Event Summary
On December
30, QAD, a leading developer of industry-specific e-business solutions for manufacturers
and distributors, announced the availability of improved versions of its B2B
and B2C e-commerce applications for its core enterprise solution, MFG/PRO. These
applications extend secure, scalable buying and selling functionality over the
Web and also provide greater flexibility and customization capabilities.
"Companies who deliver first on the e-business 'value chain' will be in the
best position to move ahead of their competitors," said Pam Lopker, president
and chairman of QAD. "QAD's B2B and B2C e-commerce applications allow our customers
to do business with their trading partners in a more comprehensive way then
ever before, resulting in decreased time to market and reduced costs while reaching
a broader community of users. In today's highly competitive economy, companies
are looking for innovative, cost-effective methods to stimulate new sales, create
new sales channels, increase market share and enhance profits through improved
production. Together, QAD's B2B and B2C e-commerce applications help companies
achieve this by expanding their businesses online and by enhancing their customer
relationship management (CRM) initiatives. QAD e-commerce applications offer
customers and trading partners comprehensive real-time sales order and inventory
management capabilities including order fulfillment, authorizations, automated
tax and shipping calculations, and robust reporting capabilities. By extending
instantaneous access to MFG/PRO information and exchanging critical data throughout
the enterprise, QAD's B2B and B2C e-commerce provide continuous connections
to customers and trading partners. The open, scalable architecture of the B2B
and B2C e-commerce applications make them cost-effective, easy to manage and
easy to adjust to the changing requirements of businesses and their trading
partners."
Market
Impact
The market can expect a spate of similar announcements in this space as vendors
scramble to belatedly jump on the e-Commerce bandwagon. We believe that this
year will be a trying year for the larger ERP players, particularly when competing
within the Small-to-Medium Enterprises (SME) market segment, where there is
much less patience for product delays and botched implementations. While almost
every major ERP vendor has announced an e-Commerce strategy, most of the actual
applications have yet to appear. Therefore, we regard QAD's official product
launch as a positive step in reinventing itself around the new e-business economy.
QAD and its ERP brethren will need to offer a full line of e-business applications
to keep their customers happy and to attract new ones.
User
Recommendations
In spite of massive market demand, most e-Commerce initiatives from ERP vendors
are a long way from becoming a reality. While they should remain wary of high-sounding
press releases and marketing hype, current users of QAD should contact their
vendor and inquire about the proposed offering. Also, both current and potential
users are advised to request the Company's written commitment to promised functionality,
length of implementation, and seamless future upgrades before embarking on an
implementation journey. Furthermore, any organization evaluating QAD products
should exercise moderate caution and consider existing functionality only, until
the Company regains consistently profitable financial performance. Users should
closely follow future outcomes of the company's recent calling on a venture
capitalist to help it survive the downturn in the ERP market.