Coming away from this presentation, I am convinced that SSA’s strategy is to build an "ERP Ecosystem" (my phrase, not SSA's) of complementary products that it can sell into its installed base, to keep clients on maintenance and sustain them as a source of revenue for many years. Such a strategy has strong appeal for two reasons:
- From the vendor side, in the maturing market for ERP systems, new license sales are becoming more difficult and increasing revenue from existing customers becomes more important.
- From the client side, although companies want new functionality, they are increasingly reluctant to undergo wholesale change-out of functioning ERP systems to get it.
In the Road Show, SSA outlined the common complementary products it is now offering to its large installed base. These include the following:
- Warehouse Management (WMS): SSA is offering Warehouse BOSS, which it picked up in with its acquisition of PRMS. Interfaces were already in place for PRMS, of course, and interfaces to BPCS were just released in April. WMS is a frequently-desired complementary product, and for companies that need it, it usually carries a strong tactical ROI. Warehouse BOSS is a good mature multi-site WMS that should be well-received in the BPCS installed base.
- HR/Payroll: SSA is promising integration of its Infinium HR/Payroll system to its BPCS and PRMS installed base within 60-90 days. Infinium was always considered a solid HR/Payroll vendor, especially for the IBM iSeries (formerly AS/400), and this offering increases the attractiveness of SSA for the BPCS and PRMS installed base. The Infinium offering has been updated over the past few years with a functionality for manager and employee Web-based self service.
- Enterprise Performance Analytics (EPA): For data mining and business intelligence, SSA is offering pre-built integration to Cognos, a well-regarded business intelligence solution. Current EPAs are limited to financial reporting and sales analysis, two of the most-often requested, with more on the way. Integration appears limited to BPCS users of V6.1 and higher, which would put this out of reach for the large number of BPCS users on older versions.
- CRM: SSA is offering "BPCS CRM," which is based on Applix. (The Applix web site, however, indicates that its iCRM product has been acquired by Platinum Equity Holdings.) SSA currently has interfaces to Applix built for BPCS, with interfaces promised to PRMS later this year.
- Forecasting and Demand Management: SSA is offering interfaces to Logility from BPCS, with interfaces from PRMS later this year. SSA refers to this offering as "collaborative commerce," probably because of its support for Collaborative Planning Forecasting and Replenishment (CPFR). However, the offering is basically a high-powered demand planning tool. This is a good offering for SSA’s consumer product customers.
- Web-enablement: SSA is offering a "BPCS Enable," which is basically a private label version of IBM's WebSphere Express. This platform allows older IBM 5250 character-based versions of BPCS to be deployed over a browser-client and also allows them to interoperate with newer SSA offerings for e-commerce, CRM, and business intelligence. If the uptake of this product by the installed base is good, it will serve to extend SSA maintenance revenues on these older versions of BPCS.
- Knowledge Management: Although not discussed in the Road Show, SSA has just signed a letter of intent to acquire, Elevon, a vendor of knowledge management and collaborative commerce systems.