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Tuesday, December 8, 2009

Impact of the technology centered on the needs on the market for SCM: IBS

International economic systems Sweden-based of supplier of the management of chain of provisioning of planning (ERP) and of entrepreneurial resource (SCM) (IBS) (XSSE IBS B), whereas currently not a total supplier of semi-market uniformly well-known, seems to be carried in balance to change this situation. While the markets of ERP and SCM suffered in all the dull end several years, IBS also felt a pinching of flat incomes to almost $350 million (of USD), but remained most of the time advantageous. It was a notable exploit, particularly with its ambitious effort of development of product is combined with the difficult competing situation of sales. (See the part one)

The part three of. slow IBS but strengthens (and centered on the needs) the victory of May the series of race of SCM.

After corrosive the ball a few years ago and making a substantial investment by rcrivant basically its flagship ASM ERP/SCM offering to return him to it Web natives and the services of favorable Web solution (XML and Java in conformity), and to develop the new edition of company of Java 2 (J2EE) - products based like the virtual company of IBS and the integrator of IBS, IBS seems to survive to the bottom with the continuous economy completely well. IBS the company that virtual, which integrate and coordinate various economic systems in the chain of provisioning, was frankly received by the market, and a certain number of projects were led in the name of large customers.

The market for solutions of integration is likely to be a sector of growth interesting during the next years, and IBS has an attractive offer for these companies with a complex and the expensive management software of company to the group and the head offices level, wanting to lower their costs and to accelerate the execution in their effective subsidiary companies by employing IBS 'management software of company for these companies.

In spite of its resemblance in the face, the geographical insurance, and modesty, once compared with the flamboyancy of its North-American pars to its Statistics financial international of pars of Swede and Intentia (see that the Statistics financial international continue its rinvention by pruning and Intentia the 's Movex for food and drink: Gaining a balance in North America), IBS always paid the great attention to its tax health. Consequently, its assessment is relatively clean and strong, and the leadership team mainly was places from there since the company the 'beginning of S.

The supplier has a history who is characterized by finances of growth and stable, and it carried out a benefit in a total of twenty-five of the twenty-seven years when he tes on the market. Even in 2003, in spite of a continuous weak IT-MARCH, IBS succeeded in meeting its aim established to carry out a benefit after the financial articles. It was due possible inside to heavy tiny room operating costs accompanied the competing solutions and services. With compound these prevented income of the reduction by more than five percent, which are considerably lower than for several of its competitors.

An improvement of potential of the market and an increase in benefit (after the financial articles) was seen in 2004. It was ascribable to the increased licences of software by approximately six percent, an invoicing more raised by advising which has to lead to the professional fee a margin improved raising of 20 percent to 22 percent, and most of products coil-developed, which increased the margin of licence of software of 90 percent to 92 percent. Moreover, the supplier improved of the benefit in the crucial Swedish operations.

During 2004, IBS also reinforced its position in a certain number of sectors, including the distribution of pharmaceutical, electronics, the provisioning industrial, the machines and the equipment, the market of the accessories of the motor vehicles, the management of property, paper and packing, and the food products. Here, a certain number of new international agreements of customer were written in these sectors. The effectiveness of the development of software of IBS will continue to improve of other manners, by the provisioning outside increased with the inexpensive countries. IBS currently has part of its development in the inexpensive countries such as Portugal, Poland and India. China will be also considered since IBS decided to increase its presence in this expansible area.

To the credit of IBS, the supplier had a long time aimed his sales and development efforts to proven technologies and weak risk of medium and great search for companies which have low total costs of property (operating burnup), and is relatively easy to use with bottom taken and risks. These companies of technology and cost-sensitive have until recently given on per many suppliers of company. After several years of the investments in fall in IT, there still was a need driven back among many companies and organizations to increase profitability and competitiveness using the new or improved management software of company. The priority, especially, is granted to the investments which can produce measurable improvements and fast refunding by lower costs, the service to the customers increased, chains of provisioning integrated, the improved financial order and information to the management of company. Another of the more important changes of the IT-MARCH is the respective management of IBS of 'companies, which considerably more are implied in the decisions about the economic systems and of IT of the investments. This led to a change of the hearth of the evaluations often more technical more financially and more commercial to evaluations, which requires both management software of company specialized, as well as the skilful advisers for his execution.

