Major Advances in BPM and ERP
RFG Perspective: Business executives in small- and medium-sized (SMBs) as well as those in rapidly-changing large organizations can be at a disadvantage compared to their counterparts in relatively staid organizations. They must juggle a myriad of challenges, oftentimes without automated processes, usually because traditional ERP solutions either cannot be modified easily or the price point is prohibitive. These executives need business process management (BPM) and/or enterprise resource planning (ERP) solutions that will automate redundant processes, enable them to get to the data they require, and/or allow them to respond to rapid-fire business changes within (and external to) their organizations.
At the 2013 JRocket Marketing Analyst Road Show in Boston, Massachusetts three innovative disruptive technology vendors made announcements that can enable business executives in optimizing their business processes. These game-changing vendors are:
• Apparancy, the sister company of Corefino and powered by Corefino's 500 plus pre-built cloud-based Software-as-a-Service (SaaS) process framework, made its debut. Apparancy BPM solutions will initially target healthcare-related challenges faced by both enterprises and providers, and other areas in desperate need of quantum leaps in business process improvements.
• SYSPRO is transforming the manufacturing/distribution sector through its unprecedented rapidly-deployed and specialized solutions for industry micro-verticals both on-premise and in the cloud.
• UNIT4 is a global ERP solution provider that is expanding its offerings to Businesses Living IN Change (BLINC) ™; businesses that are changing rapidly due to mergers and acquisitions, global expansion, compliance, reorganization, etc.).
Apparancy
Today, executives must transform themselves into business process visionaries to guide their organizations into a sustainable and thriving future. Executives across the enterprise and in particular in the administrative side of healthcare, spend inordinate amounts of time on redundant and repetitive processes, distracting them from the real work at hand, which costs their organizations millions of dollars annually.
Market newcomer, Apparancy delivers BPM expertise to vendors with an automated, compliance-centric, and holistic business process workflow framework. Apparancy's previously introduced cloud-based sister company Corefino, has already proven that its 500-plus process framework can save organizations from 25 to 50 percent or more over costs attached to their current workflow frameworks.
Apparancy customers get pre-built workflows to solve specific issues, such as compliance to Affordable Care Act (ACA) mandates, in a platform that sits on top of existing data systems, and that can then be continuously (and easily) updated and modified. The cloud-based SaaS model is proven (based on the five-year experiences of sister company Corefino) to support legal compliance while delivering substantial measurable ROI.
Apparancy's workflow platform minimizes and simplifies state-, federal-, and industry- mandated compliance. The framework vets data and marries systems of record with systems of engagement to make business processes accurate and auditable. In essence, the Apparancy solution enables the any device, anywhere, anytime paradigm to be applied to pre-configured business process workflows – an industry first.
Executives must be able to confidently manage, sustain, and grow their organizations well into the future –as well as remain compliant. Apparancy can provide these organizations with the information they need anytime, anywhere as well as the detailed-as-necessary visibility into internal workflows without having to increase talent acquisition. Enterprise human resources (HR) executives and healthcare providers dealing with new legislation are key areas under extreme stress for which Apparancy will provide much-needed support.
SYSPRO
In a super-sized world mid-market business executives have learned that "bigger is not always better." The answer to complex business problems is not a larger, more complex ERP solution. Moreover, one size does not fit all. This is especially true in manufacturing and distribution, in which consolidation, outsourcing, and off-shoring have become de rigueur. In addition, regulations change continuously and large retailer organizations often define the standards which SMB manufacturers/distributers must follow. This has become increasingly more challenging, driving many out of business.
For business executives to respond to change with agility as well as grow their businesses, they require an ERP vendor with solutions that go beyond simply targeting the manufacturing and distribution verticals. They need a vendor solution that drills down into the business, finance, technology, and regulatory challenges of specific micro-verticals, such as food and beverage, medical devices, electronics, or machinery and equipment.
