13

13

13 13 13 13 13 13 13 December13 201413

13

13

13 SAP13 BUSINESS13 ONE13 EMERGES13 AS13 THE13 SMB13 ERP13 SOLUTION13 TO13 BEAT13

If13 you13 are13 a13 small13 to13 mid-shy‐size13 business13 (SMB)13 faced13 with13 a13 decision13 about13 Enterprise13 Resource13 Planning13 (ERP)13 SAP13 Business13 One13 is13 likely13 on13 your13 radar13 Even13 if13 your13 initial13 search13 did13 not13 result13 in13 placing13 SAPrsquos13 solution13 on13 your13 short13 list13 chances13 are13 one13 of13 its13 competitors13 has13 brought13 it13 to13 your13 attention13 by13 attacking13 either13 SAP13 or13 Business13 One13 or13 both13 13 Why13 Just13 like13 political13 attack13 ads13 that13 go13 after13 the13 front-shy‐runner13 ERP13 vendors13 go13 on13 the13 attack13 against13 the13 industry13 leader13 By13 sheer13 numbers13 SAP13 is13 the13 largest13 enterprise13 solution13 vendor13 and13 over13 8013 of13 its13 26300013 customers13 are13 in13 the13 small13 to13 midsize13 bracket13 With13 over13 4500013 SAP13 Business13 One13 customers13 this13 solution13 might13 be13 an13 easy13 target13 but13 it13 is13 not13 going13 to13 be13 easy13 to13 beat13 13

The13 rationalization13 ldquoNobody13 ever13 got13 fired13 for13 choosing13 [insert13 front13 runner13 here]rdquo13 doesnrsquot13 work13 for13 ERP13 leastwise13 for13 ERP13 in13 a13 small13 company13 when13 it13 is13 usually13 the13 top13 boss13 signing13 off13 on13 the13 decision13 All13 4500013 SAP13 Business13 One13 customers13 could13 not13 have13 been13 ldquowrongrdquo13 And13 letrsquos13 face13 it13 If13 you13 want13 to13 make13 an13 informed13 decision13 about13 a13 solution13 you13 dont13 go13 to13 the13 competition13 for13 the13 facts13 Competitors13 often13 get13 the13 facts13 wrong13 and13 propagate13 rumors13 myths13 and13 misinformation13 Any13 comparison13 the13 competitionsrsquo13 salesmarketing13 teams13 offer13 is13 often13 driven13 by13 wishful13 thinking13 and13 influenced13 by13 drinking13 their13 own13 Kool-shy‐Aid13 So13 letrsquos13 examine13 some13 of13 those13 assertions13 along13 with13 some13 facts13

ldquoWErsquoRE13 A13 BETTER13 FITrdquo13

Fit13 is13 certainly13 important13 For13 many13 years13 fit13 and13 functionality13 was13 (by13 far)13 the13 top13 criteria13 by13 which13 ERP13 solutions13 were13 selected13 although13 most13 recently13 ldquoease13 of13 userdquo13 has13 bubbled13 to13 the13 top13 and13 is13 either13 number13 one13 or13 a13 close13 second13 (Table13 1)13 In13 fact13 the13 smaller13 the13 company13 the13 higher13 the13 priority13 of13 ease13 of13 use13 Early13 ERP13 solutions13 were13 notoriously13 hard13 to13 use13 While13 solutions13 have13 evolved13 and13 navigation13 is13 far13 more13 intuitive13 all13 the13 features13 and13 functions13 in13 the13 world13 are13 worthless13 unless13 you13 can13 figure13 out13 how13 to13 use13 them13 Small13 companies13 tend13 to13 run13 way13 too13 lean13 to13 be13 bogged13 down13 by13 usability13 issues13 and13 these13 issues13 extend13 beyond13 the13 user13 interface13 to13 the13 entire13 user13 experience13 Both13 are13 critical13 13

Data Source In13 this13 report13 13 Mint13 Jutras13 references13 data13 collected13 from13 its13 annual13 ERP13 Solution13 Studies13 which13 investigate13 goals13 challenges13 and13 status13 and13 also13 benchmark13 performance13 of13 enterprise13 application13 implementations13 with13 ERP13 at13 the13 core13

The13 most13 recent13 201413 study13 surveyed13 almost13 80013 participants13 from13 companies13 of13 all13 sizes13 including13 44013 with13 fewer13 than13 50013 employees13 In13 this13 paper13 we13 refer13 to13 these13 companies13 as13 small13 to13 midsize13 businesses13 (SMBs)13

13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 213 of13 813

13

13

Table13 113 Top13 1013 Selection13 Criteria13 Priorities13 (Scale13 of13 113 to13 4)13

Source Mint Jutras 2014 ERP Solution Study

So13 in13 evaluating13 solutions13 you13 should13 to13 do13 a13 feature13 comparison13 and13 also13 assess13 the13 overall13 user13 experience13 No13 software13 product13 is13 the13 best13 fit13 for13 every13 company13 which13 makes13 careful13 evaluation13 very13 important13 Some13 competitors13 will13 point13 to13 manufacturing13 as13 a13 weak13 spot13 for13 Business13 One13 It13 is13 true13 SAP13 relies13 on13 partners13 to13 strengthen13 functionality13 for13 manufacturing13 but13 that13 doesnrsquot13 mean13 it13 is13 weak13 SAP13 Business13 One13 benefits13 from13 SAP13 best13 practices13 developed13 throughout13 the13 companyrsquos13 long13 history13 of13 supporting13 manufacturing13 processes13 In13 addition13 partners13 like13 Blue13 Ocean13 Systems13 and13 Beas13 Group13 have13 an13 equally13 long13 history13 of13 supporting13 manufacturing13 13

Interestingly13 enough13 it13 is13 often13 those13 competitors13 that13 are13 relative13 ldquonew13 entrantsrdquo13 to13 manufacturing13 that13 make13 a13 big13 deal13 of13 this13 In13 these13 cases13 there13 will13 be13 trade-shy‐offs13 Those13 that13 are13 new13 are13 not13 saddled13 with13 older13 methods13 of13 planning13 and13 production13 and13 may13 be13 able13 to13 leapfrog13 the13 established13 players13 in13 following13 trends13 such13 as13 cloud13 mobile13 social13 and13 big13 data13 But13 they13 might13 also13 be13 missing13 features13 that13 veterans13 in13 manufacturing13 just13 take13 for13 granted13 features13 like13 effectivity13 dating13 in13 bills13 of13 material13 and13 traditional13 material13 requirements13 planning13 (MRP)13 13 So13 it13 is13 important13 never13 to13 assume13 these13 basics13 Ask13 the13 tough13 questions13 and13 ask13 for13 features13 and13 functions13 to13 be13 demonstrated13

STRONG13 ECOSYSTEMS13

These13 same13 new13 entrants13 are13 likely13 to13 point13 to13 their13 own13 ecosystems13 touting13 more13 and13 better13 quality13 add-shy‐onrsquos13 to13 their13 own13 solutions13 The13 reality13 the13 SAP13 Business13 One13 ecosystem13 has13 about13 70013 active13 value13 added13 resellers13 (VARs)13 and13 offers13 more13 than13 50013 partner-shy‐provided13 solutions13 So13 if13 the13 competitor13 is13

Selection Criteria Priorities

Selection13 criteria13 was13 prioritized13 using13 a13 scale13 of13 013 to13 413

013 Not13 a13 consideration13 113 Nice13 to13 have13 213 Somewhat13 important13 313 Important13 413 Must13 haveMost13 important13

The reality

The13 SAP13 Business13 One13 ecosystem13 has13 about13 70013 active13 value13 added13 resellers13 (VARs)13 and13 offers13 more13 than13 50013 partner-shy‐provided13 solutions13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 213 of13 813

13

13

Table13 113 Top13 1013 Selection13 Criteria13 Priorities13 (Scale13 of13 113 to13 4)13

