e-Business Service Provider Evaluation & Selection

Good morning everyone, my name is Dr. Eddie Robins and I am TechnologyEvaluation.com's Chief Scientist. I head up the E-Commerce Service Provider research area. This morning we're going to discuss a proven, best of breed methodology for evaluating and selecting a Digital Business Service Provider (DBSP). During the presentation, we will use TechnologyEvaluation.Com's patented online selection engine, WebTESS, to guide you through a live, real time evaluation and selection. It should be noted that WebTESS and the models it uses are only representative of our more sophisticated desktop tool, TESS, and the models it supports.

We will review the critical differentiating criteria of a number of selected DBSPs chosen as a representative sample of the most common types of DBSPs a newcomer to the space may face. However, to help us understand the selection process, we need to get a handle on the DBSP space, and the companies that inhabit it. As a cautionary note, however, there are many facets, hybrids, and fringe areas, and any coarse characterization is of course subject to value judgments.

Unlike product selections, service comparisons depend on reference information provided by vendors and their clients, and are subject to value judgments and specific engagement situations. This is perhaps one of the hardest aspects of comparing vendors. However, there are many aspects that are not so soft which we can deal with, and provide measures of vendor capabilities and performance. We will also attempt here to map out the core corporate players and player types.

Supply Chain Management Audio Conference Transcript

Good morning everyone, my name is Steve McVey and I head-up the supply chain management research areas for TechnologyEvaluation.Com. This morning we're going to discuss a proven, best of breed methodology for evaluating and selecting a supply chain management solution. During the presentation, we will use TechnologyEvaluation.Com's patented online selection engine, WebTESS, to guide you through a live, real time evaluation and selection. We will then review the critical differentiating supply chain management criteria, as well as detailed comparisons between i2 Technologies, Manugistics, Aspen Technology, Logility, and Adexa.

I'm going to begin with an overview of problems and solutions relating to technology selection, starting first with the problem:

According to our research, over 80% of enterprise technology evaluations run over time and budget, and once completed, over 50% of the implementations fail to meet functional and total cost expectations. There are three main reasons that project teams run into trouble.

1. They have no effective way to identify the critical vendor and product questions necessary to successfully initiate the evaluation process.

2. They have no ability to prioritize the different criteria, once identified, relative to one another. As a result, final priorities are often more the result of internal political agendas than true needs and requirements.

3. And finally, project teams have no ability to gather objective, validated, updated data on the vendor alternatives. As you may well know, vendors have a tendency to exaggerate product, service, and corporate capabilities if it enables them to move to the next phase of the deal.

Mining Enterprise Resource Planning (ERP) Evaluation Center

What Are Mining Enterprise Resource Planning (ERP) Systems?

Mining ERP solutions are designed to manage all aspects of the mining business, from product extraction and maintenance of machinery, to project management for concurrent projects. Like all ERP software, mining ERP applications aim at full integration of management, staff, and equipment.
Mining ERP Business Benefits and Drivers

* ability to focus on diverse operational requirements (e.g., mineral extraction versus oil drilling)
* ability to handle laws and standards for regulatory compliance, multinationally and across all operations
* accurate billing procedures for all aspects of mining, resources, labor, time, and machines

Mining ERP Risks

Organizations without effective mining ERP software run the risk of company-wide inefficiencies:

* inability to track costs within mining activities
* inefficient processing of extracted materials
* violation of multinational environment, health, and safety (EH&S) regulations, which can impede your ability to operate

Why Use the Mining ERP Evaluation Center?

* Compare the extent to which different ERP mining solutions can effectively control the movement of extracted product to distributors, refineries, or customers.
* Determine which mining ERP solutions provide efficient cost control for equipment and vehicles in different plants.
* Evaluate the ability of ERP mining solutions to handle maintenance, repair, and overhaul (MRO) scenarios.

Most Requested Research Related to Mining ERP

* What is ERP?

* How do I prevent my ERP project from failing?

* How can I justify my ERP Investment (ex. cost of replacing system, benefits, etc.)?

