Wednesday, December 9, 2009

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?).

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