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