An increasingly significant number of the companies, and in particular of the companies with operations in several countries, discovered that it is not only one functionality of management software of company which is of decisive importance in the advantageous guarantee HIM of the projects (see the easy ERP: A challenge with the conventional thought). Of equal importance is the real project of installation, in combination with the continuous support and the later development. For this purpose, IBS has during many years concentrated its attention on providing the support of execution for its customers by a combination of the commercial advisers (with the experiment of the specific industrial sectors) and of the technical advisers. It is this combination of knowledge about the processes of businesses of customer, of the technical skill and a management system of strongly developed project which is the key with the successful installatiion of the management software of company.

Consequently, IBS developed a new concept where, like its customers, customers the sectors with the greatest potential for the improvement can identify relating to IT investments. This concept can also help these customers followed and measure critical factors of success and the KING in projects carried out. For this purpose, majority of the directors of IBS, personnel of sales, and operational advisers underwent the formation in this method, with accompanying by the systems of analysis and follow-up. This remains an important angular stone in IBS uninterrupted efforts towards more sales and of satisfaction of the customer increasing.

The market for the management software of company is mainly differentiated by a certain number of various suppliers and national and international integrators of system (IF). In spite of unrestrained fusion and acquisition (the activity of M&A) on the market, there remain several hundreds of companies in the whole world which develop the economic application software. The majority of them are relatively small companies or averages which frequently locally are directed or specialized in certain types of the applications and vertical segments. Several of these local and smaller suppliers will disappear or will be amalgamated with greater constellations never expansion.

In the future, we estimate that three categories of the suppliers of company will remain lit the market:

* The first category is composed of a limited number of large and vast international suppliers, such as SAP, Oracle and Microsoft, which cover the majority of the types of applications. The total ASS and the comprehensive solutions of Infor also seem to crawl in this group. IBM also lines up in this category, though deputy, given the lack of its own applications.

* The second category comprises the internationally active and average companies such as IBS, which specialize in selected sectors of the market and special segments of customer. IBS, with a certain number of pars full with the line two, such as QAD, Statistics financial international, software of Lawson/Intentia, or Adonix. These companies are not the aggressive unifiers, like their more big brothers, but are more organic farmers with an inclination for selected acquisitions. They could be proof of crown that the market does not transform yet into Sève-Oracle a duopoly. In some geographical and vertical places of industry, such as Scandinavia, Belgium, Portugal or the Netherlands, IBS remains strong. IBS has international operations with twenty-two subsidiary companies and ten associated in the whole of Europe, of Americas, and Asia Pacific.

* The third category is composed of the hundreds of smaller or room-directed companies which concentrate on a geographical specialization or sector-based narrow (see the competitive advantage on a saturated market: How the large one little do it?).

But, contrary to the majority of the suppliers of par, including the Swede mentioned above one, who began their applications of ERP in the manufacture or the financial space of application, IBS established the first time a strong presence and the functionality in the distribution and logistics set up. With a part, IBS specialized in management software of company to sell and the companies of distribution as well as the manufacturing companies centered on the needs and rapids. After having controlled the idiosyncrasies of the conditions Scandinavian of businesses in procedures of distribution, administrative, and of accountancy, the company is remained the leader of local market, in spite of the strong competition of the international suppliers of ERP. It is well in conformity with the current tendency towards giving relations of customer and order a focal position in processes of businesses. At the same time, the volume-directed production is replaced more and more with the countries at low prices such as China, Mexico and the countries of Eastern Europe.

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