill-around”, “web-addressable applications” and so on. Some recent attempts in touting corporate social responsibility (CSR) and a witty marketing spot on YouTube have been noted (even acknowledged by the competition), albeit with mixed reviews/reception.
Nevertheless, according the “still water runs deep” adage, Lawson’s relative quietness certainly does not mean that the vendor has not been active in the field and in its research and development (R&D) labs. I’ve been made aware of many recent moves to execute on the roadmap that was outlined at the vendor’s CUE 2007 conference. Read the rest of this entry »
Regardless of the economic environment (and sentiments), I always think of the opportunity within the aftermarket service and support as a profitable, high-margin and customer-captive business, and yet, still underserved. General Electric (GE) would be the proverbial example of a company that has focused on aftermarket opportunities, going so far as to call itself a “services” company as opposed to a “products” company.
GE indeed, starting with Jack Welch’s long chief executive officer (CEO) tenure, has been widely reported to have significantly increased both its total revenue and profitability by focusing on services opportunities in addition to developing world-class products.
The manufacturing corporate giant has certainly proven the value of serving the product aftermarket, which has recently been purported in a quantifiable manner by many pundits as a high margin business. For instance, AMR Research reported recently that businesses earn 45 percent of gross profits from the aftermarket, yet it is only 24 percent of their revenues, while a recent article in Harvard Business Review claims that we all spend US$1 trillion every year on assets we already own.
A related software category term was mentioned in TEC’s 2003 article titled Service Lifecycle Management - Tapping into the Value of the Product Aftermarket. Namely, Service Lifecycle Management (SLM) is a business initiative focused on servicing a company’s products, and the customers that bought them, after the product has been sold. Simply put, SLM focuses on making more money from the product after the initial sale. But it is more than that — it is also a way to become a strategic part of the customer’s business after the sale is completed. Read the rest of this entry »
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