Becoming a "Sage X3 Enterprise" Partner Bangkok, November 11, 2006 Alexandre Attal.

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Presentation transcript:

Becoming a "Sage X3 Enterprise" Partner Bangkok, November 11, 2006 Alexandre Attal

Becoming a Sage X3 Enterprise Partner Sage X3 Product Overview: WHAT Product Competition & Positioning: WHY Business Partner Model with Sage X3: HOW

Product Status Fully-integrated ERP Suite, Designed for Mid-to-large Sized Enterprises. Robust, Mature and Evolving –First version launched in 1999 –Based on Adonix' 30 years experience of business software development on the mid-market. –1500 Sage X3 installed customers in 18 countries –20% revenue invested in R&D Long-term Investment by Sage –Sage's upper mid-market ERP application available worldwide. –Provides a coherent evolution and growth path for customers. Product Overview >

Functional Coverage Broad and Deep Level of Functionality –Complete management of the distribution cycle and customer relations, purchasing, stock management, manufacturing, accounting and financial reporting. Full Data Integration –Real time and effective decision making, thanks to a single database managing all functional areas Horizontal Solution –Distribution –Process, Discrete and Mixed-mode manufacturing Product Overview >

Technology Features Open technology and leading platforms –Consistent development platform: X3 toolset. –Independence from technical changes. Client/Server and Internet technology 3 Tiers, scalable architecture (5 to 1000 users) X3 development toolset imbeded in the package Product Overview >

Industry Coverage Standard functional set covering most of regular business needs in Distribution, Manufacturing and Services activities. Industry Verticals developed by Sage Business Partners (Food, Pharmaceuticals, Cosmetics, Apparel...) Customization on site through simple, powerful parameterization capabilities. Product Overview > +

Targeted Market Segment Competition & Positioning >

Typical Deals Competition & Positioning > Typical 20-User Deal$154,000 License Fees (20 $3,500 per)$70,000 Implementation (70 $1,200 per)$84,000 Typical 50-User Deal$294,000 License Fees (50 $3,000 per)$150,000 Implementation (120 $1,200 per)$144,000 Typical 100-User Deal$490,000 License Fees (100 $2,500 per)$250,000 Implementation (200 $1,200 per)$240,000

Key Differentiators (1/3) Supporting the Entire Company Business $ Processes –Broad & deep functional coverage. –Experience across process industry verticals. –Supports sophisticated distribution requirements. Accelerated Information Exchange –Full data integration. –Automated workflow. –Dual access mode: Web and/or Client/Server, remotely or locally. –Secure instant access for partners, suppliers, customers... –Provided Web Services enable easy integration with other systems. Real-time Decision-making thru BI and Dashboards –Instant access to real-time updated data. –BI & Dashboards dynamically identify relevant information –User-defined actionable, graphical representations of key performance information. –Complete audit trail. Competition & Positioning >

Key Differentiators (2/3) Highly Scalable and Easily Customizable –Scalable architecture design enable step by step implementation. –Easy yet indepth parameterization capabilities enable the system to fit changing business conditions over time. –Development toolset enables system personalization to unique company requirements through customer implementation. Built-in International Capabilities –Multiple languages, currencies, companies, sites and legislations supported. –Possible intercompany consolidation. Easy Multi-country Set-up –Standard delivery set available in 8 languages and legislation, speeding-up implementation process. Competition & Positioning >

Key Differentiators (3/3) Low Cost of Ownership –Standard pre-settings enable fast implementation, either in domestic or multi- country environments. –Logical design coupled with pre-defined templates, based on best business practices know-how, ensure great usability and reduce training. –"No code on the client" design offers low IT infrastructure costs and fast set-up of remote sites/users. –Easy system administration does not require large IT team to maintain the application operational. –Automated distribution of updates across all connected workstations reduce costs. Modifications/Customizations supported through upgrades. Worldwide Dedicated Support –Proven efficiency in international project deployment, based on simple-to-most- complex multinational context experience. –Sage Professional Service Team and country partners able to provide country- specific customization and support above standard country delivery sets. Competition & Positioning >

Sage X3 Enterprise vs Accpac Competition & Positioning > Sage X3 EnterpriseAccpac ArchitectureDual mode C/S and Web Multi-OS (Windows, Unix, Linux)/ Multi-DB Uses its own development toolset Supports multi-company/site C/S only Windows only / Multi-DB Uses Visual Basic Single company/site StockData structure suited to inventory management, external location managed Inventory control not centralized in the same function, No external location SalesFree pricing method, Advanced stock features (inter-company, consignment...) Price list based on product code No standard function for consignment PurchasingAdvanced purchasing features (inter-company., direct PO,...) No RFQ, No Workbench No direct PO ManufacturingAdvanced manufacturing features (cost control, overhead support, many MRP parameters,...), integrated with stock. Only material costs managed, no overhead, less MRP parameters. Uses its own inventory function. FinanceAdvanced Accounting, A/R and A/P. More analytics. Multi-currency Basic financial management. Only local currency is managed.

A Sage X3 Customer Example Competition & Positioning > Challenge Support growing distribution channels, including tremendous store growth in the U.S. Apply new technologies to the distribution process without disrupting service to stores A primarily manual warehouse operation was becoming cumbersome with the company’s growing number of stores Solution Sage X3 Enterprise and Sage X3 Geode Provided radio frequency-directed pick/pack operations enabling goods and critical shipment/inventory information to flow efficiently and economically throughout its diverse network of distribution channels. Results Increased number of retail stores from 80 in 2003 to 135 in 2005 Warehouse tracks millions of individual items and processes 900 units per hour – double prior to implementation 15 percent more pieces per hour than their previous average pick rate Based in South of France $400 M Worldwide Project with US subsidiary in New York Manufacturer and distributor of natural- ingredient fragrances and skin and hair care products Ships to 61 countries Sells thru high-end retail, home shopping network, website and wholesalers 47 Sage X3 Enterprise users in USA

BP Attributes & Prerequisites Technical Skills: System integration and X3 development –Hardware, middleware, databases, networks and X3 toolset. Functional Skills: Business application consulting –Finance, sales and distribution, manufacturing (at least one of these areas to start). –Understanding of enterprise's entire business process. Project Management Skills –Skills to sell and manage a project. Market Coverage & Differentiation – Marketing Experience –Either geographical or vertical market coverage. Knowledge of Midsized Customers’ Needs –Dedicated sales force –One-stop shopping approach, and integrated offer priced per user. –Long-term commitment to customers (ERP installed for an average of 10 years). Business Partner Model >

Investment and ROI Investment to Start with Sage X3 –1 sales rep and 1 pre-sales consultant –Functional Training: 2-3 weeks per module (Finances, Distribution, Manufacturing) –Technical Training: 3 weeks Additional Investment –Marketing (specific to each market): select a simple positionning –Services methodology Expected ROI: 2 to 3 years –Long-term customers with recurring revenue (18% maintenance, additional users) –Reduced sales cost through verticalization and references –ROI shorter if Services team already in place with SW Product experience Business Partner Model >

The US Example: Adonix Inc 5 Years Experience of reselling Sage X3 in North America ( ) –First live customer end of 2001 –Limited marketing investment –Large product investment and development of a Process version 2006 Status –100 customers –Revenue $10M ($3.5M SW, $4.5M Services, $1.5M Maintenance) –Profitability before tax = 12% –5 sales reps, 2 telemarketing, 30 services consultants, 3 help desk Business Partner Model >

THANK YOU Bangkok, November 11, 2006 Alexandre Attal