Aberdeen Study: Users of On-Demand Collaboration Applications Report on Results
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Aberdeen Study: Users of On-Demand Collaboration Applications Report on Results

Software-as-a-Service Uniquely Able to Support External-Facing Processes and to Provide Flexibility to Grow with the Business

REDWOOD CITY, Calif., Sept. 18 /PRNewswire/ -- On-demand supply chain applications outperform traditional on-premise software across several processes and functional areas, according to an Aberdeen Group benchmark study titled, "On-Demand Applications in Supply Chain: Enable Flexible Business Processes." For the study, which was sponsored in part by E2open, the leading provider of supply chain management software-as-a-service (SaaS) for visibility and control over global supply networks, Aberdeen surveyed more than 450 companies. Aberdeen concluded that companies of all supply chain maturity levels should evaluate supply chain software on-demand, particularly to manage external-facing processes and to support continuous process improvement initiatives.

"Business processes at most companies are transforming from inward-focused to outward-facing to harness knowledge and synchronize activities across suppliers, customers and partners. As a result, the top strategic priority of our respondents is to manage processes and drive business process changes across the supply network," said Nari Viswanathan, Research Director of Supply Chain and Logistics at Aberdeen. "But their investments in existing software applications have merely resulted in upgrade efforts to keep up with process changes. That is not enough. This is why 41 percent of our respondents are implementing on-demand supply chain applications, which are well suited to support change and external-facing business processes."

Aberdeen's research showed a strong correlation of advanced process capabilities and usage of on-demand applications. Using its proprietary benchmarking model, Aberdeen determined that best-in-class companies using on-demand applications are:

    -- Four times more likely to be able to on-board new trading partners
       quickly
    -- Three times more likely to support unique business processes for
       selective product categories, customers or channels
    -- Two to three times more likely to support electronic collaboration with
       trading partners (e.g., suppliers, carriers, customers)
    -- Two times more likely to be able to quickly change or modify business
       processes in software

Market awareness of these benefits is growing. According to Aberdeen, respondents are twice as likely to prioritize on-demand rather than traditional on-premise application implementation as a top strategic action. Aberdeen urged companies considering on-demand implementation to take a project approach of very rapid initial implementation for a select process or portion of the supply chain, and then to expand to additional areas of the supply chain with additional functionality.

Aberdeen further identified the benefits of supply chain management software on-demand. Not surprisingly, reduced costs and time to value were among the key drivers for the respondents, including:

    -- Total cost of ownership reduction (according to 25 percent of
       respondents)
    -- Faster implementation time (according to 19 percent of respondents)
    -- Reduced up-front costs (according to 17 percent of respondents)
    -- Faster ROI (according to 16 percent of respondents)
    -- Ability to connect with a pre-existing community of trading partners
       (according to 16 percent of respondents)

E2open customer Hitachi Global Storage Technologies is included in the report as an in-depth case study. Aberdeen cites a 35 percent reduction in total cost of ownership and a rapid four-month go-live process as key proof points of the on-demand model.

"On-Demand Applications in Supply Chain: Enable Flexible Business Processes" is available for download at: http://www.e2open.com/landing/aberdeen_research_Sep2007.php.

About E2open, Inc.

E2open is the leading provider of supply chain management software-as-a-service for visibility and control over global supply networks. Industry leaders that power their supply chain with E2open include The Boeing Company, Celestica, Hitachi, IBM, LG Electronics, LSI Corporation, Matsushita Electric Industrial (Panasonic), Motorola, Seagate Technology, Spansion, Vodafone and Wistron. E2open's software-as-a-service model offers faster payback, larger ROI and reduced risk while requiring less IT and business resources. Over 15,000 companies worldwide currently use E2open. Headquartered in Redwood City, Calif., E2open is a privately held company. Further information can be found at http://www.E2open.com.

Web site: http://www.E2open.com/