Multiple User Management

Project Portfolio Management for Service Organizations

2010-08-24T04:05:00.000-07:00

In the last couple of years, the enterprise resource planning (ERP) industry has changed the landscape of the project portfolio management (PPM) marketplace. ERP vendors, such as SAP, Oracle, and Microsoft, have recognized the value of developing and delivering services to professional services organizations (PSO). Faced with this new reality, the best-of-breed vendors that once dominated the PPM marketplace must either shift their focus or defend their market share from the ERP giants now entering the market. As a result, the PPM industry is divided into two major camps:

1. Vendors servicing PSOs
2. Vendors servicing internal information technology (IT) departments

This article will examine PPM for PSOs and the vendors that service this market segment.

The Operations Side of PPM

The PPM industry's mixed messages are due in large part to the idiosyncrasies that separate PSOs from internal IT departments. Although most PPM vendors offer functionality for both types of organizations, most PPM solutions do not address both sets of needs in their entirety. Consequently, a number of vendors competent in portfolio management and project management have repackaged themselves for internal IT departments, while numerous vendors that originated in the billing and financials software market have focused their efforts on the billable services sector, where they can provide ERP functionality to meet the unique needs of PSOs.

PSOs want complete PPM solutions that address their business as a whole. For service organizations, efficiently capturing time, billing, and expense data is a key component to bridging projects and operations. Thus, PSOs look to PPM vendors to provide either complete solutions or niche applications that will manage and distribute data across the entire organization. In fact, Peoplesoft (acquired by Oracle) and Epicor have adopted the label "enterprise services automation (ESA)" to more accurately describe the technological needs of PSOs. ESA focuses on the operational needs of billable services organizations and on the management of the internal and external resources that deliver service contracts.

PPM Components for Service Organizations

Beyond the core components of managing portfolios, projects, and resources, PPM solutions for PSOs have extended functionality to manage the bid-to-bill cycle, external resources, and client demands. Major ERP players entering this space are swapping their manufacturing and distribution components for portfolio and project management functionality in order to stake their place in the PPM market. In response, the niche players that continue to service this PPM market segment target small and medium businesses (SMB) by proposing more affordable PPM solutions that tightly integrate with an organization's existing IT infrastructure (ERP, customer relationship management [CRM], human resource [HR], and financials systems). In either case, PSOs demand the following core components.

* Portfolio management. This functionality allows service organizations to monitor the health and profitability of projects. For service firms, portfolio management is critical to maximizing revenue streams by leveraging the best resources for the most profitable projects. On the other hand, service organizations do not demand the same detailed level of analysis as internal IT departments, and can forego extensive risk management and earned value management capabilities.

* Project management. This is the engine that runs a PSO. Service firms are project-centric by nature. The successful delivery of services is dependent on the project management methodologies and tools adopted. Key project management features include project scheduling, task management, and budget management. Bi-directional integration with Microsoft (MS) Project is also highly recommended, since approximately 80 percent of the project management world still uses it as the standard tool of choice.

* Resource management. Resource management is another core component for services organizations. PSOs need to be able to manage internal resources and contractors across multiple projects and portfolios. Contractor management, recruitment management, and resource planning, scheduling, and utilization are key features of this component.

* Time and expense tracking. This bridges project management and operations. It ensures that an end user's work details, captured by the time and expense module, will update the status of work completed in projects, as well as the billing information in accounting. For many service organizations, the ability to remotely submit time and expense details (via the Web, off-line, and wireless devices) is critical for efficiently capturing and accurately tracking the delivery and execution of services.

* Project cost and billing. Service firms require flexible project cost and billing options. The tracking of billable and non-billable information, and the generation of customizable invoices are key features. Moreover, the integration of project costing and billing with accounting is necessary to provide the integrated solution that PSOs need.

* CRM. This is extensively employed by professional services firms. Service organizations require complete customer support, demand management, and pipeline and opportunity management capabilities to capture and analyze client and contract details prior to a project engagement. CRM functionality also allows organizations to prioritize opportunities and to forecast pipelines.

* Knowledge management. These capabilities serve as the hub of a PSO. Service firms demand collaboration and analysis of data by both internal parties (management and staff) and external parties (customers and partners). PSOs demand robust knowledge management capabilities that access all components of their business.

In addition to these core components, workflow capabilities and integration to back-office systems (HR and financials) are critical components of the complete PPM solution for PSOs.

Vendors: Best-of-breed versus Integrated Solutions

There are essentially two types of PPM vendor solutions for PSOs: best-of-breed solutions and integrated solutions (a more in-depth review of these solutions will be covered in future articles).

The majority of best-of-breed vendors offer hosted solutions to SMBs in the professional services sector. Small consulting firms can benefit from the quick deployment and affordable total cost of ownership proposed by these vendors. In addition, best-of-breed vendors provide strong out-of-the-box integrations with popular project management, accounting, HR, payroll, and CRM systems, thus easily adapting to an organization's current IT infrastructure. PSOs considering a best-of-breed solutions approach should bear in mind the PPM vendors below.

Compuware's Changepoint is a best-of-breed vendor that has competitive functionality for both professional services firms and internal IT departments. For service firms, Changepoint PSA offers a mature product that has been around since the early days of the professional services automation (PSA) market (referred to today as PPM). Since its acquisition by Compuware, Changepoint has shifted its focus to the IT governance market. Nevertheless, as a PPM vendor still catering to service firms, Changepoint provides a very mature best-of-breed solution with comprehensive CRM, engagement, and resource management features, as well as time, billing, expense, and invoice modules that tightly integrate with packages such as Great Plains, Oracle Financials, ADP Payroll, and MS Project.

Autotask provides a hosted option to SMB service organizations. Marketing itself as a PSA platform, it offers a modular solution that can be turned on and off according to an organization's business requirements. Specifically targeted to small organizations, Autotask provides a complete PPM solution including CRM, resource management, project management, and time and billing functionality for smaller organizations, along with basic integration with Quickbooks accounting.

Openair also provides a hosted solution. However, it positions itself as a middle-office (i.e., the group of employees in a company that manages risk, calculates profits and losses, and is generally in charge of IT) application that integrates front-office CRM with back-office functionalities. Currently, Openair offers out-of-the-box integrations with Salesforce.com and Quickbooks. Openair is a strong contender for small firms that demand wireless capabilities to remotely access data. The hosted option also ensures a quick deployment for smaller organizations with limited IT infrastructures.

Tenrox PPM solution for services organizations is built on Microsoft .NET technology. Targeting primarily the SMB sector, Tenrox offers complete time and billing functionality, and has developed solid out-of-the box integrations with Microsoft solutions, such as MS Project, MS Great Plains, and Sharepoint. In addition, Tenrox supports integrations with SAP, ACCPAC, and Quickbooks. For smaller service firms that do not necessarily want to host a solution, Tenrox also offers middle-office functionality supporting multiple databases and applications.

QuickArrow offers a hosted, on-demand PPM model specifically designed for billable services organizations. Positioned as a middle-office solution, QuickArrow provides out-of-the-box integration with Salesforce.com, MS Great Plains, and Quickbooks. QuickArrow delivers project planning, resource allocation, time tracking, and expense reporting functionalities, as well as billing functionality for multiple industry verticals offering billable services.

Unanet Technologies has carved out a niche in the government contractor sector. Unanet offers bi-directional integration with MS Project, as well as resource management, time and expense reporting, and workforce collaboration functionalities. Unanet also provides additional functionality for regulatory compliance. The areas of compliance covered include Defense Contracting Audit Agency (DCAA), Sarbanes-Oxley Act (SOX), Federal Deposit Insurance Corporation (FDIC), and Federal Drug Administration (FDA).

When it comes to integrated PPM solutions, many of them have emerged from the ERP space, providing the complete back-office systems (financials, HR, procurement, etc.) that many mid-sized and large PSOs prefer. PSOs looking at the integrated solution approach should consider the vendors below.

SAP provides PPM functionality to service firms through its xRPM offering, which supplies resource and portfolio management to large PSOs. Powered by SAP Netweaver, xRPM works with both SAP and non-SAP infrastructures. It provides time and billing, project costing, collaboration, and resource planning capabilities. xRPM is currently used by SAP's system integrators for time, billing, and collaboration.

Oracle offers a PPM solution that adheres to its "fusion" strategy, integrating PeopleSoft, JD Edwards, and Oracle Projects (all of which are currently under the Oracle banner). Oracle's Fusion middleware provides standards and protocols to ensure that its applications are seamlessly integrated. The Oracle Project suite of applications was originally adopted, and continues to be adopted, by large, project-centric organizations and departments that require project-intensive capabilities in project management, resource planning, CRM, and financials. With the acquisition of PeopleSoft, Oracle's stated application strategy is three-fold, as follows.

1. To protect customers' current investments in all Oracle and PeopleSoft products by offering support through to at least 2013 or for life, if they choose the lifetime support policy

2. To extend the customer value of these applications by continuing to release new product enhancements, such as Oracle Projects Family Pack M, which was released in May 2005, PeopleSoft ESA 8.9, which was released in August 2005, and JD Edwards version 8.11, released in October 2004. Work on the next versions of these products (Oracle release 12, PeopleSoft 9.0, and JD Edwards 8.12) continues.

3. To evolve the "best-of" functionality of all product lines into a new generation of business applications called Fusion

Oracle will continue to focus on key industries and market segments, including professional services, the public sector, engineering and construction, and internal IT.

SOURCE:
http://www.technologyevaluation.com/research/articles/project-portfolio-management-for-service-organizations-bridging-the-gap-between-project-management-and-operations-18340/

How Supply Chain Management Helps Today's Engineer-to-order Companies

2010-08-24T04:04:00.000-07:00

How Supply Chain Management Helps Today's Engineer-to-order Companies
David Bourque

In today's dynamic manufacturing industry, companies are feeling the squeeze of fierce competition, as goods are being produced more cheaply in developing countries. Because of this, global sourcing for parts is a huge factor in cost reduction.

In the project-based nature of the engineer-to-order (ETO) world's manufacturing processes, specific parts are needed at precise times. As well, because ETO manufacturing must meet stringent milestones and deadlines, it is critical that firms obtain parts on time. Otherwise, project costs go up, timelines are extended, and budgets are blown.

How can these manufacturers mitigate the pressures of this competitive landscape? Supply chain management (SCM) can play a vital role in an ETO manufacturing environment, enabling milestones to be met and parts to arrive on time so that production can continue on schedule.

This article details how SCM helps firms that manufacture ETO goods, as well as how SCM integrates with ETO to improve business processes.

The Role of SCM in ETO Firms

The ETO environment is a very detailed type of manufacturing because it involves many changes in the engineering and design of a product throughout its production. In this manufacturing environment, orders are based on contracts as opposed to work orders, which means it is crucial that the manufacturer meets its project deadlines.

ETO enterprise resource planning (ERP) software manages project deadlines and milestones within the manufacturing environment. However, with today's increasing amount of global sourcing, additional functionality is required, and this is where SCM software comes into the picture.

Because precise components need to be routed from different sources during the process of designing and manufacturing of the product, suppliers need to be made aware of the product requirements in enough time to be able to deliver these requirements to the client.

How can suppliers be linked into the operations of the manufacturing firm, which can make demands on a whim?

How SCM Software Components Relate to the ETO Manufacturing Environment

The main modules of SCM software include the following:

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Warehouse management system (WMS)—enables firms to optimize methods of storing and moving inventory through the warehouse.
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Transportation management system (TMS)—enables transportation firms to manage and optimize any mode of transportation.
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International trade logistics (ITL)—helps organizations with the logistics of importing and exporting, the finances related to these activities, and collaboration between firms across multiple locations.
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Supplier relationship management (SRM)—manages the relationships between suppliers, distributors, and manufacturing firms. SRM is one of the key features that enables manufacturing firms to source products quickly.
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Demand management (DM)—forecasts how much product to move through the supply chain, how much product to produce, and how much product will need to be produced in the future, based on historical data.
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Supply chain analytics—enables supply chain managers to create work-arounds if problems within the supply chain occur. Supply chain analytics is comprised of supply chain optimization, supply chain event management (SCEM), and production and supply planning.
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Order management—enables suppliers (or manufacturers) to take an order, search within their inventory to see if the item is available, and ship the item to its final destination.

SCM software integrates into the ETO software infrastructure, enabling manufacturers to source goods from multiple suppliers. Because of the project-based nature of ETO manufacturing, the need for different and multiple components, as the engineering of a product changes, is essential for the manufacturing project to succeed.

Here's a look at how the seven main SCM modules can be applied to the ETO manufacturing environment:

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Using warehouse optimization techniques built into the software, the WMS will facilitate the quick movement of goods coming into the manufacturing environment in order to get the goods to the workstations as soon as possible.
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The TMS will enable ETO manufacturers to obtain the components as quickly as possible by choosing the most appropriate means of transportation. Also, if a transportation route is blocked, the TMS will help drivers find an alternate route, which ensures and improves delivery times, and enables the project costs of the ETO product to fall within a tolerable range.
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The SRM software will choose the appropriate supplier. (A detailed example is shown below.)
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Finally, because multiple orders are being delivered to the manufacturer at the same time as engineering changes are happening throughout the design of the good, the order management system will integrate with the ETO software to send out the appropriate orders to each supplier. This helps to ensure that suppliers send the correct components needed for ETO production.

Let's look at an example that illustrates the SCM process involved in ETO environments.

Figure 1: SCM at work in an ETO manufacturing environment.

Figure 1 represents a typical manufacturing situation. However, because of the nature of an ETO environment, precise components are needed quickly, thus putting pressure on suppliers to deliver components on time so that the manufacturer can meet its project deadlines.

In the above diagram, we will consider Supplier 1 a dedicated supplier, meaning that it usually provides the components to the manufacturer, and Supplier 2 up to Supplier N will be considered new suppliers.

In this example, let's say that Supplier 1 falls short on the order, creating a long lead time for the manufacturer—an unacceptable situation due to project deadlines. Whether the manufacturer obtains only part of the order or none of the order, it will have to choose another supplier, since deadlines need to be strictly adhered to in an ETO manufacturing environment. And let's say Supplier 2 has the component the manufacturer needs and can deliver it in a shorter time frame.

In this situation, let's examine how SCM software can allow the manufacturing firm to come out on top:

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Having an SRM system in place, the manufacturer can see which supplier has what supplies, when they have them, and the lead times required to get the supplies to the manufacturer. The manufacturer can also see what suppliers have penalties for not delivering on time, and which suppliers can deliver the products to it right now.
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The SRM software enables the manufacturer to choose the next appropriate vendor when the one it originally ordered components from cannot deliver for whatever reason. As shown in figure 1, if the first chosen supplier defaults on delivering the order, the SRM system will loop back to choose the supplier next in line. Once a supplier delivers the components in time to meet the project deadline, the manufacturer can finally produce the good and deliver it to the final destination.
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The order management system can leverage the integrated functionality of the SRM system so that even before the order is sent out, the system can search for suppliers that can deliver the goods.
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The TMS can integrate with the SRM system to ensure delivery of the products falls within acceptable tolerance levels of the project's budget, factoring in the continuing rise in fuel prices. This is done through transportation network optimization. (For a more information, please see the article Transportation Management Systems: The Glue of the Supply Chain.)
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Supply chain analytics enables manufacturers to avoid potential problems in the supply chain, using SCEM. SCEM gives the manufacturer the ability to take into account unforeseen events, and to plan accordingly. Using figure 1 as an example, the manufacturer is able to see that Supplier 1 has had problems delivering products in the past. Entering the loop, the manufacturer will attempt to find another suitable supplier, taking into account each supplier's pros and cons.
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Finally, once the product is produced, the manufacturer can use the above functionality to deliver the product to the consumer.

An SCM Vendor Overview

In the SCM marketplace, one finds many tier-one vendors that offer solutions in both the SCM and ETO software markets. Vendors such as Oracle, SAP, Lawson, Infor, Epicor, QAD, and IFS provide both ETO and SCM software. Other vendors, such as i2, HighJump, and RedPrairie, focus solely on SCM, yet these vendors can still help in lean manufacturing or ETO manufacturing environments.

SOURCE:
http://www.technologyevaluation.com/research/articles/how-supply-chain-management-helps-today-s-engineer-to-order-companies-19343/

Speedy Business Performance Management Solution

2010-08-24T04:02:00.004-07:00

Applix provides a complete performance management software solution for finance and operations, without compromising its strong customer focus. The company has over 2,200 unique customers, and is growing at a steady rate. Aside from being top-rated in vendor satisfaction by BPM Partners Pulse Survey, Applix was ranked by The OLAP Survey as a leader in overall business benefits achieved by customers, and was ranked in the top three for customer loyalty.

Headquartered in Westborough, Massachusetts (US), Applix is a provider of business intelligence (BI) and business performance management (BPM) solutions. Incorporated in 1983, Applix first targeted software applications for the UNIX market. To capitalize on the emerging market, thirteen years later it acquired Sinper Corporation, an online analytical processing (OLAP) software developer. In 1998, Applix released its first TM1 product, followed by five subsequent releases, which aimed at enhancing its capabilities for performance management, Microsoft Excel integration, 64-bit platform support, and complex analysis. The Applix focus is to drive operational performance management by investing heavily in its TM1 product line. Operational BI (OBI) and performance management software provide the necessary shift from the traditional backward-looking view of BI, towards a forward-looking approach. OBI allows performance management functionality to be embedded in overall business operations. This takes the shift away from purely using BPM tools for financials, and creates the ability to leverage strengths provided by performance management software for use across the organization and to create alignment with an organization's business process flow.

Product Overview

Applix TM1 gives customers the ability to solve difficult business decisions and perform what-if analyses in a user-friendly environment, making it an above-average performance management solution. TM1 incorporates dashboards, workflow, and OLAP cubes in a fully integrated Excel and Web-enabled environment. Users are able to transfer their skill set seamlessly, due to the familiar interfaces. The product has an integration layer which connects easily to open database connectivity (ODBC), object linking and embedding database for OLAP (ODBO), SAP, and legacy data sources to capture the appropriate data, and has a powerful in-memory data management server engine to help accelerate query return times, thus improving performance. Additionally, TM1 dashboards, Web sheets, and OLAP cubes aid in planning, budgeting, and forecasting activities. TM1 enables complex data modeling and rules creation. Also, data can be updated in real time and reflected in Excel Web sheets, dashboards, and cubes, which can all be posted on the Web. TM1 uses its Web portal as a gateway for users across the organization, in order to allow them to exchange work items by viewing the same sets of data, and to manage decisions based on those data views. This allows TM1 users to collaborate on multiple tasks across the organization. Customizable dashboards and cubes help users analyze and answer defined business questions. This helps to drive potential opportunities (and to avoid risk), by identifying data patterns, collaborating with multiple task stakeholders, and creating business scenarios.

Product Strengths

TM1 has the ability to perform powerful what-if analyses against large data sets, faster than many competitors. Applix TM1's complex analytical queries are dealt with in memory through the use of a 64-bit processing platform and a caching architecture, as opposed to having calculations stored within a server (disk space). The development of 64-bit processing represents a significant trend in BI, for accommodation of large amounts of data. The advent of 64-bit processing also allows data to be updated effectively in real time. Vendors such as Information Builders and MicroStrategy also have this capability, and Hyperion is working on developing a platform compatible with Microsoft. Compared with most performance management vendors, however, Applix has taken the lead in providing a platform that provides users with the ability to create complex queries quickly, and to reflect those results on a Web portal in real time. Additionally, calculations are performed in memory and not within a server environment, which contributes to the quick response times.

Applix TM1's integration with Excel is above average, and permits users to use spreadsheets as the basis for creating Web sheets and dashboards, and to post their data to the Web. TM1 has integrated the use of Excel into its BI platform. Multiple users across an organization or across multiple geographic locations are able to access published data sheets, to edit the sheets, and to have the data automatically written to the server and updated on the Web. Cubes empower users to analyze data by drilling through multidimensional data views, and by identifying trends as well as data sources. With TM1 cubes, an organization can post OLAP cubes to the Web in different forms, such as graphs or as data integrated with Excel.

TM1's analytical capabilities focus on providing users with user-friendly access to cubes and reports. As opposed to developing complex and robust cubes that are only used by one or two super-users, Applix TM1 allows users to create compact cubes to hone in on an organization's business questions and on developing user-friendly intuitive cubes that help answer essential questions, and that are accessible to anyone in the organization. This is done by limiting a cube's scope to between five and ten main dimensions, and by authorizing users to choose what dimensions are available to drill through. These cubes provide users with the functionality to edit, change, and transfer data to Excel; to post changes to the Web; and to view the updates in real time. Although cubes are usually designed with a limited number of dimensions for focusing on actual business questions, it is possible to reflect up to 256 dimensions, which makes it a robust analytical tool. Users can also identify what dimensions they want to view and drill through, as opposed to the dimensions that are reflected in the background but not viewed online.

TM1 Rules helps users define the cube rules, allowing for complex and repetitive calculations within each OLAP dimension. Users create cubes through wizards, giving business users primary control of their analytics (as opposed to relying on the information technology [IT] department). Cubes and the associated data are then connected via defined rules, and the cubes can be customized for maximum efficiency by using rules from multiple applications.

SOURCE:
http://www.technologyevaluation.com/research/articles/embracing-complexity-a-speedy-business-performance-management-solution-18550/

Responding to Warehouse Management Needs

2010-08-24T04:02:00.003-07:00

Modern warehouses have complex requirements. Fast product cycles, the need to decrease inventory and increase the flow of goods through the supply chain means that warehouses cannot remain static. Virtual real time data must match the supply to demand. Furthermore, many light manufacturing operations, such as final assembly, customized packing, labeling, and engraving, have been moved from shop floors to warehouses and distribution centers (DC). As a result, supply chain execution (SCE) software has been created and amended to handle these complex requirements. Warehouse management systems (WMS) play a key role in a company's postponement strategy to delay the customization of products until after the products or customized components leave the manufacturing plant.

Part Three of the Adonix' Mid-Market FORMULA--Adopting Best of Both "Organic Growers" and "Aggressive Consolidators" Worlds series.

To address SCE for users of its discrete and process manufacturing suites, Adonix (www.adonix.com), France's largest, privately owned enterprise solutions provider for medium manufacturers, provides three distinct offerings for automating warehouse activities, based on key factors such as transaction volumes and complexity of processing requirements. WMS and SCE might be the best examples of Adonix' commitment to providing its customers with the building blocks for supply chain management (SCM). Its research and development strategy has involved examining and prioritizing market trends to help customers grow and new products and services are then introduced through both in-house development and acquisition.

Adonix has provided warehouse solutions in North America since the 1980s, which has allowed it to leverage existing experience and skills. It also has a fairly strong historical customer base starting with Navistar and VWR Scientific, and is a pioneer in the radio frequency (RF) technology, authoring LXE LDS device drivers. Existing and prospective user companies can use the warehousing capabilities within the Adonix' offering set that match the sophistication of their facilities:

1. Adonix Geode GX is a full-function WMS designed within the Adonix X3 development framework to meet the needs of mid-sized companies with large transaction volumes and sophisticated warehouse practices. It is an enterprise-level configurable, multisite, multi-company, multilingual, multi-database/multi-operating system, and multi-workflow solution with rules-based inventory storage and retrieval and automation capabilities.

Adonix' ideas behind Geode GX has been to offer "tier one functionality at a tier three cost-of-ownership" to medium companies that do not necessarily want to compromise on functionality and cost. As the flagship X3 ERP product, the WMS extension is also configurable for the changing needs via a 4GL personalization and configuration toolset. Adonix recently redeveloped Geode within the X3 technology and plans to sell it both as a module of Adonix X3 and as a best-of-breed WMS solution in its traditional market, especially the consumer packaged goods (CPG) vertical.

2. The Adonix Advanced Warehousing and Adonix Data Collection modules provide RF directed support for primary warehouse activities including receiving, put-away, palletized order picking, pick planning, and shipping.

3. The Adonix X3 Inventory module provides core location and stock management functionality as an integrated component within Adonix X3. It can work either as a paper-based solution or with ADC support for most inventory transactions.

This is Part Three of a four-part note.

Part One detailed the company and its products.

Part Two discussed Adonix' strategy.

Part Four will cover technology, challenges, and make user recommendations.

Adonix X3 and Geode GX

Adonix announced the North American availability of Adonix Geode GX in May at the Distribution/Computer Expo 2005 at the Navy Pier in Chicago, Illinios (US). The product is configurable for a user enterprise, and supports current technologies such as RF devices, bar coding, and features multi-site, multi-workflow, and has many accompanying automation capabilities (such as conveyors, automatic storage and retrieval systems [AS/RS], carousels and sorting equipment). Its open design orientation makes it relatively easy to fit into most operating environments including support for Microsoft Windows and UNIX platforms as well as for Microsoft SQL Server and Oracle databases. Also, its user interface (UI) is available both on the Internet and in traditional client/server mode.

GX has been implemented in over 100 Europe sites and Geode has been implemented at 350 sites, in industries as diverse as retail distribution, manufacturing, wholesale, automotive, chemical and third party logistics (3PL). Its users include market leaders such as Hewlett-Packard (HP), Wyeth Lederle, and Philips. The launch follows several years of successful implementations at customer sites throughout Europe, with other high-profile luxury CPG/retail customers, such as L'Occitane, Cartier, and Christofle, industrial/automotive customers, such as Michelin and Schneider Electric, high-tech customers like Bull, and 3PL customers like Air France, Danzas, TNT, Exel, Geodis, and Kuehne & Nagel. The North American pilot installation has been completed and is live as of early June 2005 at the US distribution operations for L'Occitane in Lyndhurst, New Jersey (US).

What might be particularly appealing about this best-of breed WMS offering, however, is that it was designed using the enterprise resource planning (ERP) counterpart, Adonix X3's toolset, and that it also mirrors the Adonix X3's target markets process and discrete manufacturers and distributors (about 40 percent of customers), chemical and pharmaceutical distributors (about 15 percent of customer), 3PLs (about 30 percent of customers), and retailers (about remaining 15 percent). This means that, unlike most peer mid-market business solutions, which are a collection of acquired packages bolted together to form a suite, Adonix has taken the time and made the hefty investment to build a solution on a single architecture that is portable to multiple platforms. This has eliminated the need to learn and support separate system platforms and might be a key distinction for mid-sized companies with limited resources, while trying to naturally boost functionality and configurability to take business to the next level of competitiveness.

Further, Geode GX complements the needs of those industries that are targeted by Adonix X3. Although Geode GX is designed to connect easily with Adonix X3 ERP, it can function as a stand-alone or can be loosely coupled WMS application with other transactional systems. The basis of the Adonix' approach is that warehousing practices can be defined by a number of practical workflows that apply to multiple vertical industries. Examples of these workflows include supply side manufacturing, vendor-managed inventory (VMI), and other supplier visibility tools, finished goods distribution, pre-distribution (retail) warehousing, web storefronts and online ordering, shipment track and trace, etc. Each workflow can then be tailored to the specific needs of an industry such as, lot control, quality assurance, import/export, serialization, and labeling.

Based on the general warehousing functionality discussed in Who Needs Warehousing and How Much Thereof?, Geode has many traits of best-of-breed WMS solutions, such as rules-based storage; allocation; picking; packing; loading; reservation (i.e., special order items) management; batch/lot control and serial number control; management of multiple product and location classifications; inventory transfers and external warehouse management; expiration/use by/sell by date control; European Article Number (EAN-13) or universal product code (UPC) management; cycle counting and inventory management; and a bevy of inquiries and reporting capabilities.

Further, its scalable tier one inbound features would include dock scheduling and management; inventory blocking and non-conformity management; automatic or manual allocation of inventory locations; location allocation in proximity of picking bays; inventory consolidation; multi-batch and multi-product slot management; validation against expected input/ASN, bonded stock management; quality control, including the ability to apply and remove holds on the incoming inventory; and inbound sampling. On the other hand, the scalable tier one outbound features include wave simulation and wave management; batch picking (order picking); order splitting; back order, and short allocation management (in case of insufficient inventory to satisfy all the orders); dates management (first in, first out [FIFO], sell by date, ship by date, etc.); replenishment methods (by using min/max limits, override, source control, etc.); carton sizing/pre-packing or directed packing; and shipment/load control and document preparation.

Parcel Shipping Closes the SCE Offering

When coupled with Adonix's best-of-breed Transcomm Shipping Solution (TSS) add-on for supporting multi-carrier, parcel manifesting with rate shopping, so Geode GX fills the gap between order and delivery for customers that have higher volume and complex distribution operations.

Adonix TSS is designed to fully automate the parcel manifesting capabilities of companies dealing with large daily volumes of small packet shipments using multiple carriers. Namely, because warehouses are increasingly shipping orders with lower quantities, but have growing line items, small parcel shipment (SPS) management systems may be even more important than full-fledged WMS/transportation management systems (TMS) systems for some businesses, particularly for those doing high volumes and complex order profiles. To that end, these kind of products should determine where products are going and which shipper to use ( e.g., FedEx, UPS, DHL, etc.), and it then creates the appropriate label during picking.

Conversely, the traditional WMS approach involves extra steps. It has to first perform picks, move items to the shipping area, and then generate labels. Other notable features these kinds of products have include integrated WMS check/pack dialog, carrier compliant labeling, parcel rating, on-line carrier manifesting, combined carrier/compliance label, pre-print labels for cluster picking, cash on delivery (COD) support, and multiple rate servers. Another buzzword applicable to both SPS and WMS is "cartonization", which automatically determines the best way to box and package orders (e.g., how many products or boxes will fit in a bigger box, factoring in component weight and size).

SOURCE:
http://www.technologyevaluation.com/research/articles/responding-to-warehouse-management-needs-18179/

Leader in Distributed Order Management

2010-08-24T04:02:00.001-07:00

We recently visited with Yantra (www.yantra.com) and found that their reputation as the leader in Distributed Order Management is deserved. But we also found that they have other tools that shine.

Distributed Order Management

When a complex, distributed distribution system is in place, managing the complexity can be daunting and that is the environment where Yantra has built its reputation. Yantra is known for its core product, a Distributed Order Management application that coordinates the lifecycle of an order across an extended supply chain. It works with companies' existing systems to aggregate and manage orders across multiple channels, divisions, distribution centers and fulfillment partners. It enables companies to incorporate new sales channels with their existing systems, providing them an integrated view of customer purchases across divisions and channels.

The system uses configurable business rules and workflow to automate the manual activities often associated with managing orders in a complex, distributed environment. Each order line can follow a unique set of processes driven by any order related information. The system also automatically creates and tracks orders that result from, or depend on, the original customer order. Key attributes of the Distributed Order Management system are:

* Sourcing of orders across divisions & partners

* Granular management of complex order processes

* Aggregation of orders across multiple channels

Companies like Target, Best Buy, Eastman Chemicals, DHL/Allogis, APL Logistics and UK based Argos are all customers using Yantra's Distributed Order Management. For example, Target had a different order management system to support each of its six direct-to-customer sales channels. Now Yantra's product manages orders across all six channels. The orders range from standard pick-pack-ship fulfillment to complex, multi-step fulfillment and delivery processes.

Other Tools for Other Needs

In addition to Distributed Order Management, Yantra provides other applications specifically designed to manage business processes across an extended supply chain.

Each is based on the premise that companies must more flexibly manage supply chain activity and require real-time visibility and control of operations both inside and outside of their enterprise.

Yantra's complete product suite includes:
Logistics Management Logistics Management is an Internet based application that manages multi-modal inbound and outbound shipments. It integrates relevant shipment information from suppliers, carriers and ship nodes into a single transportation execution system, providing real-time visibility and control of the entire process. Configurable business rules and transportation workflow enable companies to executive complex transportation plans.
Reverse Logistics Yantra provides reverse logistics capability that manages returns from the moment the Return Material (or Merchandize) Authorization (RMA) is created or a replacement order is submitted, throughout the reverse logistics and repair cycle until the item is returned to stock or discarded. A key differentiator for this product is its ability to automate the processing of different types of returns, giving companies the flexibility to modify the reverse logistics cycle to meet specific needs.
Warehouse Management WMS was Yantra's original product offering and they continue to add clients in this area. WMS is integrated with its core platform (see below) so customers can more effectively manage warehouse operations based on activities that take place across the supply chain.
Supply Collaboration Yantra offers supply collaboration capability forecasts and schedules, negotiating orders and monitoring inventory levels. Companies can then execute and manage purchase orders. Companies can effectively work with large vendors using EDI connections, as well as small and medium size suppliers by collaborating over the web.
Supply Chain Event Management Yantra provides an infrastructure for managing critical events across the extended supply chain. Using this capability companies can receive advanced notification and proactively resolve problems with orders, inventory and shipments. Alerts can be sent via wireless device, email, fax or through a web-based alert management console.
Inventory Synchronization Yantra manages and coordinates inventory stored at multiple internal and external locations, consolidating inventory data from multiple systems and providing global inventory visibility. It includes the ability to manage products stored by suppliers and outsourced logistics providers and offers global ATP capability.

The Power of the Platform

A key component of Yantra's applications is the technology platform upon which they are deployed. A critical component of the platform is a business process-modeling tool that enables companies to flexibly define supply chain processes within their organization and across the extended supply chain. This is how Yantra manages and monitors external transactions and identifies potential problems. It also includes a participant model that provides the flexibility to define the roles and responsibilities of supply chain participants. Yantra's Platform is a standards' based, J2EE compliant product that leverages open, web services technologies such as XML and SOAP.

Recommendations

User Recommendations Retail, High Tech, Distribution and Third Party Logistics companies with complex, distributed order management and execution needs should place Yantra on their short list. Those companies with existing ERP or Supply Chain vendors in-house should evaluate Yantra in addition to their incumbent vendors due to Yantra's success in co-existing situation where customers have found that Yantra often complements and improves upon the solutions offered by the existing vendors. Existing Yantra customers should evaluate the remaining portions of their product suite in search for additional value.