* What are the Pros and Cons of Lean, Discrete, and Process Manufacturing?

* My ERP System is Up and Running-Now What?

* ERP Research Article Archive

Supply Chain Management Audio Conference Transcript

Good morning everyone, my name is Steve McVey and I head-up the supply chain management research areas for TechnologyEvaluation.Com. This morning we're going to discuss a proven, best of breed methodology for evaluating and selecting a supply chain management solution. During the presentation, we will use TechnologyEvaluation.Com's patented online selection engine, WebTESS, to guide you through a live, real time evaluation and selection. We will then review the critical differentiating supply chain management criteria, as well as detailed comparisons between i2 Technologies, Manugistics, Aspen Technology, Logility, and Adexa.
I'm going to begin with an overview of problems and solutions relating to technology selection, starting first with the problem:

According to our research, over 80% of enterprise technology evaluations run over time and budget, and once completed, over 50% of the implementations fail to meet functional and total cost expectations. There are three main reasons that project teams run into trouble.

1. They have no effective way to identify the critical vendor and product questions necessary to successfully initiate the evaluation process.

2. They have no ability to prioritize the different criteria, once identified, relative to one another. As a result, final priorities are often more the result of internal political agendas than true needs and requirements.

3. And finally, project teams have no ability to gather objective, validated, updated data on the vendor alternatives. As you may well know, vendors have a tendency to exaggerate product, service, and corporate capabilities if it enables them to move to the next phase of the deal.

Supply Chain Management (SCM) Evaluation Center

What Is Supply Chain Management Software?

Supply chain management (SCM) systems are used to coordinate the movement of products and services from suppliers to customers (including manufacturers, wholesalers, and retailers). These systems are used to manage demand, warehouses, trade logistics, transportation, and other issues concerning facilities, and movement and transformation of materials on their way to customers.

Components of SCM include supply chain optimization, and supply chain event management. SCM also comprises warehouse management, radio frequency identification (RFID), and transportation management.

Other modules of SCM solutions include functionality for international trade and logistics, demand management. supplier relationship management, and service parts planning.
Supply Chain Management Software Business Drivers and Benefits

* Increase top-line profit growth through supplier collaboration.
* Increase customer service and decrease stock-outs.
* Reduce inventory carrying costs.
* Optimize your value chain for cost reduction and profit improvement.
* Reduce operating costs, corporate-wide.
* Increase competitiveness.
* Create supply chain visibility, including among trading partners.
* Adapt quickly to changing market conditions and adjust accordingly without detrimental customer impact.

Supply Chain Management Software Risks

* Selecting the wrong SCM application can affect the whole of your business, from sourcing and assembly to distribution.
* An SCM system which is not sufficiently integrated with the rest of your enterprise software applications can lead to serious disruption in business activities.
* Within businesses with multiple departments, facilities, or partners, a legacy or manual SCM system can lead to irresolvable bottlenecks.

Why Use the Supply Chain Management Software Evaluation Center?

* Understand how different applications will improve supply chain delivery, cost performance, and order execution.
* Review warehouse management features and logic for pick, put-away, and replenishment functionality.
* Select vendors that support appropriate transportation management for your region or globally.
* Evaluate collaboration environments and relationship terms, as well as details for partners within your supply chain.
* Ensure the technology is appropriate for your environment and integrates across multiple enterprises.

Most Requested Research Related to Supply Chain Management (SCM)

* RFID: A New Technology Set to Explode

* What's the Brain Behind Supply Chain System?

* Get the Myths, Facts, and User Perceptions about Advanced Planning and Optimization Software

* Why do Vendors Lose Deals?

* Business Integration Models: The Old and the New

* SCM Research Article Archive

ERP System Constraints in the Process Industry

For lack of an available solution designed for their needs, some process manufacturers have attempted to implement an ERP system for discrete manufacturing. As there are several fundamental differences between the operations and practices of process and discrete manufacturing, opting for such a stop-gap measure is not always effective. Process manufacturers have no doubt noted the constraints that are placed on their operations as a result of using a system that was not designed for their needs.

