sap ag 2003 microsoft business solutions sage worldwide contents: sap and the competition
TRANSCRIPT
SAP AG 2003
Microsoft Business Solutions
Sage Worldwide
Contents:
SAP and the Competition
SAP AG 2003
Characterize the competitor products of Microsoft Business Solutions and Sage and describe their advantages and disadvantages
At the conclusion of this unit, you will be able to:
SAP and the Competition: Unit Objectives
SAP AG 2003
Describe Microsoft's strategy for the SMB market
List Microsoft's products for the SMB market
Point out weaknesses in the strategy and product lines of Microsoft Business Solutions
At the conclusion of this topic, you will be able to:
Microsoft Business Solutions (MBS): Topic Objectives
SAP AG 2003
Microsoft Strategy Messaging
Become Market Leader in the area of standard business software targeted to small and medium sized companies in 2004
Achieve $10 Billion Revenue in 2007
Get the best in class regarding Return on Investment (ROI) and Total Cost of Ownership (TCO)
Add value to the existing solutions
Lower the Cost of Application Integration .NET reduces the need for custom integration, minimizing complexity,
speeding deployment, and delivering a low TCO .NET as a standard platform makes investments in Software safe.
Pay what you use and best value for money
Threefold investment strategy Expand and enhance today’s Solution Surround solutions with new product offerings (PSA, Retail etc.) Deliver a single global solution built on the Microsoft Business Framework
SAP AG 2003
Partner Concept with MBS (1)
The Navision Solution Center (NSC) is responsible for thefollowing tasks:
Sale of MBS solutions to end customers
Development of industry-specific functions
Adjustment of its industry standard to the individual needs of the customer
Implementation and support
Maintenance of tailored customer solutions
Project management and outsourcing
100% indirect marketing
SAP AG 2003
Partner Concept with MBS (2)
According to Navision, only partners that have at leastfive employees with the status "Navision certifiedprofessional" (NCP) are permitted.
Industry business solutions are developed by the partners themselves (in some cases with financial backing from Navision) and certified by Navision.
Sales are effected completely independently of that of thebasic packet.
All sales revenues go to the Navision Solution Center.
SAP AG 2003
Microsoft Business Solutions Product Overview
Main Solutions MBS Navision MBS Great Plains MBS Axapta MBS CRM
Smaller Solutions MBS Small Business Manager Microsoft bCentral MBS XAL MBS Solomon Apertum MBS Enterprise Reporting MBS Professional Services Automation MBS Retail Management
SAP AG 2003
MBS Strategy
All products will be developed further (statement after Navision transfer) Example MBS Great Plains: Will no longer be marketed in Germany. Support
for existing customers is provided by two partners. Version 7 is the last German version!
Example Siebel: Great Plains Siebel Front Office (GPSFO) will be withdrawn from the worldwide market. Collaboration to be cancelled!
New functions are planned for all products. These functions include customer relationship management, business intelligence, Web services, mobile solutions, and reporting.
Statement that “all products are to be replaced by a common .Net product" is not clear!
The .Net product won’t be available until 2005!!! The first version will not contain all functions yet. Existing products will be continued in parallel. Solomen, eEnterprise, Small Business Manager, Attain, Axapta, XAL, MSCRM
are all to be placed on the .Net??? For Germany, Microsoft has announced its intention to invest in the training of
Microsoft partners so they can also sell ERP + CRM. Will they do that in all countries? Conclusion: Competition among partners will increase.
Microsoft sells financial services via Microsoft Capital, thus binding customers.
SAP AG 2003
MBS
MBS Partner Customer
Sold to customer
Margin goes to partner
0 % financing 1st installment after 3 months Period: 1 – 3 years (flexible)
Customer pays
3. 3.
2. 2.
1. 1.
MBS Financing Model
Also available for partner industry solutions.
SAP AG 2003
How to Beat Microsoft Business Solutions: Weaknesses
The trust placed by partners in the sales strategy is in jeopardy. For example, Microsoft has hired 500 sales employees for direct sales in the USA. Is MBS to be sold there directly to commercial customers?
Every industry solution is changed in the source code.(update problems!!).
MBS Navision has changed the database structure.All partners now need to adjust their industry solutions(high costs, increased likelihood of errors occurring and so on).
MBS Navision is not easily upgradeable (no tool available). (extra costs)
MBS offers only low-performing search functions(context-sensitive).
MBS Navision and MBS Great Plains are not as user-friendly as SAP Business One (usability study).