At the 2013 Analyst Road Show, SYSPRO, a best-of-breed ERP solution for SMB manufacturers/distributers, announced the SYSPRO USA BRAIN BOOST program, part of the U.S. team's successful "Einstein" market strategy. The four-point initiative continues to deliver on SYSPRO's 35–year legacy of providing standards-based technology, multi-tiered architectures, and scalability along with an agile user interface. This enables businesses executives to continuously and swiftly adapt to market, standards, and compliance fluctuations.
United States manufacturing and distribution sectors have undergone sector-shattering changes. Many have been unable to adapt and have been forced to close. To remain in the game and be continuously viable, it is paramount for manufacturing and business executives to partner with a reliable, customer-focused, and future-directed vendor.
UNIT4
Business executives in fast-changing organizations or those with highly complex financial reporting structures are often at the mercy of rigid two-dimensional systems that do not allow for nimble access to, and manipulation of, financial data. In addition, many of the widely-installed ERP systems are prohibitively expensive to install, maintain, and then continuously modify to allow for this kind of agility.
The promise of post-implementation business flexibility/agility from larger ERP vendors has in many cases not been fulfilled. UNIT4 has found itself in the enviable position of being the replacement product for many high-end high-cost ERP solutions that failed to meet customer needs and expectations and cost customers millions of dollars. UNIT4 is a least-cost ERP/financial solution provider that has successfully shifted its model to the cloud (without a dip in revenues). The entire acquisition and installation cost for UNIT4 software was typically the same as that of a one-year provider license for a competitor ERP solution and that is just the beginning of the savings.
At the December 2013 Analyst Road Show UNIT4 made several announcements including the launch of two financial performance products in the North American Market (Cash Flow and Financial Consolidation) and a new change-supporting in-memory analytics solution. Recently IDC, a global market intelligence firm conducted a survey sponsored by UNIT4 of 167 IDC customers surrounding ERP purchase, implementation, maintenance, upgrade, and re-implementation. Significant observations of the survey include: "UNIT4 customers spent average of 55 percent less than the general ERP community on supporting business change…UNIT4 customers also reported having to make moderate to substantial system change only 25 percent of the time for mergers and acquisitions…" compared to 64 percent of non-UNIT4 ERP customers.
It behooves business executives to take a closer look at the direct and indirect costs – as well as the business impacts – associated with making changes to their ERP systems. Executives who wish to cost-effectively leverage their ERP systems should consider comparing the total cost of ownership (TCO) and return on investment (ROI) of their existing solution to that of an alternative ERP vendor.
Summary
The December 2013 Analyst Road Show showcased three disruptive technology vendors with three different foci: Apparancy is poised to have a significant positive and indispensible impact on the healthcare sector because it will provide healthcare executives (and enterprises conforming to new healthcare legislation) with a SaaS-deployed, streamlined, and cost-conscious solution. SYSPRO continues to be the champion of customized and quickly deployable ERP solutions for SMB manufacturers and distributers. UNIT4 solutions are designed to enable executives to embrace business change – simply, quickly, and cost-effectively.
RFG POV: All disruptive technology vendors herein are primed to enable their customers to not only remain viable and be competitive, but to experience sustained revenue growth. Business executives, whether across the enterprise, in healthcare, SMB manufacturing/distribution, or larger but fast-changing organizations must look beyond solving today's business and IT problems. They must look to the future and be able to predict as well as respond nimbly and effectively to financial, market, and policy changes – well into the next two decades. Executives who possess business acumen should select long-term trusted vendor partners that will enable them to not only respond agilely to change but to do so faster than their competitors.
Blog written by Ms. Maria DeGiglio, Principal Analyst
Fostering Best Financial Strategies and Practices for Enterprise IT
Fostering Best Financial Strategies and Practices for Enterprise IT 09-27-12-Final
Tectonic Shifts
Lead Analyst: Cal Braunstein
Bellwether Cisco Systems Inc.'s quarterly results beat expectations while CEO John Chambers opined global business was looking cautiously optimistic. In other system news, IBM Corp. made a series of hardware announcements, including new entry level Power Systems servers that offer better total cost of acquisition (TCA) and total cost of ownership (TCO) than comparable competitive Intel Corp. x86-based servers. Meanwhile, the new 2013 Dice Holdings Inc. Tech Salary Survey finds technology professionals enjoyed the biggest pay raise in a decade last year.