Yantra Recommendations Yantra appears to be ahead of the pack in applications for distributed order processing and related needs. In many markets, it is far from a household name. In most markets, it is known only as a distributed order management solutions. These two marketing gaps must be addressed for Yantra to progress to the position in the market justified by its product offerings.

SOURCE:
http://www.technologyevaluation.com/research/articles/yantra-leader-in-distributed-order-management-but-wait-there-s-more-16705/

The Channel Management Shuffle

2010-08-24T04:01:00.001-07:00

We've all been there at one time or another, in a crowded place or driving while holding a cell phone to our ear in a tight embrace—and why? Because the automated attendant on the other end of the line can not quite make out our "command" to her (or him?) ... usually because of the tiniest bit of background noise or maybe she or he is just having a bad day ... whether it's trying to book a flight, find out the status of a flight, or check the status of an order or place a new order, the frustration can be massive. The flight from Atlanta to Austin can be twisted into the flight from Atlanta to Boston, and incorrect information given out to the unsuspecting party or the maze of options, keys to press, frequent flyer, or shopper numbers to enter can be daunting. And, let's not forget the other frequent headache that many of us encounter daily—trying to return an item purchased online to the retail store ... only to be told "sorry, but we don't stock or accept that item here". And, how many times have you received an "invitation" in the mail to join a "frequent somebody" program that you are already a member of? And last, the age old nightmare of trying to get reliable tech support for that laptop or camera we recently purchased only to be put on hold (or bounced around to countless different "desks") for an extended period of time and when we do get a "live individual", they are fifteen time zones away and speak another language as their "mother tongue" with English as a distant second. A very distant second.

All is not negative, as some positive experiences do occur, but it seems that those are few and far between, and in many instances those positive experiences only occur after a very bad experience has occurred and only occur then as a means of "making it up to" the innocent consumer, thus not really even seeming positive.

We may all chuckle at the horror stories mentioned above, but it is no laughing matter. Especially when horror stories like the ones above cause a consumer to "tell all of their friends" or more importantly, to take their business else where. These experiences are all a direct result of decisions made every day by manufacturers, distributors, retailers, service providers, and technology providers. Executives and middle management are constantly faced with determining policy, process, and technology around managing one or multiple channels.

Forcing such decisions such as what or when to outsource in the channel, how many channels to have and what products to push through which channel, what skills and associated organizational models to put into place, what to spend on elaborate mailing and marketing campaigns, and what technologies to utilize to enable the plethora of channel management business processes—the channel management shuffle!! So, you may say "same old stories" regarding the ones mentioned above... but, you won't yawn and say "same old research" when you are finished reading the new report from Chainlink Research on channel management.

Areas critical to successful channel management:

The report explores a number of areas that are critical to successful channel management:

1. "Dance with the one who brung ya'"... or channel conflict and multi-partner management—management of channels, minimization of conflict in and across channels, as well as management of multiple partners in and across channels. We will cover the strategies and decisions that a well known technology company is employing and facing moving from a totally direct channel to a mix of indirect and direct.

2. "Save the last carton for me"... or inventory management and returns management—the user experience, returns, distribution challenges, and inventory management areas such as locating, managing, and allocating.

3. "The Tennessee Waltz"... or channel management technologies—the underpinning solutions and technologies to support channel management business processes, as well as what is on the horizon of future plans and initiatives for these solutions. For these technologies and associated vendors, we will look at the delivery architecture options that are available, as well as key strategies that the vendors are employing to assure domain expertise throughout their technology or product lifecycle.

4. "Do the Hokey Pokey"... or emerging best practices—for skill development and organizational models to ensure success in channel management.

All of these areas are viewed and analyzed through the Chainlink 3Pe "lens": Policy, Process, Performance, and Enablers.

Just a glimpse at some of the important conclusions drawn from the research and highlighted in the report:

* You must start from the customer and work back to ensure a positive customer experience. Simply put, this means that when you are designing processes and policies, ensure that all are validated or tested from the customer experience perspective.

* A value-based approach related to measuring and inducing partners in the channel is an emerging best practice. Meaning that, in order to determine how a partner is performing, other aspects beyond just sheer sales volume or revenue are considered. Such as quality (delivery and fulfillment) of performance, trained personnel, customer service practices and processes, etc.

* Software vendors must provide solid domain expertise both during the sales cycle and during the implementation phase.

* A shift of mindset is a must—the "old" mindset of policies, processes, and underpinning technologies that create a hand off to a channel partner versus the "new" mindset of policies, processes, and underpinning technologies that treat channel partners as an extension of your enterprise and thus creates holistic and total offerings for your customers.

So, why should you read this report? One word: risk. If you are responsible or involved in any way in managing or operating a channel(s) in your enterprise or for a customer, or providing an underpinning technology for managing channels, then this report is a must. Because the risk of facing the task of defining, managing, operating a channel, or providing a technical solution for a channel management activity without knowing about the hard-learned lessons contained in this report is far too great. So, read the report—and also watch the webinar replay. They may be the best dance lessons you can take before you embark on your own channel management shuffle!

SOURCE:
http://www.technologyevaluation.com/research/articles/the-channel-management-shuffle-18342/

N-Tier Demand Management

2010-08-24T03:59:00.000-07:00

The classic bull-whip effect means that the further a supplier is removed from the end-consumer, the worse are the fluctuations in demand that they see. This has led many to recommend an n-tier approach to demand management, where everyone gets visibility to the end-customer demand at the same time. In practice, very few companies have been able to actually realize this vision. There are some practical approaches that a supplier deep in the supply chain can do to mitigate the bull-whip effect.

Build-to-Consumption

Outsourcing and leaner supply chains are pushing companies to using networked models (real-time sharing of information across multiple tiers) for demand management. Most networks today are still working on building connectivity with their immediate trading partners, but the real promise comes from connecting n-tiers. Successfully managing an n-tier networked model involves sharing of real-time data such as POS data, orders, and changes in plan. This vision does not necessarily mean that companies need to create a detailed model of the n-tier supply chain and run optimization logic as they might within their own organization. Major practical challenges that have kept many companies from realizing the n-tier vision must be dealt with, specifically

* Understanding multi-channel demand
* Avoiding multi-counting

Managing N-Tier Demand through Multiple Channels

Figure 1—Multiple channels for single customer

In an n-tier supply chain, demand to the supplier from a single customer, such as an OEM, may travel through multiple channels (see figure 1). It is up to suppliers to aggregate expected demand for each major [] customer regardless of the channel that it flows through. This requires understanding the total market size, demand elasticity, and share for each customer (see section below "Forecasting Your Customer's Demand"). In addition, many suppliers fail to effectively aggregate demand by channel for each major customer, although it is critical to understanding overall demand. Effectively synthesizing demand across multiple channels requires close dialog with the OEM about demand at the finished-goods level, and systems that are able to explode a complex demand BOM against OEM finished goods demand (see sidebar). That is why it is important to monitor and forecast OEM sell-through rates[]. Once these are in place, the dialogs with OEM about demand can shift from discussion about supplier's parts to discussion about OEMs finished goods, for which the OEM has longer-term data and forecasts than they have in their MRP plans for individual parts.

[1] Aggregating by customer is only worth effort for your top customers (e.g. the top 20% of customers comprising 80% of demand). Demand from smaller customers can be aggregated by channel.

[2] Sell-through means knowing your channels' sales data, in this case the actual sales of the OEM, rather than consumption into their production lines.

Avoiding the Multi-Counting Trap

Suppliers that are several layers removed from the end-customer in multi-tier supply chains are prone to confusion about true end market demand. Multi-counting of the same demand is a common symptom. For example, a large telecommunications carrier replacing their line of cell phones sends out RFQs to multiple phone OEMs, who in turn send RFQs to several contract manufacturers. By the time the demand signal gets to the supplier, it can be grossly overstated.

Figure 2—Multi-counted demand signals

If the supplier is several steps removed from the end customer, they need to use their own intelligence to ferret out big end-customer deals, to get a more accurate picture of actual demand. As they pursue opportunities with OEMs, the account management team should capture information on potential end-customer deals (e.g., end-customer name, project name, size and type of deal, etc.). This data is factored into the forecasting scrubbing process to eliminate duplicate demand (see sidebar "Rationalizing Demand Across Channels"). Getting salespeople to consistently enter this kind of data is not easy. It must be made nearly effortless, and part of their compensation should be based on consistency and accuracy in tracking large end-customer deals. Forecasting Your Customer's Demand Beyond this, you should forecast demand for your customer's whole market and their share. For example, if you are a supplier to Ford, you would create your own forecast of demand for the whole light truck market and for Ford's share. Or a supplier to Juniper Network would forecast the whole enterprise switch market and Juniper Network's share. This way, if several major customers have aggressive forecasts, you can make your own informed opinions about whether the total market is really growing, or whether there is some double-counting going on. Formulating your own market assumptions provides the checks and balances needed to get to the best number you can for each account.

Taming the Bull Whip

Suppliers that are several layers deep in the supply chain can stop being at the mercy of late or incomplete demand information by

* Developing a demand BOM approach to understanding the actual demand as it flows through various channels

* Having a disciplined approach to keeping their "ear to the ground" on what is happening at each of the largest downstream channels and end-customers or large OEMs

* Maintaining their own perspective, getting a good handle on the total market size and using it to sanity check forecasts they receive from their customers

These steps can help upstream manufacturers avoid much of the misery and destructive force of the "bull-whip effect" that is normally the bane of their existence.

SOURCE:
http://www.technologyevaluation.com/research/articles/n-tier-demand-management-17705/

Process PLM Vendor Sequencia Adds Portfolio Management

2010-08-24T03:55:00.000-07:00

Sequencia is developing a very broad product. With this announcement, they are now strong at the highest level (portfolio), adding to existing function from idea generation, through the project team (projects, collaboration), through design (R&D, collaboration), all the way to the plant floor. The power of PLM is in the integration of the business processes across the different levels. Giving greater visibility within management, we expect this to increase the acceptance of PLM in the Process Industries (see Process PLM series).

Sequencia competitors Formation Systems (www.formationsystems.com) and SAP (www.sap.com) have not entered into the area of portfolio management. Formation is strong in the areas of idea creation and R&D while SAP is just entering the market with an R&D focused announcement. At this time, only Sequencia covers the entire spectrum of Process PLM functionality.

The management of an array of projects is complex. Often, thousands of projects exist in multiple project portfolios. These projects may be in multiple semi-independent business units in multiple geographies. It is difficult to compare "apples to apples" with the projects having varying value propositions and risk factors. The projects may be supporting different business objectives and being evaluated by different people. This complex management environment can be aided with a technology-based approach.

Portfolio management is a dynamic decision process that permits the management of multiple projects. Portfolio management allows executives and management to compare and contrast their project portfolio using objective and measurable criteria. A business's list of active product innovation projects is revised and updated through integration with the remaining portions of the PLM system. Using common scoring models, portfolio management supports the process of ranking projects according to multiple project metrics, for example Net Present Value (NPV), Expected Commercial Value (ECV), Productivity Index (PI) and Project Attractiveness Score (PAS). New projects can be evaluated against both existing projects and competing new projects, selected and prioritized. Existing projects may be accelerated, killed, or re-prioritized based upon how they relate with other projects against the objectives of the enterprise. By comparing projects, resources can be allocated or re-allocated.

Portfolio Management is a natural part of Process PLM. The benefits of portfolio management to the process company includes:

* Value - Maximize Portfolio Value
* Balance - Attain the right mix of projects
* Alignment - Business Goals Reflected
* Focus - Execute the right number of projects

Unfortunately, there is often conflict between these four high-level goals. With this announcement, Sequencia delivers interactive decision support so that executives can intelligently balance these competing goals The Sequencia / Prosight partnership makes sense for the Process PLM market. Sequencia will offer the processPoint Portfolio Management as an integrated part of the processPoint PLM solution. Sequencia is the leading provider of web-based PLM solutions for the process industries providing deep industry knowledge to develop business templates for process industry portfolios. ProSight is the expert portfolio management software, providing deep experience and expertise in automating portfolio management methodologies. ProSight has initially focused on implementing portfolio management for IT technology investments. Sequencia and ProSight have been working jointly on integration of the products

Jim Brown, Sequencia's Vice President of Marketing comments, "While working with the industry, it became obvious that a major problem was the ability to manage the wide array of projects that existed in many companies. We formed the Prosight partnership to allow the industry to automate this difficult management process. Better portfolio management leads to better decision making, increasing the power and effectiveness of innovation."

SOURCE:
http://www.technologyevaluation.com/research/articles/process-plm-vendor-sequencia-adds-portfolio-management-16619/

Multi-User Password Manager

2010-07-02T08:13:00.001-07:00

Multi-user password manager is a lubricant for your business effective administrations which allows easy access to corporate accounts with all the account passwords stored in a secure multi-user password database. This is the most effective way of password management in an organization which allows your company employees to login to corporate accounts much faster with almost no effort. The multi-user password manager has the following functionalities.

o Multi-user password database

o Access to all corporate accounts with one password

o Access to the password database with administrator rights

o Access to the password database with the user rights

o Automatic account login without knowing account password

o No need to type logins and passwords

o No need to remember passwords

This allows you to implement the most effective password management strategy within your corporate infrastructure while preserving maximum security of your accounts.

How it works

The administrator creates a password database which stores information about all corporate accounts including logins and passwords. Now the administrator can create multi-user account which allows multiple users to access the password database. To enable your employees to access all corporate accounts without having to remember and type passwords, slip them the multi-user password and see how much quicker your business will run!

With the multi-user password, your employees will be able to access corporate accounts without knowing account passwords because the program logs them into accounts automatically without having to type passwords and logins.

With one multi-user password, you don't have to change each of your account passwords every so often to stay secure. You just have to change one multi-user password which grants access to the password database. Thus you attain a multi-level protection for all your corporate accounts. This means that each account is protected with its own password, plus the account database is itself password protected.

So what advantages does multi-user password manager bring to your company?

1) Instant access to company accounts for all employees

2) No information leaks (only the administrator knows account passwords)

3) Automatic access to newly added accounts by all employees (no need to send emails)

4) No employee complaints such as 'I forgot my password'

Adding Multiple Users to Peachtree Quantum

2010-07-02T08:11:00.000-07:00

Peachtree Quantum provides multiple functions to advance your growing business. Developed by Sage Software, Peachtree Quantum brings you the ultimate in usability and accounting features with top-of-the-line quality that is unmatched in the software industry.

The Quantum version has undergone extensive testing with larger database sizes. It can support databases that are 300MB to 500MB in size although results may vary due to operating factors such as the number of concurrent users, processor speed (RAM), amount of data, and network configurations. If your company has recently grown substantially with an increased number of transactions and you need to add five or more users, perhaps it's time to upgrade. Peachtree Quantum provides a terrific upgrade option if you've been using a more basic Peachtree software or QuickBooks.

One feature that larger companies are finding to be a must-have is the software's multi-user capability. This is great if you have multiple branches of an office or many departments within one building. Peachtree Quantum enables you to add any number from 5 to 40 users.

Having multiple users gives you the option of delegation when it comes to certain tasks or setup functions. For example, if you want to delegate certain accounts payable functions to your A/P manager and department workers. They can use the same software you're using on their own computers. The data entered or updated on any given user's computer also updates on everyone's system. This enables you to streamline your office functions while keeping tabs on the productivity of your employees.

Custom Security Features for Your Company

With multiple users, you might be wondering if Peachtree Quantum has security features in place to protect certain data and functions within your software. The answer is yes! The software has numerous security controls, from screen-level security to prior period locking. You can assign users with certain security rights, giving them access only to the information and functions you want. In other words, you can allow certain users such as department or branch managers to have access to areas in your software that their subordinates will not be allowed to access. This gives you the flexibility to issue role-based tasks without unnecessary exposure to security risks.

Notify of Changes

With Peachtree Quantum, multiple users may be notified when certain tasks are completed. For example, a manager in your customer service area can be notified when the product has actually shipped. Or a user in the accounting department can be notified when checks are issued to pay bills. This feature creates a continual flow of information being transmitted among employees without wasting time on phone calls, e-mails, memos, etc.

My Dashboard Features

Another great thing about Peachtree Quantum accounting software is that "My Dashboard" can be customized for each user. My Dashboard is basically a homepage containing Peachtree information that applies to your company. It acts as a springboard to other screens, and can have as many tabs as needed to organize one's work. This gives each user an opportunity to customize their homepage according to their daily tasks.

If you're seriously considering an upgrade, you can purchase Peachtree Quantum easily online. Software companies offer many types of software such as QuickBooks Enterprise, MAS90, ACT software and others. There is also Peachtree training (either locally or online) if you need assistance with setup and operations. Peachtree Quantum can improve your company's overall productivity levels while enabling you to maintain full control of your business.

Demand-driven Manufacturing and Warehousing: Challenges and User Recommendations

2010-06-01T00:55:00.001-07:00

The global provider of enterprise resource planning (ERP) and supply chain management International Business Systems (IBS) offers a modular solution called ASW Manufacturing, which was developed as a demand-driven manufacturing solution geared to handle very fast manufacturing cycles and short lead times, small orders of custom products, and other customer demands. This is because with manufacturing resource planning (MRP) attaining and maintaining agility requires a lot of re-planning to meet customer needs, which causes the so-called "nervousness" of the system. IBS does offer flexible rescheduling tools that integrate with existing MRP systems for companies that have already invested in such systems. Given IBS does not compete in complex engineer-to-order (ETO) manufacturing environments, its manufacturing capabilities revolve around planning, execution, and monitoring high volume light manufacturing and assembly operations. It lets actual demand drive the user enterprise's production, ensuring supply chain flexibility, while planning on several levels and time frames to ensure maximum agility. The system also can configure and build products to company-specific requirements to effectively plan capacity, while handling complex product structures.

Demand-driven manufacturing is related to warehousing management, since the warehouse is no longer a static storage facility. It now has to use near real-time data to closely match supply to demand, eliminate the need to hold excess inventory, and increase the flow of goods throughout the supply chain. Therefore, due to the supply chain execution (SCE) software's capability to handle these complex requirements, there has been a trend of postponing many light manufacturing operations, such as final assembly, customized packing, labeling, engraving, etc. from shop floors to warehouses and distribution centers (DC). Consequently, a warehouse management system (WMS) package plays a key role in any company's manufacturing postponement strategy to delay the customization of products until after the products, or a set of common components, have left the manufacturing plant. To meet this need, IBS has added more functionality to its WMS module. The value-added services capability, which includes, kitting assembly and disassembly, multiple/multi-level bills of material (BOM), special instructions and labeling should help IBS' customers reduce the costs associated with their supply chains. In the supply chain, the most significant facilitators is postponement, and that is where kitting helps because it allows enterprises to keep their products in a more generic state for as long as possible.

The ASW Warehousing solution comes in two versions, including one for traditional and highly automated environments, and cover all the necessary functionality for efficient operations and management of warehouses. They provide the tools and functions for optimizing the use of space, while automating reception, put-away, location replenishment, picking, warehouse maintenance, packaging, shipping, radio frequency (RF), storage and product definition, and warehouse administration and monitoring. IBS' WMS process helps ordered be picked faster and with increased accuracy. Processes are based on product movement frequency, optimized resource activity through precise and accurate instruction handing. Fast return on investment (ROI) with staged implementation possibilities can be achieved.

Ultimately, the ideal WMS keeps items in the warehouse are moved quickly and as accurately as possible. The application must update all the quantities for a particular customer in real time, at the moment of picking. The system then makes up the work orders sequentially, and wirelessly relays this information to the screen of the forklift operator in the warehouse. The first item listed is the shipping box/package, which the operators picks up and labels. As the operator scans the bar code to confirm that the item has been picked, the next package in the queue and its location appear on the screen. Once the shipping box is full, it is sent to the packaging station where cushioning material and out packing material seal the package. From there, the packages are driven either directly onto a trailer or to a staging area awaiting the truck.

Employees, ranging from truck drivers to warehousing shift managers, only see the information they need, but can access more information, if necessary. As items move, a replenishment list is created so operators can move items from storage to the picking shelves. For more of pertinent information, see ERP and WMS Co-Existence: When System Worlds Collide.

Additionally, the IBS ASW suite has a pervasive built-in event or alert management, with triggers in the system to warn users of problems in the supply chain, enabling them to respond accordingly before it impacts the customer. This management by exception monitors critical or sensitive activities with exception rules and notification via multiple channels, and with reaction monitoring and audit trail. Some user-definable alert examples take place when a critical purchase order is not delivered or is late, when the particular customer account fails the credit check, or when an order fails margin limits.

User Recommendations

2010-06-01T00:54:00.002-07:00

Those in Adonix' target market as well as general, multisite and multinational distribution and manufacturing companies (and their divisions) with a revenue of $30 to $300 million-a-year (USD) and with up to 200 concurrent users per site, should consider the company's value proposition. However, they avoid selecting it without looking at what the other vendors have to offer. Adonix often comes ahead of larger global players in terms of functional fit, pricing, and understanding of the local requirements in the distribution area. Enterprises in France or Southern Europe (especially Spain and Portugal) should short-list X3. However, customers outside Adonix' successful geographies may want to exercise due diligence and check Adonix' regional support before moving forward.

Before the CIMPRO acquisition and subsequent array of wins, the US market had been somewhat slower to warm up to Adonix' solution, which is not surprising given the number of incumbent peer solutions that are already present. Nevertheless, for US companies with small domestic and international operations, Adonix can prove to be of interest, as it is already available in seven languages (English, French, Italian, Portuguese, Spanish, modern Chinese, and Mandarin Chinese), and the sales and financial product modules have localized features. The company has had a number of successful international implementations and support for subsidiaries of larger enterprises outside France, which should help it overcome some local prospects' possible anxiety to deal with—until recently—a relatively unknown vendor.

The industries that would most likely benefit from using its products are discrete and process industries with standard manufacturing and extensive distribution requirements such as consumer packaged goods (CPG), wholesale, retail, chemicals, industrial and commercial machinery, electronic and electric supplies, furniture, rubber and plastics, etc. Adonix Geode GX might be a good WMS solution for mid-market companies that are growing and want software that can be re-configured to grow with them, with little or no providing vendor's intervention, and which want to extend their existing IT assets incrementally.

From a functional standpoint, a company considering Adonix should currently receive or ship more than 5,000 truckloads or 1,000 parcels per day, currently replenish a forward picking area manually, need variable configurations for multiple warehouse sites, and manage more than 200300 stock keeping unit (SKU). Furthermore on the prospective users' profile, they often need to interact with automated equipment such as conveyors, and they might need software to manage complex or multiple workflows including serial numbers, lot control, date controls, and kits, likely with unlimited desktop access through a thin client or browser-based user interface.

Existing users of earlier product releases may benefit from querying the company's future product development, product migration path, and service and support strategy. Incidentally, while Gruppo FORMULA users should like their prospects' offerings, they should consider Adonix' impressive acquisition track record, and ask the vendor for more product roadmap details to see the potential benefit from functional convergence with X3. The same holds for Adonix X3 users, who should take the time to discern any possible benefits and synergies between merging the two ERP product lines

ERP and Warehouse Management: Technology, Challenges, and User Recommendations

2010-06-01T00:54:00.001-07:00

Leveraging a common development framework is an important distinction for midsized companies seeking an ERP back-office system with strong warehouse management capabilities, and Adonix is one of the few software vendors with such an integrated offering on the same platform. Based in France, this privately-held vendor offers enterprise solutions to medium, process and discrete manufacturing companies. Other mid-market enterprise resource planning (ERP) vendors Infor (former Lilly Software), Epicor Software, IBS, SYSPRO, Exact Software, 3i Infotech, and Sage ACCPAC, also offer strong warehouse management system (WMS) products in addition to their traditional ERP products, and could prevent the likes of Manhattan Associates, HighJump, Catalyst Internationals, RedPrairie, and Provia from penetrating the ERP mid-market, in the less complex environments, with basic case and pallet picking, straightforward task interleaving, and selectable radio frequency (RF), label, and paper by work area requirements.

Part four of Adonix' Mid-Market FORMULA—Adopting Best of Both "Organic Growers" and "Aggressive Consolidators" series.

Although we do not debate the WMS, transportation management system (TMS), yard management system (YMS), small parcel shipping (SPS) functionality or even supremacy of these best-of-breed players, many prospective customers may like the trade-off of marginally less robust functionality for a one-stop-shop arrangement from their ERP provider. Moreover, the sluggish economy has recently caught up with the otherwise resilient supply chain execution (SCE) market and the competition has intensified because ERP vendors, particularly tier one vendors such as SAP, Oracle, and SSA Global (see ERP Vendors Intrude on SCE/WMS Safe Haven), have also entered the market.

Many ERP/WMS one-stop-shop solution-seeking customers will likely achieve significant integration cost savings by taking advantage of the Adonix Geode GX system's pre-defined, two-way interface to X3. This interface may become invaluable in passing customer, order, shipping, and packaging information between the two applications, especially for performing value-added activities like multi-packs, repacks, and picking verifications in the warehouse, and in producing accurate bills of lading (BOL) and customer invoices. For more info on how pesky this interfacing between disparate applications and the need for data replication can be, see ERP and WMS Co-Existence: When System Worlds Collide.

This is Part Four of a four-part note.

Part One detailed the company and its products.

Part Two discussed Adonix' strategy.

Part Three analyzed Adonix' warehouse management system response.

Challenges

Still, there are relatively limited financial resources to adequately fund multiple key strategic initiatives, when compared to the research and development (R&D) investments of bigger competitors' l SAP, Oracle, or Microsoft Business Solutions R&D (absolute values versus in percentage of total revenue). Developing global channel and brand recognition, and facing formidable competition within the Adonix' target market (particularly the North American market) are the challenges Adonix will have to reckon with.

The business remains challenging to even the most established mid-market vendors, since an intensifying product architecture rejuvenation and functional enhancements cycle and continued market consolidation exert fiscal pressure across the sector. To that end, the vendor has another predicament to solve, as the conglomeration of Adonix legacy applications over 3,500 customers, many of whom need to upgrade mainframe applications to newer architectures. Although Adonix is targeting these as well, it remains to be seen whether the new X3 product can meet the demands of larger corporations among this install base that continue to rely on the legacy applications. Adonix' focus on mid-market might not fly with some of these companies, where it will have to overcome the market perception of a relatively unknown, tier two ERP vendor, while trying to cater to all these different markets will fly in the face of having one face to the customer worldwide, i.e., brand recognition.

Adonix must be careful not to spread its development resources too thin trying to maintain its multiple platform product configurations. Moreover, despite its careful examination of market trends, Adonix needs to strengthen itself in two areas: is yet to be fully Microsoft. NETcompliant, and needs to have an radio frequency identification (RFID) client project in the US (however, Geode GX technology is RFID-compliant and with clients in Europe).

Because its R&D resources will have to be handled prudently and sparingly, Adonix will likely remain better suited to the more conservative mid-market companies that do not want to be on the "bleeding edge" of technology, and prefer to work with tried-and-true technology solutions. Customers currently not requiring native RFID capabilities, fall within this category; however, it is a matter of time when the need for RFID will present itself, giving many WMS players the competitive edge (see RFID—A New Technology Set to Explode?).

Further, however broad (to include both distribution, discrete, and process manufacturing) and wellbalanced the functionality of X3's is, in order to become recognized as a true differentiator in the market, Adonix will have to exhibit greater vertical focus beyond its few distribution industries. To that end, Adonix should develop templates, wizards, and implementation methodologies to further decrease the time and expense of implementation projects, as well as to vertically incline its product offering. Even if these sectors do not necessarily need strong product lifecycle management (PLM) and engineering capabilities, they still might need product information management (PIM) (see The Role of PIM and PLM in the Product Information Supply Chain: Where Is Your Link?), which is an area where Adonix has not been vocal, to say the least.

Also, the vendor should try to increase its base of reference accounts from the 1,200 or so companies that have purchased X3. The sixty-five sites it has in the US (which recently grew from former and new CIMPRO users) may still be insufficient to boost brand recognition and make a splash in the North American market. Internationalization requires significant investment. Additionally, Adonix' limited R&D funding needs to also to "beef up" its indirect channel, possibly with many more high-profile partnerships. These challenges are not only attributable to Adonix, which is certainly in a better situation than many of its smaller peers, such as Made2Manage Systems, SYSPRO, 3i Infotech, Softbrands, or Intuitive Manufacturing Systems, all of which have similar aspirations and hurdles.

BusinessObjects XI: Redefining How Information Empowers Users

2009-11-14T04:31:00.002-08:00

White Paper Description
Can you deliver integrated and reliable information in a format that all users can understand? Are you able manage that from a single console that allows you to support your performance management, reporting, and query and analysis requirements? By extending the reach of knowledge within the organization, you can efficiently and effectively manage your operations through better visibility and transparency.

Related Topics: Data Management and Analysis, Business Intelligence (BI)

Related Industry: Information

Related Keywords: Business Objects, BusinessObjects XI, business intelligence, BI, performance management, query and analysis, multidimensional data, data sources, dashboards, key performance indicators

SEEBURGER B2B Gateway - Platform Support for RFID

2009-11-14T04:31:00.001-08:00

SEEBURGER's B2B Gateway is the most comprehensive and cost-effective business integration platform in the industry. Designed to cut administrative costs and accelerate business processes by automating trading relationships throughout the supply chain, it is the only middleware solution capable of integrating 100% of an organization's applications and trading partners --- including smaller customers and suppliers that still do business on paper. Over 6,500 customers in 35 countries utilize SEEBURGER's business integration solutions.
Unique B2B Gateway Features and Capabilities

* 100% trading partner integration, with special solutions that automate document exchange via email, Web portal and even paper in order to extend connectivity to smaller trading partners that are not electronically enabled.
* Automated processing of paper transactions, including faxed documents, through a combination of OCR, artificial intelligence and data validation/exception handling that dramatically reduce manual data entry.
* One-platform architecture, with all components and adapters developed in-house by SEEBURGER to ensure compatibility, provide a common work environment, and simplify maintenance across the extended supply chain.
* Rapid deployment, typically two to three times faster than other solutions, via thousands of reusable industry-specific processes and templates, an extensive library of adapters, and a rapid implementation process.
* Reduced integration costs, achieved through a broad range of processes and components preconfigured for different industries and B2B/EDI standards, resulting in a faster return on investment.
* Modular implementation options, including the ability to deploy point solutions for Paper2ERP conversions or RFID data management, or implement a new protocol, without a full-blown application integration project.
* Extensive installed base and ERP vendor relationships, including the distinction of being the only B2B/EDI provider resold by SAP, Peoplesoft, and SSA Global.

Key B2B Gateway Components

* Configuration console providing one view to establish and administer integration scenarios and trading partner relationships
* Adapters and connectors for seamless integration of applications, databases, marketplaces and/or portals.
* Conversion engine, a drag-and-drop tool for mapping any-to-any message conversions and creating rules for message standards and relationships.
* Communication gateways for establishing connections to external business partners, providing transport and transmitting required acknowledgements.
* Business process & workflow designer for defining, modifying and running rules-based business integration processes.
* Monitoring tools that track business integration processes, flag problems requiring user intervention, and facilitate document searches.
* RFID Workbench, an optional tool for managing RFID data, tags and hardware and integrating data into core systems.

B2B Connectivity Options for Smaller Trading Partners

* Paper2ERP, enabling faxes and other paper documents to be processed electronically to reduce the time and error risks of manual data entry.
* XMLMail, offering two-way interactive email integration that automatically converts preconfigured populated forms sent by email into XML documents.
* WebForms/Portal, permitting electronic data exchange via Web browser with automatic generation of shipping notices, bar codes and other documents.
* Hub & Spoke, a centrally managed add-on component installed by smaller partners that integrates with the SEEBURGER B2B Gateway as well as the supplier's back-end application for seamless collaboration.

RFID Workbench - Meeting Industry Mandates

2009-11-14T04:30:00.002-08:00

The majority of major retailers including Wal-Mart, Target, Albertson's, as well as the Department of Defense are instituting mandates for compliance by their major suppliers. These organizations will not be the last. Movement toward RFID initiatives can already be seen in other industries including Healthcare, Medical Devices, Automotive, and Pharmaceuticals. These new mandates leave many suppliers with two core questions:

1. What do we have to do in order to comply?
2. How can we turn this cost into a positive investment?

The emergence of radio frequency identification (RFID) technology as a force in the supply chain has created the need for middleware that can manage the flow of data between tag readers and enterprise applications in order to facilitate intelligent use of information generated by RFID tags. Multiple vendors are entering the RFID middleware space, but most lack the ability to provide an end-to-end solution that can serve basic needs such as reader connectivity as well as more advanced requirements such as application integration. SEEBURGER's RFID Workbench is designed to address the full spectrum of RFID middleware needs, enabling an organization to implement RFID on a phased basis without changing middleware packages or engaging multiple providers.
RFID Workbench- Compliance Functionality

* Connecting to Hardware: Workbench communicates directly to printers and devices allowing organizations to seamlessly program and link EPC and UPC codes.
* Programming of RFID Infrastructure: Workbench provides validation and authentication functionality ensuring the tags are working correctly and can be programmed with the required EPC Codes.
* Data Catalog - Logging your Compliance: For mandates driven by companies such as Wal-Mart, an organization must validate that the tags which are being transferred work correctly. By storing them in our system catalog you can verify that when they left your facility, they did in fact work. Therefore, your company avoids penalties or additional fees. Additionally, Workbench provides a searchable time log if research requests are initiated by the receiving organization.
* Tag Consolidation: Throughout the RFID process, case data must be consolidated to pallet tags. In Workbench, cases are read during packing and the combined data is matched to a single pallet tag. This is necessary as it is very difficult to get a 100% read of packed cases on a full pallet due to interference caused by packaging, tag locations, and load types (i.e. liquids can cause interference during the reading procedure).

RFID Workbench: Understanding the Basics

2009-11-14T04:30:00.001-08:00

The use of RFID has shown a remarkable increase in the United States and in Europe during the past few months as a larger number of companies have been able to appreciate the benefits of applying this technology to their production, logistic, as well as sales and planning processes.