Source Mint Jutras 2014 ERP Solution Study

So13 in13 evaluating13 solutions13 you13 should13 to13 do13 a13 feature13 comparison13 and13 also13 assess13 the13 overall13 user13 experience13 No13 software13 product13 is13 the13 best13 fit13 for13 every13 company13 which13 makes13 careful13 evaluation13 very13 important13 Some13 competitors13 will13 point13 to13 manufacturing13 as13 a13 weak13 spot13 for13 Business13 One13 It13 is13 true13 SAP13 relies13 on13 partners13 to13 strengthen13 functionality13 for13 manufacturing13 but13 that13 doesnrsquot13 mean13 it13 is13 weak13 SAP13 Business13 One13 benefits13 from13 SAP13 best13 practices13 developed13 throughout13 the13 companyrsquos13 long13 history13 of13 supporting13 manufacturing13 processes13 In13 addition13 partners13 like13 Blue13 Ocean13 Systems13 and13 Beas13 Group13 have13 an13 equally13 long13 history13 of13 supporting13 manufacturing13 13

Interestingly13 enough13 it13 is13 often13 those13 competitors13 that13 are13 relative13 ldquonew13 entrantsrdquo13 to13 manufacturing13 that13 make13 a13 big13 deal13 of13 this13 In13 these13 cases13 there13 will13 be13 trade-shy‐offs13 Those13 that13 are13 new13 are13 not13 saddled13 with13 older13 methods13 of13 planning13 and13 production13 and13 may13 be13 able13 to13 leapfrog13 the13 established13 players13 in13 following13 trends13 such13 as13 cloud13 mobile13 social13 and13 big13 data13 But13 they13 might13 also13 be13 missing13 features13 that13 veterans13 in13 manufacturing13 just13 take13 for13 granted13 features13 like13 effectivity13 dating13 in13 bills13 of13 material13 and13 traditional13 material13 requirements13 planning13 (MRP)13 13 So13 it13 is13 important13 never13 to13 assume13 these13 basics13 Ask13 the13 tough13 questions13 and13 ask13 for13 features13 and13 functions13 to13 be13 demonstrated13

STRONG13 ECOSYSTEMS13

These13 same13 new13 entrants13 are13 likely13 to13 point13 to13 their13 own13 ecosystems13 touting13 more13 and13 better13 quality13 add-shy‐onrsquos13 to13 their13 own13 solutions13 The13 reality13 the13 SAP13 Business13 One13 ecosystem13 has13 about13 70013 active13 value13 added13 resellers13 (VARs)13 and13 offers13 more13 than13 50013 partner-shy‐provided13 solutions13 So13 if13 the13 competitor13 is13

Selection Criteria Priorities

Selection13 criteria13 was13 prioritized13 using13 a13 scale13 of13 013 to13 413

013 Not13 a13 consideration13 113 Nice13 to13 have13 213 Somewhat13 important13 313 Important13 413 Must13 haveMost13 important13

The reality

The13 SAP13 Business13 One13 ecosystem13 has13 about13 70013 active13 value13 added13 resellers13 (VARs)13 and13 offers13 more13 than13 50013 partner-shy‐provided13 solutions13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 313 of13 813

13

13

claiming13 a13 larger13 ecosystem13 ask13 for13 numbers13 and13 for13 proof13 Quality13 is13 obviously13 more13 subjective13 but13 numbers13 also13 speak13 loudly13 here13 as13 well13 Look13 for13 longevity13 and13 market13 penetration13 Also13 look13 for13 certification13 programs13 and13 ask13 whether13 any13 add-shy‐ons13 and13 integration13 being13 offered13 have13 been13 vendor13 certified13

SAP13 has13 invested13 in13 these13 certification13 programs13 since13 the13 ecosystem13 is13 so13 important13 to13 its13 success13 This13 is13 because13 SAP13 seldom13 sells13 direct13 to13 SMBs13 anymore13 SAP13 itself13 might13 sell13 direct13 to13 a13 small13 business13 unit13 or13 division13 of13 one13 of13 its13 large13 enterprise13 customers13 but13 for13 the13 most13 part13 it13 sells13 exclusively13 through13 its13 channel13 As13 a13 result13 the13 success13 of13 Business13 One13 is13 tied13 directly13 to13 the13 success13 of13 the13 channel13 which13 puts13 an13 entirely13 different13 complexion13 on13 partner13 relationships13 The13 same13 cannot13 be13 said13 for13 all13 vendors13

INVESTMENT13 LEVELS13

Competitors13 often13 point13 out13 that13 SAP13 Business13 One13 receives13 the13 lowest13 level13 of13 investment13 of13 the13 companyrsquos13 solutions13 for13 SMBs13 First13 of13 all13 that13 doesnrsquot13 mean13 the13 level13 of13 investment13 in13 SAP13 Business13 One13 is13 small13 and13 may13 in13 fact13 be13 far13 more13 than13 a13 small13 competitor13 can13 invest13 in13 its13 entire13 portfolio13 of13 products13 Also13 SAP13 is13 (more13 and13 more)13 investing13 in13 infrastructure13 technology13 and13 edge13 products13 that13 contribute13 to13 the13 growing13 footprint13 offered13 to13 SMBs13 13

The13 development13 of13 SAP13 HANA13 is13 an13 example13 While13 not13 developed13 specifically13 for13 SMBs13 or13 for13 Business13 One13 it13 is13 this13 research13 and13 development13 (RampD)13 effort13 that13 makes13 SAP13 Business13 One13 Analytics13 powered13 by13 SAP13 HANA13 and13 SAP13 Business13 One13 version13 for13 SAP13 HANA13 both13 possible13 What13 other13 SMB13 ERP13 products13 enjoy13 this13 type13 of13 effort13 invested13 to13 support13 in-shy‐memory13 and13 much13 more13 This13 investment13 would13 not13 be13 considered13 part13 of13 a13 Business13 One13 budget13 Add13 to13 this13 the13 continued13 investment13 from13 partners13

However13 moving13 forward13 there13 is13 one13 point13 of13 uncertainty13 in13 terms13 of13 continued13 development13 Back13 in13 July13 SAP13 announced13 a13 new13 division13 focusing13 on13 small13 and13 midsize13 businesses13 (SMBs)13 13 At13 the13 same13 time13 SAP13 also13 redefined13 SMB13 as13 companies13 with13 fewer13 than13 50013 employees13 a13 subset13 of13 SAPrsquos13 traditional13 view13 of13 small13 to13 midsize13 enterprise13 (SMEs)13 SAP13 was13 careful13 to13 say13 at13 the13 time13 that13 this13 was13 an13 organizational13 change13 and13 not13 any13 kind13 of13 product13 announcement13 However13 SAP13 did13 say13 it13 was13 putting13 in13 place13 a13 strategy13 to13 ldquoredefine13 the13 SMB13 business13 solutions13 market13 by13 creating13 the13 next13 generation13 of13 simplified13 business13 applications13 powered13 by13 SAP13 HANA13 delivered13 via13 the13 cloud13 that13 will13 solve13 tomorrowrsquos13 complex13 SMB13 challengesrdquo13

At13 the13 time13 Mint13 Jutras13 wrote13 that13 while13 this13 was13 an13 organizational13 announcement13 there13 is13 a13 product13 element13 implied13 To13 date13 SAP13 has13 not13 elaborated13 on13 its13 plans13 for13 this13 next13 generation13 of13 simplified13 business13 applications13 It13 might13 mean13 SAP13 Business13 One13 will13 get13 even13 more13 attention13

What is SAP HANA

How13 does13 SAP13 define13 HANA13

ldquoSAP13 HANA13 is13 an13 in-shy‐memory13 data13 platform13 that13 is13 deployable13 as13 an13 on-shy‐premise13 appliance13 or13 in13 the13 cloud13 13 It13 is13 a13 revolutionary13 platform13 thatrsquos13 best13 suited13 for13 performing13 real-shy‐time13 analytics13 and13 developing13 and13 deploying13 real-shy‐time13 applications13 At13 the13 core13 of13 this13 real-shy‐time13 data13 platform13 is13 the13 SAP13 HANA13 database13 which13 is13 fundamentally13 different13 than13 any13 other13 database13 engine13 in13 the13 market13 todayrdquo13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 413 of13 813