Customers have expressed doubts about their ability to cope with the new portal.
SAP AG 2003
Microsoft – How to Compete Weaknesses
Navision Weaknesses
No multi-currency management in the Accounting module (limited to third party accounting9
Limited integration of numerous „add-ons“ developed by Navision distributors in the standard software package
Addition of fields and screen customization more complex than in SAP Business One
Weak support by the software editor to the distributors in some countries (including France)
Lack of information about Microsoft strategy (future positioning of Attain vs. Axapta)
Additional costs in case of upgrade to „Microsoft standards“
More complex set up methodology and heavier implementation costs
Less usable solution
Business One Strengths
Approval workflow
Potential developments with SDK tool
SAP support to Distributors
SAP brand image
Recent technology solution, large investments from SAP
Synergy with subsidiaries of Groups running SAP
Simple set-up methodology, limited set up costs
Ergonomics, usability for a key-user, ans end-user, a system administrator
The products currently have an architecture with limited deployment (thick client)Lack of functional depth in B2B ProcurementMicrosoft CRM integration into MBS
SAP AG 2003
How to beat Microsoft Business Solutions: Threats
In spite of all the statements made, the product strategy for integrating MBS products in a .Net product is unclear. Investments do not appear to be secure!! Uncertainty, dissatisfaction
The schedule for developing the .NET infrastructure and the products which are based on it is constantly being postponed!! Uncertainty, doubt
When the .Net arrives, migration will require a lot of time and effort. Even if the new software is free of charge (maintenance contract), high costs will be incurred on implementation. Uncertainty about amount of effort and costs
When will partner modules and industry solutions be available on the .Net? Uncertainty about time and costs
Microsoft has a poor image as a monopolist and poor press coverage (court appearance in the USA). Uncertainty, doubt
The partners will be consolidated; it is known that the remaining NSCs will not beabove 200 in the medium term. Uncertainty, doubt
MBS passes on the pressures of the market immediately to the partners.Prices will be forced down because the partners have to make a sale. Dissatisfaction, uncertainty
Can a decision for MBS at the moment be a secure decision?
SAP AG 2003
How to beat Microsoft Business Solutions: Arguments
MBS plays down software costs.
MBS plays down hardware costs.
MBS promises software technology, which is still virtually unknown.
Strategy: Point out that additional features could have a high impact on the
total costs. Point out that security of investment is an important factor in
decision-making today and a new, previously unknown technology with all its possible teething problems is currently not able to offer this.
Point out that software that is not easily upgradeable (or only at extra expense) is not in keeping with the times and is an insecure investment.
Microsoft's financing scheme could be only a decoy in view of the uncertainty in the product environment.
SAP AG 2003
Prices for Service and Support
16% of the license costs
18% for the basic service program (with a guaranteed response time of three hours)
28% for unlimited support with a guaranteed response time of one hour
Quantity discount: 2% with a license priceof $100,000 – $199,000
Quantity discount: 4% with a license price of over $200,000
Premier Services: Additional $35,000 – includes 100 hours technical support, 100 support cases, on-site training, including travel
expenses
SAP AG 2003
User License Fees for MBS Navision
Session/each
Session/10 users
Session/25 users
Session/50 users
Web user/each
Web user/25 users
Web user/100 users
€ 1,559.75
€ 14,817.59
€ 36,069.13
€ 70,188.77
€ 620.35
€ 9,925.66
€ 35,448.77
(5% discount)
(7.5% discount)
(10% discount)
(from Navision presentation dated December 4, 2002)
SAP AG 2003
Navision: Composition
A Navision solution comprises the following:
Licenses for the application: (depending on scope of functions)
User/session (€ 1237.35)
Services (depending on scope of functions)
Training (depending on customer requirement)
Cost of license to cost of service (1:1 to 1:1.5)
Currently this calls for an overall budget of € 25,000 and higher.
