Product Development Strategy Graham Cardwell Head of Product Marketing

It is a matter of life and death, a road either to safety or to ruin. Hence it is a subject of inquiry which can on no account be neglected. Laying Plans - Sun Tzu

Line 500 v5 Reporting –Integration with Analyst Financials Usability –Installer Ease of use to be improved, this is to include less dialogs, ensure typical installation is as simple as possible and ensure upgrading keeps existing information –Client enhancements (menu management, form controls) –Help enhancements  Enhanced design in several areas of the help system.  Dynamically loading Contents list, giving much faster response times to the user.  New layout and additional cross-references for topics in 'Working With' section, providing easier navigation to help on key areas of functionality.  Descriptions of licensable projects and system key help added as pop-ups where mentioned in 'Working With' section. –XML Interfaces - enabling EDI to work with XML files

Example – XML Printing Font & Size Footers Lines and intersections Bold font

Line 500 V5 –Infrastructure –IBM iSeries – Linux Port Port Sage Line 500 V5.0 product to the IBM iSeries platform. The product will run on SuSe Linux 7.3 and will be powered by an IBM UDB V5 Release 1 database. –Intel – Linux Port Port Sage Line 500 V5.0 product for Oracle 9i and Informix IDS Version 9.30 to SuSe Linux 7.3. Informix is the priority.

Line 500 v5 Features –Product and customer hierarchies –Discounting –Discount apportionment –Multicurrency accounts receivable –Commercial papers –Subcontract purchase orders –Serial number entry –XML interfaces –Web portal –Waste packaging reports

V5 - GA Dates Available Now –Microsoft Windows 2000 over Sql Server 2000 and Oracle –ISeries running SuSE Linux Enterprise Server 7.3 over UDB/DB2 VR51 End of March –Intel SuSe Linux over Informix Dynamic Server 9.3.,Oracle –Sun Solaris 8 over Informix Dynamic Server 9.3, Oracle Sco –HP Tru A (formerly known as Dec) over Oracle –HP UX 11 over Oracle 8.1.7, Informix Dynamic Server 9.2 –Intel SuSe Linux over Oracle

V5 GA Dates TBA –AIX over ORACLE, INFORMIX IDS –CALDERA OPEN UNIX / UNIXWARE – databases to be defined. These 2 platforms require 29 man days testing effort each and 5 days Production / Building effort. An approximate delivery date would be 60 days from the commission of the relevant hardware, subject to resource being available to resolve any issues found.

Minor Beneficial Enhancements (MBE) –Customers have voted on their priorities for minor enhancements. –Current work in progress:  POTRANCOA, POTRANCOB & POTRANCOC to be available without the use of Supplier Contracts (215443)  Provide ability to force F6 numbering in Accounts Receivable - Invoice Batches, Cash Batches, Refund Batches & Journal Batches (221294)  In OP history cleardown - If changed to y and no date entered, a warning message will be given (227669)  Provide ability to force F6 numbering in Accounts Payable - Invoice/Credit Note Batches, Cash Batches (including Generate payments from List), Journal Batches (221297)  PL & SL enquiries to include a browse on 2nd ref/cheque no. field (224224)  Open item enquiry screens in Accounts Receivable and Accounts Payable to display currency exchange rate (222072)

Minor Beneficial Enhancements (MBE ) –Customers have voted on their priorities for minor enhancements. –Current work in progress:  Inter-Warehouse transfers to allow transfer of items with different UOM's (217388)  In General Ledger Transaction Enquiry, hold period date selection values and only clear on exit from option.- (219573)  Print currency code & description on Accounts Receivable statements (220470)  Allow entry of negative value in Production Issues (220580)  Payroll log to record details of what causes payroll parameters to trip (224192)  Print order quantity on order status report if POQTYKEEP = YES (229721)

The Future

Market Overview zAccording to IDC, the Western European market for services around Enterprise Resource Planning (ERP) applications will grow from $15 billion in 2001 to $24 billion by 2005 zWhile ERP solutions were designed to consolidate data management - ‘one version of the truth’. Business are now as badly ‘integrated’ as ever before zTough market conditions have refocused efforts on integration

Market Overview zThe main challenge/opportunity for organisations ‘getting their house in order’ is to make use of new technologies and standards - enabling integration beyond organisational boundaries zWhile the market for ERP solutions and services in the large enterprise segment is maturing demand for ERP solutions and services in the small and medium enterprise (SME) market is expected to rise. There are signs that SMEs are finally adopting ERP systems zLess ‘low hanging fruit’ at the high end