The participants in a supply chain classically exchange information based on computer data exchange (CDE) and bar code data exchange. This approach has enabled productivity increases that no one today would have imagined possible. The same process is now ongoing with RFID, in areas where bar codes reach their limitations.

The limitations of bar codes are well known:

* Around 10% reading error
* Linear reading (one code follows another), therefore slower than a broadcast reading
* The reading often requires human intervention (moving and orienting the object for scanning etc.).
* The need for the bar code to be visible
* The impossibility to apply a bar code in a problematic environment (dust, mud, vapour etc.) and to reduced size objects or to those with improper shape for sticking on a paper label
* The impossibility to use bar code to overcome shoplifting.

Today, a second generation of workbench technology enables us to move beyond these limitations. RFID helps actualize a vision of perfectly integrated logistical and commercial chains. However, the stages to surpass before getting there must be evaluated in a pragmatic way. Using RFID in your organization implies direct changes concerning the processes involved and the information you'll have at your disposal in RFID processes. RFID changes the way your employees work. It has a direct impact on their productivity and your investments productivity. It also enables you to base your decisions on more accurate information. However, the real impact RFID can have on your bottom-line is not easy to quantify. Just as setting up bar codes required tests and full-scale models, setting up RFID is undergoing a validation test that, in itself, enables us to certify the concrete impact of this technology on your profession. The best method to grasp these changes in your environment in a concrete way is to test them on a defined perimeter and involving the processes that have the most direct impact on your activity.

RFID (Radio Frequency Identification) is a state-of-the-art technology, which has become a central discussion point for applications such as logistics, material management, industrial automation and services. An RFID system is composed of a transponder, a reader with antenna and the application software.

The RFID Workbench is a client/server system which provides visualization, analysis and processing of RFID Data through any phase of an RFID project, i.e. evaluation and simulation to backend integration. The RFID Workbench is accesible via a web browser, such as Microsoft Internet Explorer or Mozilla Firebird. The RFID Workbench enables the user to realise complete RFID business processes. These processes can integrate with the customer's backend system using EDI or ERP proprietary formats or protocols such as IDOCs or RFCs.

Software as a Service: Next-generation Network Performance Management

2009-11-14T04:25:00.000-08:00

An estimated 55 percent of users of business critical applications work in remote locations. With so many users working remotely, networks become congested and user productivity suffers. Until now, wide area network (WAN) monitoring and shaping has required special appliances, but there’s a new alternative software-based solution available that leverages the power of the user’s PC—providing unprecedented traffic control.

Related Topics: Accounting and Financial Management, Outsourcing, Security Services, Customer Relationship Management (CRM), Data Management and Analysis

Related Industries: Manufacturing, Information, Finance and Insurance

Related Keywords: network performance management, WAN, specialized IT resources and skills, network service providers, software as a service, Netpriva, wide area networks, network appliances, software based solution approach, distributed working arrangements

A Profit-Maximizing, Science-based Foundation—Precision Price Segmentation

2009-10-29T06:08:00.000-07:00

Precision Price Segmentation harnesses the power of variable price response by identifying, classifying, and organizing all customer, product, and order attributes that correlate with price sensitivity in a given market. To date, Zilliant's Precision Price Segmentation has catalogued over fifty customer, product, and order attributes that commonly drive price response for B2B companies. It is typical, though, that only about half a dozen of these attributes prove meaningful for any given deployment. For example, a company may learn that the combination of circumstances related to the end-customer's industry; the product's end-use; the product's category, group, and stock-keeping unit (SKU); order size; competitive intensity; and product mix are what drive price in their industry. Even with just five or six attributes, the combinations of their values can yield a massive (and therefore precise) number of unique price segments.

Two factors promote precision within Precision Price Segmentation. For one, while many companies already consider deal attributes when making pricing decisions, they typically do so in an arbitrary, qualitative fashion. For example, different orders may be eligible for different discounts depending upon whether the order is "small," "medium," or "large" according to subjective order size buckets. In contrast, Precision Price Segmentation quantifies and categorizes order breakpoints based on statistics that reflect the actual differences in market price response. Furthermore, Precision Price Segmentation augments these attributes with previously unconsidered attributes also proven to influence price outcomes, thereby increasing the overall precision and impact.

Given that each attribute may have up to several hundred discrete values (or even more, as in cases where the product attributes are characterized at the SKU level), the number of resultant precision price segments is usually in the thousands, or even tens of thousands, as shown in table 1. While the number of resultant actionable price segments may seem daunting, it certainly points out how "off the market" (imprecise) companies can be in their existing "broad brush" price policies and negotiation guidelines.

User Company Type	Qualitative Segment Considerations (pre-Zilliant)	Zilliant Precision Segmentation� Attributes	Approximate Number of Actionable Pricing Segments
High-tech distributor	estimate of annual spend	annual spend, manufacturer's rebate, margin category, product segment	6,000
Industrial manufacturer	pricing group, job size, project type	pricing group, job size, project type, dominant product class, channel, market size, inventory	30,000
Food distributor	customer spend zone	customer spend zone, cuisine type, region type	300,000
Construction equipment provider	product-dealer	country, product-dealer, competitive region	9,000
Medical devices manufacturer	contract volume, product type	contract volume, product type, wallet share, customer type, product bundle	120,000

How One Vendor Parlays Price Variation into Profit Improvement Opportunities

2009-10-29T06:07:00.001-07:00

In narrowing down the key elements of its solution, Zilliant points out three main challenges that manufacturing and distributing customers face on the road to pricing excellence. These challenges can be parlayed into data-driven pricing management opportunities for such B2B environments:

1. The typical business environment of B2B companies creates massive customer-product-price combinations. The large numbers, coupled with dynamic and complex customer relationships, products, promotions, discounting practices, and channels, proliferate price rules and exceptions. When all pricing rules and policies are considered, the typical manufacturer has dozens of thousands of prices, while the typical distributor has even hundreds of thousands. The upside to this complexity, however, is that by definition, net prices are already differentiated (determined deal-by-deal) and are largely opaque (that is, not published to the market). In B2B environments with exception-based pricing, a smart and informed company can easily adopt a more sophisticated approach to price differentiation based on price segmentation to maximize margins.

2. Paralleling the product and price complexity and the number of combinations is the complexity of transactional processes and systems. The typical scenario usually includes a combination of standard transactions processed in multiple enterprise resource planning (ERP) and order management systems combined with a large number of ad hoc exceptions executed through spreadsheets, manual system overrides, and post-transaction credits and debits. The plethora of data that is produced is inconsistent, dirty, and complicated, and thus obscures segment-specific price responses. In many cases, the data makes it hard just to determine whether individual deals are profitable or not. Specifically, it is common for net prices to reflect as many as half a dozen inputs, including several manual and discretionary variables. On top of that, most manufacturing and distribution enterprise applications were designed and implemented with the "from the shop out and inside out" mindset rather than the "from the customer in and outside in" one. Meaning, these applications favor the old-time equation of product cost plus profit margin equals customer price, instead of allowing the customer and the market to determine prices. As a result, getting the right price, and determining whether or not the company made money after the fact (by calculating and tracking the net realized price and margin at the product level), are well beyond the vast majority of manufacturing and distribution companies' means. There again, on the positive side, firms that can effectively measure and analyze segment-specific price response and profitability should be able to leverage this insight to a competitive advantage.

3. Final prices are heavily influenced by the negotiation process, unlike the "take it or leave it" pricing common in B2C industries. The term negotiated prices here refers to variable price outcomes that result from discretionary decisions made by salespeople on discounts and other financial terms. Many of these companies have tenured salespeople who negotiate based more on habit and relationships than on verified market information and customer value. The good news here though, is that with better information and specific, actionable guidance, such behaviors can be modified, producing higher price points regardless of a salesperson's experience or preexisting bias. In other words, improving deal-level sales decision making should also considerably increase profit margins.

Zilliant contends that there is a better way to price—a more analytical (scientific) and automated approach that it calls data-driven price management. This approach reportedly not only helps sales professionals to recognize and take advantage of opportunities that will improve margins (and likewise for marketing and pricing operations), but it also makes the pricing process more streamlined and efficient. Companies that have adopted a data-driven price management approach have not only improved gross margins, but they have also increased pricing agility and control.

With their greater use of enterprise resource planning (ERP), customer relationship management (CRM), and order management solutions in recent years, enterprises have amassed an enormous amount of transactional pricing data. This data can now be processed and combined using the latest innovations in pricing science to reveal where and how to improve price management. The science-based insights synthesized from this data, when paired with analytical, optimization, and process automation software, generates more accurate, effective pricing policies and guidance to increase revenues and profits.

To that end, Zilliant's offering, Zilliant Precision Pricing Suite (ZPPS), is a broad solution for price segmentation, analysis, setting (including price optimization), and execution. ZPPS identifies the four steps to establishing a strategic pricing process:

1. price segmentation—understanding what factors affect price response, and using these criteria to filter, benchmark, and set optimized pricing with precise, transaction-level granularity

2. sensing (analysis)—the process of measuring and comparing how price response and margin performance varies across a company's customers, products, and programs

3. setting—the process of establishing list and target prices, discounts, promotions, negotiating guidance, and other policies

4. enforcing—the method a company uses to implement its pricing policies, guidelines, or targets inside of transactional processes and across sales channels

Every company, knowingly or not, goes through these steps when setting and negotiating pricing, although most companies do not do it as effectively as they could because they rely on rudimentary methods or flawed techniques.

Zilliant's roots and initial focus have long been on the sales decision-support side (price analysis and planning, optimization, and negotiations). Over the last two years, the vendor has added several applications on the operations side of the sales process that include price list administration, deal execution, and policy enforcement. As the segmentation model is based on measurable, deal-specific attributes, it can be applied to these operational activities as well, improving decisions and margins at every turn. This characteristic is what makes price segmentation the foundation for effective, data-driven price management, and is why all ZPPS applications have been designed and built with Precision Price Segmentation as their scientific foundation.

What if Companies Could Use Science to Align Prices to Market and Maximize Margins

2009-10-29T06:05:00.000-07:00

Almost all companies need to manage pricing and margins with the same precision and control that they use to manage manufacturing and procurement costs. While there are numerous pricing-related, statistical techniques and process models in the public domain and in academia, getting such systems to work in the real world is no small feat. Areas where this is especially true are the airline, hotel, retail, and business-to-business (B2B) markets. This opportunity has spawned a small group of successful price management vendors that have developed "proprietary" science tailored to the unique data types and selling dynamics found in different segments of B2B and business-to-consumer (B2C) industries.

Enter Zilliant

Zilliant, an Austin, Texas (US)-based provider of data-driven price management software, is enabling its B2B manufacturing, distribution, high tech, and industrial service customers to better exploit their enterprise data in order to improve price analysis, setting, and execution. Greater price differentiation and price optimization have reportedly helped some of Zilliant's customers significantly increase profits (by 10 percent and more). The idea behind Zilliant Precision Pricing Suite (ZPPS) is to combine proprietary price segmentation and optimization science with relatively easy-to-use software applications to help business people determine and negotiate the best pricing possible for each and every sales transaction.

While the product offering will be delved into deeper later on, for now it suffices to say that ZPPS was designed to address the pricing challenges of complex, discretionary selling environments common in B2B environments, especially manufacturing and wholesale distribution. To that end, the vendor's proprietary, patent-pending pricing science extracts maximum insight from complex data, whereby ZPPS applications apply the resulting insights to inform and streamline all price analysis, setting, and execution activities. Via a data-driven approach to price analytics, optimization, price list management, quoting, negotiation, and enforcement, the product suite enables B2B companies to identify and optimize opportunities to tighten control of discounts, markups, and other financial terms, thereby improving overall margins. The approach embodied in ZPPS also fits well in B2B service industries and B2C upstream channels (so-called B2B2C environments), where the pricing dynamics are similar to those of manufacturers and distributors.

Founded in 1999, Zilliant is a privately held company, and has thus far attracted about $42 million (USD) in venture capital. The company's investors include Panorama Capital, Austin Ventures, Cardinal Ventures, and Trellis Partners. To be fair, the first few years following the company's inception were marked by soul-searching in the dot-com era. Yet since 2003, the company has been on quite an upslope. It brought in a new chief executive officer (CEO), Greg Peters (former CEO of portal and content management vendor Vignette), and the vendor's once 30 employees has grown to over 130, in addition to the more than 30 offshore contractors.

Where Pricing and Science Meet

During the last 2 years, revenue and bookings both grew in excess of 400 percent year over year. Zilliant attributes its strong momentum to two favorable trends: increasing market demand for pricing software and the company's apparent ability to lift profit margins for B2B companies. The vendor has also been pleased with the recent, favorable coverage in leading business, academic, and consulting circles that highlight how analytical math and science capabilities have become competitive necessities, as firms seek to optimize business processes and decision making. Namely, in recent months, BusinessWeek, Harvard Business Review, and McKinsey & Co. have all published articles on this trend, citing examples of how innovative companies are marrying sophisticated analytical techniques with their enterprise data to realize untapped, significant opportunities for competitive and market advantages.
While the intersection of pricing operations and sales negotiations with math, science, and data is a new concept for many, it forms the core of Zilliant's value proposition. The vendor aims to help B2B companies improve aspects of pricing, namely, price segmentation, analysis, setting (optimization), and deal execution. Zilliant's offerings provide the marketing, sales, and price operations with the quantitative insights and guidance companies need to achieve the best pricing possible on every deal. To that end, Zilliant's applications leverage proprietary pricing science to provide two to three times more margin uplift than approaches not based on science. Some competitors may still claim that price segmentation and optimization (see Know Thy Market Segment's Price Response) are unnecessary or are too advanced for B2B companies. These vendors promote basic analytic price setting approaches as sufficient to reveal most price improvement opportunities. Yet this approach only serves to differentiate Zilliant's offerings.

A significant percentage of Zilliant's employees hold advanced degrees in mathematics, economics, or other decision sciences. The company employs a dozen advanced degree pricing scientists, several pricing architects and price consultants, and other experienced personnel throughout the design, development, and delivery departments—over 500 years of pricing domain experience in total. These scientists and domain experts have developed proprietary models, algorithms, and price segmentation techniques that synthesize the massive amounts of data within enterprise resource planning (ERP), customer relationship management (CRM), order management, and other transaction systems into a variety of formats to enable better pricing decisions.

RapidResponse Resolution Engine

2009-10-29T06:04:00.000-07:00

RapidResponse Resolution Engine gives manufacturers proactive management capabilities that allow key personnel within various departments and across the extended supply chain, both locally and internationally, to drive effective resolutions to continually changing situations. In other words, instead of producing optimized answers for a utopian and static world, the engine produces a series of alternate action plans for a real and dynamic world.

Iterative modeling capabilities enable team members to propose and detail a number of potential action alternatives that quickly and accurately simulate their entire MRP runs. The embedded algorithms are based on concepts, methods, and definitions contained in APICS studies, such as lean manufacturing and the Theory of Constraints (see Reflections on Lean Philosophy and the Theory of Constraints). In the future, capabilities might extend to the Du Pont profitability model and the generic supply chain operations reference (SCOR) model by the Supply Chain Council, which communicates SCM best practice benchmarks across companies.

The engine’s publishing capabilities enable participants and external suppliers to instantly share suggestions (collaborate) with other group members in real time over the Web. Moreover, multiple security and authorization level controls allow businesses to specify which users may access specific information. Varying combinations of potential responses to changes, such as doubling shifts in a factory, changing engineering specifications, procuring from a different supplier, buying a new machine to increase production capacity, or many others can be instantly modeled and shared online, enabling group participants to merge independent action options and determine which choice is best. Task flows that outline steps for specific activities can be customized to meet the user company’s needs and facilitate the resolution process.

3. Live Scorecard

Live Scorecard enables manufacturers to holistically compare alternative what-if action plans based on real-time information. By scoring proposed action plans against predetermined, real-world corporate performance metrics and key performance indicators (KPIs), Live Scorecard aims at ensuring that any chosen course of action conforms to both day-to-day and long-term overall business objectives and best practices. As the action team assesses the impact of change and explores optional alternative solutions, it should be driven by a balanced scorecard view of business operations.
The scorecard presents operational results “scored” by corporate goals and objectives, where the objectives of business units, departments, and the entire enterprise are aligned. Often, varied disciplines within an enterprise (for example, asset liability management, profitability management, budgeting, forecasting, strategic planning, etc.) are performed separately and inefficiently despite the many similarities among them. The suboptimization of one process inevitably comes at the expense of others, such as the all-too-common scenario of a plant manager chasing higher utilization and efficiency, only to flood the warehouse with unneeded inventory levels.

This problem generally occurs because management does not have a comprehensive overview of the company, while department heads remain accountable only for their departmental strategy—they are not aware of other departments’ data and issues, which might influence their decisions. Thus, a scorecard is an effective tool to ensure management focuses on key business issues in the world of rapid business change and endless global competition.

With Kinaxis RapidResponse, the impact of change is continuously made known to the action team through a live scorecard view. Consequently, costs of the alternatives and their impact on the customer are explored, analyzed, and assessed, and the results can be immediately shared within the action team. The action team stays focused on key corporate and customer objectives as it drives toward a goal-driven optimized solution. To that end, Live Scorecard drives best practices optimization, where trade-offs in costs, margin, customer satisfaction, and other key business issues must be balanced to realize business success. It provides immediate shared comparative results to simulation scenarios so that the team can understand the implications of change, such as a configuration change on a particular customer order and its implications for inventory, production, capacity, margin, etc.

More Enhancements

“Response management” as a software category has come from Kinaxis’s need to make the market aware that its offerings are much more than glorified event management applications, since SCEM has long been seen as providing merely passive visibility and alerts.

Kinaxis RapidResponse 7 introduced Live Scorecard and enhanced financial and engineering change analysis in late 2003, and at the end of 2005, Kinaxis RapidResponse 8 shifted from a client-server architecture to a Web services approach, using .NET on the back-end server and Java for clients. The release also boosted performance, partly by increasing the amount of data that the software can crunch to 128 gigabytes, which is crucial for the high volume of items, transactions, and simulations within most complex discrete manufacturing networks. It also featured customer-enabled setup, enhanced alerting (with links to scorecards), as well as partner product integrations, such as reporting and analytics from Cognos.

In mid-2006, Kinaxis introduced the RapidResponse Glass Pipeline as a standard feature of its on-demand Kinaxis RapidResponse service. Seeing that outsourcing was becoming a growing trend, Kinaxis realized that adoption of a software as a service (SaaS) solution to solve supply chain challenges could be a natural extension of a brand owner or contract manufacturer’s outsourcing activities—an extension that offers many compelling operational benefits.

The Value Proposition of Kinaxis RapidResponse

2009-10-29T06:03:00.000-07:00

To put it into perspective, Kinaxis RapidResponse is the umpteenth improvement of the former webPLAN, a Microsoft Windows NT-based groupware suite for manufacturing planners that was introduced back in 1995. The solution would extract data from the host MRP-ERP system, and then quickly regenerate the changed materials plans. The intent was to allow a planner to create or simulate a new plan, and share it with other planners, managers, customers, and suppliers before implementing the it. A slew of additional modules that have since been added to this core tool have supported the expanded decision structure and audience (i.e., multiple planners, multisite master production scheduling [MPS], and capacity requirements planning [CRP]) needed to approve and act on a new production schedule in an informed manner.

The next step for Kinaxis was to build a new type of multi-enterprise manufacturing and fulfillment solution that would knit together the abundant existing information from disparate transactional sources, and then quickly drive better short-term manufacturing decisions and actions. Ideally, users could start with an “as planned” single version of the truth, continually update this version of the truth with real-time data feeds, and finally drive a collaborative decision-making process across the action team.
This is where Kinaxis RapidResponse comes in—not to replace planning, forecasting, or execution systems, but rather to leverage these systems. Namely, a Web-based adaptive response management solution may be a more appropriate approach because these solutions can leverage data from the existing transactional systems, provide real-time analysis of events, and suggest courses of action. In addition, these solutions can provide role-based views of supply chain information to the extended supply chain members across multiple sites, anywhere in the world, and through any browser.

In the early 2000s, Kinaxis announced its intent to deliver its solution on the Microsoft .NET Framework. The initial extensible markup language (XML) Web services developed using Microsoft Visual Studio .NET provided an XML interface to Kinaxis RapidResponse Server. This XML interface–enabled server is the underlying platform that provides real-time adaptive planning and trading partner collaboration over the Internet, shared by thousands of employees and trading partners. The XML interface has since been offered as a component of Kinaxis RapidResponse Server, which leverages the capabilities of the Microsoft BizTalk Server and SQL Server to provide business-to-business (B2B) transaction services and XML event services for real-time distributed collaboration. Other enhancements included a simple object access protocol (SOAP)–compliant XML interface for open access to the platform from both .NET and Java 2 Enterprise Edition (J2EE)–based applications.

The basic concept of Kinaxis’s value proposition comes down to the following tenets: 1) powerful, fast, and continuous analytics in the background; 2) the ability to perform multiple what-if scenarios; and 3) the linking of these scenarios to a Microsoft Excel-like user interface (UI), given that this is the most common data analytics tool. To deliver this, RapidResponse leverages the following three key technologies that enable manufacturers to abridge the dreaded and inevitable reality-gap situation, and respond swiftly to today's problems:
1. Active Spreadsheets with AlwaysOn Analytics

Active Spreadsheets provide Web-based global access to live data feeds from ERP, demand planning, SCP, warehouse management system (WMS), product lifecycle management (PLM), and other enterprise applications. The Active Spreadsheets technology presents enterprise data in a “walk-up-and-use-it” familiar interface, which significantly reduces the initial learning curve. The spreadsheets provide role-based, user-friendly screens with synchronized data feeds. These data feeds are extracted from ERP data and tools designed to enable action teams, including schedulers, planners, buyers, customer service representatives (CSRs), managers, suppliers, and so on.

Active Spreadsheets is automatically and continuously populated with up-to-the-second live enterprise data feeds. When data comes from multiple sources, say from different parts of the business in house or from supply chain partners, the system automatically and “quietly” (behind the scenes) consolidates this information in one place, thereby ensuring a single version of the truth. Even if several users are working with Active Spreadsheets, each user maintains the same single version of the truth via the same view, and even when the data is in the midst of changing, since a change in any cell is almost instantly affected across the spreadsheets of other participants. Such instantaneous updates align action teams around a consistent, continuously updated view of the impact that changes in supply and demand will have on their operations in a familiar, intuitive spreadsheet view.

A Response Management Pioneer Offers Its Solution

2009-10-29T06:02:00.000-07:00

Existing mainstream enterprise systems are not meeting the market need for dynamic supply network flexibility. Namely, enterprise resource planning (ERP) and advanced planning and scheduling (APS)-supply chain partnership (SCP) systems are not geared for high-value, operations-level business trade-offs that require educated human intervention. Spreadsheets are used frequently, but they lack the required scalability, become quickly dated, and result in unreliable multiple versions of the truth. Business intelligence (BI) tools are not real-time in nature; they are structured for after-the-fact insight rather than for making execution decisions. Thus, some businesses have turned to a new software category dubbed “response management” to extend the capabilities of the above traditional technologies.

For more background on the evolution of this new area of supply chain management (SCM), please see previous parts of this series—Who Could Object to Faster, More Responsive Supply Chains?, Multi-enterprise Responsiveness—Can It Ever Be Achieved?, and A Possible Remedy for Non-responsive Supply Chains.

Enter Kinaxis—a Response Management Pioneer

This brings us to a vendor that has changed its name a few times while refining its value proposition along the way, but which has certainly not departed from its roots and core competencies. Ottawa (Canada)-based, privately held Kinaxis Inc. today delivers both on-demand and on-premise response management software and services for visibility and coordination to help businesses drive swift responses to the constant changes taking place across global supply chains and fulfillment networks, with the goal of improving customer service and operational performance.

Founded in 1984 as Cadence Computer Corporation, the vendor was renamed Webplan Inc. in 1995. Then, in 2005, the company changed its name again to Kinaxis (a combination of “kinetic energy” and “global axis”). Throughout the years and multiple name changes, the company’s solutions have evolved from memory-resident, multisite production optimization capabilities (i.e., fast-acting manufacturing resource planning [MRP]) into a value proposition of Web-based, collaborative risk trade-off and response, and performance management within a distributed supply chain.

In addition, the innovative product architecture is able to mine information from existing back-office systems (and even spreadsheets or flat files, if necessary) as a basis for multiple what-if scenarios. This connectivity is in response to Kinaxis’s many customers having standardized ERP systems from such established providers as SAP, Oracle, or Baan, to name a few.
Despite Kinaxis’s earlier financial and brand recognition struggles (owing to the market’s infatuation with i2 Technologies’ and Manugistics’ demand planning and optimization APS-SCP solutions), Kinaxis has successfully grown its customer base. Recently, the vendor posted a whopping 300 percent quarter over quarter growth, equating to more than 50,000 users at about 60 major corporate customers, with its solutions in use at over 400 Fortune 500 locations worldwide. This includes the following recently announced customers: Elcoteq, John Deere, Microsoft, Nikon, and Qualcomm. Such global leaders are operating in an increasingly distributed environment and live in a world of constant changes in demand, supply, and product mix.

The company’s better-known Kinaxis RapidResponse combines multi-enterprise visibility, collaborative what-if analysis, and on-the-fly decision support to enable frontline manufacturing and cross-enterprise fulfillment teams to take quick and effective action when faced with the inevitable constant changes mentioned above. This means decision makers are able to make the trade-offs and compromises necessary to respond to unexpected events in increasingly erratic global supply and fulfillment networks. Manufacturers value the ability to analyze alternative response actions before making a decision on a major trade-off; by proactively modeling and scoring different response alternatives, a well-understood and optimal action can be communicated to the supplier or contract manufacturer.

Kinaxis’s customers’ revenues range from $100 million to $30 billion (USD), and they offer products ranging from simple consumer goods to diverse defense systems. Kinaxis RapidResponse has been used in fulfillment and operations management amid thousands of user communities within certain supply networks.

Although its customer base now spans many vertical industries (electronics, aerospace, industrial equipment, automotive, and consumer durable goods), Kinaxis can claim a dominant position among electronic manufacturing service (EMS) leaders. Namely, Kinaxis RapidResponse is in use at many of the world's leading global brand owners (such as Casio, Honeywell, Qualcomm, Raytheon, and Toshiba) and at eight of the top 10 EMS providers.

Comparing Software Comparison Sites

2009-10-29T05:58:00.000-07:00

A few online tools make it easy to compare criteria about software, side-by-side. Of course, you probably expect that I think TEC provides the mother of all evaluation tools for comparisons (true). But this is about some of the other guys. Two sites I like, which I recently came across might be useful to you if you’re scanning the horizon for high-level comparison info. The first is Opteros’s EOS Directory and the second is ITerating. Both approach the issue in different, complementary directions to TEC’s. Here’s a bit of what’s interesting about their approaches and why I think they can offer valuable supplementary information.

The EOS Directory is, as the name implies, a directory of enterprise open source products much more so than a full-on comparison tool. Nevertheless it’s a pretty smart directory. It features high-level comparison information. It lists software in a few general categories and alongside the listings, provides four types of software/project comparison criteria.

The first criterion is the Optaros rating, geared toward open source software projects. The Optaros four-star rating system purports to show how well-suited an open source project is for the enterprise. It appears to be based on at least four considerations: the project’s functionality, maturity, community, and a progress trend, which I believe are necessary paths into research on open source solutions. Plus, as I said previously, this information nicely supplements what TEC’s open source evals cover (feature comparisons or analyses of service characteristics).

Most EOS Directory ratings are indicated through lime-colored pie symbols, which are easy to understand. For example, the more green in the pie, the more apt a project’s functionality is to include what a midsize or large enterprise might need. The more lime in the community, the more active and numerous it is (and so I’d believe a safer choice in terms of future development). The trend indicator is interesting because it represents an expectation of how the project will progress in importance and improvement for the given criteria.

Say you’re not sure which open source content management system to spend time researching, at a glance the EOS Directory informs you that Alfresco provides a pretty decent and mature feature-set, has an active community, bright future, and as an added bonus, 23 user votes determined a user rating of three out of four stars (the linked user forum might show why people felt that way). My sole criticism about these ratings is that there doesn’t seem to be a way to figure out how the ratings were derived for the project–I’m not sure if the criteria are determined by the open source project, by Optaros staff, or some combination. Then again, I suppose asking that question means I’m looking for something that’s probably outside the scope of how the directory is intended to be used.

What about ITerating? I’m fascinated by this site because a few years ago I was imagining what a wiki-based evaluation system might be like. I was surprised that one didn’t already exist. Something wiki-esque could provide insight from vendors, analysts, consultants, users, and developers alike. There was an open source project called WikiLens, which enables its users to rate things like movies or music. I played around with those scripts for a short time, curious to see what it would be like to adapt to user-based software comparison and analysis. Now, there is ITerating, which is doing quite an impressive job wikifying a software comparison methodology.

ITerating lists a fairly extensive directory of software types. You can add features and group them in higher-level categories of functionality, which appear to support a few different sorts of ratings. The ratings are summarized with a weighted average of bars, stars, and values. ITerating adds something of a meta-rating system too, letting you vote on whether you think a review is useful or not. An important feature is that users add the functions/criteria on which to rate software, meaning a potentially wide group of people could be contributing their knowledge to the comparison.

There is a lot to like in the ITerating wiki. It opens up a comparison process to a wide and possibly unexpected audience. This could be a strength, helping visitors gain a variety of data but it could also prove a weakness. I’d love to see ITerating provide more background about the perspectives of each set of user ratings. Perhaps delineate and weight user scores based on whether the users are vendors, consultants, analysts, developers, clients, etc. I think this would help mitigate bias issues that could otherwise arise.

ITerating offers quick comparisons but sometimes doesn’t seem to have fully articulated feature-sets for making the comparison. It also doesn’t seem to allow you to do custom analyses based on the importance of your most valued criteria. Not knowing how complete the data is for a particular type of software makes it a bit difficult to truly depend on the site for an entire selection process (though mileage may vary based on the software you’re considering). Perhaps this is a growing pain for the young site–I’ll be curious to see how it evolves. This criticism may also be unfair in the sense that ITerating is a “directory and review” site, which it accomplishes without wading deep into the complexity of individual analyses or selection guidance.

How One On Demand Vendor Addresses Its Unique Challenges and Competition

2009-10-07T05:58:00.000-07:00

Developments detailed in the first three parts of this series lead us to the inevitable challenges that Centive faces. To recap, Centive is now focused solely on the software-as-a-service (SaaS) business model in the enterprise incentive management (EIM) and on demand sales compensation software market. Centive's SaaS approach has attracted substantial attention from the sales and finance departments of many organizations, and has helped renew interest in the largely untapped, small and midsized company EIM market, thereby offering significant growth opportunities. As one of the first entrants in the multi-tenant, on demand EIM market, Centive has established market visibility by winning new clients—thereby earning references and demonstrating value.

For more information on Centive, please see On Demand Delivery Compels a Compensation Management Vendor, The Compelling Capabilities of One Compensation Management Vendor's Solution, and On Demand Compensation Management Partnerships for Spiffed-up Success.

Despite the vendor's current success, much more needs to be done down the track to enable the growth that will sustain Centive's business and its ambitious plans for future product development. To that end, the vendor is committed to building a much larger sales team, whereby sales territories will be based on geography as well as a user's company size and vertical market. Centive also aims to form a more aggressive reseller and referral partnership program to leverage relationships with more customer relationship management (CRM) practice leaders.

In addition, Centive plans to form strategic alliances with players from various industries. Such companies include human resources (HR) compensation design experts (Mercer, The Alexander Group Inc. [AGI], etc.); complementary software or service vendors (ADP Employease, Ceridian, etc.); and other vendors of influence (SAP, NetSuite, etc.). But before moving ahead with this plan, Centive needs to conduct a thorough soul-searching exercise to decide whether to build, buy, or partner for some of the needed functionality. This needed functionality includes sales forecasting and scheduling, HR and payroll, advanced financial tools, etc. This is because any user company's financial data is incomplete without its sales compensation plan, and vice versa.

Centive is in the peculiar position of potentially having competition from vendors in both the upper and lower ends of the market. Namely, Centive may come into a competitive situation with such providers as Callidus Software, Incentive Technology Corporation (ITC), Synygy, or Practique Associates. These companies feature infinite scalability and functional "bells and whistles" (non-essential features) in terms of quote management and agency management, for example (see What Makes Incentives and Compensation So Tricky?), and prospective users might opt for any one of these EIM providers over Centive.

Some of these vendors have also recently espoused hosted offerings and certified (even profit-sharing) partnerships with SAP (see The Flagship Enterprise Incentive Management Offering and The Challenges of SAP Relationship and User Recommendations). Although these hosted offerings are not pure SaaS solutions, they might be attractive enough to some companies, especially if prospective users are given the option to switch to the on-premise mode should that be required in the future. This is not an option with Centive Compel. Having said that, Compel has been selected over these traditional on-premise EIM providers by several large companies, such as IKON, McKesson, Insight (Software Spectrum), and Choicepoint, to name just a few.
More Fierce Competition from Below? Xactly!

On the other hand, Centive might have even more fierce competition from the bottom end of the market, given that the vendor's win rate has been well over 80 percent in environments with over 100 user seats, but only slightly over 50 percent in setups with fewer than 50 seats.

Given these numbers, it is not hard to imagine a ferocious counter value proposition coming from the likes of Xactly Corporation, Varicent, NetSuite, and QCommission CellarStone. In addition, one should not forget the potential competition from SAP's and Oracle's native compensation capabilities, or from Excel-based, in-house systems. While Centive will boast its superiority in plan modeling and interactive dashboard capabilities (and in its SaaS offering against some of those players), lower cost and rapid setup seem to be these competitors' responses that "strike a chord" (win over) with many prospective customers.

Particularly competitive with Centive in terms of offerings is Xactly Corporation (www.xactlycorp.com). Xactly also delivers automated on demand sales compensation applications, called Xactly Incent. Like Compel, this suite allows companies to design, implement, manage, and audit optimized incentive programs easily and affordably, and with solid, real-time visibility via the Web, as well as comprehensive data management and analytics capabilities.