13

13

but13 then13 again13 it13 might13 mean13 another13 product13 line13 will13 surface13 as13 the13 new13 strategic13 go-shy‐forward13 product13 for13 small13 businesses13 a13 position13 SAP13 Business13 One13 has13 held13 for13 many13 years13 One13 thing13 is13 certain13 SAP13 simply13 canrsquot13 pull13 the13 rug13 out13 from13 under13 70013 VARs13 and13 4500013 customers13 But13 exactly13 what13 this13 new13 direction13 means13 for13 SAP13 Business13 One13 and13 whether13 it13 is13 evolutionary13 or13 revolutionary13 is13 unclear13 Rest13 assured13 though13 SAP13 is13 not13 taking13 its13 eye13 off13 the13 ball13 in13 terms13 of13 SMB13 solutionshellip13 in13 fact13 quite13 the13 contrary13

ldquoWE13 HAVE13 A13 DEVELOPMENT13 PLATFORMrdquo13

Some13 competitors13 point13 to13 their13 own13 development13 platforms13 and13 the13 ease13 by13 which13 customers13 can13 build13 and13 deploy13 custom13 applications13 as13 a13 point13 of13 differentiation13 over13 Business13 One13 First13 of13 all13 SAP13 Business13 One13 is13 also13 built13 on13 such13 a13 platform13 Partners13 and13 customers13 alike13 have13 access13 to13 it13 via13 a13 software13 development13 kit13 (SDK)13 However13 does13 an13 SMB13 have13 the13 developers13 the13 information13 technology13 (IT)13 staff13 or13 the13 desire13 to13 do13 this13 Not13 really13 13

However13 this13 is13 the13 environment13 on13 which13 more13 than13 50013 partner-shy‐provided13 solutions13 are13 built13 that13 extend13 the13 functionality13 of13 SAP13 Business13 One13 for13 some13 specific13 industries13 and13 for13 other13 business13 needs13 And13 if13 customization13 is13 needed13 or13 desired13 the13 typical13 SMB13 will13 engage13 a13 partner13 to13 deliver13 it13 although13 many13 configurations13 can13 be13 done13 by13 the13 end13 user13

These13 same13 competitors13 might13 also13 claim13 their13 solutions13 are13 built13 for13 ease13 of13 integration13 with13 other13 applications13 While13 the13 201413 Mint13 Jutras13 ERP13 Solution13 Study13 found13 7813 of13 SMBs13 rated13 integration13 capabilities13 as13 important13 or13 ldquomust13 haverdquo13 8913 expressed13 a13 definite13 preference13 for13 a13 pre-shy‐integrated13 end-shy‐to-shy‐end13 solution13 With13 these13 preferences13 in13 mind13 SAP13 and13 its13 partners13 have13 taken13 the13 approach13 of13 building13 a13 complete13 solution13 rather13 than13 one13 that13 is13 most13 easily13 inserted13 into13 a13 heterogeneous13 mix13 of13 solutions13 A13 tradeoff13 Yes13 but13 one13 that13 leans13 heavily13 in13 the13 direction13 most13 SMBs13 are13 most13 likely13 to13 go13

That13 said13 customers13 might13 already13 have13 a13 favorite13 eCommerce13 tool13 or13 some13 other13 add-shy‐on13 SAP13 Business13 One13 comes13 with13 an13 integration13 framework13 that13 partners13 can13 use13 to13 integrate13 with13 other13 SAP13 and13 non-shy‐SAP13 software13 This13 combined13 with13 partner13 certified13 add-shy‐ons13 provides13 a13 flexible13 and13 complete13 solution13

WILL13 YOU13 OUTGROW13 SAP13 BUSINESS13 ONE13

Competitors13 love13 to13 point13 out13 that13 Business13 One13 is13 only13 a13 fit13 for13 small13 companies13 and13 that13 SAP13 does13 not13 provide13 a13 simple13 migration13 path13 to13 upgrade13 to13 different13 products13 SAP13 Business13 One13 has13 long13 been13 positioned13 as13 a13 solution13 for13 small13 companies13 typically13 those13 with13 fewer13 than13 10013 employees13 But13 no13 Business13 One13 customer13 embarks13 on13 an13 implementation13 thinking13 they13 will13 replace13 it13 when13 they13 hire13 employee13 number13 10113 It13 is13 not13 unusual13 for13 such13

Mint13 Jutras13 finds13 on13 average13 5213 of13 employees13 have13 access13 to13 and13 regularly13 an13 ERP13 solution13 a13 much13 higher13 percentage13 than13 in13 days13 gone13 by13 This13 percentage13 also13 grows13 to13 6313 in13 a13 software13 as13 a13 service13 (SaaS)13 deployment13

13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 513 of13 813

13

13

implementations13 to13 grow13 to13 support13 10013 users13 Mint13 Jutras13 finds13 on13 average13 5213 of13 employees13 have13 access13 to13 and13 regularly13 an13 ERP13 solution13 a13 much13 higher13 percentage13 than13 in13 days13 gone13 by13 So13 this13 leaves13 some13 room13 for13 growth13

In13 the13 past13 SAP13 has13 acknowledged13 some13 performance13 constraints13 when13 the13 number13 of13 Business13 One13 users13 goes13 over13 10013 But13 with13 the13 introduction13 of13 Business13 One13 running13 on13 HANA13 (one13 of13 those13 technology13 innovations13 not13 directly13 tied13 to13 the13 Business13 One13 RampD13 budget13 allocation)13 performance13 and13 scalability13 is13 enhanced13 13 But13 that13 doesnrsquot13 guarantee13 that13 SAP13 Business13 One13 will13 have13 the13 functionality13 to13 support13 all13 business13 needs13 as13 companies13 grow13 13

Of13 course13 SAP13 understands13 very13 well13 the13 needs13 of13 the13 larger13 midsize13 and13 large13 enterprises13 Its13 flagship13 SAP13 Business13 Suite13 is13 installed13 in13 an13 impressive13 percentage13 of13 the13 Fortune13 50013 But13 SAP13 Business13 One13 was13 designed13 to13 eliminate13 a13 lot13 of13 the13 complexity13 this13 type13 of13 ldquolarge13 enterpriserdquo13 functionality13 introduces13 When13 competitors13 claim13 their13 solutions13 can13 easily13 scale13 to13 satisfy13 the13 needs13 of13 the13 large13 enterprise13 you13 have13 to13 wonder13 about13 the13 complexity13 this13 introduces13 back13 into13 the13 (same)13 solution13 sold13 to13 a13 small13 company13 Perhaps13 this13 complexity13 can13 be13 masked13 in13 the13 early13 stages13 of13 growth13 Perhaps13 not13 You13 have13 to13 ask13 the13 question13 Is13 the13 competitor13 abandoning13 small13 companies13 as13 it13 moves13 up13 market13

Yes13 there13 is13 the13 potential13 to13 outgrow13 Business13 One13 But13 few13 SMBs13 embark13 on13 an13 implementation13 thinking13 it13 will13 sustain13 them13 through13 that13 kind13 of13 growth13 cycle13 Even13 if13 the13 underlying13 solution13 might13 be13 able13 to13 support13 them13 at13 10X13 their13 current13 size13 is13 it13 configured13 at13 implementation13 to13 do13 this13 If13 not13 then13 dragging13 that13 same13 implementation13 through13 a13 migration13 of13 sorts13 will13 not13 best13 support13 the13 burgeoning13 business13 and13 it13 might13 be13 better13 at13 some13 point13 to13 re-shy‐implement13 You13 dont13 want13 to13 be13 saddled13 with13 limitations13 or13 decisions13 made13 based13 on13 prior13 (limited)13 needs13 And13 if13 the13 SAP13 Business13 Suite13 is13 now13 a13 better13 option13 ldquomigratingrdquo13 a13 Business13 One13 implementation13 will13 likely13 not13 be13 the13 best13 approach13

