How Has Made2Manage Systems Been Managing Itself?
Written By: Predrag Jakovljevic
Published On: August 2000
How Has Made2Manage Systems Been Managing Itself?
According to a press release from July 25, Made2Manage Systems, Inc.,
a provider of enterprise business systems for small and midsize manufacturers,
and Click Commerce, Inc., the provider of Enterprise Channel Management
software and services, announced a new offering to enable small and mid-sized
manufacturers to leverage the Internet to support their sales, inventory
and service networks.
the agreement, Made2Manage will license Click Commerce's Enterprise Channel
Management software technology to build an Application Service Provider
(ASP) offering - the first for Click Commerce. Enterprise Channel Management
solutions connect enterprises with each member of a business partner network
- distributors, dealers, purchasers, suppliers, consumers and employees
- with real-time access to services and information, regardless of language,
time zone or currency.
Systems will use this Enterprise Channel Management technology to deliver
customer care, commerce and collaboration to small and mid-sized manufacturers.
Together, Made2Manage and Click Commerce will provide the manufacturers'
customers the ability to generate request for quotations, place orders
online, search product catalogues and many other services. This new service
will help manufacturers improve customer satisfaction by making it easy
for them to do business using the Internet.
bottom-line goal is to help our manufacturing customers strengthen their
relationships with their customers," says Christopher Clapp, vice president
of Made2Manage's e-business division. "This Internet service will allow
manufacturers to deliver great customer service while taking advantage
of the cost effectiveness that the Internet provides. By working together,
we can serve our manufacturing customers by moving customer management
from an expense to an asset. This will give manufacturers the ability
to develop strong customer loyalty - a strategic issue in the New Economy."
on July 19, Made2Manage Systems, Inc. reported second quarter 2000 results.
For the quarter ended June 30, 2000, total revenue was $7.7 million, an
11% decrease from second quarter 1999 revenue of $8.6 million. Software
license revenue of $3.3 million reflected a 14% increase over the first
quarter 2000. Compared to the prior year, software license revenue for
the second quarter decreased by 21% and service revenue decreased by 1%.
Net loss was $596,000 or $0.13 per diluted share, in the second quarter
of 2000, compared with a net income of $108,000, or $0.02 per diluted
share, a year ago (See Figure 1).
we stated in our preliminary earnings release on July 7, we have now achieved
sequential revenue increases in three consecutive quarters. We also increased
our software license revenue by 14 percent over the first quarter," said
David B. Wortman, chairman and chief executive officer, "Looking forward,
we are encouraged by what's in the pipeline for new business opportunities.
We continue to invest in our business solution for manufacturers. From
our back office system to our new e-business applications, we are meeting
the needs of manufacturers who want to thrive in the years ahead. It is
not a matter of if manufacturers will invest in a business solution, but
when. They know they must use e-business tools and processes to attract
and retain customers, improve their partnerships with suppliers, integrate
their supply chains, educate their employees and streamline their operations
if they want to survive in the New Economy. Made2Manage has what these
manufacturers need to reduce costs and remain competitive. We have the
total integrated business system available today and we intend to capitalize
on the opportunities ahead."
Made2Manage has joined the myriad of Tier 2 and Tier 3 vendors that have
only recently felt the Y2K-caused pinch, while their bigger brethren seem
to have gotten over that malaise. This was not unexpected, as Tier 1 ERP
vendors were hit first, primarily due to much longer implementation times
required for larger implementations and customers had to put their plans
on hold much sooner. We believe that the smaller vendors are now in for
a rough time as they continue to expand their products, refine their marketing
message and defend their turf from each other and from ever more intruding
bigger vendors, while coping with much scarcer resources. Made2Manage
CEO's bland message speaks in that regard.
Made2Manage has shown a good understanding of the needs of its target
market, SMEs that wish to acquire most of their business applications
from a single source while coping with very limited IT resources. To that
end, Made2Manage still offers its core ERP solution, which has recently
been enhanced with extended enterprise capabilities like advanced planning
& scheduling (APS). The company has also made a notable effort to provide
e-business solutions with the launch of m2mEport, Web-based community
offering information, tools, and services to meet the e-business requirements
of SME manufacturers.
differentiating Made2Manage from its main competitors is the company's
ability to provide smaller discrete manufacturers a portal that incorporates
a broad range of collaborative, interactive, and communications applications
including collaborative engineering design, tools, trading exchanges,
and access to information resources. The www.m2meport.com site also hosts
a full range of education, consulting and support services, and includes
a virtual classroom capability for delivering instructor-led classroom
education over the Web. While manufacturers usually prefer to keep their
ERP systems in-house, many may opt to use Made2Manage hosted applications
for collaborative commerce, which is available through www.m2meport.com
for the latest partnership announcement in case, we foresee a benefit
for both parties. Made2Manage and its customers' potential benefits are
obvious, whereas the partnership has the potential to increase the market
reach of Click Commerce's suite of Enterprise Channel Management software
and services via an Application Service Provider (ASP) model.
Made2Manage's target market, general discrete manufacturing companies
and/or their divisions with up to $50 million-a-year revenue range, should
consider the company's value proposition, but avoid selecting it without
looking at what the other vendors have to offer. We generally recommend
including Made2Manage in the long list of vendors considered for an enterprise
application selection by the lower-end of mid-market companies. These
companies generally have a limited IT budget, a conservative IT strategy,
and less complex discrete job shop manufacturing, supply chain and B2B
e-commerce requirements. The industries that would most likely benefit
from using its products are electronics, instrumentation, machinery, fabricated
products, and transportation equipment.
companies within the above-mentioned industries may benefit from evaluating
the Made2Manage's portal offerings on a stand-alone basis for their e-business
needs and leverage that information against other vendors in the selection.
As for the new added functionality through partnerships, users are advised
to ask for firm assurances on the availability and future upgrades timeframes,
and more detailed scope of combined product functionality.