The nature of the process manufacturing business is such that it is difficult to manage inventories and profits. Process manufacturers experience large quantities of finished product in transit and of raw inventory. The products often have low yields with substantial scrap (fine chemicals, pharmaceuticals, or plastics).

Business dynamics is putting demands on ERP systems to help with

* maintaining a lead over competition
* simplifying the product lines
* responding to shorter product life cycles
* providing mass customizations (car options, computer system accessories, etc.)
* complying with regulations compliances

In an attempt to meet these demands, many manufacturers have looked at ways to improve supply chain optimization by re-examining manufacturing processes, relocating closer to markets, and looking at cheaper energy, transportation, and labor. The businesses' needs are such that an ERP system must be powerful enough and diverse enough in functionality to do more than simple process manufacturing.
With ingenuity, many of the raw material manufacturers have turned to vertical market integration, moving from pure process manufacturing to mixed mode. Their factories now produce raw product for industry and sell finished goods by the item (counting). An example is toothpaste, where the finished good is sold by the pallet, case, or individual package. The ERP system must allow manufacturing processes to batch products in order to achieve product consistency (two examples are textiles, with "dye lots and finishing," and bakeries, with oven scheduling, and aerospace, with electroplating, etc.).

That some factors are out of the control of process manufacturing vendors is exemplified by the retail industry. In this industry, the vendor has a many-stop supply chain, and plays a role almost like that of the caboose at the end of a long train.

For example, chain stores track sales at the cash register, and use that information to replenish inventory from branch warehouses. The warehouses get their product from distributors. In the case of multilevel distribution networks, this explosion process percolates upward through the various levels from the retail store to regional warehouses (master warehouse, factory warehouse, etc.). The demand is input to the master production schedule at the level of the manufacturer. The process is not always real-time, meaning that a lot of product is out in the supply chain. This process of upward percolation is most common in the pharmaceutical and retail grocery industries. Since everyone in the supply chain strives to minimize and frequently turn inventory, any ERP system has to manage with these constraints.

As a side note, some manufacturers are trying to use real-time reporting to determine product consumption and demand. The information is more accurate and allows total reduction in the field, increased inventory turns, tailoring production to market preferences and better cash management.

Mixed-mode ERP systems are used by the processing industries for several reasons. First, there is no need to duplicate the data. For example, mature discrete ERP systems have well-optimized modules addressing finance, production planning, inventory management, sales, shipping, etc. The benefits of moving to a mixed-mode ERP product such as Syspro stem from the use of a common module to support production, sales, inventory, supply chain, finance, and analytics. These sophisticated discrete modules, adapted to accept process data, can go a long way toward helping the manufacturer reduce inventory, improve cash flow, and improve manufacturing yields.

Specific Requirements of an ERP System for the Process Industry

Here's an overview of how some of the functionalities of an ERP system for process industries help manufacturers better perform the activities listed above.

1. Conversion process capability
In the process industry, the bill of materials (BOM) used in discrete manufacturing is replaced by the master product formula, or simply the formula. The formula requires a conversion table for measures, such as weights from grams to pounds, and must have the ability to record liquid units of measure, in both metric and US-standard. The formula must also record specific information related to product characteristics that can affect manufacturing processes. For example, in the blending process, the system can record product information such as percentage calculations of raw materials, and the effective specific gravity, potency, density, and number of reactives of those raw materials.

2. Interface to other modules
The master formula can also be linked to submodules like quality assurance (QA), procurement, inventory, and accounts payable (A/P) for government compliance and safety issues. Also, the manufacturer must be able to trace products in order to manage dating of inventory lot control and the amount of inventory available at the distribution level. Furthermore, there are government and regulatory concerns that deal with the nature of the materials, as there may be a controlled substance with specific shipping, handling, and storage regulations. Or, the manufacturing process may emit hazardous by-products. Or, there may be logistical concerns within the manufacturing process itself.
3. QA module and flexible formula adjustments
A process industry ERP system must also have a formulation-balancing operation based on the premise that the QA group tests random samplings of production batches. The system needs the ability to adjust, through a program logic control (PLC) interface, any variations in materials used and external factors such as humidity, temperature, cool-down speeds, etc. Also, the material flow and consumption is recorded back into the ERP system. The system's routing functionalities reflect those capabilities as a requirement or not, depending on the user's specifications.