If13 new13 requirements13 (beyond13 SAP13 Business13 One)13 indicate13 the13 SAP13 Business13 Suite13 is13 a13 better13 fit13 growing13 companies13 should13 view13 this13 as13 an13 opportunity13 to13 review13 and13 re-shy‐implement13 to13 best13 fit13 those13 needs13 And13 yes13 there13 will13 be13 a13 cost13 but13 the13 cost13 will13 be13 well13 defined13 Expanding13 a13 competitorrsquos13 solution13 to13 meet13 those13 needs13 may13 also13 have13 a13 cost13 attached13 Make13 sure13 you13 quantify13 them13 carefully13 so13 as13 to13 compare13 apples13 to13 apples13

However13 most13 SMBs13 dont13 become13 large13 by13 growing13 organically13 into13 a13 large13 monolithic13 enterprise13 Usually13 they13 will13 expand13 (either13 organically13 or13 through13 acquisition)13 by13 adding13 divisions13 or13 business13 units13 often13 to13 get13 into13 new13 geographic13 markets13 Many13 of13 these13 new13 divisions13 can13 and13 should13 be13 managed13 as13 SMBs13 SAP13 Business13 One13 today13 supports13 230013 affiliates13 of13 large13 enterprises13 Yes13 those13 different13 divisions13 need13 to13 support13 financial13 consolidation13 and13 reporting13 Intercompany13 transactions13 are13 supported13 along13 with13 SAP13 Business13

Even13 if13 the13 underlying13 solution13 might13 be13 able13 to13 support13 them13 at13 10X13 their13 current13 size13 is13 it13 configured13 at13 implementation13 to13 do13 this13 If13 not13 then13 dragging13 that13 same13 implementation13 through13 a13 migration13 of13 sorts13 will13 not13 best13 support13 the13 burgeoning13 business13 and13 it13 might13 be13 better13 at13 some13 point13 to13 re-shy‐implement13

SAP13 Business13 One13 comes13 with13 pre-shy‐built13 integration13 to13 the13 SAP13 Business13 Suite13 right13 out13 of13 the13 box13 Who13 better13 to13 consolidate13 into13 SAP13 than13 SAP13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 613 of13 813

13

13

One13 to13 Business13 One13 consolidations13 The13 solution13 comes13 with13 pre-shy‐built13 integration13 to13 the13 SAP13 Business13 Suite13 right13 out13 of13 the13 box13 Who13 better13 to13 consolidate13 into13 SAP13 than13 SAP13 But13 of13 course13 some13 SAP13 Business13 One13 customers13 may13 also13 need13 to13 consolidate13 to13 different13 non-shy‐SAP13 solutions13 SAP13 Business13 One13 in13 this13 case13 will13 rely13 on13 the13 integration13 framework13 to13 complete13 the13 financial13 consolidation13 13 Also13 if13 this13 expansion13 is13 into13 new13 parts13 of13 the13 world13 you13 need13 to13 determine13 how13 well13 the13 competitor13 is13 represented13 in13 other13 parts13 of13 the13 world13 Business13 One13 is13 running13 in13 15013 countries13 with13 4113 localizations13 and13 2713 languages13 And13 yet13 competitors13 claim13 better13 support13 for13 multinational13 firms13 Check13 the13 facts13 13 ldquoSAAS13 IS13 BETTERrdquo13 Those13 offering13 solutions13 deployed13 through13 the13 cloud13 as13 software13 as13 a13 service13 13 (SaaS)13 will13 point13 to13 the13 elimination13 of13 IT13 hassles13 associated13 with13 just13 keeping13 the13 lights13 on13 This13 is13 certainly13 a13 valid13 argument13 for13 SaaS13 but13 donrsquot13 rule13 SAP13 Business13 One13 out13 It13 too13 is13 available13 in13 the13 cloud13 13

But13 not13 everyone13 wants13 to13 move13 to13 the13 cloud13 (SaaS)13 With13 SAP13 Business13 One13 you13 donrsquot13 have13 to13 You13 have13 a13 choice13 and13 it13 is13 important13 that13 you13 investigate13 if13 the13 benefits13 of13 operating13 in13 the13 cloud13 outweigh13 those13 of13 an13 on13 premise13 implementation13 and13 decide13 what13 is13 best13 for13 you13

The13 Mint13 Jutras13 ERP13 Solution13 Studies13 have13 been13 asking13 for13 several13 years13 what13 deployment13 options13 would13 be13 considered13 in13 evaluating13 ERP13 options13 today13 (Figure13 1)13 While13 we13 have13 seen13 a13 growing13 interest13 in13 SaaS13 solutions13 this13 deployment13 option13 is13 by13 no13 means13 the13 only13 option13 being13 considered13

Figure13 113 ERP13 Deployment13 Options13 that13 would13 be13 Considered13 Today13

13 Source Mint Jutras 2014 ERP Solution Study

There13 are13 certainly13 trade-shy‐offs13 between13 offering13 an13 exclusively13 SaaS13 solution13 and13 offering13 multiple13 deployment13 options13 Typically13 those13 that13 offer13 SaaS13 exclusively13 can13 bring13 innovation13 to13 the13 market13 faster13 because13 they13 only13 maintain13 a13 single13 line13 of13 code13 However13 those13 that13 offer13 multiple13 deployment13 options13 offer13 choice13 and13 the13 ability13 to13 migrate13 to13 and13 from13 SaaS13 While13 Mint13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 713 of13 813

13

13

Jutras13 observes13 that13 most13 SaaS13 deployments13 stay13 SaaS13 with13 little13 or13 no13 movement13 between13 the13 two13 options13 there13 is13 a13 significant13 advantage13 to13 SAP13 Business13 One13 customers13 currently13 running13 on-shy‐premise13 solutions13 and13 wishing13 to13 move13 to13 the13 cloud13 either13 as13 hosted13 or13 SaaS13 The13 advantage13 is13 in13 being13 able13 to13 migrate13 in13 that13 direction13 without13 having13 to13 purchase13 and13 implement13 a13 new13 solution13

In13 selecting13 any13 solution13 it13 is13 important13 to13 ask13 all13 competitors13 not13 only13 about13 functionality13 of13 the13 software13 to13 ensure13 it13 covers13 what13 you13 need13 but13 also13 about13 service13 level13 agreements13 (SLA)13 uptime13 performance13 stats13 and13 price13 protection13 13

SUMMARY13 AND13 RECOMMENDATIONS13

As13 noted13 earlier13 the13 sentiment13 ldquoNobody13 ever13 got13 fired13 for13 choosing13 [insert13 front13 runner13 here]rdquo13 doesnrsquot13 apply13 to13 ERP13 solutions13 ERP13 runs13 your13 business13 The13 provider13 of13 every13 viable13 solution13 on13 the13 market13 today13 can13 point13 to13 successful13 implementations13 and13 industry13 observers13 and13 the13 media13 love13 to13 highlight13 the13 failures13 A13 lot13 is13 at13 stake13 in13 selecting13 the13 right13 solution13 for13 your13 business13 Donrsquot13 hand13 over13 the13 due13 diligence13 to13 anyone13 including13 your13 ldquofavoriterdquo13 ERP13 vendor13 salesperson13 A13 few13 points13 to13 remember13

bull Look13 for13 a13 great13 fit13 for13 your13 business13 Do13 you13 need13 project13 management13 or13 project-shy‐based13 accounting13 Are13 you13 a13 demand-shy‐driven13 manufacturer13 How13 do13 you13 plan13 now13 How13 do13 you13 need13 to13 plan13 Do13 you13 have13 multiple13 divisions13 in13 multiple13 countries13 Are13 those13 countries13 supported13 Do13 these13 operations13 inter-shy‐operate13 Ask13 the13 right13 questions13