SAP AG 2003
Describe the product lines of Sage worldwide
At the conclusion of this topic, you will be able to:
Sage: Topic Objectives
SAP AG 2003
Sage – Worldwide
Sage Australia
Sage New Zealand
Best Software
Sage France
Sage KHK
Sage Spain
Sage UK
Sage Middle East
SAP AG 2003
Sage – Company key findings
Founded in 1981 in Newcastle upon Tyne, England Floated on the London Stock Exchange in 1989 Over 900,000 customers with an annual support contract Over 5,500 employees Annual revenues of £551.7 million (Financial Year 2002) Profit before tax of £135.2 million (Financial Year 2002)
More than 3 million customers worldwide, thereof more than 40,000 outside Europe, mainly throughout Africa and Asia excl. Best
SageKHK: over 250,000 small to medium sized companies
throughout Germany Sage US/Peachtree: 1.2 million small to mid-sized businesses
in North America ACT!: more than 4 million professionals and 13,000
corporations world-wide SalesLogix: Over 4,000 companies worldwide
SAP AG 2003
Sage – Worldwide Acquisitions
The company‘s growth strategy is through aquisition
1991 DacEasy (US)
1994 TimeSlips (US)
1999 Peachtree (US)
1999 Best (US)
2001 Interact Commerce and Platinum (US)
2001 Coala SA
2001 Connectsuite SAS
2002 Gandke & Schubert
2002 Dynalog SA
2002 JSI FundRaising Systems, Inc.
2002 CPA Software, Inc.
2003 Concept Group
2003 Aquisition not yet finalized. Timberline Software Corporation
SAP AG 2003
Sage Worldwide – Best Software Enterprise Strategy
In April 2003 Best Software reorganized it‘s six divisions into two
Mid-market Division: MAS 90, MAS 200, MAS 500, Business Works, Platinum for Windows
Small Business Division: Peachtree, Timeslips, DacEasy
Specialty Products Division: Abra, FAS, Carpe Diem and TimeSheet Professional
Nonprofit and Government Division: MIP, Paradigm, Millennium
CRM Division: ACT!, SalesLogix
Accountants Division: CPASoftware, Best Software Accountants Network
The Small Business Division
The Mid-Market Division
CRM Division: ACT!, SalesLogix
ACT!
CRM Division
SalesLogix
Best Software‘s strategy is to provide one face to customers and partners.
The company is independent in his decisions from Sage Group plc.
SAP AG 2003
Sage – Partners
Customization and local support is provided by partners who provide a pre-sales and an after-sales consultancy service.
Network of over 400 distributors in more than 60 countries and more than 20.000 active resellers worldwide
more than 30 local distributors in Europe more than 75 local distributors in Africa more than 6,600 VARs in America
Best Software: Products are sold by a network of Value Added Resellers (VAR‘s). The Small Business Division is primarily sold through retail. ACT! has a network of certified consultants in 19 countries and a
network of partners. The Mid-Market Division is sold through Best‘s partner channel. SalesLogix is sold through a reseller channel (that includes more
than 500 business partners).
SAP AG 2003
Sage – How to compete – Strengths
Strengths Large Customer Base
Strong product brands
Extensive partner network
Strong financial position
Core competency in Sales Force Automation
Strong CRM division with ACT! and SalesLogix
Has the resources to be a major force in the SMB market
Offers well targeted applications to meet the needs of small and mid-sized businesses
Fast Implementation
Implementation with other third party application is possible.
Applications offer good up sell and cross sell opportunities.
Subsidiaries are independent in their sales strategy, because they have better insights on the markets in their areas.
IBM Alliance to deliver leads
Key Influencer and consultant program
Channel Improvement Program
IBM/Indirect model
Development of vertical solutions makes the integration between front and back office application a key priority.
Good Mobile Support
SAP AG 2003
Sage – How to compete – Weaknesses
Research and Development (R&D) is under invested. Line 50 program is 20+ years old. Lowest investment in industry.
Line 100 product is migrated to SQL.
Integration of CRM business (Interact) is poor. Lack of integration
Lack of or no inter-country strategy KHK, Sage UK, Ciel and Best Software all act independently. No global strategy
Vertical solutions are mainly targeted for accounting applications.
Not ready for .NET
Limitations in functionality (Sales Force Automation capabilities are more evolved than marketing and customer service)
SAP AG 2003
Sage – How to compete – Opportunities
Acquisition of Timberline (business management software vendor) to expand products and services for verticals
Timberline will become part of US business and will expand Best‘s product range in construction and real estate industries
Independency of Sage subsidiaries Subsidiaries know their market best and are able to recognize
further growth potential for the company
Large customer base to cross sell products
Partnerships Microsoft:
Adopt Microsoft‘s technology, because own products are not ready for.NET. Take over Great Plains/Navision customer and reseller base to help Microsoft manage the transition
SAP AG 2003
Sage – How to compete – Threats
Sage wants to rationalize channel – Potential for new SBO partners?