4. Reworking all co-products and scrap materials
As a result of manufacturing processes, residual materials (by-products) may be created. These by-products can be collected as waste and reused. This is the case within the plastics industry, for which the collection and re-entry of materials into process creates very specific criteria. In the process industry, due to a continuous production flow operation, the production process generates a theoretical production yield, which may be calculated by the downstream packaging operation as units for case-pack quantities. The residual amount generated from the production process may vary within a percentage point, but in the downstream conversion process, the residual quantities may be aligned to complete full, case-size box quantities. By using flexible formulas, process ERP systems can demonstrate how the residual materials can be reworked from waste back into materials used in production.

5. Supply chain management (SCM)
Collaborative forecasting and planning are essential features of the process industry ERP system, especially for the automotive and consumer products industries. Some the most important functionalities include

* visibility over inventory across the global supply chain
* enterprise-wide planning in the areas of sales and marketing, procurement, and production
* the ability to integrate planning for what-if scenarios
* the ability to benchmark quality and vendor performance issues
* detailed reporting that highlights areas where parameters may be out of scope
* real-time available-to-promise (ATP) information for customer service

Process Industry Manufacturing Challenges

Manufacturers in the process industry are at a difficult crossroads. Although the industry is not facing any imminent substantial decrease in its overall profit margins, there is concern in the industry according to a recent study by the Canadian Manufacturers and Exporters Association, which cites the following issues:

* increased global competition
* foreign currency fluctuation
* changing patterns of customer demand
* escalating business costs
* problems in implementing new technologies
* competitive business pressures
* shortage of skilled workers

To address these issues, process industry manufacturers and distributors must manage the following key activities, and ensure they use an enterprise system that supports these activities:

* Planning production for both materials and capacity—to develop a production plan, manufacturers must ensure that there are sufficient available resources and materials, production capacity, and labor.
* Inventory tracking and controlling work-in-process (WIP)—monitoring material consumption and tracking work order progress is the basis of manufacturers' being able to meet sales order, demand, and delivery dates.
* Replenishment and demand planning—the ability to review variances between forecasted and actual sales is the basis of managing vendor lead times and raw material replenishment.
* Managing the supply chain for order fulfillment—reviewing the global supply chain provides manufacturers with the ability to coordinate logistics and operational activity to meet customer order fulfillment expectations.

How a TMS Can Help Manufacturers: An Example

Let’s look at a concrete example to see how a TMS can help organizations optimize their entire value chain. Because the manufacturing environment is now global, this example will involve China, Canada, and Spain as parts of a manufacturer’s complete value chain. Consider the following scenario:

A manufacturer of cellular telephones has one DC in China, another DC in Vancouver, two manufacturing plants in China, one retail location in Vancouver, and another retail outlet in Spain. Thus, this manufacturer’s supply chain is highly complex for many of its suppliers and distributors to navigate. Figure 1 depicts the process, or flow, for moving product throughout this supply chain.

Figure 1. A value chain model.

Because products must be moved across many countries and via several transportation systems, three scenarios are possible:

1. The manufacturer will send the cell phones directly from the DC in China to the retail location in Spain. In this case, planes and trucks (air and ground methods) will be the chosen modes of transportation.
2. The manufacturer will have the cell phones moved through the DC in China to Canada (either by ocean or air), transported to the DC in Vancouver, and on to the retail location.
3. The cell phones are moved from China to the DC in Canada, but they are sent back to the China DC because of product defects. In this case, the DC in China sends the cell phones back to the manufacturer in China, which either repairs the defects or sends the phones back through its supply chain.

All three of these scenarios involve heavy TMS functionality. The scheduling and routing, cubing for the cell phone boxes, consolidation for cross-docking in different loading zones, dealing with geographic setups, and scheduling all types of transportation modes are critical to this process. If one of the DCs or manufacturing plants does not deliver its products on time, the TMS will adjust the scheduling or find an alternative route.