Founded in the early 2000s by a former Callidus Software executive, Xactly was the first company solely focused on delivering a full, on demand, multi-tenant, sales compensation management solution in a SAS 70 Type II certified environment. The vendor is also a featured Salesforce.com AppXchange partner. But with the divestiture of the CompCentral business unit in September 2006, Centive too is now solely focused on the SaaS business model.

Most recently, in December 2006, Xactly and Intacct Corporation, the provider of on demand financial applications, announced a strategic sales and marketing partnership to help drive customer adoption and market awareness for their respective on demand sales compensation and financial management applications. The companies pledged to go to market with this partnership via a series of collaborative lead-sharing and lead-generation initiatives. These initiatives kicked off in early 2007, though as of April 2007, there were no announcements of joint customers.

Should this partnership prove fruitful, Intacct customers will be able to use the Xactly Data Management application module to facilitate deployment and integration of Xactly Incent within their Intacct applications. This is because the module allows for deeper integration with key disparate data sources such as enterprise resource planning (ERP), CRM, and HR applications, as well as a multitude of other data sources. The module provides a number of pre-built connectors, via the Incent Connect module delivered in partnerships with Pervasive Software and Informatica, to many industry leading applications. Such applications include those by Salesforce.com, SAP, PeopleSoft, Oracle, Siebel, Microsoft Dynamics GP, Microsoft Dynamics CRM, Sage SalesLogix, among others.
Like Compel, Xactly Incent is also used by sales and finance executives, compensation analysts, sales operations, and sales professionals. Its rule-based, service-oriented architecture (SOA) enables customers to quickly build many types of compensation plans and to manage incentive compensation with limited, initial investments and lower costs of ownership. When Xactly Incent is used alongside Intacct's on demand financial, supply chain, project management, and business intelligence (BI) suite, finance executives should be able to gain a real-time, comprehensive view of the customer. Intacct's financial management system supports multiple business units, each with its own account structure, business processes, currencies, taxes, and regulatory requirements.

Centive's Express Response

As indicated earlier on, the pricing for Compel is a fixed subscription fee schedule based on a tiered pricing model that is inclusive of all maintenance, customer service, support, upgrades, and updates. In addition, there is a one-time professional services (deployment) fee, which includes training. Logically, Compel does not require any hardware or software to run the system, nor does it require ongoing maintenance by the user's information technology (IT) department. Beyond the one-time deployment and ongoing subscription fees, there are no other hidden fees, additional annual charges, or recurring costs associated with technical support, consulting, or customization services.

Since the entire deployment typically takes less than three months, and part of the time spent by Centive's professional services team is at its corporate office, travel and expense (T&E) costs are kept to a minimum. The subscription fee is based on the number of system users, and typically, Centive's customers sign a one-, two-, or three-year term with an annual, upfront payment.

To illustrate, Compel's total annual pricing (in USD) for an organization with 200 users is roughly $100,000, which translates to just under $50 per user per month. For 500 users, the cost (in USD) is slightly more than $200,000 (which, with a volume discount, translates to under $40 or so per user per month). The one-time, professional services (deployment) fee depends on various measures, such as the number of compensation plans, complexity of the plans, number of interfaces, etc. An average deployment cost (in USD) is around $30,000, although it has been known to be as low as $7,500, and as high as $100,000 for the most complex and demanding deployments.

To appeal even more to the small to medium business (SMB) market segment (which worships the low costs and rapid deployments offered by the likes of Xactly or Varicent), Centive introduced Compel Express in August 2006. Compel Express is a turnkey service for companies with fewer than fifty sales representatives. The underlying idea here is to provide a dedicated consulting resource for a two-week-long engagement to build and model plans, and to integrate with upstream and downstream systems, in order to prepare the users for final testing and rollout once the engagement period ends. Customers pay as little as $7,500 (USD) for the setup fee, and a $50 (USD) subscription fee per user per month thereafter. While this introduction quickly led to several wins and full deployments in as little as three business days, time will only tell whether this service will have a major, or catalytic, impact for Centive when competing in the lower end of the market.

On Demand Compensation Management Partnerships for Spiffed-up Success

2009-10-07T05:56:00.000-07:00

Partnering up for Spiffed-up Success

As momentum for Centive's Compel continues to grow, the solution has sparked interest from a wide variety of business and technology partners. The most prominent result of this flurry of new interest was the May 2006 announcement of the availability of Compel for Salesforce.com's AppExchange—Centive Compel for AppExchange. With this development, Centive has become a certified solution partner of Salesforce.com, the leading on demand, customer relationship management (CRM) vendor.

Salesforce.com customers can now deploy Compel within their Salesforce.com implementations. The solution will provide these users with an at-a-glance look at interactive dashboards that display quick summaries of key sales performance indicators with a single-click, drilldown capability. Built on the AppExchange on demand platform, Compel for AppExchange has since been available for test drives and deployment at http://www.salesforce.com/appexchange. More recently, Centive has become active within the Salesforce.com Incubator Program, which opened in January 2007 in San Mateo, California (US) for a number of selected independent software vendor (ISV) partners.

Centive Compel for AppExchange is 1 of more than 430 applications created by Salesforce.com and its customers and partners that are now available on the Salesforce.com AppExchange—the world's first on demand application platform. AppExchange (renamed Apex and bolstered by its own namesake programming language) provides ease of customization and integration for Salesforce.com deployments, and enables a slew of on demand applications that go beyond the realm of CRM. Apex enables all of these on demand applications to be easily shared, exchanged, and installed with one or a few clicks into a customer's Salesforce.com account. For instance, Compel ensures a single sign-on with the Salesforce.com application, and is displayed as a commissions tab in the Salesforce.com interface.

In addition to the Salesforce.com Apex certification, Compel features integration with other CRM systems (albeit via either comma-separated value [CSV] files or Web-service integration) to enable sales representatives and managers to forecast compensation based on opportunities within their pipelines. This integration provides customers with full automation of the sales life cycle. Branded as From Prospect to Paycheck�, the following phases are involved: qualify, forecast, strategize, close, commission, and payroll (that is, from the point of pipeline initiation through to the commission paid to the sales person).

This integration of opportunity-based earnings and actual commission earnings is aimed at ensuring sales representatives stay focused, aligned, and motivated to close the right business. While sales representatives should be able to more easily forecast their commissions and identify those deals that will maximize individual earnings in a given period, sales management becomes equipped with real-time access to key performance indicator (KPI) metrics to help them better manage their assigned teams.
Through a much tighter integration with the Apex application programming interfaces (APIs), Compel imports pipeline opportunity data to enable sales associates to forecast commission and bonus earnings for current periods. Compel applies import filters, such as estimated probability, amount, seats, stage, completed milestones, and close dates, to allow users to select opportunities that meet specific pipeline criteria.

For example, users can forecast opportunity-based earnings associated with a predicted opportunity close date in the current period, as well as a number of additional days, such as the current month plus sixty days. Compel then calculates projected participant earnings, and processes the associated commission value of these opportunities according to the plan rules, taking into account such factors as reaching higher ramped tiers or hitting accelerators. From their sales dashboards, sales folks can narrow the base filter with criteria specific to their needs. Once the filter is set, Compel automatically saves it, and applies this filter to future opportunity imports. The personal earnings forecast, which becomes more accurate, enables sales associates to better prioritize opportunities and maximize commissions; it motivates sales representatives to keep their pipeline records up to date.

In October 2006, American Express Incentive Services (AEIS), a business-to-business (B2B), prepaid card industry leader, joined with Centive to offer prepaid AEIS cards as a special incentive reward, or sales performance incentive funding formula (SPIFF), option in Compel. AEIS, a joint venture between American Express Travel Related Services Company Inc. and Maritz Inc., provides B2B reward solutions, including prepaid cards, American Express Gift Cheques, and a Web-based reward management tool. Its products address a broad array of applications, such as employee reward and recognition, sales incentives, and consumer promotions, while helping clients drive consumer and employee behaviors, build loyalty, and increase brand awareness.

AEIS's prepaid cards provide Compel customers with a SPIFF option that is distinctly separate from a standard cash reward. A SPIFF is a small, immediate bonus for a sale, and traditionally, SPIFFS are paid, either by a manufacturer or an employer, directly to a salesperson for selling a specific product. However, unlike cash, AEIS cards may be customized and personalized, and can direct recipients' spending options to ensure that the reward is memorable, and that it has some sentimental value, too. A couple of examples of customization options include the ability to control card spend through AEIS's DirectSpend filtering process, and the ability to design a card face to feature a company logo, program theme, and participants' names. With such customization options, reward earners are reminded how they earned the card and who gave it to them every time they open their wallets.

Compel enables users to build SPIFF programs via the product's automated SPIFF Builder. With SPIFF Builder, users can quickly design their programs, choose an AEIS prepaid reward card as the reward option, and launch the program to the participants. The AEIS reward solution for Compel is seen as suitable for such sales incentive and dealer-distributor programs as sales contest SPIFFs, bonus payouts, dealer-distributor SPIFFs, training certifications, new business developments, sales lead referrals, salesperson performance recognition, etc. The idea here is to motivate sales people to deliver measurable results for the business.
Will Centive's Momentum Allay the Concerns of the "Doubting Thomases"?

Following the CompCentral divesture, some observers have rightfully assessed Centive's strategy as risky, given the fact that Compel alone now has to gain a sufficient subscription base to sustain Centive's business as well as any future product development or organizational expansion. The CompCentral business had previously produced most of Centive's revenue, and it even helped fund Compel. But only a minority of Centive's headcount was transferred to Incentive Technology Corporation (ITC). In other words, the staff and investment needed to market, service, and develop Compel will be relatively high initially in proportion to its revenue. The remaining Compel-based revenue streams will be relatively limited in the near future because of the nature of the SaaS market, which is subscription-based, and typically has smaller size deals than the on-premises counterparts.

To allay those concerns somewhat, Centive announced in November 2006 that the number of subscribers to Compel had surpassed the 10,000 mark. As a true indicator of leadership status, Compel has been selected and deployed by more chief financial officers (CFOs) and vice presidents (VPs) of sales than any other on demand sales compensation management system.

The vendor measures its on demand space leadership using many yardsticks, including product functionality, product maturity, number of customers, average customer size, awards, and coverage by the press and analysts. Namely, in addition to surpassing the 10,000 subscribers mark with about 50 corporate customers, Centive is also tracking up in terms of the average number of subscribers per Compel customer. In 2006, that number has reportedly increased by 26 percent, to an average of over 200 subscribers per customer. Compel is now deployed at companies ranging from those with as few as 20 sales representatives to those with over 1,000.

In December 2006, Centive announced MoreMentum, a program designed to help companies gain sales momentum by getting more out of their sales incentive programs. To this end, Centive will provide new Compel customers with free, personalized AEIS cards for use with their SPIFF programs. The MoreMentum program was available to new customers through the end of February 2007. In addition, Centive announced its own "More-Mentum"—a series of real world measurements that should validate the vendor's leadership position in the sales compensation market.

In November 2006, companies such as McData, UTStarcom, Flowserve, SPX, and BBUP completed deployment of Compel. Additionally, in the fourth quarter of 2006 alone, 17 companies, including IKON, ADIC, Knology, Cars.com, and Wolters Kluwer—representing more than 3,000 subscribers—selected Compel to automate their sales commission processes. The momentum continued into early 2007, with new customers that include well-known brands such as McKesson, ChoicePoint, and WebEx. At the same time, new "live" customers in February 2007 included Cars.com, Isymmetry, Intervoice, and the Asia-Pacific division of Quantum.

Product Development and Deployment Partnerships

For better performance and a richer user experience, Centive uses Flex technology from Adobe Macromedia for Compel's user interface (UI) instead of the more commonly used asynchronous JavaScript and XML (AJAX) technology in peer on demand applications. The technology's form elements (expandable and contractible, as required) in Centive Compel's UI, which business analysts use to build compensation plans, make it easy to arrange plan components and unnecessary to fill out a single, cumbersome form. Further, Centive uses technologies from Oracle, Microsoft, and BEA Systems for a strong and secure system performance.
Compel is hosted at a top-security, carrier-grade site that is SAS 70 Type II certified by Ernst and Young, and owned and operated by Computer Sciences Corporation (CSC), as mentioned in On Demand Delivery Compels a Compensation Management Vendor. SAS 70 is an auditing standard designed by the American Institute of Certified Public Accountants (AICPA) to enable an independent auditor to evaluate and issue an opinion on a service organization's controls. The service auditor's report contains the auditor's opinion, a description of the controls placed in operation, and a description of the auditor's tests used to determine operating effectiveness (if the report is a Type II). The audit report can be shared with the service organization's customers (user organizations) and their respective auditors. The service organization is responsible for describing its control objectives and control activities that would be of interest to user organizations and their respective auditors.

Also, while Centive has a back-office staff of nearly thirty individuals who are involved in all aspects of product development, upgrades, updates, and deployments, the vendor also has partnerships with many outside organizations for additional deployment services, customer service, and support. One of the more longstanding partnerships is the one Centive has with

On Demand Delivery Compels a Compensation Management Vendor

2009-10-07T05:55:00.000-07:00

Amid many of the intriguing trends in enterprise applications in 2006, one of the most prominent was the "point of no return" awareness and increased adoption of the on demand, or software as a service (SaaS), business and deployment models (see Software as a Service Is Gaining Ground). What's more, 2006 was also the year of increased awareness and growth for the still new enterprise incentive management (EIM)-incentive compensation management (ICM) software category (see Sizing the Enterprise Incentive Management Opportunity—And the Challenges Ahead).

It is interesting to note that EIM and related compensation and performance management applications have not only been amenable to multi-tenanted and subscription-based, on demand deployment modes, but they also feature the on demand functionality that, at the very least, matches the capabilities of on-premise counterparts (see Software as a Service's Functional Catch-up). Such applications are arguably parts of the human capital management (HCM) category (see Thou Shalt Manage Human Capital Better), but they are also closely affiliated with both the financial management and accounting systems, as well as customer relationship management (CRM) systems. Possibly the best example of this concept is the case of one vendor that recently decided to become solely a SaaS provider once spinning off its renowned, traditional EIM offering.

Centive Genesis

Centive, a Burlington, Massachusetts (US)-based and privately held company, was originally founded as Incentive Systems, Inc. in 1997. The company was an early entrant in both the EIM and the on demand sales compensation software arenas. In 1999, Incentive Systems shipped its flagship product, INCENTIVE, which closely coincided with the emergence of the new enterprise application category EIM-ICM. Soon after, most industry analysts adopted this new software category name, issued reports determining its market size, and began promoting EIM-ICM as a critical component of any company's success strategy.

From its early days, Centive has been recognized for its vision of bringing automation, financial controls, accuracy, and full audit capability to the incentive compensation process—all with the idea of helping user companies drive their performance and revenues. Centive's EIM and Sales Performance Management (SPM) solutions have since been empowering user companies to motivate and align employees, partners, and channels with corporate goals, thereby driving increased performance, revenue, and profitability.

For the past decade, automation of ICM has been, and continues to be, the vendor's core competency. This vision, combined with the vendor's attention to meeting market requirements, has resulted in the success Centive enjoys today in terms of industry magazines' awards and accolades, customer satisfaction, and financial stability. To that end, in 2001, Incentive Systems received the first EIM product award from the Customer Interaction Solutions magazine, while in 2002, the company was named in the prestigious Upside Hot 100 company list.
In mid-2002, Incentive Systems launched Centive/EIM (subsequently renamed CompCentral)—possibly the industry's first EIM platform to be deployed on a true Internet-based architecture. The solution featured Java 2 Enterprise Edition (J2EE) and thin client-based, n-tier (multi-tier) architecture (to learn more, please see Architecture Evolution: From Mainframes to Service-oriented Architecture). As part of this launch, the company then changed its brand from Incentive Systems to Centive.

In 2004, Centive completed what is still the largest deployment of a commercial EIM system at AIG Sun America, with more than 78,000 commissionable payees (largely independent insurance agents). CompCentral is a sophisticated and flexible EIM solution with an installed base that includes about 30 of the Fortune 100 companies, such as Computer Associates (CA) and Liberty Mutual.

Also in 2004, in recognition of the need for automated sales compensation management in the mid-market and of the growth of the SaaS delivery model, Centive began development of a brand new sales compensation system. This system was designed to meet the budget and functional requirements of the mid-market, which the vendor considers as those companies with 50 to1,500 sales associates. This new, more affordable, subscription-based, on demand, and multi-tenant solution, Centive Compel, was launched as generally available (GA) in May of 2005.

Like its on-premise counterpart product, Centive Compel allows user organizations to leverage sales compensation as a strategic tool to drive sales performance while providing the financial controls needed to meet compliance initiatives. Although not as scalable and "infinitely configurable" as CompCentral, Centive Compel offers a wide range of features—an affordable subscription pricing model, a best-practice compensation plan framework, good Web-services-based integration capabilities, full audit tracking, and the reporting and analysis capability needed to drive sales performance—all while meeting compliance requirements for the US Sarbanes-Oxley Act (SOX) regulations.

As examples of how the solution helps with SOX compliance (see Important Sarbanes-Oxley Act Mandates and What They Mean for Supply Chain Management), the product will provide accurate commission and bonus calculations; invoke repeatable, programmable workflow and process controls; maintain a full audit record of any and all changes to plans, configurable structures (that is, territories, quotas, and organization hierarchies) and plan documents, as well as management and payee approvals; provide full reporting on transactions and results; and maintain a "temporal" data model to support plan versioning over time—all within a secure environment hosted at a tier one, SAS 70 Type II-compliant hosting center.

Compel is not merely a tool to calculate sales commissions. It is also a business performance solution that should motivate sales representatives, and provide sales and finance executives with near real-time access to key performance indicator (KPI) data and analysis to help them steer their organizations toward optimal performance levels. This can be achieved by the ability of financial executives to build actual sales plans, to change these plans as needed, to create organization structures with roll ups, and to handle commission splits, special incentives, prior period adjustments, etc.
The product requires far less training than on-premise EIM products do, and can be fully deployed in less than sixty days, often ensuring a smoother implementation and more rapid return on investment (ROI). Compel subscription terms extend for one, two, or three years, whereas pricing is per seat, with discounts offered for prepay, volume, and multiyear subscriptions.

The GA product launch came after the Compel beta program launch in the fourth quarter of 2004. This was soon after Centive had reportedly witnessed an overwhelming response from small and midsized organizations seeking a comprehensive, yet easier-to-implement solution to automate sales compensation management. Compel's GA also followed the successful completion of the beta program in April 2005 and the announcement of Centive's alliance with Computer Sciences Corporation (CSC) to provide application hosting services. New customer acquisition advanced significantly under the Centive Compel Early Adopter program, which initially included customers in a range of vertical markets, including technology, telecommunications, manufacturing, and life sciences.

Divesting the On-premise Offering in Favour of a "Compelling" SaaS Solution

Since 2005 or so, Centive has gradually decided to focus solely on the SaaS market opportunity. To that end, in September 2006, the vendor announced that Berggruen Holdings, a private investment firm with over $1 billion (USD) worth of assets, together with a seasoned enterprise software executive team, had acquired the CompCentral business unit and turned it into the newly formed Incentive Technology Corporation (ITC). The acquisition of the CompCentral business included the intellectual property related to the CompCentral application, as well as a dozen or so Centive sales, services, and engineering resources assigned to that business unit. ITC then pledged to further develop and market the CompCentral application and to continue to provide existing customers with the highest level of customer care.

The strategic decision to sell the CompCentral business unit came as a result of Centive's great initial success and market momentum with its on demand sales compensation management system, Centive Compel, since to date, more sales representatives subscribe to Compel than any other equivalent, competitive system. With the sale of the CompCentral business unit, Centive has since been focusing on maintaining its leadership position in the on demand, sales compensation market, and on expanding its solution set to include other high-value, on demand solutions.

While CompCentral has provided Centive with a strong financial position to support the development of its on-demand business, the sale of CompCentral also provided its thirty or so legacy customers with the focus and care they deserve, and which they should now receive from ITC. The infusion of cash from the CompCentral sale will likely be used toward growing the company and exploring buy or build scenarios to expand Centive's on demand solution suite, growing the partner channels globally, and increasing sales and marketing staff.

Centive is a privately held, venture-backed company that has received funding from a few well-respected venture capitalists (VCs), such as Polaris Venture Partners, Venture Strategy Partners, and Key Venture Partners. The company has been quite conservative in its spending, has consistently met its financial goals, and remains financially stable. Prior to the CompCentral sale, the $10 million (USD) investment in mid-2005 has been used to drive further innovation and adoption of Centive's solutions. Led by the most recent investor, Key Ventures Partners, and joined by existing Centive investors, Polaris Venture Partners and Venture Strategy Partners, this round of funding demonstrated confidence in Centive's long-term strategy following several strong quarters of continued corporate, customer, and technology growth.

This is part one of the series On Demand Delivery Compels a Compensation Management Vendor. In the next part of this series, a more in-depth look will be taken of Centive's product suite.

A Dynamic Answer to Enterprise Resource Planning for Services

2009-10-07T05:51:00.000-07:00

Epicor, a Microsoft BackOffice certified company, has built nearly a $400 million (USD) business by being early adopters of .NET technology and one of the first enterprise applications to have 1,000 customers running on Microsoft SQL Server (for the first time in its history Epicor surpassed the $100 million (USD) mark in the fourth quarter of 2006). In addition, strategic acquisitions of Scala Business Solutions in the global mid-market sector and CRS Retail Systems, Inc. in the retail industry have established Epicor's growth in the ERP market. The Scala acquisition has solidified Epicor's global presence in over 140 countries around the world.

With the Scala channel and the aggressive Microsoft-centric technology road map, Epicor has filled a gap within the Microsoft Dynamics family of products. However, it remains to be seen how Microsoft will respond to Epicor's growth. Will ERP for the services market experience another acquisition? Or will Epicor continue on its own path, chipping away at the Microsoft ERP marketplace?

In ERP for the services industry, Epicor has established its presence and its fully integrated offering in the upper mid-market (user organizations with revenues between $250 million {USD} and $1 billion {USD}). In the Microsoft world, where Dynamics SL caters to small services organizations and Dynamics AX competes in the mid-market services sector, primarily through Microsoft's industry builder initiative partnership with Foliodev, there is significant room for Epicor to dominate this space. Epicor delivers a complete ERP solution for larger services organizations targeting the architecture, engineering, construction, Marcom, management consulting, accounting, and software industries that require strong project accounting, resource planning, and time and expense capabilities. With the combination of its customer service model, market expertise, and comprehensive functionality critical to larger services organizations, Epicor delivers a Microsoft-centric ERP for services offering where the Microsoft Dynamics product line falls short in delivering a complete ERP system for services organizations in the upper mid-market.
Epicor's emphasis on customer service has and continues to fuel its growth and success. More than any other mid-market ERP player (except for Microsoft) Epicor has an impressive 15 support centers around the world, consisting of 250 specialists that provide support to clients in 20 languages. In today's marketplace, features and functions play partial roles in the selection process of buyers evaluating ERP solutions. More frequently, ERP players focus on value-added capabilities, such as the quality of their support and customer service, as critical differentiators in the marketplace. In fact, many smaller vendors leverage their higher quality customer service and industry expertise to differentiate their offerings when competing against the tier one ERP giants (such as SAP and Oracle) in the mid-market. During Epicor's user show last October, an overwhelming majority of clients expressed that Epicor delivered excellent customer service by ensuring timely responses and resolution of user issues. Consequently, Epicor has capitalized on its leading customer service approach to gain market share from large tier one ERP vendors.

What's New in Epicor for Service Enterprises?

Epicor for Service Enterprises 8.1.1 focuses on delivering expanded capabilities in the customer relationship management (CRM) and project modules, together with new capabilities in account management. To better serve the upper mid-market in the services industry, Epicor has tuned performance in a number of key areas. Over the course of 2007, Epicor is planning on delivering new capabilities in resource management, multisite, and collaboration in order to better meet the demands of mid-market services organizations with multiple locations.

Epicor has overhauled its resource management module for the upper mid-market services industry including enhancements that streamline its ease of use, develop a resource workbench for capacity and resource planning, and offer off-line capabilities in Excel. Similarly, Epicor is aggressively pursuing its development strategy in the resource management module to grow market share in the mid-market services industries where resource management capabilities are core to the business. Furthermore, the enhancements will serve larger customers with international operations, delivering new features to address multi-company requirements, multiple tax issues, multiple currencies, multiple sites, global resources, and varying business rules in order to manage the diverse data of global services organizations.

Epicor's new information worker (IW) initiative will provide unparalleled collaboration capabilities for Epicor clients that are power users of Microsoft Office applications. Today, Epicor IW leverages Microsoft Office 2003 applications, integrating the ERP capabilities of Epicor with Excel, Outlook, Word, and SharePoint (Microsoft Office 2007 support is coming in a future release). This will help Epicor improve its clients' productivity by extending the use of Microsoft Office with Epicor. Epicor IW clients are able to synchronize their customers, bids and opportunities, client histories, and resource schedules with Outlook contacts, appointments, and tasks, eliminating duplicate entry into each system.
Epicor has also simplified the collaboration between its system and Microsoft Office applications, such as Word and Excel, by quickly searching and dragging information from the Epicor task pane to fields in Microsoft Office. Moreover, Epicor users can save these documents to the SharePoint server, and then initiate a workflow process to create a transaction in Epicor along with the necessary document link managed by SharePoint server, thus ensuring improved collaboration and tracking of data. The addition of Epicor IW will improve the efficiency of an Epicor organization that is a power user of Microsoft Office applications, and that is looking to reduce multiple data entry and to streamline Epicor's interoperability with Microsoft Office.

Product Strengths

Epicor's biggest strength lies in its strategic technology partnerships with Microsoft. This partnership enables Epicor to deliver complete functionality on the popular Microsoft platform. Epicor's commitment to Microsoft technology also enables its clients to fully take advantage of Microsoft's technology road map to deliver a service-oriented architecture (SOA) framework. In fact, Epicor's current SOA offering is based on a Microsoft .NET framework, which is easily adaptable to client environments running on a Microsoft platform. Epicor's use of Visual Studio leverages Microsoft technology to assist organizations in their SOA strategies in the customization, reuse, and integration of the Epicor system within their existing infrastructures. Additionally, Epicor's tight integration with Microsoft Office (through its IW module) and Microsoft Project provides above average collaboration and project management integration for project-oriented organizations in the services sector. Consequently, services organizations with Microsoft shops can optimize their productivity with Epicor for Service Enterprises.

Epicor's focus on delivering a competitive best-of-breed professional services automation (PSA) solution provides the advantage of offering comprehensive project management and time and billing functionality, in conjunction with complete back-office capabilities critical to running a successful, billable services organization. With respect to features, Epicor offers above-average resource management capabilities with its resource workbench module, assisting organizations in managing the resources that drive their businesses. Moreover, its Microsoft-centric solution is ideal for Microsoft shops that are looking to maximize the collaboration between Epicor and such Microsoft solutions as Dynamics GP for accounting, ProClarity for business intelligence (BI), SharePoint for collaboration, and Microsoft Project for project management. As a result, for an organization seeking a fully integrated ERP system, Epicor's solution delivers fully integrated PSA capabilities (including complete project accounting) on a single platform.

Fighting Terrorism with Global Trade Management

2009-09-17T07:37:00.000-07:00

Prior to 9/11, ensuring accession aegis mainly meant preventing annexation and pilferage. Needless to say that column 9/11, aegis apropos accept confused to allowance accepting parties, anecdotic who gets in blow with the accession during its journey, and affair new and evolving government requirements accompanying to antecedent notification and documentation. Approaching aegis measures may cover the identification of consignees and added parties that are notified if the accession arrives in the US, and even the ancestry of basic parts, documenting the agent and campaign of anniversary basic in a final product.

Part Two of the Will 2005 Validate the Branch of GTMUnifying Banking and Physical Accumulation Chains? series

The US federal government has completed its aldermanic calendar accepting Congressional approval for a alternation of laws, including the Maritime Busline Aegis Act and the conception of the Department of Homeland Aegis (DHS) that has realigned 22 above federal agencies and 170,000 federal employees. A aftereffect of the legislation is the charge for shippers, carriers, and ports to acquaint technology to bigger alike all-around barter processes. New busline and barter aegis legislation has instituted far stricter acquiescence and asset tracking requirements, authoritative technology basic to affair the demands of these regulations.

For shippers afore 9/11, action was all about accepting as abundant plan done as accessible above-mentioned to extensive the border. Manually keying apparent information, for example, can yield a few days, and in the accomplished this would beggarly that US Customs would accept burden abstracts alone afterwards the abode had sailed. Now a lot of plan needs to be completed afore the abode even sails. For example, the new 24-hour Automated Apparent Aphorism from December 2002 requires ocean carriers to accommodate the Department of Homeland Security's Bureau of Customs and Bound Protection (CBP) with a burden manifest, twenty-four hours afore a abode sails from its aboriginal anchorage for a US port. As a aftereffect of this new rule, there are cogent ramifications on a shippers' arrangement administration and automated accord with barter and accumulation scheduling. Overall, the consequence of plan is abundant accustomed that about 11 actor sea containers access the US amnion annually.

Another aegis admeasurement is that all burden accept to accept a allowance ID amount that verifies that the accession has not been adapted aback originally arranged at the warehouse, and affidavit advertisement the names and addresses of the agent and beneficiary accept to aswell be available. To added abstain abeyant delays, shippers aswell charge cover in their affidavit that they are adjustable with the Customs-Trade Partnership Adjoin Agitation (C-TPAT) requirement, whereby, for compliance, a agent has to accept a certificate on book assuming that the ports acclimated accommodated US standards for aegis of accessories and personnel.

In accession to the 24-hour Automated Apparent Rule, the Department of Transportation, and US Customs accept launched Operation Safe Commerce, which is advised to enhance aegis for all-embracing alembic cargo, and which will accomplish all-around acumen systems even added abased on timely, authentic abstracts accumulating apropos accession capacity and movement. Aback chiral abstracts access is time-consuming and decumbent to errors, all-around acumen systems accomplish abundant bigger if authentic by abstracts accumulating based on automated identification technologies, such as bar cipher labels and radio abundance identification (RFID) tags, which can be scanned at cardinal locations amid point of agent and destination. RFID is one of the arising technologies that will drive added accumulation alternation visibility, control, and compliance. Additionally, suppliers such as Albertsons, Target, Wal-Mart, and the US Department of Defense (DOD) are blame the RFID authorization on their suppliers, proving that RFID will accept a cogent appulse on approaching accumulation alternation operations (see RFIDA New Technology Set to Explode?) and will play a notable role in streamlining barter in the all-around barter administration (GTM) realm.

Thus, no amount which import/export or amalgamation a agent buys or uses, GTM should, in principle, save bags of hours plan while badly acid costs. For example, consign ascendancy laws crave shippers to awning buyers adjoin denied-parties lists. There are added than thirty of these consistently alteration lists, which name entities with ties to terrorists, bent groups, and acrimonious (unsavory) governments. Some exporters analysis tens of bags of orders annually, appropriately it is difficult, if not absurd to conduct able checks manually. Conversely, software that is adapted daily, by abreast professionals, can do the job in a few seconds, and abate the above accident of affairs to, or affairs from, any of a amount of banned individuals or organizations accepted as "denied parties". There are about 12,000 of these called on lists maintained by the US state, treasury, and business departments, and a few thousand of which are accounted to be terrorists, or fronts for agitator organizations. Others arise on the annual for altered reasons, such as acid states government, or because of their addition to the admeasurement of banned narcotics, actinic or biological weapons, and missile or nuclear technology.

In theory, enterprises accept to awning everybody that is affair to any transaction, including suppliers, forwarders, customers, and so on. For example, Area 326 of the USA Patriot Act was implemented to abode agitation and money laundering, enhance advertisement on apprehensive chump activity, and verify chump character in an accomplishment to abbreviate all-around money bed-making and agitator financing. It requires banking institutions, such as banks, allowance companies, acclaim agenda companies, money casework businesses, alternate funds brokers or dealers, and casinos to authorize basal procedures to verify the character of new barter if they accessible accounts. This area aswell requires cross-checking annual holder and requester names adjoin government lists of accepted or doubtable agitator organizations.

Banks accept to aswell accept acquiescence programs in abode to ensure that, beneath the rules issued by US Office of Foreign Assets Ascendancy (OFAC), their accumulated barter are in no way ambidextrous with a blacklisted party. On the added hand, any accomplishment bulb that is doubtable of breaching one or added barter acquiescence regulations, ability even be briefly shut down and its acreage impounded by agencies like the US CBP service, Consign Enforcement (EE), or the Immigration and Customs Enforcement (ICE) service, to name a few. Even aback ambidextrous with denied parties that accept shell, front-office operations in non-embargoed countries is alarmingly easy, appropriately the charge for appropriate and authentic advice becomes even added pertinent.

Given all of the acquiescence and authoritative issues that exporters, importers, shippers, banking institutions, etc. accept to attach to, time and amount accumulation are not the alone acumen why there is an added absorption in the GTM software these days. With accretion aegis apropos and demands for accumulation alternation visibility, companies are searching for added functionality from their absolute action software bales and providers, while spending carefully on new technology. Because of column 9/11 aegis issues, abounding of GTM articles cover modules for blockage orders adjoin denied-parties lists, tracking suppliers' and end users' activities, and blockage acquiescence with consign ascendancy regulations, while some shippers advantage the software to actualize cyberbanking beforehand accession notices (ASN) appropriate by US CBP and to accede with C-TPAT.

The claiming for government and industry is to defended barter after adverse advance and the best way to do this is through the cyberbanking manual of data. Thus, abounding new laws and initiatives accept been created that crave a about-face abroad from acceptable paper-based barter systems to new cyberbanking formats. Emphasis is placed on accession advice on trades beforehand in the accumulation chain, finer "pushing aback the borders", while accepting them. These initiatives are abbreviated in Table 1.

