Manhattan Associates, SAP and IBM : What’s the connection?

Everybody knows that IBM’s WebSphere and SAP’s NetWeaver are competing software solutions in the integration field. So which one is chosen by Manhattan Associates, an SCM best of breed vendor.
Literally both!
For its IPS(Integrated Planning Solutions) and ILS(Integrated Logistics Solutions), IBM’s WebSphere is the preferred choice.
For its WMS(Warehouse Management System) software, Manhattan Associates has got a “Powered by SAP NetWeaver® “ certification.

Let’s understand how both would help MA(Manhattan Associates) in expanding its business.
Being an IBM WebSphere partner, MA and IBM sales team are working together in almost all the markets.
Being a SAP certified vendor means MA WMS would instill more confidence in customers due to the seamless integration with the SAP business suite which many customers use.

 

Is the debate on Best of Breed vs ERP or is it on Functionality vs. Integration?

Almost everyone has an opinion on the question of best of breed vs ERP. Alas, not many have the answers.
SAP and other big ERP players have this habit of browbeating the best of breed competition .SAP had once famously talked about the perils of buying best of breed .Well, the logic put by the ERP players is that integration is always an issue with best of breed software. But then, I am at a loss as to why the best of breed vendors have never hit back on their strong point of functionality. In terms of functionality, best of breed would win hands down.
So which is better, best of breed or ERP, which people have termed as best of suite. There are no clear winners and there are no clear answers. There is ample space for both for many more years. The criteria which normally hold the key are functionality, integration, implementation and technology. Price comes at the last which does suggest that this is an extremely profitable domain. Functionality and integration have the same priority on the wish-list of buyers.
But beware! Lots of buyers are opting for ERP and their decision is based on the presumption that they have the incumbent ERP installed and hence it’s the natural choice. Not necessarily a correct decision. The incumbent ERP may not have the requisite functionality ,required by the customers business, packed in it. If the customer just wants the industry standard process ,maybe a vague example could be inventory management module and normal functionality, they can very well opt for their current ERP. But if their functionality is rapidly changing, they need to look further and here the balance tilts in favour of best of breed.
Best of breed SCM software vendors are investing a lot in technology as well as adding more and more functionality to their base product. With most shifting to SOA(Service Oriented Architecture) , ERP vendors won’t have any grounds to complain about integration.
In SCM, business runs technology and not vice-versa. Its time for the ERPs to come up with their own best of breed versions.

 

I2 Tech to get $83.3 million SAP settlement

SAP is going to pay I2 Tech $83.3 million to settle a two-year old patent-infringement lawsuit. I2 had accused SAP of infringing on seven of I2’s software patents.
By paying up all of it in cash,SAP has been able to get the patents cross-licensed. Now each party will receive license to certain patents. Read the below Associated Press article in businessweek for details.
I2 Technologies Inc. said it will receive a cash payment of $83.3 million under terms of a patent litigation settlement with German business software maker SAP AG.
I2 makes software that helps companies coordinate deliveries from suppliers with their production schedule, and manage inventory.
The companies have agree to cross license certain patents, and dismiss all existing legal action with prejudice.
Further terms weren’t disclosed.
I2 expects to receive the cash payment in the third quarter. The company also said that since the settlement will boost financial performance, second-quarter results are no longer expected to be flat with the first quarter.
Shares rose 37 cents, or nearly 3 percent, to $13.09 in afternoon trading on an overall down day for the markets.
Source: http://investing.businessweek.com/research/stocks/news/article.asp?docKey=600-200806260839APDIGITLFINANCE__i2_Technologies_SAP_S-6AJ23A7BOO94R6D9VMCTEHU7DQ&timestamp=06/26/2008%208:39%20AM%20ET&headline=I2%20Tech%20to%20get%20%2483.3%20million%20SAP%20settlement&docSource=AP%20Digital&provider=ACQUIREMEDIA&realtedsyms=|US%3BITWO|US%3BSAP&symbol=SAPG.DE

“I2 makes software that helps companies coordinate deliveries from suppliers with their production schedule, and manage inventory.” Reading this line from the AP article makes me wonder how I2 has been relegated to the role of an inventory management solutions provider. Wasn’t it delivering a suite of products in almost all functional areas of Supply Chain? Maybe , its time to discuss why I2,which was one of the leaders in the best-of-breed SCM software providers, declined. This would lead to the wider debate of best-of-breed vs ERP.