Because TMS solutions can optimize the loads put onto different vehicles or other modes of transportation, managers in this example can determine how much the fuel to deliver product to the different DCs will cost, and they can know when product is to be delivered and the optimal amount of goods to deliver to the appropriate location. The TMS incorporates the appropriate information into the routing optimization tool. This gives individuals within the supply chain the best information on how to save money and time by knowing what products to send and how to send them. This knowledge saves a company money on fuel and time, and ultimately increases the manufacturer’s bottom line.

Transportation Management Systems: The Glue of the Supply Chain

Supply chains are becoming increasingly complex, and as manufacturers create a “value chain” that spans many countries, transportation of final goods or raw materials is a critical component to their business. If goods do not arrive at their destination on time, the manufacturing process will come to a halt and links within the supply chain will break, causing problems for other entities down the chain.

Along with this, the import and export of products is increasing, leading to greater movement of goods through distribution centers (DCs) and to a higher volume of products that need to be moved.

And then there is the issue of how companies deal with ever-increasing fuel costs.

It’s hard to imagine how companies can deal with the difficulties described above, but transportation management systems (TMSs) can do plenty to help manage the complexities of manufacturing today.

A Solution for the Complexities of Manufacturing

Given the growing need to move products inland and the increase in fuel prices, TMS software is a vital tool for today’s logistics industry, and the need for this enterprise application will only increase in the next five years.

As manufacturers’ supply chains continue to expand, developing networks and using different modes of transportation (truck, rail, air, and boat) can be quite a challenge. Networks and the use of these transportation modes need to be optimized. Otherwise, the following basic questions will be exceedingly difficult to answer, leading to serious visibility problems for the manufacturer:

* Where are the goods now?
* When and where are the goods to be shipped?
* What mode(s) of transport should be used to ship the goods?

So, what exactly is a TMS?

A TMS is designed to manage the different modes of transportation used to move products, whether finished or semi-finished. Transportation modes consist of ground, air, rail, and sea transport. A TMS determines the optimal path to transport products based on distance, location, and route.

The Anatomy of a TMS

A TMS’s basic functionality is comprised of the following:

Lane set-up: This has to do with multimode types of transportation. If moving a certain product requires three types of transportation methods (for example, rail, truck, then rail again), the system will be able to schedule all three of these means of transport.

Geographic set-up: This will link geographic locations together, as well as set up the service levels between different parties along the logistics chain.

Carrier and contract details: Whether the company using a TMS solution is outsourcing some of its transportation needs or managing transportation methods itself, the system will research the best rate of each carrier (transportation or logistics company), and select the carrier with the best price. Sometimes however, if a carrier has received three strikes against it (for example) for not delivering product on time, the system will not consider it an option, even if it offers the best price; the TMS solution will select another carrier that will fit the needs of the client, even if it’s more pricey to deliver. As well, sometimes the carrier with the best price is not in the appropriate range of location; thus, the TMS will not select it.

ROI Systems Defies The Odds Through Delighted Customers Part Three: Strengths, Challenges

Nonetheless, room for improvement remains within ROI Systems. Owing to its sort of a stealth operation and past modest but steady growth and with 10 direct sales offices and nascent business partners primarily in the US, and a few in Canada, and Australia, ROI Systems has achieved only a small market presence in general and is still perceived as a true niche vendor. This, together with its size of slightly over $20 million in revenues, is reflected in limited brand awareness and an undeveloped worldwide channel. This is further aggravated by the fact that while its product exhibits basic multi-currency capabilities it supports only the English language. The result may be a number of missed opportunities as some companies may be seeking global providers for its entire collaborative supply chain management requirements. Also, some customers still appreciate a mind share and dose of flamboyance and display of marketing muscle from their prospective vendors, such as the likes of Microsoft Business Solutions can exert.