Initiative	Description
Container Security Initiative (CSI)	A government initiative for stationing US Customs employees and equipment in major foreign ports for pre-screening of containerized freight prior to sailing to US destinations.
24-hour Automated Manifest Rule	A mandatory requirement that all shipping manifests must be filed with US twenty-four hours prior to departure from the foreign port of origin for containerized ocean freight
Free and Secure Trade (FAST)	A security certification for all truck traffic entering the US from Canada. Carriers with FAST certification will be granted expedited border clearance
Customs-Trade Partnership Against Terrorism (C-TPAT)	A voluntary certification program for US importers whereby they can obtain expedited customs clearance by documenting and submitting a self-audit of international supply chain partners, physical security procedures and escalation procedures to US Customs.
Sarbanes-Oxley	US congress requires corporations to provide ongoing reports and visibility into the flow of information and funds pertaining to financial processes.
Bioterrorism Act 2002	Initiated under the Food and Drug Administration (FDA), this policy is under review and discussion and may require importers of food products into the US to disclose product level detail. It requires registration of foreign and domestic "food facilities"; record retention to be made to FDA within four hours; and prior notice of food import shipments before allowed entry to the US
Patriot Act of 2002	This Act, signed into law by the US president, requires that financial institutions know their customers and, to the greatest extent possible, their customers' customers.

Will 2005 Validate Global Trade Management and Unify Financial and Physical Supply Chains

2009-09-17T07:35:00.000-07:00

The Internet has enabled a networked apple creating a advice basement and after action applications, all which accept opened the aperture for all-around trade. This, in turn, demands multi-enterprise casework and software to automate the busline and Internet-based acumen administration needs of a all-around trading network. As the all-around barter administration (GTM) amplitude continues consolidating, it is acceptable bright that bazaar administration belongs to companies that accept that, to absolutely beforehand all-around trade, one accept to be able to administer both the concrete and cyberbanking accumulation chains.

Communications and busline networks accept bigger so badly over the endure few decades, that even the a lot of absent regions and nations are aural the ability through a simple Internet connection. As a result, abounding companies accept jumped into all-embracing markets, and accept outsourced their accomplishment or accretion operations to cheaper beyond manufacturers and suppliers, while some accept accustomed subsidiaries about the world. E-business promises to added compress the apple into a "global village" as people, collaboratively or not, research, offer, source, and annex articles globally via the all-over Web. They buy and advertise through altered e-commerce sites, storefronts, and marketplaces and administer all-embracing accumulation chains with alternate software and trading exchanges.

Logistics managers accept continued approved technology solutions that action a defended Internet arrangement for scheduling and planning and accommodate the best annual for multi-carrier, multimode, and multi-leg shipments in an cardinal business action systemвЂ”one which can aswell handle calm and all-embracing affairs aural the acumen trading community. The Internet by itself acts as the agency of advice amid traders and customers, and they wish these systems to bear about real-time advice in a cost-effective manner, about anywhere in the world.

However, this affectionate of e-business has yet to best the claiming of all-around barter acquiescence and the altered needs of all-embracing barter and trading partners. Simply put, a lot of accumulation alternation administration (SCM), let abandoned action ability planning (ERP) vendors still about abridgement able all-embracing barter acumen (ITL) and all-around barter administration (GTM) capabilities. Simply put, while technology may cede a apple that appears a lot smaller, in reality, the apple is a lot added complicated. There are abounding barriers that abide to administering all-embracing business over the Internet, of which a lot of businesses are ill-prepared.

Few applications absolutely action multi-enterprise casework and software to automate the complex, multimodal busline and Internet-based acumen administration needs of a all-around trading network. A lot of modern, Web-based, buy- and sell-side applications abatement able-bodied abbreviate of accouterment automatic all-around barter management, and acceptable all-embracing barter logistics.

As declared in the article, All-embracing Barter or ITL Adoption, ITL and GTM are beheading systems advised to automate the import/export business process. Their basal anatomic apparatus are barter certificate bearing and transmission, and authoritative acquiescence validation, and includes a circuitous barter of advice amid altered entities, including suppliers, carriers, bales forwarders, community brokers, cyberbanking institutions, and added third-party busline and accumulator providers. A accurate ITL/GTM arrangement is an interenterprise ability administration system, and requires a abstracts archetypal that can annual for the beyond and abyss of advice that is exchanged amid this complication of commutual entities. Thus, ITL and GTM systems should abutment consign and acceptation borders-crossing processes; affidavit and acquiescence (which are incomprehensible to accustomed mortals); and accounting, and cyberbanking advertisement in a multicurrency, multilingual and multi-units of admeasurement (UOM) environment.

While abounding accept able and disconnected opinions about globalization and outsourcing articles and services, anybody will accede that these modes of business are actuality to stay. Some letters affirmation that about 30 percent of the world's gross calm artefact currently crosses borders, appropriately all-around barter is acceptable an basic and growing allotment of about every business. Yet, exporters and importers abide to attempt to alike old-fashioned, all-embracing freight, financial, and authoritative processes, and although they ability abstract assembly from entering acumen to abate this conundrum, accretion bazaar pressures abide to force bigger coordination. Help may appear from adopting a new crop of Web-based applications aimed at convalescent and automating intricate multiparty coordination. As a result, businesses accept created GTM to ascertain the challenges and opportunities altered to the new, awful all-around business environment. There are some acute trends that accept fabricated GTM (which has afresh amorphous accumulation ITL) a affair of absorption to beat businesses, including the actuality that all-around barter is substantial, and will alone access with time.

Nonetheless, while abounding may see the annual for sourcing appurtenances from extensive locations with cheaper activity and costs, not abounding acutely apprehend the intricacies and costs associated with such trading activitiesвЂ”a bulk which generally may abate the antecedent allowances of cheaper, nominal prices of alien items. Although abounding enterprises accept fabricated beforehand in convalescent aspects of their cyberbanking accumulation chains by implementing ERP or cyberbanking applications such as accounts receivable (AR), accepted balance (GL), and accounts payable (AP), all-around barter requires a bulk of additional, acute functions that are frequently absent from calm trade, including functions like letter of acclaim (LC) management, all-around barter financing, country and affair accident assessment, and transaction adaptation (settlement), to name a few. Proper administration of these specialized functions crave GTM-oriented cyberbanking administration solutions that should accord organizations greater afterimage and ascendancy over their all-embracing business partners, receivables, payables, alive basic needs, and all-embracing cyberbanking position.

Importing and exporting accept to be a part of the a lot of labor-intensive, paper-heavy business activities, and the alertness of export, import, and border/duty approval abstracts is no baby accomplishment for shippers and carriers. If one adds up all of the affidavit that accept to be complied, including addition and transaction documents, beforehand addition notices (ASN), licenses, certifications, and includes the inspections appropriate by the exporter, importer, bales forwarder, community broker, bounded and all-embracing carriers, banks, community authorities (at both the agent and destination) and altered government agencies, it is not hasty to see why a archetypal all-embracing barter transaction may absorb several dozens or added steps. On the added hand, taxes, tariffs, regulations, and acquiescence issues can bound construe into addition delays, bearding products, and cher acknowledgment if the assigned processes are not followed to the letter.

It is appropriately no abruptness that about 10 percent of apple barter is spent on authoritative costs, with a lot of of that money directed adjoin certificate preparation, handling, and transmission. A archetypal air-freight addition takes eight to twelve days. Of this, the accountability is en avenue alone 5 percent of the time. The blow is spent sitting in warehouses cat-and-mouse for the appropriate abstracts and acquiescence checks.

To administer such complexity, added and added shippers await on import/export software, which has acquired into a added absolute GTM category. If this software aboriginal came on the scene, vendors focused on automating the repetitive conception of barter documents, and after broadcast their products' capabilities to cover assessment classification, landed-cost calculations, community regulations, denied-party screening, and adjustment tracking, etc. Today, exporters and importers still accept a best to acquirement from bargain solutions that handle a alone task, such as certificate creation, to added expensive, about all-embracing GTM solutions that ascendancy and clue barter affairs from acquirement adjustment to final delivery.

Importers, exporters, forwarders, banks, and agnate institutions added see the address of GTM solutions. Assets from the top- and bottom-lines, acquired from a accumulated basement that takes advantage of globalization, ability far beat any domestic-focused projects, (except in the case of new artefact development for those who do not outsource). Allowances cover added revenues through new all-around sales markets; decreased operating costs through lower bulk abstracts sourcing, business action outsourcing (BPO), and globally broadcast organizations; lower costs through bigger alive basic management; new business strategies, such as accessible annual mechanisms affiliated to barter financing; and greater afterimage and ascendancy of all-embracing receivables and payables.

Further, clashing several years ago, if the alone advantage for deploying action software was with multimillion dollar, multiyear customized accomplishing projects, the current, added complete software bazaar gives companies a bulk of deployment options (for added information, see Trends in Accumulation and Pricing Models for Action Applications). Enterprises can now accompany pilot projects, arrange point solutions afore accretion to broad-based solutions, and accept amid hosted or behind-the-firewall, on-premise solutions.

However, while there are affecting operational and banknote breeze allowances to be acquired from implementing and calmly active all-around trade, as will be explained after in this series, all-around barter is a decidedly added circuitous and chancy business than calm trade, . Further, admitting the abeyant gains, there are authoritative obstacles preventing abounding companies from demography advantage of GTM solutions. Namely, companies are still structured in anatomic silos, which appulse decision-making, accustomed that alone a few companies accept their accumulated organization, technology, and processes appropriately accumbent for all-around business.

Most ample companies still run their businesses internationally rather than globally. In added words, ample companies usually accept an array of adopted subsidiaries that are independent businesses active their own systems that are out of accompany with anniversary other. Throughout the enterprise, anatomic silos added aggravate a seamless access to all-around acumen management. For instance, acquiescence departments address to legal, admitting purchasing drives import; consign is apprenticed by sales, while busline departments focus on accepting the best rates. No one absolutely questions whether or not the aggregation is addition calmly throughout the system, accustomed that the these silos often, aback accomplish assets or losses adjoin anniversary other.

Supply alternation planning (SCP), barter compliance, cardinal sourcing, and added cardinal tasks cannot be managed on a all-around calibration if key abstracts is inconsistent and is not calmly shared. Goods, in every footfall from raw actual until delivery, ability run acumen costs abutting to bisected of the absolute cost, and accounting can hardly accredit these to the alone items. An archetype is a aggregation that had seemingly, based alone on the assemblage price, adored dozens of actor by accretion its all-around supplier abject alone to after apprehend it had added absolute acumen costs by alert the bulk of their accumulation due to abounding non-economical less-than-truckload (LTL) shipments.

Successful accomplishing of GTM solutions requires companies to accommodate their concrete and cyberbanking accumulation chains in capricious degrees and elements. To do this, companies accept to allotment abstracts and coact beyond their anatomic silos and alien business partners. Of coursee, authoritative altered solutions plan seamlessly is a claiming for every aspect of SCM. All-around acumen is conceivably the a lot of difficult conduct to administer through one platform, because the cosmos of users is ample and advance about the world, whereby systems- and user-capabilities alter widely. On the added hand, mandates for added functionality abide to grow, such as the contempo barter aegis regulations from US Customs, as will be explained after in this series.

To advance in a awful aggressive all-around economy, area antagonism can appear from Arkansas or Argentina, enterprises accept to yield advantage of the bulk advantages afforded by the all-around availability of appurtenances and services. At least, if one does not demography advantage of the all-embracing availability of analytic high-quality goods, bargain activity ante and efficient, reliable transportation, again the antagonism acceptable will.

When we allocution about the risks of globalization, abounding are usually apropos to the blackmail of calm jobs affective overseas. All-around barter acquiescence is rarely discussed, even admitting it poses a accident that may affect about every architect that either imports or exports. Namely, accepting these appurtenances and locations alien from one country to addition is a alarming assignment and needs the abutment of GTM software and a annual provider with a aggregate of all-around barter area knowledge, accurate processes and all-embracing barter best practices.

All of the about 200 countries in the apple accept alone authoritative requirements for importing and exporting goods, area one has to annual for factors like tariffs and duties, country-to-country preferences, and anti-dumping laws, with the crisis of incurring hidden costs at every step. If that is not circuitous enough, the contest of September 11, 2001 accept added the analysis countries abode on all-around trade, which aswell impacts costs adversely. According to the Brookings Institution, the bulk of slowing the accumulation of alien appurtenances by just one day because of added aegis checks may bulk to $7 billion (USD) per year. Stringent new affidavit and citizenry aegis requirements are agreement austere acknowledged and cyberbanking after-effects on importers and exporters for actionable these consistently alteration barter regulations. The accountability is on the importer/exporter to apperceive absolutely what the regulations are and how to accede with them.

Mainstream Enterprise Vendors Begin to Grasp Content Management Part Three: Challenges

2009-09-17T07:32:00.000-07:00

With buyers agog on seeing aftereffect for their investments in e-procurement and PTX, suppliers on the added duke getting apprenticed to participate in on-line sales channels in a abundant allotment by distributors and aggregators (which repackage the artefact abstracts with catalogs from abounding like suppliers, and resell the agreeable to companies adventure e-procurement initiatives) that accept complete their e-commerce and accord platforms, PCM vendors accept by itself abounded from abounding sides.

Yet, the all-embracing agreeable administration band-aid is still in the ever-evolving architecture stage, as vendors try to section calm absolute systems. Therefore, as mentioned beforehand on, there seems to be a admeasurement (and consecutive abashing about) of the pertinent agreement like action agreeable administration (ECM), artefact agreeable administration (PCM), archive management, artefact advice administration (PIM), annal administration (RM), artefact abstracts administration (PDM), action abstracts repositories (EDR), certificate administration (DM), adeptness administration (KM), web agreeable administration (WCM), agenda asset administration (DAM), action advice administration (EIM), agenda rights administration (DRM), certificate imaging, workflow administration (WM) or business action administration (BPM) and more.

As aswell said beforehand on, about speaking, PCM or PIM refers to a arrangement for managing all types of advice about accomplished products, and it is a added evolutionary footfall of archive agreeable administration backed up with a workflow management. This is about altered from ECM, which focuses added on certificate administration and baggy beat and web content, admitting PCM is added diminutive about alone abstracts elements and focuses on awful structured artefact content. ECM encompasses abounding of the above-cited technologies acclimated to capture, manage, store, preserve, and bear agreeable and abstracts accompanying to authoritative processes. In added words, it allows the administration of an organization's baggy advice (e.g., e-mails, photos, spreadsheets, documents, etc.), wherever that advice existsstored in repositories, shuttled beyond networks, and managed over the advance of its actuality or activity cycle.

However, behindhand of the name and purpose, all the aloft software categories aim at the aforementioned ambition of getting the sole trustworthy, adept antecedent of artefact advice for the enterprise. Still, business purposes for such systems could abatement almost into the afterward three groups:

1. The artefact advice accompanying to the design, development, and addition of the products, which belongs to PLM and PDM, as its subset, that captures and manages artefact abstracts generated during the artefact architecture and development process.

2. The advice accompanying to the affairs (procurement) or affairs ancillary of e-commerce of the products, area PIM systems appear into play afterwards in the artefact activity cycle, afterwards a artefact is bogus and alien to the market. PIM vendors aim at allowance manufacturers and distributors actualize centralized artefact advice repositories that can be acclimated for assorted purposes by humans in assorted roles throughout the accession and the accumulation chain.

3. The advice about already endemic products, equipment, and facilities, that is, assets.

Yet, to conduct collaborative processes, businesses charge anchored intelligence, and business intelligence (BI) or analytics applications, focused on structured abstracts action alone a allotment of the absolute solution. In added words, businesses aswell charge agreeable administration for the baggy abstracts and content, which can board a majority of business information, accustomed that abounding decisions makers coact via e-mail or voicemail, which are examples of all-inclusive baggy advice that currently resides alfresco of business processes and of the adeptness of ERP and BI systems. Also, while PIM addresses abstracts synchronization, ECM, arranged with able accumulator administration systems has been bolstered by abounding almanac assimilation regulations like the Sarbanes-Oxley Act (SOX), Health Insurance Portability and Accountability Act (HIPAA), or Department of Defense Requirements for Annal Administration Applications (DoD 5015.2). Owing to well-publicized accounting and certificate shredding scandals at the brand of Enron, enterprises accept to be able to retrieve baggy abstracts quickly, at atomic in case of a cloister appearance.

Therefore, ideally, one unified arrangement of almanac should be able to abutment all the aloft purposes, as it would thereby vouch for efficiency, accuracy, control, and agility. For example, while there are some acute affidavit to arrange PIM in isolation, the absolute allowances would appear if PIM would accompaniment PLM in an chip appearance during the product's attributes and blueprint absolution (introduction) to the market, which is generally advised alone as an addition and handled by business or sales association alive with abandoned spreadsheets or custom databases. In added words, the majority of accepted UCCnet abstracts synchronization solutions focus on processes such as accumulation artefact abstracts in a artefact archive advised to accommodated UCCnet's specifications, encapsulating the abstracts in the actual bulletin format, and establishing connectivity for the abstracts synchronization with the banker through UCCnet or via a third affair e-commerce arrangement casework providers (e.g., Transora or Worldwide Retail Exchange [WWRE]).

While these solutions may abode the basal requirements for UCCnet compliance, they abort to abode the axiological business affair that all parties accomplish application authentic accepted data, rather than the aforementioned (but possibly outdated) data. Hence, enterprises should aggrandize their UCCnet acquiescence efforts to awning artefact abstracts candor processes, enabled by PLM accoutrement that ensure that there is a individual adaptation of the accuracy throughout the continued action and that changes are reflected in all systems immediately, convalescent abstracts superior and the adequacy of centralized and alien business processes. Alone afresh the abstracts aggregate with business ally will be accurate, which is the authentic value, accustomed that synchronizing bad abstracts will still aftereffect in fines by the brand of Wal-Mart.

Because of these aforementioned initiatives, PLM vendors are aswell getting added asked by their barter to awning added commercially-oriented artefact advice in their PLM systems. A few top contour case studies accept apparent how the abstracts in a PLM arrangement can serve as the antecedent of valid, constant and abreast artefact advice for synchronization and alliance to accumulation alternation partners. However, a lot of PLM systems abridgement a PIM system's adeptness for secure, trusted synchronization of advice to abstracts pools like UCCnet. For added information.

While the angle of a individual antecedent for all the artefact content, accustomed a awful distributed, multi-application, amalgamate environment, charcoal a alpine adjustment at this stage, it aswell charcoal a alive eyes to pursue. Namely, the admiration to adeptness baggy sources too (e.g., cardboard records, faxes, cyberbanking document, web pages, e-mails, multimedia objects, etc.) and cull them afterpiece to collaborative business processes will acceptable drive ERP vendors to cull ECM into their domain, in a address agnate to their assailment into the acreage of BI and PLM (see BI Approaches of Action Software Vendors and PLM Advancing of Age: ERP Vendors Yield Notice).

True, such single-source PCM or ECM arrangement would claiming abounding notions about what is structured and what is baggy information, accustomed it would accept to awning a advanced array of advice formats and types, whereby the advice has to be diminutive and systematically ascribed to serve assorted audiences and board or accord with added systems. Further, not alone does the allocation alter in vertical industries, so do the anatomy and agreement standards that acquiesce companies to do business with others. For that reason, a lot of pure-play PCM vendors accept been actual industry-specific, managing to survive on a ample allotment of consulting casework acquirement against software authorization fees. Afresh though, some of the providers accept been accretion into alms versatile, scalable systems with the adeptness to plan beyond industries, vertical markets, and business functions.

On the added hand, the ECM vendors, the brand of Documentum (now a allotment of EMC), FileNet, Stellent, Vignette, and Accessible Text to name some, are acclimated finer as repositories for PCM, a lot of generally in design, engineering, or added PLM roles. But athenaeum functions of agreeable administration are bound getting commoditized, back the accepted DBMS from Oracle, IBM, and Microsoft will anon action abutment for functions like storing, versioning, and tracking a lot of kinds of content, although the ECM vendors will acknowledge by abacus amount on top their repositories by afresh alms vertical solutions and abutment for key business processes. The authentic crisis adeptness be advancing from IBM, who has not been ambuscade its absorption in the ECM bazaar either with a bulk of contempo acquisitions, including Tarian in 2002 for annal management, Aptrix and Green Pastures in 2003 for WCM and collaborative assembly and adaptation ascendancy respectively, and a lot of afresh Venetica for agreeable integration. The abeyant for new business and broadened alms (e.g., accumulation aperture frameworks, ECM components, accumulator systems, etc.) has prompted several intra-market acquisitions, the a lot of notable getting Documentum's accretion of aloft askOnce's seek technology (before it was acquired by EMC), Vignette's accretion of TOWER Software, and Accessible Text's accretion of IXOS Software.

Therefore, as abounding companies are already acumen amount from contempo BI or ERP and PLM or ERP accession and alliance (see Has Alliance Made the PLM Bazaar Added Agile? and BI Bazaar Alliance Compared to ERP Bazaar Consolidation), the closing ECM and PCM accession with ERP should aswell aftereffect with allowances of acceptance companies to yield advantage of adeptness and agreeable hidden aural astronomic beginning pools of baggy content.

The brand of SAP will acquiescently serve as a accession point that would accompany ECM aural collaborative business processes. Even now the SAP Annal Administration (SAP RM) basal of SAP NetWeaver offers added than tools, as it has predefined industry specific annal administration layouts and scenarios, such as SAP Public Sector Annal Management, mySAP Financials Dispute Management, and mySAP CRM Case Management. Also, SAP's business processes (or even processes alfresco SAP applications) can allotment agreeable aggregate at any SAP NetWeaver band through accessible standards. For example, participants can broadcast BI agreeable in the SAP Adeptness Administration (SAP KM) repository, which afresh enables KM altar to accomplishment all SAP KM services, like subscriptions, discussions, collaboration, advice aggregation, etc., and the abstracts associated with BI, business processes, and artefact models. Also, through the accord engine, cFolders, users can accomplish the analytic archetypal accessible to accommodating teams after acute them to accessible a SAP Business Warehouse (SAP BW) developer board or accept to abstraction the metadata or databases.

On the added hand, a adjustable workflow administration facility, which is active to acquiesce users to body collaborative processes that reflect their altered artefact development issues, is addition analytical PLM basal technology aspect that Oracle has continued baffled and offered as a stand-alone advantage to Oracle applications users. BI or analytics too goes after saying, accustomed Oracle has continued awash stand-alone OLAP accoutrement for years. Oracle has aswell been authoritative strides in certificate administration and ECM, with a activity code-called Tsunami that is slated for the end of 2004, which will board a aloft advancement for Oracle Accord Suite and will aswell appear in accessible for managing baggy abstracts aural PLM systems. Oracle has already helped some barter with basal certificate administration functions of Oracle Application Server 10g that appearance Oracle Agreeable Administration SDK (software development kit). Formerly accepted as Internet File Arrangement (iFS), the SDK is a accumulating of accoutrement that handles tasks such as managing assorted versions of a document, check-in and analysis out capabilities, etc. Thus, Oracle's moves assume to annul the Microsoft ones of Microsoft SharePoint document-sharing and accord technology that the vendors has arranged aural contempo server versions of its Windows operation system, and which will eventually morph into WinFS (Windows File System) aural the next adaptation of Windows cipher called Longhorn.

From the angle of manufacturers, abstracts synchronization is an important allotment of befitting up acceptable relationships with retailers like Wal-Mart, and one band-aid is centralized abstracts affiliation via a archive artefact such as xCat offered by aloft A2i (now allotment of SAP MDM), with the GDS adequacy accepted in backward 2004. However, for the aloft ECM or PCM "bigger picture" discussion, SAP is absorbed not alone in GDS, but aswell in the greater amount of PCM, with tie-ins for barter promotions management, business adeptness management, banking applications, CRM applications, solutions ambidextrous with artefact design, and even sourcing and procurement. None of these can be dealt with auspiciously after alive what and from whom one is buying. However, after PCM functionality delivered in accord with PLM solutions, changes to artefact advice alfresco of the archive do not automatically amend the catalog, back PLM should ascendancy artefact agreeable throughout its activity cycle, ensuring that all artefact agreeable is accepted and authentic wherever it exists aural the alignment and its accumulation chain.

As said beforehand on, one of the affidavit why e-commerce was apathetic in demography off was that companies did not accept the artefact agreeable and the publishing accoutrement to accomplish it advantageous on an advancing base (i.e., through the adeptness to always change offerings, adapt offerings, board alterations to altered markets). Accession agreeable is difficult, and expensive, accustomed that not alone do enterprises charge a action for accession content, but they aswell charge the accoutrement in which to abode and anatomy the agreeable properly. Poorly structured agreeable cannot be appear to paper, and cannot be web-enabled either. That has been A2i's focuscreating a arrangement that allows users to anatomy agreeable in a way that it can be acclimated repeatedly. Further, back it is such an big-ticket process, users charge to be able to advantage that investment beyond assorted media and to be able to broadcast to the web in a fast, rich, and searchable wayin agreement of not just transactional data, but aswell parametric advice that makes it accessible to seek by artefact relationship.

Mainstream Enterprise Vendors Begin to Grasp Content Management Part Two: Background & Lessons Learned

2009-09-17T07:30:00.000-07:00

For years, customer packaged appurtenances (CPG) firms accept beatific inaccurate (inadvertently or not) artefact abstracts to retailers, but now they are beneath apprehension to fix the botheration or pay penalties and even lose out at the end of the day. Nowadays, therefore, they will accept to assay their priorities and advance a artefact advice administration (PIM) or all-around abstracts synchronization (GDS) activity plan that delivers semantically accommodated abstracts acquiescence with the aloft boss retailers' demands. Moreover, these suppliers could even action their barter new relationship-enhancing value-added casework already they accept implemented apple-pie and synchronized artefact advice repositories.

As a help, the Compatible Cipher Council (UCC) has accustomed standards for artefact advice and affairs accepted as UCCnet to which suppliers are allowable to subscribe. With this befalling resonating, abounding archive administration and publishing providers like aloft A2i accept afresh jumped into added advantageous PIM/GDS space. Further, depending on the bazaar and cartography segments, the all-around barter account amount (GTIN), compatible artefact cipher (UPC) and European article amount (EAN) abstracts formats acquiesce for the constant identification of article throughout the accumulation alternation process, from artefact architecture to the point of auction (POS). The use of GTIN, UPC, and EAN abstracts promises to abundantly access the adeptness with which retailers and manufacturers can mark, track, and barter abundant artefact information. As a aftereffect of these standards and technologies, abounding retailers, vendors, suppliers, and cast manufacturers accept been able to abate the amount of banking operations, mismatches amid acquirement orders and invoices, inaccurate artefact shipments, and stock-outs.

From hindsight, the abstraction abaft a business-to-business (B2B) barter and marketplaceвЂ”to accompany calm (aggregate) assorted buyers and sellers via the Internet to save money, aggrandize markets, advance accumulation alternation efficiency, and what not to all the partiesвЂ”had seemed acutely aboveboard and too acceptable to be true. However, it has angry out to be abundant added aching to achieve. The affected promises accept far outweighed the in fact provided allowances so far. Namely, creating the technology to accomplish such a barter has angry out to be far added difficult than originally envisioned, while suppliers remained afraid if not even affronted to attempt for business on-line and watch their margins abrade aural the bloodthirsty behest process.

Hence, with the abortion of a lot of accessible exchanges and the annoyance of abounding accumulated e-procurement or clandestine barter (PTX) projects attributed to a abridgement of supplier participation, PCM has appear to the beginning as a acute action for e-commerce. Initially, it had seemed a simple amount of accepting suppliers to abridge and abide their artefact information. But buyers and vendors accept grossly underestimated the suppliers' banking and abstruse accountability of creating, managing, and advancement artefact content, as able-bodied as their abhorrence to duke over the content. In appearance of that, they accept abstract the suppliers' alacrity to participate.

Joining an Internet-based trading barter requires affiliation not alone amid a company's own systems and applications, but amid those of its trading ally and association members, which has abundantly fabricated arrangement integrators (SI) the alone bartering benefactors from B2B exchanges so far. Abounding aboriginal enthusiasts accept aswell initially bootless to apprehend the complication of the aloft undertaking, which was maybe affordable to a Fortune 500 company, but acutely big-ticket for baby and midsize companies and their suppliers. On the added hand, the antecedent abstraction of extenuative buyers money by enabling them to accumulated their purchasing and baddest the atomic big-ticket supplier at a accustomed moment has hardly afflicted anyoneвЂ”while suppliers hated to be formed aloft with abundant discounts expectations during their behest rat races, buyers accept aswell appear to a cessation that the buzz and fax accept been still as acceptable business enablers as these ambiguous exchanges, if not even bigger for their inexpensiveness.

It had, at some stage, dawned on abounding that these Internet exchanges had to move not alone from accretion aberrant abstracts to cover absolute ones, but aswell to move from simple article accretion into artefact design, banking settlement, fulfillment, resellers and approach management, logistics, and abounding added value-adding collaborative trading functions, and to accommodate all that functionality into a corporation's back-office systems, which could be the a lot of value-adding proposition.

Indeed, PCM was missing from the dot-com bearing of action and web platforms, which has in a abundant allotment hindered their success and prevented them from carrying promised benefits. For example, agreeable and appliance alliance was missing (i.e., the seller's website accept to be able to absorb artefact archive advice with pictures and descriptions, while the barter accept to be able to syndicate archive agreeable from assorted suppliers, administer the able argumentation for formatting and pricing, and present the advice in a circumscribed appearance to buyers). For added information.

Consequently, it has become bright that suppliers charge a absolute arrangement that lets them administer artefact agreeable as calmly as they administer products. Thus, the claim for able-bodied PCM is assuredly getting accustomed a allotment of arch advice admiral (CIO) and IT managers, who are searching to actualize and administer a centralized athenaeum of affluent artefact content, and aswell by abounding action vendors of late. The still accepted manual, paper-based account approval procedures at some sites abide to actualize accidental addition lag times and aswell impede the approaching growth. This is decidedly accurate if on boilerplate a grocery banker may be appropriate the accumulating and access of hundreds of pieces of abstracts to acquaint one new artefact from one supplier into the arrangement of bags of trading partners.

Thus, some software vendors targeting the retail sector, such as QRS (soon to be alloyed with Inovis, afterwards abolishment the alliance with JDA Software, see Not All Acquisitions Happen: JDA and QRS) or General Barter Casework (GXS) (see GXS Acquires HAHT Commerce for Added Synchronized Retail B2B Data) abide focused on enabling retail industry participants to affix with anniversary added and transact business through the use of these automatic communications and artefact identification standards. There are a amount of added best-of-breed PIM players on the market, including FullTilt Solutions, Blue Martini, Cardonet, SAQQARA, Sterling Commerce, Comergent Technologies, CommercialWare, Flow Systems, Stibo, Liaison Technologies, and Velosel. Anniversary has a amount of barter application its solutions, but the PIM bazaar is just now heating up and the bobcat allotment of the bazaar is still up for grabs.

Nevertheless, duke in duke with the trend to conduct business affairs electronically via the Internet is an accomplishment to apple-pie up those affairs and abate the accident of errors. Often enough, as already mentioned abounding times, the agitation with artefact attributes is that they do not bout from one database to the next in the amount chain. For every artefact beneath its cast umbrella, there are several artefact attributes, including definitions, blueprint (product weights, measurements, calorie counts, etc.), images, allotment conventions, business messages, and prices. As a result, something as banal as a can of aliment comes with arrays of abstracts apropos to pricing, description, promotion, and so on.

To accomplish things worse, companies may accept hundreds or bags of articles and assorted individuals may advance anniversary bit of artefact information, so the assignment of acclimation and advancement all this advice is analytical to the company, back bad abstracts costs companies billions of dollars in incorrect acquirement orders, consecutive returns, and the chiral accomplishment appropriate to fix them (see $40 Billion Is Getting Wasted by Companies after Artefact Advice Administration StrategiesвЂ”How Is Yours Coming Along?).

Accordingly, PIM and GDS applications accumulated automate the action by which suppliers, manufacturers, and retailers allotment advice accordant to issues like account cachet and artefact specifications. This technology adeptness aswell be an important basement and enabler for arising affairs about the RFID technology, which is aswell top on these banker giants' agenda. But, as mentioned beforehand on, abstracts synchronization would be a almost simple assignment if the abstracts were normalized, complete, and error-free.

Unfortunately, this is rarely the case, accustomed artefact advice is not created by a individual administration aural the aggregation and is usually not overseen by any individual group. It is this abridgement of action aural a manufacturer's business and about managing artefact advice that facilitates errors. Yet, accompanying systems such as logistics, balance reconciliation, and POS aswell charge the aforementioned artefact information. The retail sector, decidedly aliment and grocery industry, would appropriately abundantly account from some on-line industry allocation if it comes to managing catalogs and B2B trading communities, area UCC seems to be arena its part.

Like a lot of software solutions, PIM has acquired forth a aisle on which the a lot of acute needs are met first. For CPG companies, the highest-priority charge is GDS, and if faced with mandates from their better retail ally to accord artefact advice via EAN/UCCnet, abounding CPG companies accept appropriately bound implemented solutions to upload advice to the registry. However, they accept aswell anon afterwards apparent that they did not accept all the requested advice or a action for befitting the anthology advice up-to-date. Therefore, a abiding PIM action requires affiliation with added systems, workflow, an advice repository, and the adeptness to accord and syndicate advice to a array of destinations in assorted formats.

Mainstream Enterprise Vendors Begin to Grasp Content Management

2009-09-17T07:29:00.000-07:00

SAP's contempo accretion of the aloft archive administration bell-ringer A2i and IBM's accretion of the aloft artefact advice administration (PIM) bell-ringer Trigo adeptness announce some enterprise-wide artefact agreeable administration (PCM) approaches of the boilerplate action belvedere and action applications or action adeptness planning (ERP) vendors, as their responses to the charge for an able adept abstracts administration (MDM) arrangement to the boundless challenges of brindled abstracts affiliation from assorted systems, concrete locations, and assorted trading partners. Thus, PCM and PIM would be the amount locations of MDM solutions that will administer any affectionate of adept abstracts and be seamlessly chip into a customer's absolute action architecture, alluringly eliminating all abstracts duplication and authoritative centralized customer, supplier, or artefact advice accessible to added applications beyond the organization.

