SSA: Evolving into systems integrator to survive
P.J. Jakovljevic - October 1, 1999

Vendor Summary

System Software Associates, Inc. (SSA) is a leading global ERP software and services provider. Founded in 1981 with headquarters in Chicago, IL, USA, SSA is the seventh-ranked ERP vendor with $421 million in revenue in 1998 (approx. 2.6% of the global ERP market). SSA initially grew by offering products for IBM's AS/400 minicomputers. The Company then developed strong affiliations with software and management consulting firms and provided them with training to market its product. As a result, SSA today has the largest installed base of ERP systems on the AS/400 platform. SSA's Business Planning and Control System (BPCS) product line features more than 50 products that allow control over manufacturing, supply chain management and financial applications, as well as e-commerce and application development for industrial business. In 1996, SSA developed BPCS version 5.1 for UNIX users, but had very limited success. An improved version of BPCS (6.0) was delivered in the same year, causing SSA's earnings to plunge, due to the combined effect of stalled new license sales and the huge R&D budget overrun. In 1998, the founder Roger Covey stepped down as CEO and was replaced by former president William Stuek. Stuek attempted a few restructuring moves in order to improve SSA's ailing financial situation without success, and the Company suffered a hefty loss in 1998. In 1999, Stuek retired as chairman and CEO, and was replaced by Robert Carpenter, former president and CEO of system integrator Origin America. In the same year, SSA developed the NT version of its product in cooperation with Hewlett-Packard, and released the latest version of its principal product, eBPCS. The basic premise of this recently announced SSA strategy, called SSA Portfolio, is to easily integrate its core ERP system with other 3rd party software. By the end of 1998, the Company had licensed approx. 18,000 system installations to more than 6,500 customers in more than 90 countries worldwide. SSA's revenues are almost equally divided across North America, Europe, and the rest of the world. The Company supports its clients primarily through a worldwide network of over 40 branch offices. SSA went public in 1987 and currently trades on NASDAQ...