Unclear contract status with partners
Sage sell their products partly direct to corporate and strategic customers (channel conflict)
If SAP goes after Sage business partner in each region this could have an impact on Sage business (SAP already has the business partner for Sage Line 500 in the UK)
Microsoft as a competitor in the SMB market Microsoft has a hughes install base to cross sell products
No Inter-Country product strategy Sage subsidiaries act independently and so are the products.
SAP‘s Business One, for example, is a worldwide solution and can be implemented in any subsidiary of a corporate company
SAP AG 2003
Sage - Product Overview I
Country Product Name Product Description
Australia/New Zealand Sage Instant Accounting (A) single-user bookkeeping solution for small businesses. Ideal for sole traders or start-ups
Sage Line 50 (A, NZ) core accounting functions
for a more established business that is still experiencing growth
Sage Line 100 (A) fully customisable business suite
suitable for a wide range of businesses in terms of turnover and number of employees
Sage Line 200 (NZ) Advanced business suite
Sage Line 500 (A, NZ)
(formerly known as Sage Enterprise and CS/3)
web- enabled, financial, distribution, services and manufacturing software designed for mid- range and larger organisations
Sagepay (A) payroll solution
available with the option of a multi user module
Sagepos (A) point of sale system designed to suit small to mid-sized retailers
Sage Job Costing (A) companies of all sizes and in all industries
able to track and evaluate all the costs of a job or project
Canada: Best Software Canada Ltd.
Fixed Asset Accounting Automating fixed asset management
Abra Suite human resources and payroll management
For companies of all sizes
no pricing information available
Best! Imperativ Analytics budgeting and planning tool
For companies of any size
ProvideX business application development environment
SAP AG 2003
Sage - Product Overview II
France Ciel Ciel Comptabilité accounting solution
CielGestion Commerciale management solution
Ciel Paye payment solution
Sage Coala Ligne Production (par Coala) applications de production, gestion interne, et pilotage administratif, commercial et marketing
Ligne Conseil (par Gescap) couvre les différents domaines de conseil aux entreprises
Ligne Relation Clients (par Sage)
CRM solution
Sage France Sage Ligne 30 business management solution for small businesses
Sage Ligne 100 business management solution for small and medium sized businesses
Sage Ligne 500 business management solution for medium sized and larger companies
Sage Ligne 1000 business management solution for large companies
Sage CS/3 ERP solution
Middle East Sage Line 500 financial, distribution, manufacturing and services solution designed for mid-range and larger organisations
Sage Line 200 financial and distribution solutions for medium sized organisations
SalesLogix mid-market customer relationship management software offering sales, marketing, support and e-commerce functionality
ACT! contact management software
Sage Line 100 fully customisable business suite
suitable for a wide range of businesses in terms of turnover and number of employees
Sage Line 50 accounting solution for small and medium-sized businesses
Sage Line Instant Simple single-user bookkeeping solution for small businesses. Ideal for sole traders or start-ups
SAP AG 2003
Sage - Product Overview III
Germany Gandke&Schubert GS - AUFTRAG, GS-AUFTRAG Professional SQL, GS – KFZ
logistics/Billing
GS-Shop Online-Shopping
GS-Fibu, GS-EAR Accounting
GS-Lohn, GS-Reisekosten, GS-Brutto/Netto
Human Resources
GS-Adressen Office Organization
GS-Verein Club management
GS-Termin Contact management
HR Software HR Personal Manager: Personal HR management solution
HR Personal Manager: Payroll Payroll solution
HR Personal Manager: Reisekosten Travel management solution
Best! Info Plan HR management solution for the Public Sector
HR Zeit Time management solution
Sage KHK PC Kaufmann commercial software
Office Line business administration software for medium-sized businesses
Classic Line modular business administration software for smb
HWP-WIN business administration for manufacturing and service industry
Sage Personalwirtschaft HR Management for all industries, public sector and health
Sage Kundenmanager CRM tool
Sage WebTrader Homepage, Shop, Content-Management-System and communication platform
SAP AG 2003
Sage - Product Overview IV
Spain Sage Contabilitad 100 accounting solution
Sage Gestión comercial 100 management solution
Sage Caja descentralizada 100 payment solution
Sage E-commerce tool for creation and administration of online shops
Sage Informes 100 tool for creation of analytical statistics
United Kingdom/ Ireland
Sage CRMsolutions
ACT! small office/home office (SOHO) as well as small and medium businesses
SalesLogix Mid Market CRM solution
Sage UK Sage Accounting&Finance Line (Sage Instant, Sage Line 50/´100/200/500)
range of Accounting Suites for different sizes of businesses
eBusiness solutions range of e-business products for e-commerce strategy
Sage Personnel(Instant Payroll/Payroll/Payroll Professional/Payroll Bureau/P11D/P11DPro)
range of Payroll and HR Suites for different sizes of businesses
Sage Forecasting/Costing (Job Costing, Job costing Pro, Forecasting, Winforecast Pro)
Forecasting and Costing Suites for different sizes of businesses.