SAP, IBM, and like boilerplate action vendors charge to break the problems inherent to abstracts residing in disparate systems, as enterprises are acceptable acutely acquainted of the charge to apple-pie up their structured abstracts and baggy agreeable acts to capitalize on added important efforts like authoritative compliance, globalization, appeal aggregation, and accumulation alternation streamlining, to name some. To that end, these action vendors accept to accommodate the adeptness to aswell accommodate arising radio abundance identification (RFID) abstracts into their software, as able-bodied as abounding abutment for web services-based accessories and burning of abstracts and processes.

Yet, the all-embracing agreeable administration band-aid is still in the ever-evolving architectonics stage, as vendors try to section calm absolute systems. Therefore, there seems to be a admeasurement (and consecutive abashing about) of the pertinent agreement and acronyms like action agreeable administration (ECM), artefact agreeable administration (PCM), archive management, artefact advice administration (PIM), annal administration (RM), artefact abstracts administration (PDM), action abstracts repositories (EDR), certificate administration (DM), adeptness administration (KM), web agreeable administration (WCM), agenda asset administration (DAM), action advice administration (EIM), agenda rights administration (DRM), certificate imaging, workflow administration (WM) or business action administration (BPM), and abounding more.

Generally speaking, PCM (sometimes aswell alleged PIM) refers to a arrangement for managing all types of advice about accomplished products, and it is a added evolutionary footfall of archive agreeable administration backed up with a workflow management. This is about altered from ECM, which focuses added on certificate administration and added baggy beat and web content, admitting PCM is added diminutive about alone abstracts elements and focuses on awful structured artefact content. ECM encompasses abounding of the above-cited technologies acclimated to capture, manage, store, preserve, and bear agreeable and abstracts accompanying to authoritative processes. In added words, it allows the administration of an organization's baggy advice (e.g., e-mails, photos, spreadsheets, documents, etc.), wherever that advice existsstored in repositories, shuttled beyond networks, and managed over the advance of its actuality or activity cycle.

Coming aback to managing structured, alphanumeric information, a PIM or PCM band-aid would cover the adeptness to adapt a company's artefact information, behindhand of location, into a circumscribed arrangement of record, and be able to accord or deliver that advice to any business ally that crave it. Yet, accurate PCM should beggarly added than just the centralized athenaeum to annihilate abstracts duplication with a bound asset of functionality; rather, this athenaeum accept to be able of autumn all artefact information, while the arrangement accept to be added than a point band-aid or an island, back it accept to aswell action high-performance admission to that information, and it accept to cover deeply chip functionality that can be acclimated to drive all acute action initiatives.

First and foremost, the PCM should circumduct about a individual centralized athenaeum of artefact information. It should be the "system of record" for all non-transactional artefact advice and authoritative intelligence about products, and annihilate abstracts duplication and arrangement back-up beyond the enterprise. In effect, it should be the "ERP for artefact information" absolute not alone "rich artefact content", but aswell added types of accompanying information, such as supplier information, as able-bodied as one or added supplier-specific sub-records of sourcing advice for anniversary artefact that allows the PCM to accompanying drive both sell-side and buy-side initiatives. In added words, the affluent artefact agreeable managed by the PCM accept to be abundant added than artlessly transactional abstracts about anniversary artefact from the ERP or artefact adept book (e.g., a allotment number, a description, and a price).

This brings us to the angle of action publishing (where some PCM systems will overlap with ECM), which aims at abbreviation costs to actualize and dispatch deployment of all the product-related information, including user manuals, sales collateral, and web sites, that accomplish up the complete artefact offering. In fact, affluent artefact agreeable accept to comprise all of the non-transactional artefact advice aural an organization, such as abundant parametric abstracts on artefact specifications; affairs text, top resolution images, drawings, diagrams, and carriageable abstracts formats (PDF) for assorted business and publishing requirements; a allocation arrangement for acclimation the articles into a searchable anatomy of categories and subcategories with category-specific attributes; artefact relationships to represent affairs relationships (such as up-sells, cross-sells, and accessories) and structural relationships (such as assemblies, kits, and bundles); locations acceptance information; and finally, assorted product-specific casework for leveraging the affluent artefact agreeable such as hotspots advice for illustrated locations catalogs after the charge for a abstracted system.

The appellation PIM has appeared added frequently afresh in the altercation of all-around abstracts synchronization (GDS) and alliance because of a amount of bazaar initiatives that act as catalysts for change. For example, abounding ample retailers, including Wal-Mart, Office Depot, The Home Depot, Target, Albertsons, and Safeway accept allowable their suppliers to accord artefact abstracts via European commodity amount (EAN)/UCCnet anthology and abstracts synchronization services. Added catalysts would cover the Sunrise 2005 action that seeks to assimilate on a architectonics for all-around artefact identification via a new 14-digit code, and the RFID initiatives in abode to accompany about the accelerated acceptance of new radio abundance tags on all products, so that they may be added calmly tracked through accomplishment and retail environments.

A full-fledged PCM arrangement should additionally accept no agreed angle of the athenaeum anatomy itself, but rather action a absolutely adjustable action that can be tailored to accommodated the specific requirements of anniversary action and anniversary vertical industry, and that can change over time. The PCM accept to be added than just a simple database appliance or end-user application, and added than just a standalone point band-aid that addresses a individual anatomic claim (such as UCCnet synchronization, cardboard book or web-based publishing, or illustrated locations catalogs). Rather, it accept to be a absolutely accessible arrangement with both graphical user interface (GUI) accoutrement for end users and multi-platform appliance programming interfaces (API) for programmatic admission (e.g., Java 2 Action Edition [J2EE], Microsoft .NET, eXtensible Markup Accent [XML], web services, and simple article admission agreement [SOAP]), acknowledging both agreeable assembly and runtime searching, and accouterment a accumbent belvedere for architectonics best-of-breed vertical solutions.

The like PCM arrangement accept to aswell abutment all the arch middleware appliance endless so that it can advantage and accommodate with web appliance servers (WAS), action appliance affiliation (EAI) and aperture servers. Also, rather than a anchored web-based user interface, it should accommodate a adjustable presentation band that can be absolutely customized and tailored to accurate authoritative requirements and assorted vertical markets needs.

Finally, the PCM should be able to arrange and accord artefact advice stored aural repositories beyond the enterprise, creating "a individual archetype of the truth" behindhand of area the abstracts resides. That is to say, the PCM accept to act as a centralized "hub" that plugs PCM functionality and high-performance admission to highly-structured artefact advice into all action initiatives, not alone at the user akin but aswell at the action affiliation level, for plug-and-play allocation with added extended-ERP solutions, such as chump accord administration (CRM), artefact lifecycle administration (PLM), supplier accord administration (SRM) and accumulation alternation administration (SCM), area the vendors with ample alms like SAP or Oracle should be animated to bind their users.

Based on the aloft discussion, a able PCM system, such as the one acquired by SAP, should accept the afterward attributes:

* Able artefact agreeable accession and cleansing, administration and alteration of artefact information, back the able PCM arrangement should do added than abundance abstracts that acclimated to abide in addition system. Instead, it accept to cover able and all-encompassing capabilities for loading, restructuring, cleansing, normalizing, and transforming antecedent abstracts from a array of cyberbanking sources, including text, Microsoft Excel, Microsoft Access, structured concern accent (SQL), and XML for both collapsed files and relational data.

* Allocation into a anatomy with category-specific attributes, back not alone accept to the able PCM systems accept a absolutely adjustable schema, it accept to aswell abutment assorted allocation schemes, user-defined anatomy hierarchies of approximate abyss with category-specific attributes, assorted accompanying taxonomies, and drag-and-drop anatomy alteration capabilities that acquiesce the anatomy of the absolutely busy athenaeum to be absolutely restructured and aesthetic over time.

* Able angel management, back abounding systems can calmly abundance an angel as a bifold ample article (BLOB). By contrast, the able PCM arrangement accept to abutment able angel administration with an compassionate of all of the arch angel formats, the adeptness to automatically transform images for altered publishing purposes, and optimized high-performance angel admission and able angel caching.

* Chip high-performance artefact seek engine, back seek mechanisms offered by acceptable systems are not absolute abundant for analytic artefact information. The full-fledged PCM arrangement accept to appropriately cover a absolutely chip multidimensional seek engine that is optimized for artefact search, with abutment not alone for drill-down, parametric, and keyword search, but aswell units or altitude search, fractional or contains search, and added types of search. To that end, there should be the adeptness to let barter seek for appurtenances after alive artefact codes, that is, in a "No allotment number, no problem" manner.

* Achievement acceleration, with scalability up to millions of products, back acceptable action applications, such as ERP or CRM, are not optimized for abundant seek and admission loads. Similarly, a acceptable relational database administration arrangement (DBMS) is apathetic on archetypal searches adjoin ample repositories, so relying on the "naked" DBMS is aswell a problem. Not to acknowledgment that databases accept not been architected able-bodied to administer large, bifold objects, back rows, columns, and SQL admission are not ill-fitted for managing article like frames of a video or pages of a document. Therefore, a able PCM arrangement accept to accept a self-optimizing achievement dispatch band that is able to bound serve up artefact advice to users and added action applications.

Most archive solutions are simple database applications that band a attenuate appearance of functionality over SQL and they await on SQL for all admission to the data, wherebyy SQL works able-bodied with retrieving a individual almanac from a part of bags or even millions. Yet, to retrieve, for example, several thousand annal from a part of a few million, and to absolute beyond all of the altered ambit of the seek for users to alone see accurate selections and accurate values, that requires a multi-table join.

Also, to interactively browse and array seek results, it requires the use of cursors and acting files, which is addition affair that cripples the achievement of a SQL-based DBMS. One such archetype would be accepting thirty thousand bearings and actual intricate relationships of which bearings can be awash with which added bearings, which requires a arrangement to administer and automate those relationships.

* Cross-media publishing (web and cardboard or CD-ROM print), back the adapted PCM arrangement accept to drive all artefact agreeable initiatives, including deeply chip functionality not alone for centralized PCM, but aswell multichannel syndication, deployment of searchable web catalogs, and book solutions for catalogs and added printed publications. The things that humans apprehend in a cardboard archive in agreement of layout, structure, and collapsed acclimatization of artefact records, should aswell be deliverable to the web. Additionally, the adeptness to allotment and dice a individual adept archive that may accommodate several actor articles into as abounding customized basic private, personalized, subset catalogs as necessary, whereby anniversary allotment looks like a complete catalog, either to the user on the web or if appear to paper.

* Database-driven book catalogs, back a full-fledged PCM arrangement that supports book archive publishing accept to do so in a way that is absolutely database-driven, acceptation it "pushes" artefact advice into the page layouts, rather than artlessly appliance the athenaeum to abundance artefact advice that was aboriginal entered anon into the page blueprint application.

* The arrangement accept to abutment UCCnet synchronization, and aswell be able to syndicate artefact advice to assorted audiences, transforming it into a array of industry-standard and user-defined XML and belted argument formats, on an ad hoc and appointed basis.

* The arrangement accept to accept an chip workflow engine that can accommodate a framework for managing artefact advice in a collaborative environment, and can action standalone or in affiliation with alien workflow applications and systems.

* The above-elaborated cross-platform compatibility; and action scalability, back the adapted PCM arrangement accept to action an n-tier architecture, able of calmly amalgam with assorted deployment architectures, including a abounding apartment of aegis and encryption casework as able-bodied as the adeptness to accommodate with arch user directories, such as failing agenda admission agreement (LDAP). Finally, the PCM arrangement accept to accommodate adept and bondservant capabilities to accredit a all-around 24-7 deployment consisting of both staging and publishing servers.

Mainstream Enterprise Vendors Begin to Grasp Content Management

2009-09-17T07:16:00.000-07:00

Coming back to managing structured, alphanumeric information, a PIM or PCM solution would include the ability to organize a company's product information, regardless of location, into a consolidated system of record, and be able to synchronize or distribute that information to any business partners that require it. Yet, true PCM should mean more than just the centralized repository to eliminate data duplication with a limited nugget of functionality; rather, this repository must be capable of storing all product information, while the system must be more than a point solution or an island, since it must also offer high-performance access to that information, and it must include tightly integrated functionality that can be used to drive all crucial enterprise initiatives.

First and foremost, the PCM should revolve around a single centralized repository of product information. It should be the "system of record" for all non-transactional product information and organizational intelligence about products, and eliminate data duplication and system redundancy across the enterprise. In effect, it should be the "ERP for product information" containing not only "rich product content", but also other types of related information, such as supplier information, as well as one or more supplier-specific sub-records of sourcing information for each product that allows the PCM to simultaneously drive both sell-side and buy-side initiatives. In other words, the rich product content managed by the PCM must be much more than simply transactional data about each product from the ERP or product master file (e.g., a part number, a description, and a price).

This brings us to the notion of enterprise publishing (where some PCM systems will overlap with ECM), which aims at reducing costs to create and speed deployment of all the product-related information, including user manuals, sales collateral, and web sites, that make up the complete product offering. In fact, rich product content must comprise all of the non-transactional product information within an organization, such as detailed parametric data on product specifications; merchandising text, high resolution images, drawings, diagrams, and portable data formats (PDF) for various marketing and publishing requirements; a classification scheme for organizing the products into a searchable taxonomy of categories and subcategories with category-specific attributes; product relationships to represent selling relationships (such as up-sells, cross-sells, and accessories) and structural relationships (such as assemblies, kits, and bundles); parts usage information; and finally, various product-specific services for leveraging the rich product content such as hotspots information for illustrated parts catalogs without the need for a separate system.

The term PIM has appeared more frequently lately in the discussion of global data synchronization (GDS) and syndication because of a number of market initiatives that act as catalysts for change. For example, many large retailers, including Wal-Mart, Office Depot, The Home Depot, Target, Albertsons, and Safeway have mandated their suppliers to synchronize product data via European article number (EAN)/UCCnet registry and data synchronization services. Other catalysts would include the Sunrise 2005 initiative that seeks to standardize on a format for global product identification via a new 14-digit code, and the RFID initiatives in place to bring about the rapid adoption of new radio frequency tags on all products, so that they may be more easily tracked through manufacturing and retail environments.

A full-fledged PCM system should additionally have no predetermined notion of the repository structure itself, but rather offer a fully flexible schema that can be tailored to meet the specific requirements of each enterprise and each vertical industry, and that can change over time. The PCM must be more than just a simple database application or end-user application, and more than just a standalone point solution that addresses a single functional requirement (such as UCCnet synchronization, paper print or web-based publishing, or illustrated parts catalogs). Rather, it must be a completely open system with both graphical user interface (GUI) tools for end users and multi-platform application programming interfaces (API) for programmatic access (e.g., Java 2 Enterprise Edition [J2EE], Microsoft .NET, eXtensible Markup Language [XML], web services, and simple object access protocol [SOAP]), supporting both content authoring and runtime searching, and providing a horizontal platform for building best-of-breed vertical solutions.

The like PCM system must also support all the leading middleware application stacks so that it can leverage and integrate with web application servers (WAS), enterprise application integration (EAI) and portal servers. Also, rather than a fixed web-based user interface, it should provide a flexible presentation layer that can be completely customized and tailored to particular organizational requirements and various vertical markets needs.

Finally, the PCM should be able to unify and harmonize product information stored within repositories across the enterprise, creating "a single copy of the truth" regardless of where the data resides. That is to say, the PCM must act as a centralized "hub" that plugs PCM functionality and high-performance access to highly-structured product information into all enterprise initiatives, not only at the user level but also at the enterprise integration level, for plug-and-play coordination with other extended-ERP solutions, such as customer relationship management (CRM), product lifecycle management (PLM), supplier relationship management (SRM) and supply chain management (SCM), where the vendors with broad offering like SAP or Oracle should be glad to oblige their users.

Manufacturer's Nirvana -- Real-Time Actionable Information

2009-09-02T22:22:00.000-07:00

Extended enterprise resource planning (ERP) software (or sometimes referred to as ERP II, the term coined by Gartner), extends ERP information to other interested users presumably with no barriers to data flow (see Enterprise Applications—The Genesis and Future, Revisited). Such an enterprise system would provide extensive business management functionality (e.g., real-time production monitoring, warehouse management, job shop tooling, quality control, supply chain planning, execution and connectivity, customer relationship management [CRM], preventive maintenance, and so on), that was previously available only through multiple vendors' solutions. It would also involve a single database solution with integrated modules to deliver improved implementation, ease-of-use, and efficient administration for manufacturing companies.

The system would be a complete enterprise solution with the provider even being able to offer its customers one-stop-shop development for programming, sales, implementation, and support services. This would in turn help manage the rapidly changing business environment of today, as there would, for example, be a survey of current business practices, an analysis detailing areas of improvement, an assessment of the use of the current system, all of which becomes an advocate for software enhancements to better serve the customer.

In other words, such an integrated broad system would expand the business intelligence (BI) of the enterprise solution by helping businesses better capture data, track operations, and improve overall efficiencies.

How many traditional ERP vendors, including the largest ones, have natively built-in real-time production monitoring, warehousing management, time and attendance capture, and complete quality management systems?

Well, almost none when it comes to integrating ERP and parts of a manufacturing execution system (MES), which, as per the Manufacturing Enterprise Systems Association (MESA International) definition is essentially any system that uses current and accurate data, triggers, and reports on plant activities as events occur. From electronic production management systems to shop-floor data capture, MES functions manage operations from point of order release into manufacturing to point of product delivery into finished goods.

The possibility of integrating and providing all elements of a complete manufacturing solution, at least from a same source if not exactly as a single computing platform, has always been tempting, and possibly lucrative, but never delivered, not even by once mighty automation provider Invensys, who once had under its roof Baan, Marcam, Avantis, and Wonderware, respective ERP and MES products, yet never delivered together (see The Name and Ownership Change Roulette Wheel for Marcam Stops at SSA Globa—Part Three: Last-Ditch Effort by Invensys).

Thus, IQMS (www.iqms.com), a privately held, Paso Robles, CA (US)-based developer of EnterpriseIQ, a well attuned extended-ERP system for small and mid-size plastic processors and like repetitive manufacturers, might be unique in the entire ERP arena, and not only within its mid-market realm, by providing the powerful IQ RealTime Production Monitoring module to ensure plant efficiency by identifying poor machine performance before it becomes a problem. The module provides automatic tracking of production by hardware being wired directly to production machines, while a special user screen (e.g., touch screen, capable of simplifying data entry) can be created for shop floor personnel to provide virtually real-time data flow to and from the shop floor (i.e., to bring the production and ERP information together). Both office and plant personnel should thereby know via a color-coded screen exactly what is happening with each machine (i.e., "yellow" would indicate that the machine is down, while "green" would mean it is in production).

Real-time information that can thereby be captured would be: cycle times, machine efficiency, scrap percentage. The machine operator can enter timely production, backflush raw materials, print labels, change cavitation of the mold on the fly as necessary, assign labor, record rejects with user-defined codes, enter downtime with user-defined codes, and view internal and external documents (e.g., part production, setup control, material staging, quality control, overall plant performance, etc.). All the above information chunks increase data integrity and reduce transaction costs, given the complete access to the ERP functionality as to automatically update production schedule and generate production reports. Without such a module, gathering actual production information is typically a time consuming, tedious, and highly subjective task, while the reconciliation of the actual data on the floor with the planned data in ERP is often delayed for days, if not weeks, with the resulting lack of actionable information.

The examples of potential benefits from intrinsic integration of ERP with the plant floor and of achieving near real-time information are multiple. For one, such a system could enable many data entry functions that are traditionally performed in the office to be transferred directly to the manufacturing floor, so that the material personnel would transact the issue of resin to and from machines on-line instead of turning in the material transfer paperwork to be entered the next day by the office. Further, the material could be classified as regrind immediately within the system, giving production planning a real-time inventory situation of resin.

Production counts would be automatically updated with the IQ RealTime Production Monitoring system and verified by machine operators, giving supervisors constant feedback on how their shift is performing. Production reports for completed jobs would then be generated and analyzed the day after the run is complete, whereby this process would typically lag production by few weeks.

All of this should bring the production floor and financial and planning departments closer together because they would be working shoulder to shoulder instead of passing outdated papers back and forth. This could in turn also encourage discussions regarding improvements on how to do things internally instead of both teams continuing to live in their separate worlds, whereby there would be no cognizance by the "office staff" when some machine would go down or the production would be far off the target for some shift.

The system even offers touch screen time clock capabilities to input labor and automate timecards. Incidentally, the optional IQ Time & Attendance module is a broad time clock system that also eliminates the need for a third-party time clock system typically implemented by ERP competitors (i.e., normally by partnering with the likes of Kronos) and minimizes time required for labor data input.

The product generates payroll timecards or output files for external payroll systems (since the native integration with the IQ Payroll module is currently available only in the US), and it also generates more accurate job costing information by allowing labor tracking to specific tasks. The module provides links to labor reporting for production reporting or job costing in JobShopIQ, IQ Project manager, and IQ Preventive Maintenance modules, as required. IQ Time & Attendance also supports visual scheduling of shifts and supports multiple devices for login purposes, such as keyboard, "swipe" readers, and biometric scanners.

The above illustration would depict great first steps toward the manufacturer's nirvana of making every batch a great batch, or, in the plastic processors' language, to ensure shot-to-shot and run-to-run repeatability. At least, if they can eliminate the terrible runs and lift the ranking of every run, the result would be a significant financial gain (for more details, see Process Manufacturers—Great Batch, Every Batch).

How a Leading Vendor Embraces Governance, Risk Management, and Compliance

2009-09-02T22:20:00.000-07:00

Rather than complying with the growing number of legal and regulatory requirements in a reactive manner from the bottom up, more and more, enterprises are realizing the value of taking a holistic approach to regulatory compliance from top down. To that end, enterprises are beginning to harness the emerging strategic software category of governance, risk management, and compliance (GRC).

This new three letter acronym (TLA) has already earned a posting at Wikipedia. Some analysts have come up with meaningful definitions thereof, while leading vendors are on their way to delivering coherent GRC solution suites. For an extensive exploration of GRC, please see the following article series: Thou Shalt Comply (and More), or Else: Looking at Sarbanes-Oxley , Important Sarbanes-Oxley Act Mandates and What They Mean for Supply Chain Management, The Sarbanes-Oxley Act May Be Just the Tip of a Compliance Iceberg, Automotive Industry and Food, Safety, and Drug Regulations, "Evergreen"—Environmental Regulations for High-tech and Electronics, Chemical, and Oil and Gas Industries, Global Trade and the Role of Governance, Risk Management, and Compliance Software, The Challenges of Defining and Managing Governance, Risk Management, and Compliance, and Process-based Governance, Risk Management, and Compliance.

SAP AG is one leading enterprise resource planning (ERP) vendor that is seriously looking at providing enterprises with the necessary software to support GRC. While the vendor does not necessarily have a solution for each and every possible requirement (such as employee training, tracking and certification, or regulatory reporting in tune with every possible localized law), SAP nonetheless leads the market with its SAP Environment, Health & Safety (SAP EH&S) application suite.

This suite's central database makes it much easier to manage product safety specifications, hazardous substance inventories, and dangerous goods for safe handling, tracking, document management, and risk calculation (see SAP for Chemicals Functionality). Users can also create permits for hazardous waste and ensure that authorized waste quantities are not exceeded by selecting suitable disposal firms and by allocating disposal costs among internal departments. The product also supports the full range of industrial hygiene and safety processes, and centrally manages core tasks such as risk assessments, exposure logs, incident management, exposure profiles, and safety management of specific work areas.

Given that there are so many bases to be covered, a composite application like SAP xApp Emissions Management (or SAP xApp xEM, provided jointly by SAP and TechniData) is typically required to provide the capabilities enterprises need to handle the following:

* Emissions management—by leveraging tools for emissions monitoring, compliance tracking, and regulatory reporting including greenhouse gas monitoring, allowance management, and National Allocation Plan (NAP) reporting and trading. SAP xApp xEM tracks, analyzes, and records emission data. The solution's integration with plant and equipment maintenance systems supports equipment calibration and maintenance tasks, since sophisticated tools calculate emissions (such as greenhouse gases) that cannot be measured directly. When a reference value exceeds normal plant values for operations, automatic notifications are fired off to determine the impact and trigger changes necessary to correct operations. The reporting functionality in SAP xApp xEM helps toward fulfilling legal requirements for documentation and reporting to regulatory authorities.

* Compliance management—to operate facilities and manage processes according to relevant regulations, with capabilities for data monitoring, task monitoring, exception tracking, incident management, and reporting. Both compliance and emissions management have to support information flow across the user enterprise, enabling the enterprise to maintain compliance status; monitor and control plant facilities and permits, including emissions permits; track performance benchmarks; and communicate with key stakeholders.

* Permit management—the process of applying for and obtaining the appropriate licenses and permits, with capabilities for application management, change management, and reporting.

* Chemicals safety management—to provide information on product safety, dangerous goods, and labeling to international markets, allowing companies to control global business processes. This also enables companies to save resources in procurement; in exchanging substance and recipe information; in categorization; and in authoring the required documentation of customers or personnel, such as safety data sheets (SDS), transport emergency cards (or tremcards [TM]), the Occupational Safety and Health Administration's right to know (OSHA RTK) information, and labels.

* Environmental health and safety (EH&S) surveillance—to enable enterprises to deal with increasing legislative pressure in the areas of industrial hygiene and safety, occupational health care, and hazardous substance management, thereby facilitating cross-company and interdepartmental cooperation.

* Environmental product compliance (EPC)—to provide capabilities for compliant product design and to help avoid risk in the supply chain. EPC supports collaboration with suppliers, partners, and customers. The software collects, organizes, analyzes, and evaluates data about various products, factories, suppliers, countries, and customers. Such information is needed to provide proof of compliance with environmental directives that regulate the development, manufacture, distribution, disposal, or recycling of products. The software documents product content and regulatory or sector-specific substances lists; integrates compliance checks and analyses with central business processes; and automates communications with customers and suppliers. For example, when a product is being checked for compliance with the Restriction of Hazardous Substances (RoHS) directive, the solution verifies that all the necessary information (such as the lead content of a supplied part, for instance) is in place. If this data has not been provided, the solution automatically requests the supplier's manufacturing department to disclose the exact lead weight percentage of the product, and notifies the user when the supplier has provided the data.

SAP's Commitment to GRC

As indicated with the SAP Global Trade Services (SAP GTS) and SAP xApp xEM examples, SAP, the largest of enterprise application providers, has long committed to placing compliance at the core of its broad suite of products. This is because the vendor has recognized the growing role of enterprise systems in assisting user companies to meet the increasing challenges of corporate compliance and risk management. Customers are looking for potent compliance solutions that work across heterogeneous information technology (IT) environments to reduce risk and cost, as well as provide improved business control.

By embedding compliance into all pertinent business processes, SAP hopes to make compliance repeatable, sustainable, and less costly for companies of all sizes in all industry segments. To that end, it has long espoused a number of individual tools and modules, such as SAP Audit Information System (SAP AIS), SAP Strategic Enterprise Management (SAP SEM), SAP Records Management (SAP RM), and SAP Management of Internal Controls (SAP MIC).

As an example, SAP MIC's aim has been to support a best-practice system to document and test internal checks and auditing. As a core component of mySAP ERP, it contains functions for data analysis and reporting, as well as financial and risk management. The solution also ensures that all financial processes comply with the US Sarbanes-Oxley Act (SOX) requirements.

Another component that has been serving some complex compliance requirements (such as EH&S) very well is master data management (MDM). This is especially true in light of globally dispersed supply chains, but the need for product quality, specifications consistency, and brand protection have also been parts of SAP's platform (see SAP Bolsters NetWeaver's MDM Capabilities).

This GRC offering, which until recently was largely fragmented, has been helped by a number of partner point solutions. Key software and technology partners integrate applications through the service-oriented architecture (SOA)- and business performance management (BPM)-enabled SAP NetWeaver platform to provide the much needed transparency over the extended GRC ecosystem (see Multipurpose SAP NetWeaver).

A few years back, SAP stated its strategy to use "fill-in" acquisitions to add to its broad solution offerings by gaining specific technologies and capabilities that meet the needs of its customers—within or across industries. To that end, in addition to the above mentioned SAP xApp xEM, VitalSprings Technologies also released the VSxApp risk management composite application. This solution is designed to work with back-office systems to integrate human resources (HR), payroll, and financial applications in order to address specific health care benefits and the financial impact that health care plans might have on businesses.

Also based on the NetWeaver technology, key performance indicators (KPIs) integrate both SAP and non-SAP data to enable the creation of what-if scenarios based on company information and parameters from payers. This allows employers to calculate health benefit expenses and to ultimately negotiate better health plan rates. Similar alliance examples include Approva, Security Weaver, Atrion International, ArisGlobal, and ACL, to name only some.

SAP has "opened up" the content portion of its EH&S offering, thereby allowing multiple vendors to provide key information that might lower the total cost of ownership (TCO) of the system. Atrion International was the first vendor to be certified under SAP EH&S Open Content Connector (OCC) certification program in mid-2005. The EH&S OCC is an open, extensible markup language (XML)-based interface to load external content into SAP EH&S specification databases. To that end, Atrion provides a full range of content (data, rules, phrases, forms, and pictograms) to SAP EH&S clients, allowing them to address global regulatory requirements.

How Can Insurance Carriers Retain and Reward True Producers

2009-09-02T22:18:00.000-07:00

Not long ago, we published an extensive report on Callidus Software (NASDAQ: CALD), a leading San Jose, California (US)-based provider of on-premise and on demand sales performance management (SPM) and enterprise incentive management (EIM) solutions for global companies across multiple industries (see Enterprise Incentive Management Leader Responds to Market Demands). The vendor's products allow large enterprises to strategically and holistically manage incentive-based compensation, establish sales quota targets, and align territories, which often result in improved sales and distribution performance (see Sizing the Enterprise Incentive Management Opportunity�And the Challenges Ahead). Some of the vendor's high-profile customers or partners include 7-Eleven, Accenture, CUNA Mutual, Hewlett Packard (HP), IBM, Philips Medical Systems, Sun Microsystems, and Wachovia.

Since the time of our report, Callidus has been prospering, with continued growth and burgeoning customer wins (including several within the on demand space), a steadily improving profit and loss picture, and the forming of a strategic partnership with SAP. To this end, Callidus TrueComp and Callidus TrueInformation products have joined the privileged few on the list of "SAP-endorsed business solutions." Add to this good news the first Callidus-SAP win at Safety-Kleen; the largest Callidus user conference thus far (with about 500 attendees); an agreement with a provider of sales resource optimization software, the TerrAlign Group (www.terralign.com), to deliver the Callidus Territory Optimization solution; and finally, the launch of virtual training capabilities for Callidus users, the vendor has good reason to be upbeat.

TerrAlign developed the world's first desktop-based territory optimizer almost two decades ago for a leading pharmaceutical company, and is now the first and only software vendor to deliver a territory alignment and optimization solution on salesforce.com's Apex platform. TerrAlign also provides strategic services that include promotional response modeling, field force sizing, account profiling, call planning, territory optimization, and territory realignments.

This alliance and the resulting Callidus Territory Optimization product have broadened Callidus's product offerings to address the critical elements of effective SPM: territory, quota, and compensation management, as well as modeling and analytics (such as major realignment simulations, ongoing territory maintenance, what-if modeling, opportunity leveling, etc.). Owing to its integration with the flagship Callidus TrueComp product, this new offering aims at maximizing sales performance by optimizing territories and account assignments, assigning the "right" quota, and providing comprehensive geographic sales insight. This territory coverage, which is more efficient, should benefit customers with increased sales revenues and market share, decreased travel costs, and reduced turnover.

However, the vendor is not resting on its laurels. Callidus has recently shown its intent to oblige its customers within certain industries that have specific requirements. Callidus now has nearly $80 million (USD) in revenues and about 120 global user corporations across multiple industries as clients. These industries include retail banking (22 percent of the install base); insurance (21 percent); manufacturing, high tech, and life sciences (23 percent); retail and distribution (12 percent); and telecommunications (the remaining 22 percent of customers). Although Callidus's products can serve the pay-for-performance program needs of virtually all companies, the vendor has focused principally on the above six key market segments.

Covering All Horizontal SPM Functional Bases

Across any industry, the scope of SPM and EIM covers the planning phase. During this phase, sales and channel managers should be enabled to model and allocate quota and territory targets, with sales and finance managerial teams implementing and executing the sales plans, while sales representatives have to understand the plan. In short, the idea of this phase is to align incentives more closely to the direct sales force and channel objectives, ultimately contributing to the company's goals of profitability and increased revenues.

Then comes the execution phase. Sales and channel managers have to now gain the insight and understanding of the actual sales performance. With the sales force monitoring its own performance (and conducting its own calculations), the sales and finance teams have to resolve any issues that occur (often discrepancies between these teams' versions of the truth). This phase is where the "rubber meets the road," and the idea is to quickly and successfully launch new products into the market and to motivate the sales force to sell both the new and the existing (often cash cow), mature products. The goal, again, is to increase revenues, eliminate overpayments to the sales force and channel, and minimize (if not eliminate) disputes within the channel.

Last but not least is the visibility phase. Sales and finance teams must analyze the incentives' performance and understand the revenue performance and quota opportunities. For instance, if sales are lagging mid-quarter, the managers can simulate how to drive sales and change the incentives, and thus make strategic decisions that are more sound so that they are able to identify what factors effectively motivate the sales team. The idea is to also eliminate the so-called phenomenon of "shadow accounting" that results from a lack of visibility and the consequent mistrust between the sales representatives and payroll staffers (see Are Sales Incentives Even in Tune with the Corporate Strategy?).

