Managing Automation - November 2007 - (Page 10)

INDUSTRY NEWS FULL COVERAGE MA NEWSLETTER TO SUBSCRIBE GO TO OF EVENTS AND ANALYSIS WWW.MANAGINGAUTOMATION.COM managingautomation.com Alliances, Executive Appointments, Mergers & Acquisitions, Products news For the maonline in perspective BY J E F F M O A D & D AV I D R. B R O U S E L L Record APPOINTMENTS SAP’s Business ByDesign to Validate On-Demand Model for Enterprise SW Click Commerce, Inc. has hired David Barboro as general manager to lead an aviation, aerospace, and defense team. Emptoris has appointed William B. Gerraughty chief financial officer. Erik Udstuen has rejoined GE Fanuc as software general manager. Lawson Software has named Eduardo Sanchez executive VP of global sales. S CONTRACTS ABB has won a $22 million contract for equipment and services for a pulp mill under construction in Brazil. Sigma Pharmaceuticals Ltd. in Australia has implemented Elan Software Systems’ XFP-MES products. Utz Quality Snack Foods and Coty Inc. have chosen Information Builders Inc.’s WebFOCUS business intelligence technology. Invensys Process Systems is implementing an InFusion-based plant information management system for Petro Rabigh’s refining and petrochemical complex in Rabigh, Saudi Arabia. American Woodmark, a maker of cabinets for kitchens and baths, has standardized on Kronos Inc.’s Kronos for Manufacturing across its 25 locations. Continued on page 15 AP’s recently unveiled Business Byuser per month — SAP has said it will sell the Design enterprise application offering on-demand service primarily through channel for mid-market companies is likely to partners. At press time, however, SAP had validate the on-demand model for selling signed up only about 20 BBD channel partners, and using enterprise software. But BBD’s ultisome of which also sell its other products tarmate success will rest on several so far unangeting small and mid-market companies, Busiswered questions, most notably those relating ness One and All-in-One. to the composition and contribuSAP will not only need to find tion of the partner network that new BBD distribution partners, but will help SAP take the new product also come up with news ways for to market, experts say. them to sell and extend the prod“The [BBD] go-to-market stratuct, analysts say. Unlike higheregy is fairly vague at this point,” says priced on-premise software prodHenry Morris, senior vice president ucts, BBD may not financially for software and services research support traditional on-premise at IDC. “SAP has provided sketchy consulting and deployment servdetails on how the channel pieces ices delivered by SAP partners, will work and who will be in the says Simon Jacobson, a senior marMark Symonds channel. SAP has said this is a distinct ket analyst at AMR Research. channel, but so far they’ve only referred to part“SAP and its partners will have to come up ners who are part of its existing network.” with new ways to sell and support Business ByThe effectiveness of the channel partners Design, such as telesales and even telephonepushing BBD will be critically important if SAP based support,” Jacobson says. “So far, neither is to reach its goal of 10,000 BBD customers by SAP nor its partners have much experience 2010. Because of its relatively low price — with that.” BBD will carry a subscription price of $149 per And SAP will need to find a way for BBD Charting Turnover in Manufacturers’ ERP Usage In a study of enterprise resource planning (ERP) usage among manufacturers, Aberdeen Group found that a significant number of companies plan to either upgrade or replace their systems over the next three years. The July 2007 survey of 1,400 manufacturers shows that 40% of respondents plan to upgrade or replace their ERP systems within the next 12 months, while 61% said they would do so within 12 to 24 months and 70% over the next 24 to 36 months. Aberdeen reports that the replacement strategies stem from a proliferation of enterprise applications, causing integration issues (43%) that drive “a desire to consolidate or rationalize multiple ERPs” (44%). Other incentives cited were the need for additional functionality (42%), the need for standardized approaches with international capabilities (37%), and outdated and clumsy user interfaces (34%). NUMBERS PLANNED UPGRADE AND REPLACEMENT ACTIVITY Within the next 12 months 60% 31% 9% Within 12 to 24 months 39% 49% 12% Source: Aberdeen Group, July 2007 THE Within 24 to 36 months 30% 48% 22% ma BY = Continue running current version of ERP = Upgrade to the latest release of our current ERP = Replace our current ERP with a different package at one or more locations 10 2007 November http://WWW.MANAGINGAUTOMATION.COM http://managingautomation.com

Table of Contents Feed for the Digital Edition of Managing Automation - November 2007

Managing Automation - November 2007 Contents Take 1 Mailbox SAP's Business ByDesign to Validate On-Demand Model for Enterprise SW Portfolio Management Specialist Losing Ground to Rivals At Incor, It's Time for Some Deep Breathing Can HART, ISA Get Together on a Wireless Spec? Mesa Tries to Help Improve Plant Metrics Notes Cover Story: The Digital Factory Special Report: Breaking Down Walls Integration: Dreaming of One ERP Industries: Locking onto Cyber-Security Transformation: Not Your Father's Time & Attendance Program Product Scan Advertiser Index Next

Managing Automation - November 2007

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