TAS Software TAS Books 1 Accounts, Invoicing and flexible Reporting; for start-up businesses
TAS Books 2 Accounts, Invoicing, Job Analysis, Project Costing and Flexible Reporting
TAS Books 3 Accounts, Invoicing, Job Analysis, Project Costing & Flexible Reporting with Full Stock Control
businesses where buying and selling physical products is the main focus. This includes wholesalers, distributors and manufacturers.
TAS Payroll suitable for companies with 1 to 1000 or more employees ,
SAP AG 2003
Sage - Product Overview V
United States Best Software Inc.
Abra Enterprise human resource and payroll solution for mid-sized to large middle market companies
Abra Learning Action eLearning solution for small and mid-sized businesses
Abra Online Internet-based HR and payroll service for companies with 50 to 1,000 employees
Abra Suite HRIS solution offers comprehensive payroll processing; recruiting; training and benefits administration for small and mid-sized businesses
ACT! CRM solution for small and mid-sized businesses
Advantage NonProfit Series fund accounting to mid- to large-sized client environments. The system is designed for nonprofit organizations with 10 or more concurrent users, $10M or more in annual budget
BatchMasterPFW and Platinum for Windows by Best
process manufacturing software for companies with 10-500 employees
Business Works business management solution suited for growing small and medium-sized businesses
Carpe Diem time and expense tracking system for corporate enterprises like law firms and finance companies
FAS Gov Solutions fixed asset inventory, asset accounting and depreciation, and custom reporting challenges for organizations managing 50 to 100,000 assets (government, schools, and non-profit organizations)
FAS Solutions fixed asset management tools to businesses of all sizes, managing 50 to 100,000 + assets
Government Series (Advantage/Pro)
fund accounting for mid-sized/growing/larger government agencies
MAS 90/200/500 (formerly Best Enterprise Suite)
accounting, distribution, manufacturing and e-business management software solution for small to medium-sized companies with 10 to 500 employees/enterprises with 20-1,000 employees
SAP AG 2003
Sage - Product Overview VI
United States Best Software Millenium enables organizations to manage campaigns and events, track donors and create reports quickly and easily; larger nonprofits with 25-100 employees
NPS Intro fund accounting solution for smaller nonprofits (less than $1M in annual budget, 3 or fewer users)
One-Write Plus accounting software for small businesses with 1-3 employees
Paradigm manage the entire fundraising process for smaller nonprofits with up to 25 staff members
Peachtree Accounting line of Products
(Peachtree 2003, Peachtree Accounting 2003, Peachtree Complete Accounting 2003, Peachtree Fist Accounting)
accounting, business administration and Internet presence software for small businesses from 1-50employees
ePeachtree hosted online accounting solution for small businesses
Platinum for Windows by Best financial software solution for small to medium-sized enterprises of 20 to 500 employees
SalesLogix CRM solution for smb
TimeSheet Professional accounting for time and expenses related to projects
Timeslips time & billing solution for service professionals, companies with 1 to 50employees
SAP AG 2003
Sage - Product Overview VII
United States Best Software ACT! 6.0 Accounting solution
SalesLogix sales-driven customer relationship management (CRM) solution
DacEasy this product line includes Accounting, Payroll, Order Entry, Point of Sale and Job Costing
TeleMagic TeleMagic Enterprise build a database to fit any business needs
SAP AG 2003
Sage - Product Positioning
Sage Accounting&Finance
Sage HR&Payroll
SAP AG 2003
Sage Line - Pricing
Sage Instant Line Sage Instant Accounts £109.79 (Excl. VAT)
Sage Instant Business Suite £203.40 (Excl. VAT)
Sage Line 50 Sage Accountant £395.00
Sage Financial Controller £925.00 (Excl. VAT)
Sage Line 100 available via an approved reseller only
Sage Line 200/500 dependant on functionality and the number of users requiring
access to the software
SAP AG 2003
You are now able to:
SAP and the Competition: Summary
Characterize the competitor products of Microsoft Business Solutions and Sage KHK and describe their advantages and disadvantages