bull Look13 for13 ease13 of13 use13 There13 is13 no13 substitute13 for13 putting13 your13 own13 hands13 on13 the13 product13 Donrsquot13 rely13 on13 a13 pre-shy‐sales13 consultant13 whose13 job13 it13 is13 to13 make13 it13 look13 easy13 How13 are13 workflows13 defined13 and13 implemented13 Can13 they13 be13 easily13 configured13 Ask13 to13 see13 how13 the13 system13 is13 configured13 without13 doing13 invasive13 customization13

bull Closely13 examine13 the13 candidate13 solution13 providers13 and13 their13 ability13 to13 invest13 in13 the13 product13 If13 they13 quote13 you13 development13 budgets13 in13 terms13 of13 percent13 of13 revenue13 do13 the13 math13 A13 large13 percentage13 of13 a13 small13 number13 can13 easily13 be13 (much)13 smaller13 than13 a13 smaller13 percentage13 of13 a13 larger13 number13

bull Look13 to13 see13 how13 much13 of13 an13 ecosystem13 might13 be13 required13 to13 support13 your13 needs13 and13 then13 look13 carefully13 to13 see13 how13 much13 of13 that13 ecosystem13 is13 in13 place13 and13 well13 established13

bull Make13 your13 own13 choice13 about13 deployment13 options13 While13 Mint13 Jutras13 is13 admittedly13 a13 big13 fan13 of13 SaaS13 it13 might13 not13 be13 right13 for13 you13

And13 finally13 donrsquot13 fall13 for13 the13 line13 that13 says13 all13 SAP13 implementations13 cost13 millions13 of13 dollars13 and13 take13 multiple13 years13 to13 complete13 Old13 and13 generalized13 perceptions13 die13 hard13 and13 some13 competitors13 just13 wont13 let13 them13 die13 at13 all13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 813 of13 813

13

13

Nobody13 pays13 SAP13 or13 its13 partners13 this13 much13 for13 SAP13 Business13 One13 And13 if13 you13 want13 to13 know13 how13 long13 it13 takes13 to13 implement13 ask13 a13 customer13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

About13 the13 author13 13 Cindy13 Jutras13 is13 a13 widely13 recognized13 expert13 in13 analyzing13 the13 impact13 of13 enterprise13 applications13 on13 business13 performance13 Utilizing13 close13 to13 4013 years13 of13 corporate13 experience13 and13 specific13 expertise13 in13 manufacturing13 supply13 chain13 customer13 service13 and13 business13 performance13 management13 Cindy13 has13 spent13 the13 past13 913 years13 benchmarking13 the13 performance13 of13 software13 solutions13 in13 the13 context13 of13 the13 business13 benefits13 of13 technology13 In13 201113 Cindy13 founded13 Mint13 Jutras13 LLC13 (wwwmintjutrascom)13 specializing13 in13 analyzing13 and13 communicating13 the13 business13 value13 enterprise13 applications13 bring13 to13 the13 enterprise13 13 13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 513 of13 813

13

13

implementations13 to13 grow13 to13 support13 10013 users13 Mint13 Jutras13 finds13 on13 average13 5213 of13 employees13 have13 access13 to13 and13 regularly13 an13 ERP13 solution13 a13 much13 higher13 percentage13 than13 in13 days13 gone13 by13 So13 this13 leaves13 some13 room13 for13 growth13

In13 the13 past13 SAP13 has13 acknowledged13 some13 performance13 constraints13 when13 the13 number13 of13 Business13 One13 users13 goes13 over13 10013 But13 with13 the13 introduction13 of13 Business13 One13 running13 on13 HANA13 (one13 of13 those13 technology13 innovations13 not13 directly13 tied13 to13 the13 Business13 One13 RampD13 budget13 allocation)13 performance13 and13 scalability13 is13 enhanced13 13 But13 that13 doesnrsquot13 guarantee13 that13 SAP13 Business13 One13 will13 have13 the13 functionality13 to13 support13 all13 business13 needs13 as13 companies13 grow13 13

Of13 course13 SAP13 understands13 very13 well13 the13 needs13 of13 the13 larger13 midsize13 and13 large13 enterprises13 Its13 flagship13 SAP13 Business13 Suite13 is13 installed13 in13 an13 impressive13 percentage13 of13 the13 Fortune13 50013 But13 SAP13 Business13 One13 was13 designed13 to13 eliminate13 a13 lot13 of13 the13 complexity13 this13 type13 of13 ldquolarge13 enterpriserdquo13 functionality13 introduces13 When13 competitors13 claim13 their13 solutions13 can13 easily13 scale13 to13 satisfy13 the13 needs13 of13 the13 large13 enterprise13 you13 have13 to13 wonder13 about13 the13 complexity13 this13 introduces13 back13 into13 the13 (same)13 solution13 sold13 to13 a13 small13 company13 Perhaps13 this13 complexity13 can13 be13 masked13 in13 the13 early13 stages13 of13 growth13 Perhaps13 not13 You13 have13 to13 ask13 the13 question13 Is13 the13 competitor13 abandoning13 small13 companies13 as13 it13 moves13 up13 market13

Yes13 there13 is13 the13 potential13 to13 outgrow13 Business13 One13 But13 few13 SMBs13 embark13 on13 an13 implementation13 thinking13 it13 will13 sustain13 them13 through13 that13 kind13 of13 growth13 cycle13 Even13 if13 the13 underlying13 solution13 might13 be13 able13 to13 support13 them13 at13 10X13 their13 current13 size13 is13 it13 configured13 at13 implementation13 to13 do13 this13 If13 not13 then13 dragging13 that13 same13 implementation13 through13 a13 migration13 of13 sorts13 will13 not13 best13 support13 the13 burgeoning13 business13 and13 it13 might13 be13 better13 at13 some13 point13 to13 re-shy‐implement13 You13 dont13 want13 to13 be13 saddled13 with13 limitations13 or13 decisions13 made13 based13 on13 prior13 (limited)13 needs13 And13 if13 the13 SAP13 Business13 Suite13 is13 now13 a13 better13 option13 ldquomigratingrdquo13 a13 Business13 One13 implementation13 will13 likely13 not13 be13 the13 best13 approach13

If13 new13 requirements13 (beyond13 SAP13 Business13 One)13 indicate13 the13 SAP13 Business13 Suite13 is13 a13 better13 fit13 growing13 companies13 should13 view13 this13 as13 an13 opportunity13 to13 review13 and13 re-shy‐implement13 to13 best13 fit13 those13 needs13 And13 yes13 there13 will13 be13 a13 cost13 but13 the13 cost13 will13 be13 well13 defined13 Expanding13 a13 competitorrsquos13 solution13 to13 meet13 those13 needs13 may13 also13 have13 a13 cost13 attached13 Make13 sure13 you13 quantify13 them13 carefully13 so13 as13 to13 compare13 apples13 to13 apples13

However13 most13 SMBs13 dont13 become13 large13 by13 growing13 organically13 into13 a13 large13 monolithic13 enterprise13 Usually13 they13 will13 expand13 (either13 organically13 or13 through13 acquisition)13 by13 adding13 divisions13 or13 business13 units13 often13 to13 get13 into13 new13 geographic13 markets13 Many13 of13 these13 new13 divisions13 can13 and13 should13 be13 managed13 as13 SMBs13 SAP13 Business13 One13 today13 supports13 230013 affiliates13 of13 large13 enterprises13 Yes13 those13 different13 divisions13 need13 to13 support13 financial13 consolidation13 and13 reporting13 Intercompany13 transactions13 are13 supported13 along13 with13 SAP13 Business13

Even13 if13 the13 underlying13 solution13 might13 be13 able13 to13 support13 them13 at13 10X13 their13 current13 size13 is13 it13 configured13 at13 implementation13 to13 do13 this13 If13 not13 then13 dragging13 that13 same13 implementation13 through13 a13 migration13 of13 sorts13 will13 not13 best13 support13 the13 burgeoning13 business13 and13 it13 might13 be13 better13 at13 some13 point13 to13 re-shy‐implement13