Market Overview Different forms of delivery –Pre-configured –Accelerated delivery Downward Squeeze zSAP Business One zmySAP All-in-One zOracle Small Business Suite zPeopleSoft Accelerated eBusiness Solutions zSiebel Mid-Market Edition The Big Gorilla MSFT - Great Plains, Navision

Market Dynamics % MB expect to increase purchases via the internet next year High importance areas ERP 48%, CRM 39% Selective in purchasing, focus on leading brands (SAGE 66% recognition), quality of service, price conscious 68% want to continue purchasing current IT brands, 62% look for lowest price before making a purchase

Software spending +87% growth –Largest growth +170% employees Package Software 80% of total Uk spend –Anti Virus 99% –Productivity 97% –General Accounting 89% –Appointment scheduling 86% –ERP 44% –CRM 20% Market Dynamics 2002 Still embryonic

Market Dynamics % use CRM/SFA –Access 58% –ACT 31% –Goldmine 21% 69% of all UK MB purchase goods and services over the internet up from 46% in 2001 –Most popular products Printers &Peripherals 60% PC Networking Software 57% Computing/electronic products 55% Publications (Books) 50%

Market Dynamics E Commerce 48%-75% will use secure on line transactions. B2b will become dominant 57% by 2006 Supply chain management +22.5%, SFA +26.1%. SFA will be in 20% of MB by ERP will grow from 22%-34%

Roadmap Strategy - What do we need to Address Infrastructure UI Platforms Features - –Core –Verticalisation CRM

Roadmap Strategy - How do we deliver Organic –Main Development –CPD Jointly funded development that WILL go into future product release –MBE Acquisition –Core, competitive OEM –Speed to market

Roadmap Strategy - When we will Deliver Accelerated delivery –Interim updates particularly OEM and Acquisition Critical as available Scheduled Delivery –Infrastructure, UIG –Version x in 24 months time 3-9 months9-18 months 24 months

Roadmap - Infrastucture Need to be friendly to Integration –While ERP solutions were designed to consolidate data management - ‘one version of the truth’. Business are now as badly ‘integrated’ as ever before –The main challenge/opportunity for organisations ‘getting their house in order’ is to make use of new technologies and standards - enabling integration beyond organisational boundaries New Applications Framework - Build API’s an integration framework Generic Browser –Addressing usability concerns Multiple Server Architecture

Multi Server Architecture (MSA) MSA is the method of providing increased user counts on the Microsoft Windows platform –A ‘scale out’ solution as opposed to ‘scale up’ –Easily increase processing power on demand –Simply swap out hardware for upgrades or maintenance Sage Line 500 V5 infrastructure is ‘MSA ready’, but MSA operation not supported General release of MSA will incorporate early adopter feedback and provide system and user management tools

MSA Architecture Database Server Application Server(s) Internet Web Client GUI Client TCP/IP

Roadmap - User Interface Concentrate on inspecting and navigating data. Drill down, search and find capabilities Can’t re build UI fully until infrastructure work completed. Enhanced Web Client coupled with portal

Roadmap - Platforms Properly architected application server environment –Improve performance on RDBMS –Removal of Cisam platform facilitates Platforms –Ms SQL –Oracle –Informix IDS –DB2

Roadmap - Core eFax and eForms solutions Reporting –Inquiries –Formatted Reports deliver templates Migration Utility Payroll –2003/4 updates –eFiling returns HR Solution Alerts Workflow

Roadmap Core German Accreditation –Traceability –Enabling Ease of Auditing –Vat Extensions –Archiving US Sales Tax support Reallocation of AP/AR Items (e.g. bounced cheques) UK & International Payments (new European Banking Rules) Corporate Charge Cards

Roadmap Core - Reporting Positive market feedback and successful early reseller installations –Sage Winnersh implementing for internal Finance use Opportunity now is to widen the scope of Analyst Financials Optional report packs based on organisation roles –Financial; Distribution; Inventory; Manufacturing; Projects –Report packs will comprise a minimum of four management reports, developed, and supported by Sage –Licensed by Sage in addition to the core Analyst Financials license Actively marketing through conferences, newsletters and mailers