To meet the (often conflicting) needs of sales management, financial managers, and sales forces, Callidus offers a number of modules within its broad SPM product suite. For instance, on the planning side are self-explanatory products like Callidus Quota Management, Callidus Territory Management, and Callidus TrueComp Modeling (for forecasting purposes). By embedding Hyperion performance management software, Callidus Quota Management aims at making quota creation and management easier by enabling sales and finance executives to identify and assign fact-based quota targets based on a multidimensional analysis of past sales, territory potential, growth, and quota performance data from the Callidus TrueComp Datamart. An accurate quota target can be created for a suitable sales executive in the appropriate territory at the right time by building multiple top-down and bottom-up quota allocations and roll-up what-if scenarios, and then by comparing them via side-by-side views and variance analysis.

The visibility phase is covered by Callidus TrueInformation (for sales transparency) and Callidus TrueAnalytics (for sales incentive insights). TrueInformation is the reporting component of the overall Callidus TrueComp Enterprise solution, and serves to distribute goal and achievement information to the extended enterprise by being a self-service, scalable, Web-based production reporting application for incentive compensation systems throughout an organization. The Callidus TrueAnalytics suite offers sales, marketing, and finance executives and analysts the strategic insight and ad hoc analysis capabilities they need to drive sales performance. The solution consists of graphical dashboards that can be configured to enable sales, marketing, and compensation professionals to monitor, analyze, and explore multidimensional elements. Such elements include sales performance by region, team, product, or channel; customer growth; and sales incentive costs.

The remaining execution phase falls to Callidus TrueComp Manager (for incentive plan agility in terms of quick and easy re-creation of compensation plans) and Callidus TrueResolution (an efficient workflow management solution). For example, Callidus TrueResolution is a rule-based application that aims at streamlining and automating the resolution of incentive compensation disputes. This reduces the associated cost and diversion of management and sales resources. The software automates functions such as changes, transfers, and splits to territory assignments; quota adjustments; organizational changes; and payee information updates. The application also allows sales professionals and business partners to submit and track their claims through a Web-based, self-service workflow process. It enables sales professionals to request updates to compensation data such as sales credit, compensation, quota, and organizational changes, and compensation issues can be resolved quickly compared to doing so using manual-, e-mail-, and telephone-based systems.

The huge volume of sales and incentive data and transactions must be integrated bidirectionally with such systems as sales order management, human resources (HR) and payroll, general ledger (G/L), accounts payable (A/P), sales force automation (SFA), and so on. In industries that rely heavily on indirect channels with a vast number of distributors, resellers, brokers, dealers, agents, etc., the situation is much more complicated. The issue of mistrust and claims of underpayment (or overpayment) are only compounded in a value chain of independently run entities, especially when there is a lack of visibility. Possibly the best example is the highly regulated insurance space (especially life insurance), whereby insurance carriers have to closely track the credentials (licenses, accreditations, appointments, etc.) of distributors, brokers, or dealers (all commonly referred to as producers), and provide integration to agency management systems.

Solving Insurance Incentives' Pain Points

Delving deeper into the requirements of some of its target industries, in mid-2007, Callidus unveiled Callidus TrueProducer, the first producer and distribution management software solution specifically designed for the insurance industry's unique product, regulatory, and organizational issues. TrueProducer is engineered for large and midsize insurance carriers that have extensive independent distribution channels or numerous captive (exclusive) or non-captive agents. Informally referred to as a channel manager solution (and in tune with partner relationship management [PRM] concepts�see What Does the Future Hold for PRM?), TrueProducer is Callidus's first industry-specific application. The insurance industry is the vendor's single most important sector; Callidus has more marquee insurance customers than anyone else in the market. While the product is useful in most sectors of insurance (property and casualty, for example), it is most needed in the life insurance area.

Continuous Data Quality Management: The Cornerstone of Zero-Latency Business Analytics Part 2

2009-09-02T22:17:00.000-07:00

It is impossible to improve that which cannot be measured. A CDQM (Continuous Data Quality Management) tool provides a real-time, up-to-date scorecard to measure data quality within the enterprise. By checking data quality in real-time, "data fires" can be detected when they are just starting, before any real damage has occurred. Most enterprises fight fires with axes, fire hoses, trucks, and hordes of firemen, but the CDQM approach is a smoke detector. It's far less expensive to put a fire out when it's just smoldering, rather than to extinguish a blazing house fire and then remodel the entire house.

Data quality must be a constant commitment. Most companies, when implementing a data quality initiative, look at it as a massive data-cleansing project that scrubs data as part of a system upgrade or new system implementation. That approach is a lot like taking a shower at the beginning of the month and saying, "Now I'm clean!".

Without metrics and constant measurement, there is no way to verify data quality on an ongoing basis and keep the data in the system clean. And if the quality of data is not fully understood, one cannot be confident in the decisions made based upon that data. Considering that US enterprises are expected to spend upwards of $22B by 2005 on business intelligence initiatives, doesn't it make sense to implement a system to track the quality of that data?

The classic "garbage in, garbage out" scenario becomes all too real when there are quality problems with the data on which important decisions are based. At Metagenix, we like to tell the story of a fictional electronic parts manufacturing company we call Huntington Corp. We pieced together Huntington from several real-world companies whose data quality issues almost did them in, and whom, for obvious reasons, we cannot name. We like to tell the Huntington story because it so clearly illustrates the need for a continuous data quality tool. Take, for example, the data issues that arose when Huntington acquired rival company, Systron, and began the process of combining the two companies' customer accounts into one customer database. What started as an innocent attempt to merge this data became a mess that almost spiraled out of control.

The problem began with the two companies' customer account numbers. Huntington's were eight numbers long; Systron's were 10 alphanumeric characters long. When Huntington's IT department began merging the account data, it was decided that Huntington's eight-number account number would be the default format. All of Systron's accounts were uploaded to an eight-number format, changing all alpha characters to zeroes and truncating the 10-character format to eight, eliminating the validity of Systron account numbers in one stroke—with all the attendant downstream angst and confusion for employees and customers. Having a continuous data quality tool in place during this ETL process would prevent this data nightmare from occurring.

Another problem occurred during the Systron integration when IT combined the two companies' parts and inventory tables. Like the customer account number fiasco, Systron used alphanumeric parts numbers in relational tables from each of its divisions. Huntington only had one master table, with numeric parts listings. When Huntington's IT department combined Systron's multiple alphanumeric tables into Huntington's master table, it failed to include the system division number assigned to each division table in the new Huntington part number. As a result, customers calling to order Systron parts and familiar with a Systron part number were befuddled by Huntington's new part numbers, a disaster not fixed until it was called to IT's attention.

Other data quality issues arose even before the Systron acquisition. Huntington's accounting department was still batch processing journal and other general ledger entries on a nightly and weekly basis. Over time, Huntington's accounting department was spending more and more time researching and reconciling erroneous entries. Though Huntington Corp. accounts were clearly defined in a chart of accounts by department and type of account, the general ledger and other systems were allowing invalid account numbers, thus causing subsequent delays in invoicing and payment processing. A continuous data quality tool set up to check business rules on account numbers would have ensured that account entries were going to valid account numbers.

The same type of problem happened when Huntington installed a new CRM software system. While customer service representatives were doing their best to get the customer data needed to build effective communications with the company's customers, they were frequently not capturing addresses and telephone numbers. When Huntington's marketing or customer relations departments decided to conduct campaigns or send follow-up messages to customers, this customer contact data was missing—unbeknownst to these departments and to the detriment of these campaigns and messages. A continuous data quality tool would have produced an error report by detecting that contact information was not being captured, thereby allowing this information to be obtained in time for these customer communications.

The downside of the data quality issues in these situations is fairly obvious�poor data quality negatively impacts the value of the data used to support decision-making and operations. From as simple as the case of an incorrect general ledger account that throws off accounts payable analysis and reconciliation, to a missing email address that results in failure to notify a multi-million dollar customer of a backorder, and everything in between, data quality plays a crucial role in the support structure of today's business.

Businesses clearly need a framework for implementing and monitoring data quality on a continuous basis as part of any business intelligence initiative. At Metagenix, we have developed this new framework, a continuous data quality management tool to work in concert with enterprise business intelligence and database systems. Built with an easy-to-use interface like simple address checkers, yet developed for robust enterprise use across departments, data warehouses and silos, Metagenix's CDQM tool works by applying specific business rules as a continuous check of data quality. The CDQM framework consists of several interconnected processes, which we have outlined below.

Business Rules Capture Repository and Interface

This system provides a meta-data repository to capture business rules and knowledge about data across the enterprise. Business rule assertions are expressed as algorithms and functions that indicate the validity of data. These assertions can be in the context of a field, a virtual record, or an entire data source. One example of a rule is that zip codes must be five or nine digits for US addresses, and must match the expected city and state fields. Another example is that the schema for the Customers table is not expected to change.

Metrics Repository

This tracks the results of processes within the CDQM system and provides historical information. A complete data quality scorecard can be constructed based upon the information stored in the Metrics Repository. The interface allows a user to view the results, and slice and dice the results data. Depending upon the job function of the user, the interface will provide different views of the scorecard. For example, the CIO might be interested in which systems are generating the most quality problems, while a DBA might be interested in table schema changes that have occurred.

Event Processor

This is an object interface that allows external applications to communicate events of special interest to the CDQM framework. For example, an ETL job might inform the system that a transfer of a file of 225,003 records time-stamped from yesterday took place at 12:03AM into table CUSTOMERS and took 14 seconds.

The CDQM framework could then be used to track execution speeds, check sums on the data, and check the timeliness of the transfers. Problems such as loading the same file twice could be immediately recognized. Likewise, recognizing an incremental increase in transfer times over the last month could spur investigation into potential difficulties in the ETL process. The Event Processor is not limited to monitoring data movements; external applications could signal a variety of events to be tracked as part of the data quality monitoring effort.

Transaction Server

This system allows an enterprise to centralize data validation. Instead of multiple applications each implementing their own validation logic, a central set of business rules is used to determine the validity of a data gram.

External applications use an object interface to transmit data to the Transaction Server, which determines the validity of the data according to the rules stored in the repository and returns a result indicating potential problems with the data. At the same time, the Transaction Server updates the Metrics Repository with the available information about the transaction. Thus, decision makers can determine the sources and causes of faulty data and adjust the business processes accordingly. Just as easily, implementing new business rules merely requires adjusting the meta-data in the Business Rules Capture Repository, rather than recoding potentially hundreds of applications that deal with data in a slightly different fashion.

Rules Checker

The Rules Checker mirrors the Transaction Server, but operates on a macro level. Instead of providing a real-time service, the Rules Checker is run periodically to verify compliance with the business rules against a variety of data sources. For instance, the Rules Checker might be run every night against all records in the order entry database to verify that all orders reference parts numbers that are in the catalog. Another example would be a check each night that the domain of the Customers->Type field is what was expected when compared to the values stored in the repository.

The Rules Checker updates the Metrics Repository, and can also generate events such as an email to a responsible manager when certain rules are violated. Imagine being able to come into the office each morning and receive an email indicating which records were loaded incorrectly last night and what's wrong with them!

Scheduler

The Schedule activates the Rules Checker processes according to schedules and dependencies determined by the user. For example, a user could specify that the check of the master customer name file should be run every night immediately following the successful completion of an ETL job.

The Metagenix CDQM framework employing these components is extremely scalable and user-friendly. All interfaces are delivered via a web browser. The repositories are implemented in standard, ODBC compliant relational databases. The Rules Checker, Transaction Server, and Event Processor are implemented from conception as massively parallel, high-performance systems capable of handling the massive amounts of data required.

Editor note: The information presented here is the opinion of the author, based on his experience in using a continuous data quality management tool. TEC does not endorse this specific product per se. This article is published by TEC because it contains some useful information for companies concerned with data quality management issues.

Frontstep Ups The .NET Ante Part 2

2009-09-02T22:15:00.000-07:00

Although Frontstep has got rid of a big part of its burden by delivering the SyteLine 7 (PART 1) offering on the single platform, the major task of translating it into its users genuine needs (and consequently a demand for its products) only now has to start in earnest. Frontstep's focus shift to value chain management matches the shift in e-commerce focus from indirect materials procurement to areas such as strategic sourcing, channel management, and supplier enablement. Given its customers are mid-size manufacturers, by also enabling them to streamline the entire manufacturing functional processes (e.g., planning, order management, scheduling, etc.), Frontstep is aiming at rendering its customers indispensable to their customers.

Therefore, while Frontstep seems to have positioned itself well as it already possesses most of the required components, it needs to try to more clearly articulate the message that the true collaboration can only be achieved if the core product is an ERP system which by its very nature enables intrinsic collaboration (which .NET and Web service should supposedly provide), rather than a product which has to have modules added on to achieve the collaboration. To that end, Frontstep's message will have been diluted by a spate of other vendors announcing their .NET allegiances and delivering pieces of their offering (often without mentioning it should happen only some time in the future). The fact that Frontstep is already there might often be missed by less-discerning and informed users, who may get Frontstep's message as a �me too' statement.

The company needs to promulgate its plain English worded strategy of helping its manufacturing customers and their business partners automate and streamline business processes inside and outside the four walls of the enterprise, such as on-line collaboration with customers, suppliers, distributors, and employees, to make everyone's internal operations more efficient. In a market with stringent IT budgets, Frontstep has to demonstrate how its CRM, ERP, and SCM products deliver actual savings.

Enterprises have to see the value of tying their supply chain functionality to their marketing, sales, and service operations, and the point of gathering enough information about what customers need so that actual physical supply chains can evolve into informational demand chains. Moreover, Frontstep has to create stronger awareness of its applications with an architecture that allows smaller companies to support specific processes as needed and to see measurable results in less than 90 days. SyteLine 7, with its embedded flexible and adaptable BPM activity and user efficiency (via strong personalization, navigation and "rich" user interface (UI) available either on the desktop or in Internet Explorer but still resembling the UI from earlier versions), seems to offer answers in that regard.

Some of existing SyteLine customers' exodus should also be reckoned with (for, e.g., Progress loyalty or simply for reluctance to change), although Frontstep has taken many steps to protect their current technology investment. While existing customers will eventually have to migrate to the new SyteLine 7 environment (which means departure from Unix OS), they will be given several years to make that decision (within which period of time they will be supported as usual), and it should be a maintenance upgrade rather than a new system implementation, which should supposedly be much less steep and expensive. Time will only tell whether this approach will prove to be the right one. Although Microsoft sounds a better bet than Progress, some vendors like QAD have opted to continue a two-pronged product strategy (with simple object access protocol (SOAP) serving a role of a mediator between the applications developed in Java and Progress), rather than to face their customers' disconcert and potential erosion.

Frontstep's financial situation, particularly its scarce cash of only $3.4 million will also likely be cited by its financially stronger opponents as customers' deterrent. Still, despite impending product enhancements of secondary product lines, the broad scope and flexibility of its recently enhanced product offering, as well as the size of the existing customer base should provide Frontstep with recurring revenue and possibly ongoing profitability and positive cash flows during the looming mid-market carnage.

McHugh Software's DigitaLogistix Built On Strong Foundation

2009-09-02T22:14:00.000-07:00

Privately held McHugh Software International recently unveiled its answer to the heavy competition in the supply chain execution (SCE) software market: DigitaLogistix�. Many applications in the suite have been available for years while a few are relative newcomers to market. McHugh has targeted the new offering at customers in its core verticals, CPG/food & beverage, high tech electronics, third-party logistics, in addition to its secondary markets in parts distribution, packaged chemicals, and dot-com industries.

The seven new applications that, together with core warehouse, transportation and labor management systems, constitute DigitaLogistix include:

* LENS�, which provides real-time, end-to-end supply chain visibility.

* Commander�, a set of command and control applications that enable companies to take centralized action in response to logistics requirements and events.

* DigitalApps�, a suite of role-based web applications for collaboration among multiple supply chain participants.

* Digital TMS�, a set of web-based transportation execution applications aimed at automating shippers' core transportation processes and helping them build private carrier portals.

* Logistix Scorecard�, a comprehensive logistics analytic and decision support tool used to measure actual performance at the facility, enterprise and supply chain levels.

* Logistix Execution Optimizer�, which provides dynamic, streaming optimization of enterprise transportation and sourcing plans.

* Dynamic Merge-in-Transit�, which enables companies to consolidate shipments from multiple sourcing points through merge centers, increasing velocity, reducing logistics costs and enabling realization of the dynamic virtual warehouse.

The software market for warehouse management systems has become more and more competitive as the technology has evolved to address the lion's share of customer requirements. DigitaLogistix competes favorably with other suites while offering users a collection of modules that work well together.

Like any software technology that has reached a plateau in the maturation curve, warehouse management systems have evolved to a point where there is little differentiation among them. This environment has prompted forward-thinking companies to take action, extending their solutions to include applications complementary to WMS. Of these, transportation management is the most prevalent simply because users instinctively regard logistics operations as the "spokes" through which goods are conveyed to and from the warehouse and distribution center "hubs". While nearly all of the SCE market leaders have either acquired or internally developed TMS and other applications to enhance total solutions, there is a marked lack of cohesion between products in their suites.

A product acquired from Software Architects for high-tech discrete mid-market customers provides the fundamental component architecture for DigitaLogistix. This platform imparts uniformity among the various modules that, though drawn in some cases from different sources, speak the same data language. Hence, McHugh can offer diversity of scope with uniformity in presentation, structure, and business objectives. This is an important differentiator in a market characterized by a host of competitive offerings that are sometimes slapped together with little thought to ensuring connections make sense. ERP vendors have gone farther toward a uniform data architecture than SCE vendors if only because they have been working at it longer.

One of the strengths of DigitaLogistix made possible by the component architecture is its incorporation of proven applications for WMS and TMS alongside next generation tools for labor management and supply chain visibility. Labor Management Systems (LMS) are just beginning to appear on radar screens and McHugh admits to having to adopt an evangelical role in order to sell the market on its LMS application. While LMS is not yet a hotbed within the enterprise application buyer's market, many users are examining the labor-intensive portions of their operations and concluding that considerable cost savings could be obtained through software automation. Although union leaders may bristle at any initiative for tracking and improving labor efficiency, LMS can nevertheless make lives easier for warehouse personnel and CFOs alike. We expect LMS to enhance sales of DigitaLogistix, which will make a substantial contribution to McHugh's license revenues over the next 12-18 months.

Encompix--Thriving on Encompassing Complexity Part Two

2009-09-02T22:12:00.000-07:00

Encompix, Inc. (www.encompix.com), a privately-held North American provider of enterprise resource planning (ERP) solutions helps mid-size engineer-to-order (ETO) and project-based manufacturers improve their business is a stellar example of a focused niche vendor. To illustrate, seven US-based ETO companies recently selected the Encompix ERP system within a -days a time frame of thirty days.

While the company's focus allows it to keep pace with trends in technology and customer requirements in its target niche, too narrow a focus comes with its liabilities as well. Namely, in addition to its small size, which may imply a negative viability perception these days when many believe "the bigger is the better," limited financial resources, low visibility and brand recognition, and the product's limited global capabilities are the challenges that the company has yet to overcome. Encompix admits losing some deals because of its inability to support prospects outside North America and in languages other than English (except for a French because of its partner in Quebec, Canada). It remains a good practice for manufacturers that are selecting solutions to factor in costs, the financial viability of the vendor, local support, and many other criteria, which might not go to Encompix' favor.

Also, many ETO prospects still have notable mix-mode manufacturing environments, which handle a significant deal of "widgets" and require certain repetitive manufacturing and inventory management functionalities, where Encompix may not be nearly as competitive as in clear-cut ETO environments. Having to deliver a number of functionalities through third-party solutions, which are natively offered by many larger competitors as a matter of course, may also deter some interface-wary customers. Thus, Encompix should try to provide as many third-party solutions as possible as a standard configuration, which should make customers oblivious to the origin of the module. Encompix also has to beef up and better advertise its product's interconnectivity and e-collaboration and product lifecycle management (PLM) offering. While a comprehensive PLM strategy (see The Many Faces of PLM) might be a tall order for Encompix to deliver on its own, some sporadic projects of integrating Encompix ERP with the project portfolio solution provider Primavera and with the product data management (PDM) provider SmartTeam should be parlayed into more strategic alliances.

The product is also not very focused for the aviation and defense (A&D) and maintenance, repair, and overhaul (MRO) industries, which require strong teardown, remanufacturing, and asset management capabilities. This further narrows down the complex discrete manufacturing opportunity, given that some of its direct and possible competitors like Jobscope, Relevant Business Systems, IFS, Intentia, and Ramco Systems offer these capabilities. For example, airplane service companies and other MRO companies have very stringent requirements they must meet regarding both tracking parts and condition codes.

While the vendor supports Microsoft Windows and UNIX/Linux OS platforms, it is currently limited to the Progress RDBMS (Relational Database Management System). Although it is one of the leading embedded databases for business applications around the world, with its notable scalability and reliability, there is a lost opportunity because some prospects' IT departments have a religious insistence on the Microsoft SQL Server database. Still, given that ETO manufacturers tend to stick to tried-and-true technologies, the dependence on Progress should not be a terrible liability, given Progress' recent bullish posture and notable technological advancements. Encompix seems to be making the right moves, similar to those of other prominent manufacturing ERP vendors that leverage Progress technology, such as Epicor and QAD, which have decided to allow their customers to keep their existing IT investment, while evolving at their pace. Contrary to that, former Frontstep, even before being acquired by MAPICS, had made a tough decision to discontinue support for the Progress database in its future releases of SyteLine, which leaves these customers to sooner or later abruptly migrate to an SQL Server product release, or to something else.

For example, by adding the power of the Progress OpenEdge platform to a native Microsoft .NET user interface (UI), Epicor hopes to offer its small to mid-market manufacturing customers the opportunity to move to the Progress OpenEdge platform supported through a Microsoft .NET UI. The vendor believes customers will be able to leverage the familiarity of the Microsoft UI, while benefiting from the flexibility and power of OpenEdge's operating system's independence, low I (TCO), and support for multiple databases. Epicor believes the combination of OpenEdge and .NET is a win-win for end users, since the platform offers application developers the option of supporting a wide variety of UI techniques and technologies via a single collection of business logic components within the platform.

To that end, Encompix has postponed its .NET rewriting effort in 2002 until Microsoft fully clarifies its Business Framework vision and security issues. At this stage, 2006 seems as a more realistic timeframe for Encompix to adopt .NET technology within its application. In the meantime the vendor is taking interim steps to prepare its application for a Microsoft UI and multi-database support. (i.e., Progress, SQL Server, and Oracle), which apparently means it is trailing current Epicor and QAD's endeavors. Although the vendor already boasts twelve Web-enabled modules, its presentation (UI) remains "boxy" as opposed to a Windows XP metaphor of the solutions that have already embraced a Microsoft .NET UI.

Encompix--Thriving on Encompassing Complexity Part One

2009-09-02T22:09:00.000-07:00

Encompix, Inc. (www.encompix.com), a privately-held North American provider of enterprise resource planning (ERP) solutions that helps mid-size engineer-to-order (ETO) and project-based manufacturers to improve their business is a stellar example of a focused niche vendor. As an illustration, seven US-based ETO companies recently selected the Encompix ERP system within a thirty-day time bracket.

Encompix, which has a single focus in the ETO market, has therefore recently captured a significant market and mindshare, particularly given that the following manufacturers have thereby decided to partner with the Cincinnati, Ohio-based (US) firm:

* Air Enterprises, Inc. of Akron, Ohio, a global leader in designing, engineering, manufacturing and supporting custom air handling systems.

* Cross Bros. Co., a leading Rochester, New York (US), material-handling company dealing with high-quality custom fabricated equipment and custom conveyor systems.

* Gehring L.P., based in Farmington Hills, Michigan (US), is part of the Gehring Group, the leading corporation for honing technology worldwide. Their customers include all of the major engine manufacturers (General Motors, Chrysler, Ford, Honda, Saturn, Caterpillar, Harley Davidson).

* Kvichak Marine Industries, based in Seattle, Washington (US), a worldwide leader in the design and construction of high quality, customized aluminum workboats, from twenty to one hundred feet in length.

* Rimrock Automation, Inc. of New Berlin, Wisconsin (US), a provider of robotic automation solutions for industry.

* Rough Brothers, Inc., based in Cincinnati, Ohio, designs, engineers, manufactures, and installs custom greenhouses with capabilities to build any number of structures using a variety of coverings including glass, polycarbonate, film, and more.

* Wolf Robotics, based in Fort Collins, Colorado (US) designs and manufacturers industrial welding cells.

Encompix refers to its 270 customers as a close and happy extended ETO family, a feeling that can particularly be noticed during its annual users conferences, where most attendees share the same issues and concerns about running their businesses. Such was the recent event, when Encompix' customers from the US and Canada met in Cincinnati for the Annual User Conference, on October 15-17, 2003. Around eighty attendees participated in the three-day event with over thirty-five general and breakout sessions. Showcasing Encompix version 9.2B, the vendor gave detailed educational sessions on key components of the system. Its partner presentations from Configure One, a provider of product configurator softwaree solutions; Cimmetry Systems, a provider of visualization and collaboration solutions for the architecture and engineering, construction (A/E/C), manufacturing, and electronics markets; Aimasoft, a computer-aided design (CAD) integration provider; and Prism Software, a provider of software products for the distributed project management, helpdesk, and e-business, updated attendees on new third-party add-on functionality. The conference also included five separate special interest groups covering the major product areas with time set aside for users to share ideas.

Hence, Encompix continues to add new functionality to address the needs of ETO and project-based companies, whereby the customers play a big part in the development process. Many enhancements are a direct result of their input, while most support calls that require development work get resolved by maintenance releases, which are provided on a regular basis to existing customers. To that end, the recent release contains major enhancements to financial accounting, shop floor control, purchasing, sales and job orders, shipping, inventory control, advanced planning and scheduling (APS), subcontracting, progressive billing, and revenue recognition. Further, for ETO companies who operate a major spare parts business, Encompix has developed new material planning functionality and multi-warehouse capabilities to support the manufacture and distribution of spare parts.

The next release, Version 9.3 which is planned for the 1st Quarter of 2005, is supposed to feature the following enhancements:

* Non-Conforming materials management: An integrated solution between manufacturing, purchasing and inventory management to provide visibility throughout of the application of parts or work-in-progress (WIP) in non-conforming materials (NCM) defect tracking

* Project reserve inventory management: This should provide the ability for customers, especially those with government project costing and tracking requirements, to purchase inventory with project funds, track its use across individual orders within that project and report on the actual costs throughout the life of the project

* Complete integration of approved alternate parts

* Integrated item revision control from the engineering bill of materials (EBOM).

* Improved long lead item processing: This should allow customers to purchase their long lead items early in the project and then assign them to the appropriate jobs as the project structure matures.

The recent success of Encompix is one of the strong indications that after years of hesitation and caution, ETO manufacturers have begun to demonstrate a new economic confidence. For a comprehensive discussion of the ERP requirements of project-oriented and ETO manufacturers, see ERP Systems and the ETO Manufacturing Market.

Project manufacturers have to seek out ERP systems that will plan and account for activities before and after the "factory" activity. Thus, through the Program Cost Accounting, Project Accounting, Project Definition and Project Resource Planning sub-modules, to name only some, an ETO focused vendor should take a holistic approach to the needs of project-driven manufacturers, as to address the entire process life cycle, beginning with the bid and estimating processes, all the way to installation and service management. The company should thereby be able to connect the project status tracking with back-office processes. The system should also have a bidirectional interface to CAD design and project management tools such as Microsoft Project. Many customers require weekly progress reports and are comfortable with the MS Project format, but the product on its own cannot give the visibility and scheduling over a great number of concurrent products, and that is where the products like Encompix come into the picture.

Encompix indeed seems to have responded to many nitty-gritty aspects of the project-based industries. After over a decade of somewhat stealth operation, Encompix has begun to make some noise in the North American midrange ETO ERP market, with the above-mentioned recent wins and product related initiatives. The company was founded as a consortium of several ETO companies and initially named ShopPro Software in 1992, with the aim of developing an integrated solution for job-based manufacturing companies. Then, ShopPro merged with Paradigm Integrators in 1996, to first form CDC Holdings, and eventually became Encompix, Inc. Since then, the privately-held company claims to have experienced rapid and profitable growth.

The company attributes that growth to its narrowly defined focus on discrete ETO manufacturers, which may belong to a raft of seemingly diverse discrete manufacturing industries (such as machinery, tooling and molds, industrial conveyers, aerospace, oil & gas equipment, industrial ovens, metal fabrication, etc.), but they all have similar business processes and issues. (For a discussion of these processes and issues see ERP Systems and the ETO Manufacturing Market. When one narrows this down to a selected few regions in North America, and to selected company sizes (e.g., a sweet spot of companies averaging $30 million (USD) in revenues and thirty-five concurrent users), the notion of a laser-sharp focus emerges. However, the company also likes its future outlook despite its seemingly narrow marketing opportunity, as it estimates approximately 7,000 mid-market prospective customers in its target geographies in the US Midwest, Northeast, West Coast, Southwest, and Canada.

With the touted (approximately) 80 percent success rate against its usual suspect direct competitors, such as Lilly Software, Jobscope, Made2Manage, Epicor (the Vantage product), MAPICS (the SyteLine product), Visibility, and Microsoft Business Solution (MBS) Solomon, and with the average implementation of 150 days, whereby the ratio of software license fee versus professional service cost is often 2:1. This translates into a contract price of less than $200,000 (USD) for thirty users, we tend to concur with the Encompix' bullish attitude. One should also bear in mind strong references amongst its 270 customers, many of which will have a similar profile to prospective customers in terms of size, industry, geographic location and so on, knowledgeable and experienced Encompix staff with decades long tenures with the vendor (the vendor sells only directly) and a well-attuned implementation methodology.

Booklet of JDA: For the industry of the trade to the detail Part six: Suppliers of ERP and recommendations of user

2009-08-05T05:38:00.002-07:00

Group Inc. software (Nasdaq of JDA: JDAS), a total supplier in front of integrated software and professional services for the chain of a request into the detail and more than 4.600 customers, plans to be built on the collective booklet of JDA to allow its customers to carry out a new level of operational excellence. Plans of supplier to establish these possibilities as a definition and differentiation characteristic of its solutions of PortfolioEnabled of next generation during the next months and the years. Offers of software and service of booklet 2004.1 of JDA are detailed in the parts two to four of this note.

One should never not also underestimate the threat of the traditional suppliers of ERP which recently took serious steps in the sector with the detail. For an examination of the competition of the software of Lawson, to see Lawson 'approach of S at the market with the detail. , while for an examination of competition similar SAP to see SAP 'approach of S at the market with the detail.

Indeed, the decision to base the backbone of application of company on a system of ERP or to gather good-of-multiply the strategy forever be easy in any industry or any other ERP-adjacent functional field like the business intelligence/analytics, the management of report/ratio of customer (CRM), the management of chain of provisioning (SCM), the management of life cycle of the product (PLM) and so on, since there are a certain number of combinations and possible alternatives of package in the majority of the latter. Moreover, the suppliers of ERP had a long time been unaware of the sector with the detail having very recently entered more aggressively the large market - opened, trying to provide a greater functionality suitable for the industry, which is principal if they are to still move today 's the approach that popular to choose to integrate good-of-multiply the software.

This brings us to the fact that many suppliers of ERP transform their manner into market with the detail while developing internally, or to acquire solutions of point (like in the case of Lawson) or with partnering strategically to include detail-specific functions in their continuations. As on all other markets of applications of company, thereafter, the market with the detail too will go down to a showdown between the pure suppliers to the detail like JDA, Retek, software of NSB, etc and the traditional suppliers of application of company (for example, Oracle, SAP, PeopleSoft, the total ASS, Geac, Intentia, etc), who had tried to pack up detail-specific possibilities in their products. As usual, the suppliers of company will bet on the existing customers of admission of the funds of thirds which would have deeply invested in them, and even reorganized operations around their systems of ERP.

The promise of the products to the detail of the suppliers of ERP is the bond with the financial systems and of manufacture (though the suppliers 'to have most of the time, who is logical at this stage) and includes the management of collaboration of report/ratio of supplier (SRM) and the possibilities and the bonds of PLM to the data of customer in systems of CRM. An individual-vendor approach by suppliers of ERP could also produce other advantages, as with processes integrated and conformed in all the chain of provisioning, with the data-model conformed for the whole company, and the easier evaluation of the cost of project and the management total of execution by a primary education report/ratio (similar to has a throat with the reel with analogy). Commercial opportunity is to move provisioning with centered on the needs selling, via the sale, of the filling, the evaluation, promotions, arrangements of fidelity of the consumer and the multichannel management systems, all operation in addition to simple platform of ERP.

However, Saint Graal suppliers with the detail was transformed into work with the information of order source-a of the heterogeneous day in much of great organizations, which have often more than one system of ERP or various solutions of point and systems of legacy to the detail. It is similar to the market of the integration of applications of company (EAI), since at larger companies, the customers can still prefer suppliers of integration with the famous force of product, the vertical expertise, viability and intuitive financial in integration XML-based of B2B, the integration of multiplatform, and the management of course of operation. Good-of-multiply the approach could nevertheless often provide the choice of a system functionally richer for each branch of industry of a supplier more specialized, strategy of elasticity/left against a particular supplier the 'failure S or transfer, and a greater flexibility in terms of substitution of various elements as for satisfy all the needs for adaptation.

The current chiefs with the detail 'superiority, like in the case of the markets of SCM and CRM, will decrease thereafter as the suppliers of ERP continue to improve their detail-specific functionality, possibilities of collaboration and accessibility, and add the universal interfaces, including the new standards of service of Web to facilitate the access and the integration of the data apart from their own environment. Thus, the suppliers with the detail must as extremely establish a catch on the market as possible before the suppliers of company and of platform catch up-especially the remaining suppliers with the detail of solution of point of the line two and three. If they cannot gain significant traction and the distinctive differentiation, they could be in position of having to be acquired or join forces with a functional complementary supplier or of platform of technology via alliance or acquisition.