SAP13 Business13 One13 comes13 with13 pre-shy‐built13 integration13 to13 the13 SAP13 Business13 Suite13 right13 out13 of13 the13 box13 Who13 better13 to13 consolidate13 into13 SAP13 than13 SAP13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 613 of13 813

13

13

One13 to13 Business13 One13 consolidations13 The13 solution13 comes13 with13 pre-shy‐built13 integration13 to13 the13 SAP13 Business13 Suite13 right13 out13 of13 the13 box13 Who13 better13 to13 consolidate13 into13 SAP13 than13 SAP13 But13 of13 course13 some13 SAP13 Business13 One13 customers13 may13 also13 need13 to13 consolidate13 to13 different13 non-shy‐SAP13 solutions13 SAP13 Business13 One13 in13 this13 case13 will13 rely13 on13 the13 integration13 framework13 to13 complete13 the13 financial13 consolidation13 13 Also13 if13 this13 expansion13 is13 into13 new13 parts13 of13 the13 world13 you13 need13 to13 determine13 how13 well13 the13 competitor13 is13 represented13 in13 other13 parts13 of13 the13 world13 Business13 One13 is13 running13 in13 15013 countries13 with13 4113 localizations13 and13 2713 languages13 And13 yet13 competitors13 claim13 better13 support13 for13 multinational13 firms13 Check13 the13 facts13 13 ldquoSAAS13 IS13 BETTERrdquo13 Those13 offering13 solutions13 deployed13 through13 the13 cloud13 as13 software13 as13 a13 service13 13 (SaaS)13 will13 point13 to13 the13 elimination13 of13 IT13 hassles13 associated13 with13 just13 keeping13 the13 lights13 on13 This13 is13 certainly13 a13 valid13 argument13 for13 SaaS13 but13 donrsquot13 rule13 SAP13 Business13 One13 out13 It13 too13 is13 available13 in13 the13 cloud13 13

But13 not13 everyone13 wants13 to13 move13 to13 the13 cloud13 (SaaS)13 With13 SAP13 Business13 One13 you13 donrsquot13 have13 to13 You13 have13 a13 choice13 and13 it13 is13 important13 that13 you13 investigate13 if13 the13 benefits13 of13 operating13 in13 the13 cloud13 outweigh13 those13 of13 an13 on13 premise13 implementation13 and13 decide13 what13 is13 best13 for13 you13

The13 Mint13 Jutras13 ERP13 Solution13 Studies13 have13 been13 asking13 for13 several13 years13 what13 deployment13 options13 would13 be13 considered13 in13 evaluating13 ERP13 options13 today13 (Figure13 1)13 While13 we13 have13 seen13 a13 growing13 interest13 in13 SaaS13 solutions13 this13 deployment13 option13 is13 by13 no13 means13 the13 only13 option13 being13 considered13

Figure13 113 ERP13 Deployment13 Options13 that13 would13 be13 Considered13 Today13

13 Source Mint Jutras 2014 ERP Solution Study

There13 are13 certainly13 trade-shy‐offs13 between13 offering13 an13 exclusively13 SaaS13 solution13 and13 offering13 multiple13 deployment13 options13 Typically13 those13 that13 offer13 SaaS13 exclusively13 can13 bring13 innovation13 to13 the13 market13 faster13 because13 they13 only13 maintain13 a13 single13 line13 of13 code13 However13 those13 that13 offer13 multiple13 deployment13 options13 offer13 choice13 and13 the13 ability13 to13 migrate13 to13 and13 from13 SaaS13 While13 Mint13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 713 of13 813

13

13

Jutras13 observes13 that13 most13 SaaS13 deployments13 stay13 SaaS13 with13 little13 or13 no13 movement13 between13 the13 two13 options13 there13 is13 a13 significant13 advantage13 to13 SAP13 Business13 One13 customers13 currently13 running13 on-shy‐premise13 solutions13 and13 wishing13 to13 move13 to13 the13 cloud13 either13 as13 hosted13 or13 SaaS13 The13 advantage13 is13 in13 being13 able13 to13 migrate13 in13 that13 direction13 without13 having13 to13 purchase13 and13 implement13 a13 new13 solution13

In13 selecting13 any13 solution13 it13 is13 important13 to13 ask13 all13 competitors13 not13 only13 about13 functionality13 of13 the13 software13 to13 ensure13 it13 covers13 what13 you13 need13 but13 also13 about13 service13 level13 agreements13 (SLA)13 uptime13 performance13 stats13 and13 price13 protection13 13

SUMMARY13 AND13 RECOMMENDATIONS13

As13 noted13 earlier13 the13 sentiment13 ldquoNobody13 ever13 got13 fired13 for13 choosing13 [insert13 front13 runner13 here]rdquo13 doesnrsquot13 apply13 to13 ERP13 solutions13 ERP13 runs13 your13 business13 The13 provider13 of13 every13 viable13 solution13 on13 the13 market13 today13 can13 point13 to13 successful13 implementations13 and13 industry13 observers13 and13 the13 media13 love13 to13 highlight13 the13 failures13 A13 lot13 is13 at13 stake13 in13 selecting13 the13 right13 solution13 for13 your13 business13 Donrsquot13 hand13 over13 the13 due13 diligence13 to13 anyone13 including13 your13 ldquofavoriterdquo13 ERP13 vendor13 salesperson13 A13 few13 points13 to13 remember13

bull Look13 for13 a13 great13 fit13 for13 your13 business13 Do13 you13 need13 project13 management13 or13 project-shy‐based13 accounting13 Are13 you13 a13 demand-shy‐driven13 manufacturer13 How13 do13 you13 plan13 now13 How13 do13 you13 need13 to13 plan13 Do13 you13 have13 multiple13 divisions13 in13 multiple13 countries13 Are13 those13 countries13 supported13 Do13 these13 operations13 inter-shy‐operate13 Ask13 the13 right13 questions13

bull Look13 for13 ease13 of13 use13 There13 is13 no13 substitute13 for13 putting13 your13 own13 hands13 on13 the13 product13 Donrsquot13 rely13 on13 a13 pre-shy‐sales13 consultant13 whose13 job13 it13 is13 to13 make13 it13 look13 easy13 How13 are13 workflows13 defined13 and13 implemented13 Can13 they13 be13 easily13 configured13 Ask13 to13 see13 how13 the13 system13 is13 configured13 without13 doing13 invasive13 customization13

bull Closely13 examine13 the13 candidate13 solution13 providers13 and13 their13 ability13 to13 invest13 in13 the13 product13 If13 they13 quote13 you13 development13 budgets13 in13 terms13 of13 percent13 of13 revenue13 do13 the13 math13 A13 large13 percentage13 of13 a13 small13 number13 can13 easily13 be13 (much)13 smaller13 than13 a13 smaller13 percentage13 of13 a13 larger13 number13

bull Look13 to13 see13 how13 much13 of13 an13 ecosystem13 might13 be13 required13 to13 support13 your13 needs13 and13 then13 look13 carefully13 to13 see13 how13 much13 of13 that13 ecosystem13 is13 in13 place13 and13 well13 established13

bull Make13 your13 own13 choice13 about13 deployment13 options13 While13 Mint13 Jutras13 is13 admittedly13 a13 big13 fan13 of13 SaaS13 it13 might13 not13 be13 right13 for13 you13

And13 finally13 donrsquot13 fall13 for13 the13 line13 that13 says13 all13 SAP13 implementations13 cost13 millions13 of13 dollars13 and13 take13 multiple13 years13 to13 complete13 Old13 and13 generalized13 perceptions13 die13 hard13 and13 some13 competitors13 just13 wont13 let13 them13 die13 at13 all13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 813 of13 813

13

13

Nobody13 pays13 SAP13 or13 its13 partners13 this13 much13 for13 SAP13 Business13 One13 And13 if13 you13 want13 to13 know13 how13 long13 it13 takes13 to13 implement13 ask13 a13 customer13

13

13

13

13

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13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

