Whether you have heard of Infor or not, today I am introducing you to something new. A new generation of business software is emerging. Generic software can no longer meet the wide array of unique organizations. Software must be purpose-built for specific industries. It is the only way to accomplish the true goal of software, which is to accelerate the speed of business.
That's why, at Infor, we are defined by the industries we serve. And that's where I'll begin today's presentation. From there, I'll speak briefly regarding the opportunity and challenge of enterprise software. And then, how Infor has the vision, resources, and products to deliver on the promise without the pitfalls of enterprise software.
And each customer is unique. Here are just a few we serve in our strategic industries. And I can tell you from experience that an Asian fashion manufacturer has nearly nothing in common with a local government in the US -- except that they are implementing software for the same core purpose: to increase their operational speed.
But the ultimate value for each customer is measured differently. As a software provider, we need to know what's important to each customer -- like Flextronics, who needed to lower their IT spend, WAI Global who saved $800k annually from warehouse integration with Infor, or Providence Health, who saves $10m annually in supply chain cost. Or maybe, revenue is your goal -- as it was with Steele, who increased sales 20%. The value will be measured differently by industry, and that puts requirements on the solution that are so unique, there is no way a generic brand can fit without doing enormous modifications. The solution must be purpose built.
And if it is, your solution can seize the promise enterprise software presents while avoiding the pitfalls. And that's what I'd like to discuss now -- because if you understand how Infor views the opportunities and challenges of enterprise software, you will better understand our vision for enterprise software.
I've said it a couple of times already, but it's worth repeating. At Infor, we believe the core purpose and promise of enterprise software is speed. Over the course of history, from the Pony Express, to air travel, to fax, to Skype and Twitter, technology adoption has increased the speed of business. Technology has both caused the speed of business to increase and it's also is the remedy organizations need to respond to the new speed of business.
But, unfortunately, it hasn't come without challenges. Frankly, enterprise applications don't have a great reputation. Some researchers have said that over half of enterprise software projects run longer than expected while less than half result in the promised benefit of the business case. According to Gartner, about 1/4th to 1/3rd of all ERP projects fail. And it's not a big secret. Everyone knows what the issues are. The question is, how do we fix it?
How do we fix the way work is done today -- with ancient user interfaces that are forms-based, not procedural, isolated, reactive, old technology? In the enterprise applications space, user experiences don't drive greater insight or productivity. They simply drive conformity.
Infor is changing that. We are flipping the structure of work. Instead of forms-based applications, our solutions are information-based where google-like searches and twitter-like events become the user experience. When we present data to users, we make it relevant by providing context at the point of decision. And we invest heavily in making our enterprise applications as attractive and easy to use as consumer-based applications -- so that you can work the way you live.
But changing the way the system is used doesn't solve the whole problem. In the enterprise software market, the entire delivery model is broken. Software providers build one generic solution for all markets. Then, they often hand it off to another software provider to add industry functionality on top -- to another provider to build geographic localizations -- and to a system integrator company to build all of the integrations and modifications so that the solution works for you. In other words, enterprise software providers don't finish the job. They make you complete the application.
At Infor, we are completing the application for you. Our goal is for customers to require zero modifications... And that includes integrations. It should be done for you. Reports and analytics built in and implemented right along with the solution... As opposed to a phase 2 deployment as so many companies do today. Even a substantial amount of configuration and setup should be done before the customer ever touches it... Simply part of the package. This can't be done without industry focus. With focus, we can provide purpose-built solutions for specific industries. We don't force fit generic solutions, expecting someone else to finish the job. We design, develop, test, and deliver deep and complete industry solutions.
But even that isn't enough to change the speed of enterprise software. Because, today, once you have enterprise software implemented the way you want, the ability to make changes is limited. It's as if companies poor wet cement over their implementation and it hardens. It's heavy. There's no agility. All your phase 2 hopes of data warehouses and further automation go away because companies are petrified to change anything. Heavy, rigid, and slow. That's the reputation of enterprise software.
Infor is re-imagining it. What if integration and business intelligence were implemented automatically and remained protected despite changes and upgrades to your applications? What if your life cycle management were automatic and seamless? What if you had incredible deployment options leveraging cloud technology, but reserved the right to change your mind at any time? What if upgrades didn't scare you? What if you didn't spend all your time managing your system... But instead, spent your time innovating? What a difference you could make. Infor is going to make that happen.
By now, you are probably asking yourself, "who are these people?" And why do we honestly believe we can change the enterprise software industry? I'd like to close today by answering that question.
First, and most importantly, Infor has the mission and vision to do it. Our mission -- our quest -- is to empower customers to achieve speed as a competitive differentiator. We can't do that if we, ourselves are slow. We are acting with urgency to achieve our mission by transforming our solutions according to the vision I've share with you today. We will provide:A user experience to change the way work is done;Industry suites that complete the application; andA platform to re-imagine enterprise software
And we have the resources to do it. We are the 3rd largest enterprise applications company on the market. We have over 70,000 customers and $2.5b in revenue. More importantly, we have a growing momentum, earning the business of more than 2,000 new customers in the past year, with a run rate of 28% organic sales growth. Vision without resources to achieve it results in nothing but an empty promise. At Infor, we are not doing that. We have a large development team, and we are hiring hundreds more into the company with product and technology expertise. We are putting our money where are vision is.
And the result is a new product we are in the midst of launching, Infor10. It's the most significant launch in Infor history and will do nothing short of redefining our company.... And if we do our job, your company too.
1,100+state and local governments<br />8 of the top 10aerospace companies<br />9 of the top 10high tech companies<br />7,000+machinery manufacturers<br />9 of the top 10pharmaceutical companies<br />9 of the top 20electrical distributors<br />90% of the Las Vegas Strip<br />6of the top 10 brewers<br />80 of the top 100automotive suppliers<br />More than 5,500customers <br />AEROSPACE<br />HIGH TECH<br />INDUSTRIALMANUFACTURING<br />AUTOMOTIVE<br />INDUSTRIAL EQUIP & MACHINERY<br />CHEMICAL<br />DISTRIBUTION<br />FOOD & BEVERAGE<br />19 of the top 35brands<br />Over 70%of US hospitals<br />HOSPITALITY<br />PUBLIC SECTOR<br />FASHION<br />HEALTHCARE<br />
Saved $800k annually with integration to warehousing<br />Decreased outstanding expense receipts over 45 days from $8m to $1.4m<br />“Gave us top of the line capabilities at a low total cost of ownership.”<br />Total IT spend under 0.1% revenue<br />AEROSPACE<br />HIGH TECH<br />INDUSTRIALMANUFACTURING<br />AUTOMOTIVE<br />Saved half a million dollars in warehouse safety stock in 1 year<br />Global visibility of demand, supply and raw materials<br />Projected savings of $2m<br />Increased sales 20%<br />INDUSTRIAL EQUIP & MACHINERY<br />CHEMICAL<br />DISTRIBUTION<br />FOOD & BEVERAGE<br />Reduced budget cycle from8 weeks to 4 weeks<br />Saves $10M in reduced supply chain costs annually<br />Inspection savings of $758k and ROI in 12 months<br />Greater visibility with reduced costs and time-to-market<br />HOSPITALITY<br />PUBLIC SECTOR<br />FASHION<br />HEALTHCARE<br />