In addition, IBM, which had functioned with many detail-specific suppliers of software in a certain capacity, brings its own richness of experiment to the sector, in particular in terms of cabled devices, systems of store, infrastructure of systems of company (by the framework WebSphere-based of integration of store), management of the data (by the recent acquisition of Trigo), and services professional. JDA given 's recently embraced the orientation at the platform of Microsoft .NET, it is likely in particular that the long-term associate IBM will continue other associations more vigorously now, with his report/ratio recently increased with SAP to establish more cohesive solutions for retailers who combines the best of the two camps.

With almost each retailer in the world now using something of IBM, SAP, or both, the two suppliers envisage towards high-are sold at the beginning with the current customers, in particular in North America, where SAP 'presence with the detail of sector of limited S.A. Always, IBM 'infrastructure of S and offers management of the data could be sometimes opposed with the equivalent offer of SAP (C. - with-D., SAP NetWeaver Master Data Management [MDM]) and of Retek (C. - with-D., MDM). In other words, Co-opetition will be the name of the play and great attention to the way in which these products will interopreront and where each one would enter a solution suggested becomes very important.

For this purpose, and to defend with far from the movements of detail of the common enemy, SAP, during PeopleSoft connect conference 2004 of user, PeopleSoft and JDA announced an alliance to develop and launch a solution for the retailers who will provide supposedly integration between the applications of financial management of company of PeopleSoft and the management solution of goods of booklet of JDA, and packed up with the recent strategic advertisement between PeopleSoft and IBM, on September 21. However, alliance will solve the enigma by no means above PIM/GDS, whereas the cloud of Oracle potential acquisition (and maintaining more probable of S from here the day) planes above many prospect customers spirits (for more information, to see not all acquisitions occurring: JDA and QRS).

Thus, JDA and his/her brothers of detail-specialist will have clarifying and simplifying further their strategies of framework of integration. The synchronization of data continues to be a priority for retailers, and JDA must identify the importance of interworking with other databases and exchange platforms if he wants to offer a product really differentiation of collaboration by mixing the execution with the detail with the interaction of collaboration of business partner.

Booklet of the DA: For the industry of the trade to the detail Part five: Impact of the market analyzes

2009-08-05T05:38:00.001-07:00

Group Inc. software (Nasdaq of JDA: JDAS), a total supplier in front of integrated software and professional services for the chain of a request into the detail and more than 4.600 customers, plans to be built on the collective booklet of JDA to allow its customers to carry out a new level of operational excellence. Plans of supplier to establish these possibilities as a definition and differentiation characteristic of its solutions of PortfolioEnabled of next generation during the next months and the years. Offers of software and service of booklet 2004.1 of JDA are detailed in the parts two to four of this note.

However, JDA must treat some tendencies morphing in the market segment with the detail, since the stop of the agreement of fusion with QRS has more ramifications for ravaged JDA than simply one me (see not all acquisitions to occur: JDA and QRS). With knowing, JDA and QRS were supposedly well in bottom of the road with a model combined of development of product, including the new functionality around the total synchronization of data (GDS) and of management of information on product (PIM), who have late be of the key zones of interest because the companies look at more and more apart from their four walls and walls fire resistant to lead electronic businesses with their business partners (of the customers and the suppliers). It is particularly essential for the retailers and the suppliers who must syndicate or receive the product and the commercial data of the points of emission of multiple, interior data and outsides of their walls fire resistant, and JDA in manner indisputable is now left in the yaw by QRS 'abandonment.

Like remarkable earlier, the unfortunate fusion of JDA and QRS could have good underlined interesting dynamics in the market segment with the detail. On the one hand, the market much less is penetrated by applications of company that the majority of the other economic sectors, partly since the retailers mainly were negligent by leaving central processing units and other technologies of legacy behind. Moreover, the sector showed impact strength even during faintness recent and probably continuous, economic, partly while the consumers had stretched their balances and limits by the credit card. Producing of more than $3 trillions (of USD) annually in the sales, the detail is the second large-scale industry in the USA, as brought back by the office of the census of the USA in April 2003.

However, on the one hand, the sector had required on the two suppliers of software and their prospect customers of the possibilities, since the organizations with the of the same detail and their suppliers constantly face with the competition of intensification, a request for fluctuation so because of the seasonal character, the customers picky and soft, the channels with the detail in evolution and the increasing globalisation. Sales are made pressure on, the margins are compressed, and almost all the participating companies must try to carry out results improved with few people.

Although the customers with the detail and wholesale typically invested a low proportion of their total incomes in IT, because the chiefs in this industry start to show a capacity to carry out the advantage of the market by the effective use of the specialized applications of company, the condition so that all the retailers increase their investment in IT and of the practices adopt developed thus. Like city previously, several of these companies did not replace yet their systems of legacies adapted to the customer requirements by solutions of packed software, and consequently, it on substantial occasion there on the market with the detail. Moreover, several of the companies on the market do not use the sophisticated solutions of optimization. For a detailed discussion which suppliers of software deal with when addressing the market to the detail to see the dynamics of market to the detail for suppliers of software.

While the markets of consumers become more competing, the retailers realize that they must make realize more than simply effectiveness increased in their own organizations. In other words, a retailer the 'advantage competitive of S now is defined by the effectiveness of their whole chain of provisioning. In addition to allowing business partners to collaborate in planning, with the forecasts, the filling, and the decisions of planning of space, some suppliers also develop the additional functionality which should allow retailers and their suppliers to make decisions of collaboration for marketing, the set, and the activities of promotion.

But, because the process of chain of provisioning of industry of the trade to the detail includes hundreds of stages of collaboration among thousands of retailers, suppliers, suppliers, manufacturers of mark, and other intermediaries to create, manufacture, and move products of the source to the store, industry is characterized by multiple options of approvisonnement of product, a great selection of products and the place of multichannel appointments of purchases which include the retail stores, the emails of exit, the catalogues of mail-order selling, and Internet sites. Given competition for the customers to the detail and the orders wholesale is intense, the participants of industry must be able to satisfy the request of the consumers quickly, exactly and at most competitive price. For this purpose, support even in the middle of the Eighties, a co-operative effort of industry to improve the electronic treatment of the data led to creation of certain standards of format of data, including the adoption of the exchange of information electronic (EDI), of the code produces uniform (UPC) and, on Europe and other international markets, European standards of the number of article (EAN). More recently, the number of total commercial article (GTIN) was established.

The formats of data of GTIN, UPC, and EAN take account of formed aidentification of the goods in all the process of chain of provisioning, of the design of products at the sales outlet. The promises use of GTIN, UPC, and EAN of data to increase the effectiveness considerably by which the retailers and the manufacturers can identify, to detect, and exchange information on the product detailed. Because of these standards and technologies, much of retailers, suppliers, suppliers, and manufacturers of mark could reduce the cost of financial transactions, disparities between the invoice and buying orders, of vague forwardings of product, and provision-exits.

The manual procedures and on paper current still of authorization of article on some sites continue to create useless latency times of forwarding and to also prevent the future growth. It is particularly true when, on average, a retailer of grocer can be required to gather and enter of the pieces of hundreds of data in order to present a product of a supplier in the network of the thousands of business partners. Consequently, the management of information on the product of limit, or PIM, appeared more frequently recently in the discussion of GDS and the syndication because of a certain number of initiatives of the market which act as catalysts for the change. For example, much of large retailers, carried out by Wal-Mart, required their suppliers to synchronize data of product via the services European of synchronization of number of article/d' recording and given of UCCnet. Other catalysts let us include the initiative of the sunrise 2005 which seeks to standardize on a format for the total identification of product via a new code of fourteen-figure, and the initiatives of RFID in place to cause the fast adoption of the new radio frequency labels on all the products, so that they can be detected by manufacture and the environments with the detail more easilly.

Booklet of JDA: For the industry of the trade to the detail Part four: More booklet 2004.1 of JDA and alliance of Microsoft

2009-08-05T05:36:00.000-07:00

Booklet of JDA: For the industry of the trade to the detail Part three: Booklet 2004.1 of JDA continued

2009-08-05T05:35:00.001-07:00

Group Inc. software (Nasdaq of JDA: JDAS), a total supplier in front of integrated software and professional services for the chain of a request into the detail and more than 4.600 customers, plans to be built on the collective booklet of JDA to allow its customers to carry out a new level of operational excellence. Plans of supplier to establish these possibilities as a definition and differentiation characteristic of its solutions of PortfolioEnabled of next generation during the next months and years. The offers of software and service of booklet 2004.1 of JDA will include what follows:

1. Management of goods of booklet (see the part two)
2. Attribution and filling of booklet (see the part two)
3. Planning and forecasts of booklet (see the part two)
4. Systems of store of booklet
5. Management of customer of booklet
6. Administration of income of booklet
7. Advanced optimization of booklet
8. Business intelligence of booklet (BI)
9. Infrastructure of booklet
10. Solution of collaboration of booklet

The systems of store of booklet, also aimed bus In-Store the systems are specific to the retailers and provide the sales outlet (position) plowing and the functions of control, in-store functions of inventory control such as the reception, the transfers, the management of the prices, and the physical inventory. JDA in-store systems now also include a management solution of labour to optimize in-store programming work and the data of in back-office and detecting customer of the solutions. For this purpose, the supplier showed the new position of booklet (PPOS), a solution Java-based of store which combines an architecture of the second generation with years of expertise of position. The functions of shown PPOS were technology of the edition of company of Java 2 (J2EE); visibility on the level of the company in real-time of inventory; a more powerful engine of evaluation; authorization at high speed of purchasing card; the thin-customer back-of-store operations of them (of BOSS), produced improved and the customer seek, the service of message of Java (JMS) - communications based of store-with-center waiter, the formats of exchange of information of Extensible Markup Language (XML) And the GUI easy to use.

The product, which is based on intellectual property JDA acquired trade of J in 2002, was commercially released in 2003. It comprises a modular architecture that which provides the advanced position and the management of cash register which, once combined with the product gantry of store of booklet (explained soon), offers a strategy complementary to product with the product of WIN/DSS (also explained soon) for larger customers with annual sales of $5 billion (USD) and a great number of stores, or registers by store.

The gate of store of booklet is an interface based on the WEB which provides to retailers the access in real-time to the information of company on their management systems of goods of host centre, via the Internet. It allows retailers the immediately initiated associated processes level of store such as investigations of forwarding, requests for transfer, orders of store, buying orders, and the return to forwardings of supplier rather than awaiting a night batch processing of vote, and to envisage a greater visibility in the information of sale of company on the level of store. WIN/DSS is Microsoft based on Windows in-stores the system which provides operations of register in-store, as well as processes of in back-office such as, receiving, inventory sale orders of store, and the returns, and radio frequency held in the hand in real-time - collection and data processing (RF) based. It is also integrated with the gate of store of booklet and the management of report/ratio of customer of booklet (CRM) (explained below) of the offers to provide management to the level of the company of inventory and customer.

The system dominating of store of booklet for WIN/DSS (PS), formerly PRISMJ is a data acquisition and an automated system of treatment which makes it possible to the personnel of store-level to carry out procedures anywhere inside store using a device RF held in the hand. With the PS, the personnel of store-level can handle the article labelling while receiving goods, the position of handle functions and prints receipts. JDA also developed the mobile access of booklet for PDA or PDT, an application navigator-based of connectivity with the functionality similar to the PS, which operates the personal numerical assistance (PDA) and the portable devices of the terminal of data (PDT).

The management of labour of booklet (PWM) is the management solution of labour of recently acquired company of the solutions to the detail of Timera which provides the functionality based on the WEB for the detail and the industry of CPG in the fields of programming and saving work, time and the assistance, the forecasts of demand, advance of work, the management of operations, the report and the interaction of corporation of labour via gates Internet, and other processes of key for the management of work of proactif level of store. The product aims at making it possible companies to reduce over- and lacks it personnel, to increase the operational execution, and to increase the service to the customers. Since more than 20 million people were used in the retail business of detail in 2002 in North America, the costs of labor are the larger second controllable expenditure after the inventory, that the retailers must mticuleusement control.

The management solutions of customer of booklet allow the management of a great number of reports/ratios of the consumer by programs of fidelity. These solutions are distinct with nature from the typical linear solutions of sale and with the hearth explicitly on the management of a great number of consumers. For this purpose, JDA showed the last improvements with the affinity of JDA, which is a solution of CRM which makes it possible retailers proactivement to support and control information customer of the multiple channels and campaigns concerned of email and mail. It is currently composed of three modular, open customer/applications of waiter:

1. the infopac low of customer provides to retailers single to gather, question, to analyze, and like basic data management of customer name and addresses , as well as the history of transaction, advance, and the multiple customer allots, including the number of visits, the bought and turned over products, the size, and demographic information;

2. the module of targeted marketing makes it possible retailers to identify the lists concerned customers it is most likely to answer that a given promotional event, and

3. the module of chart of score of customer provides to a retailer 'with associates of sales of S with rapid access with the history of transaction of customer who allows them to guide customers to sell to match their preferences and recommends occasions for the additional products related to the preceding purchases. The module of fidelity of customer, programmed for the commercial release late in 2004, will supposedly make it possible retailers to define and maintain a strategy marketing which customers of repetition or volume of rewards with financial incentives.

Also the membership of the management of customer of booklet is Management I of order of customer, formerly the treatment of a multichannel nature of MMS, which is an application of integrated software of e-business that work out of tandem with the product of sale mentioned above of MMS and provides to retailers the sales and the system of delivery Internet-based. The product integrates all the posterior part treating and makes it possible retailers to automate their catalogues of product, to control the inventory and the prices, interfaces with suppliers of credit, to achieve and embark orders, information customer of way, and returns of process.

6. Administration of income of booklet

Management solutions of income of booklet are conceived to optimize the evaluation and the margin, and to incorporate the management of publicity and marketing functions. With the promotional expenditure occupying a great part of the retailers and suppliers the operational expenditure, JDA fortunately presented its solution for strategic publicity and the management of promotion with the sound recently increased engage the continuation, and the supplier also showed products for the detail and the management of goodwill packed by consumer of goods (CPG). Vista CPG is a commercial software based on the WEB of management of funds which contains a series of modules which make it possible manufacturers of consumer goods to control the sales promotions, to reduce the commercial deductions to the minimum costs, and requires of product of forecast more exactly. Engage is a series of company announcing, launching, and asks on the market of software of promotion of retailers, that, by the anticipated numerical capital, management and the possibilities content with provision of advertisement of these applications, should improve their promotional process of planning and their delivery of marketing and contents of publicity, and rationalizes the communication and collaboration among their sale, promotions, production and teams of operation of store. The versions of these applications are also available for the advertising agencies, the newspaper, and the organizations of the markets.

Moreover, the encouraging management of supplier (VIM) is an application of software based on Windows from Microsoft acquired of Zapotec in 2001, which allows retailers, suppliers, and distributors to control their commercial allowance and promotional programs by automating the realization of contract, the generation of complaint, and the processes of accounts receivable (AR). In conclusion, the management of marketing of expenditure (MEM) is a solution based on Windows which allows retailers, wholesalers, and manufacturers to automate publicity and promotional practices to improve of the effectiveness and advantages of basic line by controlling the multiple budgets, the real accumulations, and expenditure on a simple solution. The product also automates the whole process of supply of media, including publishing buying orders and orders of insertion, as well as detecting invoices and revisions, to increase exactitude and to associate the productivity.

Booklet of JDA: For the industry of the trade to the detail Part two: Components of booklet 2004.1 of JDA

2009-08-05T05:33:00.001-07:00

Booklet of JDA: For the industry of the trade to the detail Part one: Summary of event

2009-08-05T05:31:00.000-07:00

Group Inc. software (Nasdaq of JDA: JDAS) is a total supplier in front of software and of professional services integrated for the chain of a request into the detail with more than 4.600 customers and 33 offices spanning each principal global market to maintain the customers in more than 60 nations. JDA believes that the sound has the total sales and the infrastructure of the delivery. To knowing, the supplier launches his products and services almost exclusively by his direct personnel of sale, who, for Americas, is based in Scottsdale, Arizona (US), with fifteen sales and regional offices of support through the USA, Canada, and the Latin America. JDA also has the international representatives of sales located in almost twenty support and sales offices in the important cities in the whole of Europe, of Asia, of Australia, and Japan.

JDA was a leading vendor of good-of-multiplies solutions of software conceived specifically to address the management of chain of offer and request (SCM), processes of businesses, decision-making aid, e-business, optimization of inventory, and conditions of collaboration of planning and forecasts of the industry of the trade to the detail and suppliers with the industry of the trade to the detail. These solutions aim at making it possible customers to control and to optimize their inventory runs in all the chain of request in the consumer, and provides optimized work programming for operations of retail store. The supplier 'the businesses of solutions of software of S is increased and supported by his specific professional services of detail and supplier.

JDA 'customers of S included roughly up to now 4.600 of the world 'detail of S of the main thing, the manufacturers and the wholesalers of the goods packed by consumer (CPG). The supplier could probably have the greatest base installed of customer to the detail among his direct competitors, with more than 1.200 customers to the detail in more than 60 countries and almost 3.300 manufacturers and wholesalers of CPG. Some customers of capital are AEON Company Ltd., Anheuser-Busch Companies, Carrefour, Colgate-Palmolive, CVS Pharmacy, Inc., General Dollar Corporation, Energizer Holdings, Inc., Estee Lauder Companies, Inc., H.E. Limited Butt Grocery Company, Kroger Company, stores, of Meijer, stores of Michaels, Sodimac, Tesco, and Wal-Mart.

Moreover, JDA pawns to continue occasions incipient from chain of provisioning in all the world sectors of detail and manufacture. With this new economic model, JDA envisages to build on the collective booklet of JDA to allow its customers combined to carry out a new level of operational excellence. The goal is to combine without seam all this necessary information to lead decisions with the sophisticated software which allows these rich person of data called of phenomenon of decisions-a. In other words, JDA wants that its customers can count on one company-JDA-with the external data of trust with internal data of company and customer to ensure the decision making effective and based on the most possible knowledge. The supplier envisages to establish these possibilities as a definition and differentiation characteristic of his solutions of PortfolioEnabled of next generation during the next months and years.

Jim Armstrong, now JDA 'President of S, first launched services of software of JDA to Calgary, Canada in 1978, which became either one of Canada 'companies based on the technology of S of largest IBM for the semi-market. In 1985, Armstrong sold the Canadian businesses, and, with a associate, formed Scottsdale, the software Arizona-based of (US) JDA, that nowadays, has more than $200 million (of USD) in the incomes and uses more than 1.300 associated functioning starting from 33 offices in the important cities as a whole with North America, of South America, of Europe, of Asia, and Australia.

Since 1998, JDA achieved nine following acquisitions:

* capital of the solutions to the detail of Timera, a realizer of the integrated solutions of management of labour for the detail and the industry of CPG, in January 2004;

* the capital of engages, an announcing supplier of company, marketing and solutions of software of promotion (amp) for the industry of the trade to the detail, in August 2003;

* capital of the solutions of software of Vista, a supplier of the solutions of collaboration of trade for the detail and the industry of CPG, in May 2003;

* capital of trade of J, a realizer into private held of the solutions Java-based of the sales outlet (position) for the retailers, in April 2002;

* E3 Corporation, the total supplier of the solutions of optimization of inventory (grouping for example, of store-level, planning of set, filling, etc), in September 2001;

* the capital of the products of NeoVista, including the mining technology of data of series of decision, by increases software, in June 2001;

* Software of Zapotec, a supplier of place of the segment of management of commercial allowance, in February 2001, with old products of ProMax and AdPlan conceived to integrate the execution of publicity and budgets, analytics, research, purchase of media and contents of goods, and advance promotional of commercial allowance;

* capital of the management solutions of space of Intactix de Pricer ab in April 2000; and

* capital of unit of company to the detail of Arthur of old Comshare, Inc. (maintaining part of the computers of Geac), gaining its continuation of company of the solutions of strategic strategic planning, in June 1998.

Continuous JDA to invest the important resources in advancing the booklet of JDA, its continuation of good-of-multiplies the products which control and optimize processes of chain of a request to the detail of the end products to the control of customer, and which gone them of supplier to the retailers in the whole world with annual sales of $100 million (of USD) or more, by which more than 1.200 of its existing customers to the detail have at least one of its multiple products, which provides a significant cross-country race and towards the occasion high-sells. Several acquisitions mentioned above, in particular of Arthur, Intactix, E3, and Vista made it possible to the supplier to further increase his base from customer to include almost 3.300 suppliers with the industry of the trade to the detail and the additional applications of software which allow (B2B) planning, the forecasts and the filling of collaboration of company to company (CPFR) between the retailers and their suppliers.

For example, at the beginning concentrated on retailers, JDA had gained a strong presence among manufacturers of CPG by Intactix 'acquisitions, whereas the strong presence of E3 'of S in the host centres and the wholesalers of distribution of retailer had very safe achieved the insurance of the chain of provisioning to the detail. These acquisitions, as well as investments JDA while waiting made to increase the evolutionarity of its products, allowed him to continue occasions incipient from growth in the chain of a request with the detail and to further increase its targets to include greater multinational organizations with the detail and roughly 26.000 suppliers with the industry of the trade to the detail in the whole world with annual sales of $100 million (USD) or more.

solutions of Quote-with-order and indicators of principal execution

2009-08-05T05:29:00.000-07:00

The solutions of Quote-with-order (Q2O) help to automate the processes of industries of manufacture and distribution, simplification and linearization and standardizing technology and the tools. If one discovers functional gaps which could become potential problems or which are already active concern, the systems of Q2O create a model to conceive an action plan. The complex manufacturers of product of assistance of products of Q2O rationalize their processes so that no sale due is lost to the poor process.

For basic, please see the foundations of the systems of Quote-with-order, of complexities of the Quote-with-order and the possible solutions, the essential components of the application software packages of Quote-with-order, systems of Q2O: Solutions for the management of quotation and the configuration of evaluation, and Quote-with-order: Principal players in the arena of manufacture.

solutions of Quote-with-order: Conclusions and recommendations

While the complex manufacturing companies in emergence and the countries with low wages could at the beginning approach order-to capture challenges by adding more manual people and stages to the process of Q2O, they will strike the wall thereafter (see the part five of this series, Quote-with-order: Principal players in the arena of manufacture).

Thus, the manufacturers of product and the complex distributors employing of the products of engineer-with-order (ETO) and configure-with-order (CTO) should seek the solutions available of Q2O. It is particularly true if they are losing sales due to the slow answers to the quotations and proposals, draining technology the 'time of S by making it work with the complex quotations, improving orders several times to align them with needs for customer, and losing sales due to a lack of training of retailer in the recording of the orders of the products adapted to the customer requirements.

The suppliers of the products, the systems, and the complex services which are based on multiple departments for the achievement of their evaluations should see systems of Q2O like enablers. These enablers can improve the competitive advantage by reducing completion periods of proposal, tightening management and the order to offer costs, improving offered the collaboration of team, to improve the access of data and the availability of information, and to increase exactitude in estimates of the costs.

The users must also maintain in the spirit which no configurator, Q2O, or interactive continuation of the system of sale (ISS) is not universally useful in all the sectors of the businesses of manufacture. A badly conceived deployment will deteriorate further the total effectiveness from a holistic initiative of customer-coating. With knowing, the sale and the guided configuration of product are conceived for various needs, which vary significantly by the level of the complexity of the product being manufactured, the sales strategies of each channel, and much of other factors. Generally, the guided sale tends to being employed for the basic commodities low-margin and elastic prices-not which have foreseeable choices of option and which are at the end of their lives of product. In other words, the products which have little if any variation is where guided sale provides the greatest advantage. For example, the companies bringing back the greatest use of results guided the sale with the capture of command signal input in the total selection, package, assemble, and embark economic models.

As usual, the companies must define their sales strategy initially, and if it includes the reversal of support of inventory, involving a reduction of the costs, and reducing exceptional sales of days (DSO), then the guided sale should be a good adjustment. However, the companies which aim at complex processes of Q2O and quote-with-money cash and which need the wide integration of the knowledge of product, such as the management of chain of provisioning (SCM), the planning of entrepreneurial resource (ERP), the management of the data of product (PDM), and the systems of the management of report/ratio of customer (CRM), will have to continue to look with technologies of configuration to really affect sales.

The last generation of the configurators based on the technology of knowledge management has a real impact on selling the complex products. As indicated earlier, a good package of configurator captures the rules related to the offers of product and guide intelligently of the customers, the retailers, or the salesmen by a selection process without need for intervention for supplier (see the part five of this series, Quote-with-order: Principal players in the arena of manufacture).

However, it is important that a solution of configuration is not only directed towards the choice of product, because it must control the economic principles related on the evaluation and the limits of customer and often also to maintain the conditions, as can produce documentation personalized for internal prospects, retailers, and needs. It is important that the exits of the configurator satisfy the needs for the purchasers and the suppliers. The purchaser needs a quotation or a proposal for a correctly specific product and have the price indicated, while the supplier requires for the specifications which will allow the complete and precise generation sales and work orders in systems of realization of in back-office if the quotation is converted into firm order. Thus, in addition to being comprehensible to the customer, the configurator must also translate the product into format required by the internal users within the company of sale.

Often, the maintenance of configurator is too difficult for experts as regards field, such as the marketing and the personnel of technology, to seize. Consequently, the maintenance of configurator should be an effort combined of many various experts as regards field, since if the expert cannot enter suitable knowledge the configurator, it becomes a piece of futile software.

It is also important that the tool of configurator have sufficient possibilities of expression to represent the problem and to solve it, and the use of the simple and convenient graphic tools a long way will facilitate the maintenance of configurator. Even if the company manages to motivate its personnel to share knowledge, the effort fails if technology behind it is cumbersome and noneasy to use. If the configurators will be useful, they must make it possible rules to be captured and published very easily (otherwise the rules will change before they are published), and the maintenance of rule must be simple and quickly.

Still worse, a configurator which cannot be easily synchronized with a commercial environment changing can really be a detriment with the businesses rather than an advantage. The exposure of the information of the systems of in back-office to the configurator of sales must be made in a way in which at least reduced redundancy of data and supports easy maintenance, because the products and the options change with time.

The difficulties with the maintenance of system of configurator seem to be to worry the exit in the dynamic environments with the products and the frequent changes of parts, the frequent marketing campaigns, and the development of new products and the introductions (NPDIs). To remain current, a convenient transfer such data in the configurator is critical, and such changes with strong flow often transform of manual input of information updated in impossible system. However, in some industries where the product, service, or the project is very technical, part of the work of configuration will have to still be back led to the office, with the requirements of customer being specified by fax, the email, the form of Web, or head with head, and then fed through with a service of configuration of in back-office.

On a more general note, whereas the choice of the good technology is crucial, much of destruction remains by solving much softer, the nobody-related exits. Since a configurator touches many aspects of the businesses, all the affected departments should be implied in the choice of the configurator and its possibilities. Collaboration among the sales, marketing, planning, and the departments of technology is critical for the success of the project of improvement of Q2O.

It is a silly thing (requires little thought) which the configurator the 'capacity of S to be deployed through the Internet is a need if up to date information must be made available to the direct and indirect network whole of channel of sales to the contact of a button or click of the mouse. However, the frequency and the volume of use are another principal consideration. With knowing, when a configurator is employed on a Web site with strong flow, diligence is necessary to make sure that the engine of configurator and its environment can handle one of broad volume of the transactions (thousands of customers on line all configuration of their articles simultaneously).

For example, the purchase of self-service of GCV (GCV) can have like consequence the thousands of characteristics and configurations of customer produced in any one day on the Internet. However, in other industries, such as the tools industrialist or capital equipment, there can only are a handle of configurations, characteristics, and quotations carried out any day given, although they are likely to be extremely complex and can always imply a certain function of in back-office. In any case, of the exits of evolutionarity of product should be evaluated as of the access by evaluating a solution of configurator, since following problems cannot be easily surmounted per hour of the deployment.

Quote-with-order: Principal players in the arena of manufacture

2009-08-05T05:27:00.000-07:00

The technology of configurator of Quote-with-order (Q2O) had helped of the manufacturers improve their productivity by completion periods of shortening, eliminating the possibility of errors from order, and reducing the need for training costs and the expertise of various the personnel of design and service (see please the systems of Q2O: Solutions for the management of quotation and the configuration of evaluation).

For basic, please see the foundations of the systems of Quote-with-order, of complexities of the Quote-with-order and the possible solutions, and the essential components of the applications of Quote-with-order.

The knowledge management comes using the manufacturers from Engineer-with-order

The last generation of the systems of Q2O goes a stage further by employing the software based on knowledge to reduce the skilful matter experts of the dependence above strongly -. The not-programmers can now capture knowledge necessary with the intuitive visual tools (for example, the drag-and-drop, rather than by annoying computer programming languages as wound or Prolog).

Since the capacity to arm a company a 'intellectual property and know-how with S are principal with the competitive advantage of building, the management systems of the knowledge of product have tools become basic which make it possible companies of engineer-with-order (ETO) to capture and maintain sales and knowledge criticisms of product in a base of knowledge of company and an expert system. The companies of the most advanced ETO increase their intellectual capital to automate the processes of Q2O to attract customers, to sell achieving products and services, orders, and of the service of the customers. Such systems must be focused internally and outside (to span the chain of request for any company given), and must work with complex economic principles related on the processes, the products, the evaluation, and the services (there is practically no limit so that a little knowledge can be captured).

The emphase here is on the knowledge management rather than the management of rule, and this approaches helped configuration also helps the manufacturer. The software can produce generative specifications of manufacture which are defined for the user and which can include nomenclatures (BOM), project, quote, place order, drawing, and so on. The choice of integration (without seam via the Web or of the desktop machine) can be availability ratio to the data, the function, or of Web. For example, the integration of the information of evaluation could imply all these levels.

An good example of a supplier of knowledge management is Selectica Inc. except its usual configurator of Selectica, Selectica Pricer, Selectica Quoter, and studio of Selectica of other products of Q2O of usual suspect, offers of Selectica and deposit of Selectica, which increase the declaratory engines of constraint. As mentioned previously in systems of Q2O: The solutions for the management of quotation and the configuration of evaluation, much of existing configurators are personalized programs which were written specifically for the product or the family of the products being configured. This means that the logic of configuration and the data describing of the attributes of product are combined in a simple computer program which requires the significant reprogramming to reflect the simple changes of product.

On the other hand, the applications of Selectica use an engine constraint-based which is separated from the data describing the attributes of product. This makes it possible companies easily to create and modify the base of knowledge of Selectica to reflect changes of product by employing the environment of modeling integrated, eliminating from this fact the need for expensive teams of programming.

For this purpose, the models of studio of Selectica, tests, and corrects applications using a simple tool, which simplifies development processes, while the graphic instruments of basic development of knowledge and user interface (UI) allow the deployment and the maintenance of application by the personnel not technician. Selectica developed an integrated environment of modeling which makes it possible its customers to easily create a sophisticated management system of knowledge without programming. The programs use the tools of drag-and-drop which allow sales and personnel of marketing (rather than the expensive programmers) to maintain and increase their solution adapted to the customer requirements.

Using these tools of drag-and-drop, the companies can easily create and update knowledge bases containing of the attributes of product; create the HyperText Mark-up Language (HTML) - graphic applications based of the user interface (GUI); examine the application interactivement as the application is established; and controls of order in batches of control. The companies can also check the semantics of the base of knowledge and create the flexible models of various models. The users can create and to maintain the knowledge bases automated by an environment of basic development of knowledge (KDE), although the administrators can maintain the uniformity of the knowledge bases using an environment entirely automated and a line of order interfaces (which eliminates the need for UI).

The deposit of Selectica is a database which stores the base of knowledge in a readable format, which can easily be questioned. The solution provides knowledge bases developed by teams of various places, leaving for easy maintenance. Driving Selectica 'of S, written in Java, is easily deployed on various platforms of operation, and the use of the edition of company of Java 2 (J2EE) makes it possible to the supplier to support a range of the environments of deployment. Such environments extend from the applications of Java in a laptop to the waiter-produced and navigator-readable pages, with the same engine and the same base of knowledge.

Along the similar lines, continuation 8.0 of Cincom Q2O is composed of Socrates 8.0 of Cincom, a studio of industrial property of basic application of knowledge, and module of Cincom SalesConfigurator 8.0 to sell the configuration and the management of proposal. Like Selectica, Socrates (formerly manufacturer of the knowledge of Cincom), which is the lotisseurs concerned of knowledge (not necessarily It personal, but rather departmental users of power, such as experts as regards technology), is an environment of company in sales and expert systems developing and spreading configuration.

Acting as brain and a fundamental studio of basic application of knowledge, the functional supports of configuration of product of offers of Socrates to allow the customer needs analysis, evaluation, generation of document, diagnoses, and intelligent research. The base of knowledge of company includes the environment of project of company with the director of object, the chart of constraint and the chart of decision, the writer of forms, the basic fastener of data, the writer of list, the writer of tree, the writer of case, the writer of hierarchy, and the writer of process as constitutive blocks.

With the difference of in the majority of the configurators of product, the graphic knowledge of Cincom 'of S modelling the environment makes it easy for the users not technicians to quickly develop the solutions which help with the analysis of the needs for customer, of the choice of product, the configuration of product, the evaluation, of the quotations, and of the support with the customers. Modelling the tools allow experts as regards field to capture and maintain rules in the base of knowledge in an engine of rules of hybrid which treats constraints, decision trees, the configuration with a model, configurations, and procedures. The engines of decision are used to provide recommendations and the advice interactives on the products, the services, and the most suitable policies. They also help of the users to decide forthcoming task or action in a system unfolding of operation-based, based on current events and available data. Moreover, they help to configure products, services, and courses of operation. There is a fast environment of the development of applications (rad) for the Web, Microsoft Windows, and the applications included, where a universal interface of customer can be Windows, rich web client, and mean web client. Although written in technologies of industrial property, rad comprises an open architecture for integration without seam using Extensible Markup Language (XML), the basic connectivity of data open (ODBC), or the model of common object (COM).