Moreover, some MANAGE 2000 modules do not offer distinguishing intrinsic functionality (although there have been a number of readily available interfaces to third-party specialist products such as Agile Software, Demand Solutions, or Frango) even within the "native" discrete manufacturing areas (e.g., complex project management & accounting, multi-national financial consolidation, quality management, forecasting, warehouse management, sales & purchase contracts, and contact management & marketing campaigns). In particular, the financial management modules are best suited for North American rather than multinational enterprises due to very few localization capabilities. This situation might hold also for the native HR and payroll modules.

MANAGE 2000 is not technologically the most exciting product either. Its original user interface has been less than compelling, and ROI had to create its own software called Personal Workstation Software (PWS) to enable MANAGE 2000 to run on a rich Windows client. For sales order processing (SOP) and service management modules, ROI had to disconnect the application presentation code from the database server and to replace its then PWS thin client client/server user interface with a Microsoft ASP Internet enabled graphical user interface (GUI). The vendor is currently developing a Microsoft ASP.NET thin client presentation layer for almost the entire suite, while a number of new portals are slated for the upcoming 7.1 release at the end of 2003.

Another technological pitfall has been that standard application programming interfaces (APIs) were mainly limited to manufacturing functions, thereby requiring ROI and users to, in the past, hard-code the integration with other third-party applications such as financial applications or warehousing. In the new release, however, Universal XML is used throughout the product.. ROI has long provided Object Linking and Embedding (OLE) and Dynamic Data Exchange (DDE) integration at the desktop thereby enabling links to computer-aided design and PDM applications. ROI Systems also trails most of its direct competitors (e.g., Made2Manage, Epicor or Lilly Software) in its application service providers (ASP)/hosting and Web services interoperability strategy and delivery, which could still be appealing to its target market. Technologically, the product may not be the most suitable as a solution for complex enterprises, worldwide dispersed, with strong requirements on distributed infrastructure, security and interoperability. The above, combined with a possible sharper competitor's focus on a particular industry may tip the scale in favor of the competition in some selection gigs.

Nevertheless, given the above indications, one should expect enhancements along these lines some time in the future, should ROI start hearing louder voices of its prospective customers in that regard. Although MANAGE 2000 may lack sizzle with regards to strategic best-of-breed extensions and cutting-edge technology, its functional depth and breadth, and the vendor's versatile manufacturing experience should compensate for it. Its target customers still appreciate much more the business issues solving rather than to know what is exactly under the hood.

ROI Systems Defies The Odds Through Delighted Customers Part Two: Market Impact

Thus, its very delighted customer base has become much more to the vendor than a pool of excellent references. Namely, without any unusual, fine print' contractual terms, ROI's typical days of sales outstanding (DSO) figure is at most the half of the industry average (i.e. 50 vs. 100 days), which indicates happy customers gladly paying their dues. Key to ROI's customer satisfaction success could likely lie in the fact that it has hardly ever launched any product enhancement and support directions that would eventually leave any of its customers in the dead-end street or feeling blackmailed. Instead, for more than two decades, ROI Systems has stuck to its core competencies rather than impetuously venturing into uncharted territory with dubious benefits for its customers.

The company has never abandoned its discrete manufacturing ERP roots even during the Internet infatuation days of the late 90s when anything associated with core ERP was considered outmoded. This does not imply that the company has not enhanced its product in the meantime therefore earning the extended ERP' connotation. By adhering to an incremental, performance proven approach, ROI Systems has managed to deliver strong discrete manufacturing functionality for a gamut of industries (e.g., electronics, industrial machinery, fabricated metals, medical products, transportation product suppliers, durable consumer goods, etc.) and immaculate customer support.

Thus, ROI has largely ensured that its customers had no reason to change the vendor. Furthermore, while this steadfast approach might have been at the expense of slower-than-market growth during the halcyon 1990s, that is not the case any more. A 6% organic total revenue growth, whereby new license revenue growth was at enviable 14.5% in 2002, and ~30 new accounts in the year, cannot easily be touted by the mightiest competitors, let alone by the peers. Rather than being on the defensive to protect its customer base from openly aggressive competitors, ROI has instead replaced solutions at disillusioned customer sites from nearly every ERP competitor (see Baan Defectors - Is This Only Tip of an Iceberg?).