About13 the13 author13 13 Cindy13 Jutras13 is13 a13 widely13 recognized13 expert13 in13 analyzing13 the13 impact13 of13 enterprise13 applications13 on13 business13 performance13 Utilizing13 close13 to13 4013 years13 of13 corporate13 experience13 and13 specific13 expertise13 in13 manufacturing13 supply13 chain13 customer13 service13 and13 business13 performance13 management13 Cindy13 has13 spent13 the13 past13 913 years13 benchmarking13 the13 performance13 of13 software13 solutions13 in13 the13 context13 of13 the13 business13 benefits13 of13 technology13 In13 201113 Cindy13 founded13 Mint13 Jutras13 LLC13 (wwwmintjutrascom)13 specializing13 in13 analyzing13 and13 communicating13 the13 business13 value13 enterprise13 applications13 bring13 to13 the13 enterprise13 13 13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 613 of13 813

13

13

One13 to13 Business13 One13 consolidations13 The13 solution13 comes13 with13 pre-shy‐built13 integration13 to13 the13 SAP13 Business13 Suite13 right13 out13 of13 the13 box13 Who13 better13 to13 consolidate13 into13 SAP13 than13 SAP13 But13 of13 course13 some13 SAP13 Business13 One13 customers13 may13 also13 need13 to13 consolidate13 to13 different13 non-shy‐SAP13 solutions13 SAP13 Business13 One13 in13 this13 case13 will13 rely13 on13 the13 integration13 framework13 to13 complete13 the13 financial13 consolidation13 13 Also13 if13 this13 expansion13 is13 into13 new13 parts13 of13 the13 world13 you13 need13 to13 determine13 how13 well13 the13 competitor13 is13 represented13 in13 other13 parts13 of13 the13 world13 Business13 One13 is13 running13 in13 15013 countries13 with13 4113 localizations13 and13 2713 languages13 And13 yet13 competitors13 claim13 better13 support13 for13 multinational13 firms13 Check13 the13 facts13 13 ldquoSAAS13 IS13 BETTERrdquo13 Those13 offering13 solutions13 deployed13 through13 the13 cloud13 as13 software13 as13 a13 service13 13 (SaaS)13 will13 point13 to13 the13 elimination13 of13 IT13 hassles13 associated13 with13 just13 keeping13 the13 lights13 on13 This13 is13 certainly13 a13 valid13 argument13 for13 SaaS13 but13 donrsquot13 rule13 SAP13 Business13 One13 out13 It13 too13 is13 available13 in13 the13 cloud13 13

But13 not13 everyone13 wants13 to13 move13 to13 the13 cloud13 (SaaS)13 With13 SAP13 Business13 One13 you13 donrsquot13 have13 to13 You13 have13 a13 choice13 and13 it13 is13 important13 that13 you13 investigate13 if13 the13 benefits13 of13 operating13 in13 the13 cloud13 outweigh13 those13 of13 an13 on13 premise13 implementation13 and13 decide13 what13 is13 best13 for13 you13

The13 Mint13 Jutras13 ERP13 Solution13 Studies13 have13 been13 asking13 for13 several13 years13 what13 deployment13 options13 would13 be13 considered13 in13 evaluating13 ERP13 options13 today13 (Figure13 1)13 While13 we13 have13 seen13 a13 growing13 interest13 in13 SaaS13 solutions13 this13 deployment13 option13 is13 by13 no13 means13 the13 only13 option13 being13 considered13

Figure13 113 ERP13 Deployment13 Options13 that13 would13 be13 Considered13 Today13

13 Source Mint Jutras 2014 ERP Solution Study

There13 are13 certainly13 trade-shy‐offs13 between13 offering13 an13 exclusively13 SaaS13 solution13 and13 offering13 multiple13 deployment13 options13 Typically13 those13 that13 offer13 SaaS13 exclusively13 can13 bring13 innovation13 to13 the13 market13 faster13 because13 they13 only13 maintain13 a13 single13 line13 of13 code13 However13 those13 that13 offer13 multiple13 deployment13 options13 offer13 choice13 and13 the13 ability13 to13 migrate13 to13 and13 from13 SaaS13 While13 Mint13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 713 of13 813

13

13

Jutras13 observes13 that13 most13 SaaS13 deployments13 stay13 SaaS13 with13 little13 or13 no13 movement13 between13 the13 two13 options13 there13 is13 a13 significant13 advantage13 to13 SAP13 Business13 One13 customers13 currently13 running13 on-shy‐premise13 solutions13 and13 wishing13 to13 move13 to13 the13 cloud13 either13 as13 hosted13 or13 SaaS13 The13 advantage13 is13 in13 being13 able13 to13 migrate13 in13 that13 direction13 without13 having13 to13 purchase13 and13 implement13 a13 new13 solution13

In13 selecting13 any13 solution13 it13 is13 important13 to13 ask13 all13 competitors13 not13 only13 about13 functionality13 of13 the13 software13 to13 ensure13 it13 covers13 what13 you13 need13 but13 also13 about13 service13 level13 agreements13 (SLA)13 uptime13 performance13 stats13 and13 price13 protection13 13

SUMMARY13 AND13 RECOMMENDATIONS13

As13 noted13 earlier13 the13 sentiment13 ldquoNobody13 ever13 got13 fired13 for13 choosing13 [insert13 front13 runner13 here]rdquo13 doesnrsquot13 apply13 to13 ERP13 solutions13 ERP13 runs13 your13 business13 The13 provider13 of13 every13 viable13 solution13 on13 the13 market13 today13 can13 point13 to13 successful13 implementations13 and13 industry13 observers13 and13 the13 media13 love13 to13 highlight13 the13 failures13 A13 lot13 is13 at13 stake13 in13 selecting13 the13 right13 solution13 for13 your13 business13 Donrsquot13 hand13 over13 the13 due13 diligence13 to13 anyone13 including13 your13 ldquofavoriterdquo13 ERP13 vendor13 salesperson13 A13 few13 points13 to13 remember13

bull Look13 for13 a13 great13 fit13 for13 your13 business13 Do13 you13 need13 project13 management13 or13 project-shy‐based13 accounting13 Are13 you13 a13 demand-shy‐driven13 manufacturer13 How13 do13 you13 plan13 now13 How13 do13 you13 need13 to13 plan13 Do13 you13 have13 multiple13 divisions13 in13 multiple13 countries13 Are13 those13 countries13 supported13 Do13 these13 operations13 inter-shy‐operate13 Ask13 the13 right13 questions13

bull Look13 for13 ease13 of13 use13 There13 is13 no13 substitute13 for13 putting13 your13 own13 hands13 on13 the13 product13 Donrsquot13 rely13 on13 a13 pre-shy‐sales13 consultant13 whose13 job13 it13 is13 to13 make13 it13 look13 easy13 How13 are13 workflows13 defined13 and13 implemented13 Can13 they13 be13 easily13 configured13 Ask13 to13 see13 how13 the13 system13 is13 configured13 without13 doing13 invasive13 customization13

bull Closely13 examine13 the13 candidate13 solution13 providers13 and13 their13 ability13 to13 invest13 in13 the13 product13 If13 they13 quote13 you13 development13 budgets13 in13 terms13 of13 percent13 of13 revenue13 do13 the13 math13 A13 large13 percentage13 of13 a13 small13 number13 can13 easily13 be13 (much)13 smaller13 than13 a13 smaller13 percentage13 of13 a13 larger13 number13

bull Look13 to13 see13 how13 much13 of13 an13 ecosystem13 might13 be13 required13 to13 support13 your13 needs13 and13 then13 look13 carefully13 to13 see13 how13 much13 of13 that13 ecosystem13 is13 in13 place13 and13 well13 established13

bull Make13 your13 own13 choice13 about13 deployment13 options13 While13 Mint13 Jutras13 is13 admittedly13 a13 big13 fan13 of13 SaaS13 it13 might13 not13 be13 right13 for13 you13

And13 finally13 donrsquot13 fall13 for13 the13 line13 that13 says13 all13 SAP13 implementations13 cost13 millions13 of13 dollars13 and13 take13 multiple13 years13 to13 complete13 Old13 and13 generalized13 perceptions13 die13 hard13 and13 some13 competitors13 just13 wont13 let13 them13 die13 at13 all13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 813 of13 813