Focal Points:
- Cisco reported its fiscal second quarter revenues rose five percent to $12.1 billion versus the previous year's quarter. Net income on a GAAP basis increased 6.2 percent to $2.7 billion. The company's data center business grew 65 percent compared with the previous year, while its wireless business and service provider video offerings gained 27 and 20 percent, respectively. However, Cisco's core router and switching business did not fare as well, with the router business shrinking six percent and the switching revenues only climbing three percent. EMEA revenues shrank six percent year-over-year while the Americas and Asia Pacific climbed two and three percent, respectively. CEO Chambers warned the overall picture was mixed with parts of Europe remaining very challenging. However, he stated there are early signs of stabilization in government spending and also in probably a little bit over two thirds of Europe. While there is cautious optimism, there is little tangible evidence that Cisco has turned the corner.
- IBM's Systems and Technology Group launched a number of systems and solutions across its product lines, including new PureSystems solutions, on February 5. As part of the announcement was more affordable, more powerful Power Systems servers designed to aggressively take on Dell Inc., Hewlett-Packard Co. (HP), and Oracle Corp. The upgraded servers are based upon the POWER7+ microprocessors and have a starting price as low as $5,947 for the Power Express 710. IBM stated the 710 and 730 are competitively priced against HP's Integrity servers and Oracle's Sparc servers while the PowerLinux 7R1 and 7R2 servers are very aggressively priced to garner market share from x86 servers.
- Dice, a job search site for engineering and technology professionals, recently released its 2013 Tech Salary Survey. Amongst its key findings was that technology salaries saw the biggest year-over-year salary jump in over a decade, with the average salary increasing 5.3 percent. Additionally, 64 percent of 15,049 surveyed in late 2012 are confident they can find favorable new positions, if desired. Scot Melland, CEO of Dice Holdings, stated companies will now have to either pay to recruit or pay to retain and today, companies are doing both for IT professionals. The top reasons for changing jobs were greater compensation (67 percent), better working conditions (47 percent) and more responsibility (36 percent). David Foote, chief analyst at Foote Partners LLC, finds IT jobs have been on a "strong and sustained growth run" since February 2012. By Foote Partners' calculations, January IT employment showed its largest monthly increase in five years. Foote believes the momentum is so powerful that it is likely to continue barring a severe and deep falloff in the general economy or a catastrophic event. Based on Bureau of Labor Statistics (BLS) data, Foote estimates a gain of 22,100 jobs in January across four IT-related job sectors, whereas the average monthly employment gains from October to December 2012 were 9,700.
RFG POV: While the global economic outlook appears a little brighter than last year, indications are it may not last. Executives will have to carefully manage spending; however, with the need to increase salaries to retain talent this year, extra caution must be undertaken in other spending areas. IT executives should consider leasing IT equipment, software and services for all new acquisitions. This will help to preserve capital while allowing IT to move forward aggressively on innovation, enhancement and transformation projects. RFG studies find 36 to 40 month hardware and software leases are optimum and can be less expensive than purchasing or financing, even over a five year period. Moreover, IBM's new entry level Power Systems servers are another game-changer. An RFG study found that the three-year TCA for similarly configured x86 systems handling the same workload as the POWER7+ systems can be up to 75 percent more expensive while the TCO of the x86 servers can be up to 65 percent more expensive. Furthermore, the cost advantage of the Power Systems could even be greater if one included the cost of development systems, application software and downtime impacts. IT executives should reevaluate its standards for platform selection based upon cost, performance, service levels and workload and not automatically assume that x86 servers are the IT processing answer to all business needs.