Advanced Training Program

Mid 2002, ROI announced its advanced system-integrated education program, which delivers point-of-use, on demand training to users of ROI's MANAGE 2000 solution, and which is reportedly being hailed by ROI's clients and educators as a significant advantage to productivity. Using extensible markup language (XML), documents, demonstration videos and audio files throughout the organization can be easily assembled to create educational materials at various levels of detail for various audiences. XML enables the same set of materials to be used for multiple purposes, since, e.g., a set of training materials can be used by a self-learner via the path assembled for independent study or by an educator via the instructor-led course, which can include detailed instructions for new instructors. Documents within the set can be hidden or revealed to accommodate various users' needs and knowledge levels. While the user selects the preferred level by clicking on pull-down menus. XML also facilitates easy additions and updates, since, as MANAGE 2000's new or enhanced features are documented, XML tags are added so the documentation is readily available to be linked to, or replace existing links in, educational paths. This repurposing of materials increases training course development efficiency, improves quality, and keeps the training materials up-to-date and pertinent.

According to ROI Systems, new technologies such as XML and HTML, in combination with ROI's move to an n-tier, fully component object environment, have removed logistical barriers such as manpower and cost that have traditionally been prohibitive to vendors to develop equivalent training programs. Also, authoring tools were highly specialized and difficult to learn, and the scope of the undertaking was too daunting. With these technologies in place, the knowledge components can be linked directly to the system's documentation and live screens. Because XML is standards-based, off-the-shelf authoring tools such as XMetaL, Microsoft Word or even Notepad can be used to update XML-tagged materials. The use of XSL, the style sheet language compatible with XML, enables the content to be repurposed and then presented in a variety of intuitive, meaningful and consistent presentation formats.

High-level application overviews drill to increasingly detailed instructions, so users can scan a summary to reinforce previous learning, or use the step-by-step instructions that include links to appropriate screens and online help. The integrated courses include complete online course materials, workshops, tips, techniques and extensive notes. All education materials are bundled with MANAGE 2000 and delivered to ROI's clients with system releases and service packs. Links and easy search capabilities provide quick access for users to get the needed information. If desired, ROI's consultants can conduct training tailored expressly for clients' specific requirements via the Web, in-person at the client's site, or at one of ROI's corporate training facilities. The education program also includes regularly scheduled webinars, allowing clients to access interactive training on various topics from their work stations via the Internet.

Expanding Business Partner Program

Recognizing that there are opportunities to increase its market share with a well-developed reseller network, ROI Systems has set its sights on expanding its business partner program. Most recently, on May 7, 2003, ROI Systems announced the successful results of its 2002 business partner expansion program, given 20% of 2002 new client sales were initiated by ROI Systems' business partners, many of whom had been in the program for only a few months. The company reportedly grew its partner base from 7 to 51 during the year.

Early in 2002, ROI Systems launched an innovative, resource-sharing program that should enable new partners to become productive very quickly. The program, which has no upfront cost, offers a quick ramp-up for new partners by utilizing existing ROI Systems' resources to fill critical roles as partners learn the capabilities of the application. The program partners resellers with ROI's sales and support teams, and provides order referrals, marketing, and training. With results such as one channel partner securing five new accounts in its first seven months as an ROI business partner, the program is apparently proving successful for both the business partners and ROI Systems.

The ROI Business Partner program commits ROI resources to fill critical roles while resellers are learning how to clearly present MANAGE 2000 capabilities to solve each prospective user's issues. Until the new business partner is fully prepared to manage the sales cycle independently, knowledgeable ROI sales and presales experts demonstrate and explain the system. The vendor points out that, while its competitors continue to promote their channel partner programs that are similar to ROI's former partner program, the new model is proving to be far more successful because it eliminates risk for the channel partner and for the clients signed by the channel partner. Namely, ROI Systems' experienced team of implementers and business process improvement experts complete the entire implementation and provide ongoing service for all business partner clients, rather than simply assisting new partners for a short period of time as is the case with most partner programs. This, combined with ROI's assistance in the sales cycle, should ensure business partners' quick success as well as fast and lasting return on investment (ROI) for the client.