13

13

Nobody13 pays13 SAP13 or13 its13 partners13 this13 much13 for13 SAP13 Business13 One13 And13 if13 you13 want13 to13 know13 how13 long13 it13 takes13 to13 implement13 ask13 a13 customer13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

13

About13 the13 author13 13 Cindy13 Jutras13 is13 a13 widely13 recognized13 expert13 in13 analyzing13 the13 impact13 of13 enterprise13 applications13 on13 business13 performance13 Utilizing13 close13 to13 4013 years13 of13 corporate13 experience13 and13 specific13 expertise13 in13 manufacturing13 supply13 chain13 customer13 service13 and13 business13 performance13 management13 Cindy13 has13 spent13 the13 past13 913 years13 benchmarking13 the13 performance13 of13 software13 solutions13 in13 the13 context13 of13 the13 business13 benefits13 of13 technology13 In13 201113 Cindy13 founded13 Mint13 Jutras13 LLC13 (wwwmintjutrascom)13 specializing13 in13 analyzing13 and13 communicating13 the13 business13 value13 enterprise13 applications13 bring13 to13 the13 enterprise13 13 13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 713 of13 813

13

13

Jutras13 observes13 that13 most13 SaaS13 deployments13 stay13 SaaS13 with13 little13 or13 no13 movement13 between13 the13 two13 options13 there13 is13 a13 significant13 advantage13 to13 SAP13 Business13 One13 customers13 currently13 running13 on-shy‐premise13 solutions13 and13 wishing13 to13 move13 to13 the13 cloud13 either13 as13 hosted13 or13 SaaS13 The13 advantage13 is13 in13 being13 able13 to13 migrate13 in13 that13 direction13 without13 having13 to13 purchase13 and13 implement13 a13 new13 solution13

In13 selecting13 any13 solution13 it13 is13 important13 to13 ask13 all13 competitors13 not13 only13 about13 functionality13 of13 the13 software13 to13 ensure13 it13 covers13 what13 you13 need13 but13 also13 about13 service13 level13 agreements13 (SLA)13 uptime13 performance13 stats13 and13 price13 protection13 13

SUMMARY13 AND13 RECOMMENDATIONS13

As13 noted13 earlier13 the13 sentiment13 ldquoNobody13 ever13 got13 fired13 for13 choosing13 [insert13 front13 runner13 here]rdquo13 doesnrsquot13 apply13 to13 ERP13 solutions13 ERP13 runs13 your13 business13 The13 provider13 of13 every13 viable13 solution13 on13 the13 market13 today13 can13 point13 to13 successful13 implementations13 and13 industry13 observers13 and13 the13 media13 love13 to13 highlight13 the13 failures13 A13 lot13 is13 at13 stake13 in13 selecting13 the13 right13 solution13 for13 your13 business13 Donrsquot13 hand13 over13 the13 due13 diligence13 to13 anyone13 including13 your13 ldquofavoriterdquo13 ERP13 vendor13 salesperson13 A13 few13 points13 to13 remember13

bull Look13 for13 a13 great13 fit13 for13 your13 business13 Do13 you13 need13 project13 management13 or13 project-shy‐based13 accounting13 Are13 you13 a13 demand-shy‐driven13 manufacturer13 How13 do13 you13 plan13 now13 How13 do13 you13 need13 to13 plan13 Do13 you13 have13 multiple13 divisions13 in13 multiple13 countries13 Are13 those13 countries13 supported13 Do13 these13 operations13 inter-shy‐operate13 Ask13 the13 right13 questions13

bull Look13 for13 ease13 of13 use13 There13 is13 no13 substitute13 for13 putting13 your13 own13 hands13 on13 the13 product13 Donrsquot13 rely13 on13 a13 pre-shy‐sales13 consultant13 whose13 job13 it13 is13 to13 make13 it13 look13 easy13 How13 are13 workflows13 defined13 and13 implemented13 Can13 they13 be13 easily13 configured13 Ask13 to13 see13 how13 the13 system13 is13 configured13 without13 doing13 invasive13 customization13

bull Closely13 examine13 the13 candidate13 solution13 providers13 and13 their13 ability13 to13 invest13 in13 the13 product13 If13 they13 quote13 you13 development13 budgets13 in13 terms13 of13 percent13 of13 revenue13 do13 the13 math13 A13 large13 percentage13 of13 a13 small13 number13 can13 easily13 be13 (much)13 smaller13 than13 a13 smaller13 percentage13 of13 a13 larger13 number13

bull Look13 to13 see13 how13 much13 of13 an13 ecosystem13 might13 be13 required13 to13 support13 your13 needs13 and13 then13 look13 carefully13 to13 see13 how13 much13 of13 that13 ecosystem13 is13 in13 place13 and13 well13 established13

bull Make13 your13 own13 choice13 about13 deployment13 options13 While13 Mint13 Jutras13 is13 admittedly13 a13 big13 fan13 of13 SaaS13 it13 might13 not13 be13 right13 for13 you13

And13 finally13 donrsquot13 fall13 for13 the13 line13 that13 says13 all13 SAP13 implementations13 cost13 millions13 of13 dollars13 and13 take13 multiple13 years13 to13 complete13 Old13 and13 generalized13 perceptions13 die13 hard13 and13 some13 competitors13 just13 wont13 let13 them13 die13 at13 all13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 813 of13 813

13

13

Nobody13 pays13 SAP13 or13 its13 partners13 this13 much13 for13 SAP13 Business13 One13 And13 if13 you13 want13 to13 know13 how13 long13 it13 takes13 to13 implement13 ask13 a13 customer13

13

13

13

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13

13

13

13

13

13

13

13

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13

13

13

13

13

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13

About13 the13 author13 13 Cindy13 Jutras13 is13 a13 widely13 recognized13 expert13 in13 analyzing13 the13 impact13 of13 enterprise13 applications13 on13 business13 performance13 Utilizing13 close13 to13 4013 years13 of13 corporate13 experience13 and13 specific13 expertise13 in13 manufacturing13 supply13 chain13 customer13 service13 and13 business13 performance13 management13 Cindy13 has13 spent13 the13 past13 913 years13 benchmarking13 the13 performance13 of13 software13 solutions13 in13 the13 context13 of13 the13 business13 benefits13 of13 technology13 In13 201113 Cindy13 founded13 Mint13 Jutras13 LLC13 (wwwmintjutrascom)13 specializing13 in13 analyzing13 and13 communicating13 the13 business13 value13 enterprise13 applications13 bring13 to13 the13 enterprise13 13 13

SAP13 Business13 One13 Emerges13 as13 the13 SMB13 ERP13 Solution13 to13 Beat13 Page13 813 of13 813

13

13

Nobody13 pays13 SAP13 or13 its13 partners13 this13 much13 for13 SAP13 Business13 One13 And13 if13 you13 want13 to13 know13 how13 long13 it13 takes13 to13 implement13 ask13 a13 customer13

13

13

13

13

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13

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13

13

13

13

13

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13

13

13

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13

13

13

13

About13 the13 author13 13 Cindy13 Jutras13 is13 a13 widely13 recognized13 expert13 in13 analyzing13 the13 impact13 of13 enterprise13 applications13 on13 business13 performance13 Utilizing13 close13 to13 4013 years13 of13 corporate13 experience13 and13 specific13 expertise13 in13 manufacturing13 supply13 chain13 customer13 service13 and13 business13 performance13 management13 Cindy13 has13 spent13 the13 past13 913 years13 benchmarking13 the13 performance13 of13 software13 solutions13 in13 the13 context13 of13 the13 business13 benefits13 of13 technology13 In13 201113 Cindy13 founded13 Mint13 Jutras13 LLC13 (wwwmintjutrascom)13 specializing13 in13 analyzing13 and13 communicating13 the13 business13 value13 enterprise13 applications13 bring13 to13 the13 enterprise13 13 13