Infor Business Solutions SA, a provider of enterprise resource planning (ERP) solutions and subsidiary of German parent company Infor Business Solutions AG, has restructured its management and refocused its market approach. Company director Laura Coetzee and international operations manager Christian Mintzel discuss the group`s new market approach.
Mintzel is optimistic about operations in Southern Africa, despite obstacles like the unrest in Zimbabwe, and the SA government taking a legislative interest in the IT industry. "Infor has been in SA for three years now, so we know how difficult it is to make business here. But the knowledge base and development property are good."
Despite industry sentiment that the ERP marketplace is saturated and no longer financially viable, Infor Business Solutions AG`s half-year results as at 30 June 2000, reflected its best-ever sales figures in the history of the company.
The company recorded revenue of DM 62.6 million (R198 million), and 18% improvement when compared to DM 52.9 million of the previous year. The results also highlighted a substantial increase in international growth.
Expansion spree
A contributor to that international growth could soon come from North America. Infor AG has been on a steady acquisition spree, expanding across Europe and into South America and the Far East, but has never had representation in the US.
The acquisition of an Arizona-based ERP company may well change that. Although the deal is still under negotiation, Mintzel hints at a "well-known company with a good presence in the US". The acquisition is expected to be resolved in the next six to twelve months.
Closer to home, says Coetzee, times are tough and the market is tight. "ERP as it is traditionally known has not had a good reputation in the last period of time, and thus Infor has changed its business strategy. We`re now focusing on business applications, [particularly] e-commerce and supply chain management. We have changed our go-to-market model quite dramatically. We`ve fully embraced the channel... working through our partners, and our value-added resellers (VARs)."
"In SA, our skills resources are a key critical factor. Traditional 'drop the box and go` is not what clients want. Clients want a full business solution. They want time and attention, and for us to help them take their business into the future."
To achieve this, Coetzee says Infor SA is departing slightly from Infor AG`s traditional direct sales model. Logistics in this country make that approach cost-inefficient. It makes more sense to rely on VARs and partners to provide support to clients in far-reaching places.
"Our clients want to have someone representing Infor in their region, whom they can trust, and call on when they need to. The support centre in Africa is very strong and expanding, and it is a good asset to the client to know that he has a comfortable area, that he has a partner who knows the product, and who can call on support from anywhere in the world."
Support network
But, Coetzee says, Infor will not enlarge its support network just for the sake of being large. "We`ll remain a very small framework of top skills that we can acquire in the business partner world or value-added reseller channel. We will not appoint [a disproportionately large amount of] resellers just to keep the balance, and Infor will be involved at all stages of the process."
Dr Jurgen Laakman, former MD, left the company in June this year to establish an independent company focused on direct sales of the group`s flagship product Infor:COM and general sales support.
Kai Schittko, a director of the company, was appointed MD in his place, and Coetzee, formerly marketing and channel manager, was made a company director. The changes have been echoed internationally, with former international operations manager Andreas Reinecke appointed COO. Mintzel, former international sales director, has taken over the position of international operations manager of the Europe, Middle East and Africa region.
The newest version of the company`s flagship product, Infor:COM will be released in SA in November.
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