Roadmap Core - eCommerce 57% MB expect to increase purchases via the internet next year 69% of all UK MB purchase goods and services over the internet up from 46% in 2001 Most popular products –Printers &Peripherals 60% –PC Networking Software 57% –Computing/electronic products 55% –Publications (Books) 50% eCommerce 48%-75% will use secure on line transactions. B2b will become dominant 57% by 2006 Need to address Web Sales

Roadmap Core - eCommerce Transaction Mail Enablement –EDI/XML already there and most of the message sets needed Sales Quotations in development –Line 50 enabled now –30-40% of your customers and suppliers use a Sage Solution

Roadmap core - eCommerce Customer Supplier Acknowledgement Quotation Delivery Note Invoice OrderEnquiry Payment

Roadmap - Manufacturing Play to strengths –30% SME in Manufacturing, Sage via 50/ and 500 large encumbent base with upgrade potential and the biggest vertical market. –Upgrade pull for line 50/100 customers Extend solution adding advanced planning and scheduling systems.

Roadmap Manufacturing Additional Modules –Production Backflush –Engineering Change –Works order and MRP extensions –Features Module (1) Additional reporting and enquiry –Contract Estimating & MTO –Automatic WO & PO issues –Vendor Returns –Features Module (2)

Production Backflush “Works Orderless” Production Specify product and quantity Standard Bill or Adjusted Stock Issues/Completions Cost Variance - Actual v Standard Forecast Consumption Negative Backflush Checking - Disassembly Bin Validation with Wild Cards Shortages Management Multi-level - Phantoms/All

Engineering Change Manage changes to Sage Assembly and Routings within a controlled and audited environment. Includes a Pre-Production Design facility. Register of Drawings and Change Notes Cross-reference Revisions to ECNs Department/User Authorisation Re-build Previous Versions Use-up Date Prediction Notification of Actions Classified Part Search and Retrieval Extensible for Links to CAD

PO/WO Automatic Issues/Allocations Auto-book stock received from Purchase GRN receipts Auto-book stock received from Works Order Completion Locate Sales Orders Awaiting Despatch Locate Parent Works Order Allocate SO/Issue WO

Contract Estimating Project or Contract Based Manufacture Top-Down Project Build ‘Single Order MRP’ Where Used - Contract network enquiries Best Price Sourcing Aggregation and Cost Roll-Up Trial Scheduling Production and Purchase Lists Recommendation Adjustment Long Lead Time Advanced Orders Automatic Enterprise Ordering

A ‘Make to Order’ Solution Contract Estimating –Creates Master Network shows Order-to- Parent relationship and bookings Stock Reservation to Contract PO/WO Auto-Issue –Now driven on Contract Basis from Master Network Data Works Order Extensions –Issue Stock Reservations

Features Module 1 MRP Schedule Report MRP PO Recommendation Consolidation BOM Print on PO Aggregate BOM Report Works Order Print Multi-Location Stock Enquiry Enhanced Stock History Report BOM Circuit Reference Print Enhanced PO Print

Vendor Returns Manage the Vendor Return Cycle Aimed at Distribution Operations True Cost of Service Vendor Return Notes Purchase History Search Consignment Management –Create/Despatch/Inventory Return Tracking Vendor Vendor Chasing/Progressing

Roadmap Construction Modules written based on multisoft product shares same label names etc. Construction pack Modules ( Contract Costing,CIS Subcontractors Ledger,Contract Sales Ledger, estimating) Financial pack Commercials pack Payroll Health & Safety Compliance

Roadmap Services Project Billing now live and running in sites Enhancements –Reconciliation's –Enquiries –Speed entry of Codes –Short code support –Projects in Purchase Accrual –Edi

Roadmap - CRM Completes product footprint in an integrated environment To be effective, a CRM system must integrate seamlessly with the company's data warehouse and with all corporate applications such as ERP and e-commerce applications CRM's value is greatly diminished if it is not integrated with back-office systems ze-CRM is the final step in the evolution towards a truly extended enterprise which few companies have achieved to date zSME companies have largely escaped CRM angst Application integration Server, Back office viewer

Conclusions We will have a new architecture - need to be friendly to integration We will deliver a new UI - both browser and forms themselves and we will deliver a solution not a piecemeal toolkit that customer needs to build themselves We will extend core functionality We will deliver a properly architected application server environment - a true relational model We will exploit vertical market opportunities We will provide an integrated CRM solution We will deliver an eCommerce solution We will exploit OEM opportunities We will Acquire solutions where appropriate

Finally We are Listening We are Delivering We are Investing

Product Development Strategy