As for the strategic product alliances, late in 2002, HighJump Software, the provider of adaptable, extended supply chain execution (SCE) solutions (see HighJump Grows in a Period of Low Growth Through Adaptable, Broad Function Products; Part Three: Highjump SCE Solutions), and ROI Systems announced a reseller agreement that will enable ROI to offer HighJump's applications to the ROI install base. Under the new agreement, the two companies will develop an advanced execution system that should empower ROI customers to extend the functionality of their current solutions with easily configurable applications for intelligent data collection processes. This potentially powerful combination might eventually yield bottom-line benefits for ROI customers, such as improved data timeliness, increased accuracy and lower costs.

ROI Systems Defies The Odds Through Delighted Customers

According to Paul Merlo, ROI Systems' CEO, the vendor grew all areas of the business last year including staffing, software licenses, professional services, product development and its business partner program. Beginning the year with a strong cash position, and bolstered by sales and services revenue during the year, have enabled ROI to execute on the plans it announced at the start of 2002, in which year many of its competitors reduced headcount and sought acquisition to remain viable. Contrary to these, ROI Systems' business expanded and its balance sheet remains strong and debt-free.

The financially successful year enabled ROI Systems to continue its historically high investment in research and development. Early in 2002, ROI added Web portals to its product portfolio, which should enable employees throughout a company and its supply chain partners easy access to real-time information from their MANAGE 2000 system.

ROI also initiated development utilizing the Microsoft .NET Framework, and, to that end, mid 2002, the company announced that it has been chosen to participate in Microsoft's .NET Fast Start program. This program, which is funded two-thirds by Microsoft and one-third by the software developer, was designed to accelerate the conversion of the developer's product into the .NET Framework. According to officials of Magenic Technologies, the program's sponsor in the Minneapolis/St. Paul area, ROI Systems was selected for .NET Fast Start because of ROI's demonstrated product readiness, technological expertise, and commitment to Microsoft technologies.

One big reason was that many of the pieces that are necessary for .NET were already in place, such as ROI's n-tier architecture and component object orientation. Also, unlike most systems, the MANAGE 2000's business rules are tightly coupled with the database, so information is processed much more efficiently. When an organization is selected for the Fast Start program, the Microsoft Certified Partner works side-by-side with the organization's developers to promote quick knowledge transfer between the .NET expert and the programming staff, to maximize use of the individuals' development skill sets, and to maximize troubleshooting downtime. ROI expects the first release of MANAGE 2000 to leverage .NET will be released in the last quarter of 2003.

Analysis of Critical Path's Alliance with yesmail.com for Permission Email

Permission email service is equivalent to an opt-in-email service. In other words, when a user registers at an e-commerce site, he/she will be able to elect to receive or not to receive mailings based on their areas of interest. The Permission email service has increased response rates to e-commerce sites, proving the mailings to be more efficient than standard Internet Banner advertisements. As with all electronic mail, the cost of Permission email is approximately 90% less than standard direct mailings.

In direct correlation to the success of Internet based Permission email, advertising dollars are starting to be redirected from standard advertising companies, such as DoubleClick and put to use in the Permission email area (source: Forrester Research). Some Industry analysts expect Permission email to reach the $1 Billion (USD) mark by the 4th Quarter of 2002. Permission email will never displace the existing banner ads, which we have all come to know and at some level, despise. However, Permission email does allow for a concisely targeted market, based entirely on end user interests and in turn, increased advertising desirability. YesMail will be offered to Critical Path's customers within the next month (probability 90%).
This announcement is a win-win situation, for both registered Critical Path users and the companies themselves. The YesMail service allows a user to select content areas to which he/she can subscribe if desired, or refrain from receiving any mailings whatsoever. The combination of email and advertising has usually been, and continues to be, primarily SPAM. While this arrangement will not reduce the amount of SPAM a user receives, it will give the end user control over what is received in his/her mailbox.