The document discusses the problems with traditional ERP implementations including long durations, high costs, and low realized benefits. It then outlines a proposed RAD & deployment approach to address these issues by enabling faster and cheaper development, implementation, customization, and updates of ERP systems through a cloud-enabled, object-oriented platform.

1. Rapid Application
Development &
Deployment (RAD 2)

2. THE PROBLEM
•Implementation projects take longer than usual
Duration •Tier I ERP Packages have the lengthiest implementation durations.
•ERP vendors need to set correct expectations about relevant activities.
•51% of implementations are at a risk of going over budget
•Total cost for an average SAP install runs nearly $17 million, Oracle at $12.6 million and Microsoft is
Costs relative bargain at $2.6 million. (Tier II ERP providers average in at $3.5 million.)
•Customers fail to budget for associated costs such as hardware upgrades, training, organizational
change management, project management, temporary staffing etc.
Measurable •The most common payback period is 2 to 3 years. MS Dynamics, Infor and Epicor are fastest.
•Most companies’ realized benefits fall below 50% of what they expected to achieve.
Business •Companies who donʼthave a business case to quantify realized benefits may be unable to
Benefits accurately measure go-live results.
Need to •Over 53% of implementing organizations have poor ability to deal with change.
manage •Employees using a new ERP system have strong organizational resistance and steep learning
organizational curves.
•Need to manage change in manual and automation mix, and limited flexibility of automation.
changes

3. THE PROBLEM
Costs: High TCO i.e.
ROI: Low realized
maintenance, support
business benefits.
and modification fees.
Major payback period -
Difficult to understand
from 2 to 3 years.
cost structure.
Poor and rigid
Customization issues:
application design:
Complicated and time
difficult to modify in
consuming to
line with changing
customize
COMPLICATED, business structures.
RIGID AND
EXPENSIVE
SYSTEMS

4. THE PROBLEM
 Availability for small and medium enterprises in terms of
budget constraints and deployment time
 Long development time
 Complex deployment including long implementation tasks
and costly hardware infrastructure
 High risk and long time profit return from regular ERP
systems (company must invest a lump sum of money and
expect returns in years time)

5. THE ERP MARKET
 Market Size: $47.7B
 CAGR: 11%
 Industrial sectors:
 Manufacturing
 Software
 Insurance
 Healthcare
 Hospitality
 Geography:
 North America leads with Europe, Asia-Pacific and Latin
America
* Global ERP market to reach $67.8 billion by 2015

6. THE ASIA MARKET

7. COMPETITIVE ANALYSIS
 SAP Business One - ERP for SMEs without RAD tools for
integrators. SAP Business One aims in SMEs however product
is offered as ready to go application hosted by SAP itself
 Force.com - Force.com offers variety of ERP applications based
on SalesForce logic and structures. Applications are available
via AppExchange portal connecting developers and end users.
Applications must be integrated dependently following
Force.com API. New applications are developed with Apex
language similar to high level imperative languages such as
Java or C#. Presentation layer requires HTML based version of
Apex language
 AWS - Amazon Web Services initially offered infrastructure
services like databases, operating systems or cloud storage.
Nowadays there is much wider offer of ready to use services
and applications including many ERP applications however idea
remains the same and the weight is moved to hosting and
delivering of ready services rather than allowing IT Integrators
developing tailor cut solutions.

8. BUSINESS MODEL
 Licensing and Services
 PaaS
 AWS
 Telcos / Data Centers
 SaaS
 Document Mgt
 Workflow
 Case Manager
 BI / BA
 App Marketplace
 Developer / Job Marketplace
 Education and Training
 School Syllabus
 Education programs
 Professional Services
 Consulting
 Support
 Customization
 Development

9. UNIQUE VALUE PROPOSITION
 Developers
 Start in seconds
 Collaborate in minutes
 Develop in days
 Deploy in seconds
 Update in seconds
 Scale in seconds
 Clients (SME / SOHOs / Mid-Size firms)
 Start using in seconds
 Low Pricing via Marketplace for transparent and flexible rates
 Add new services in seconds
 Pay As You Use
 No CAPEX

10. REVENUE MODEL
 Licensing
 Per server / user with annual maintenance
 PaaS
 per month per instance
 SaaS
 per application
 App Marketplace
 3rd party applications
 Services
 Education
 Consulting
 Customization / Development
 Training
 Support
 Certification (Application as well as manpower)

11. TARGET MARKETS
Value Added Resellers (VAR)
• E.g. SAP, Oracle, NetSuite, Intacct, Microsoft, Sage
• Nearly 100% of all enterprise sales are through VARs. Also, popular for upper mid-market and mid-
market customers.
• Provides much-needed implementation help to customers, mostly to those who are looking to
customize their products. Software complexities, legal requirements, unique process flows, tax
requirements, and much more require expertise from VARs.
• Important for customers looking to transition to new products
• Most ERP vendors have a VAR program for its channel partners. There is usually a discount on the
retail price of the ERP product or, in case of SaaS, on the recurring subscription fees.
Direct Sales
• E.g. Intuit
• Suitable for lower mid-market customers that manage with generic workflows and non-integrated
SaaS solutions
• Lower end markets, i.e. clients with sub-$1,000 budgets for software and implementation can only
afford to buy directly, and not from VARs.
• Can be through salespeople or online outlets.

12. GO TO MARKET
PaaS
VARs in Vertical In-House Developers community
Markets Horizontal
Applications
Marketplace

13. GO TO MARKET STEPS
 Online
 Emphasis on Unique Value Propositions
 Identify
 Show comparison with traditional development models and
languages
 Forums
 Physical
 Acquire king pins (ISV or VAR) to provide success cases
 Acquire customers that are willing to be guinea pigs and case
studies

14. DEVELOPMENT
 PaaS Portal
 Multi-tenancy, Billing, User Management / Rights etc.
 SaaS Portal
 Verticals
 Document Mgt
 Workflow
 Case Manager
 BI / BA
 Knowledge Base (to be co-owned with Party A)
 Developer Community
 App Marketplace

15. MILESTONES
Financing / Funding T + 3 months
PaaS T + 6 months
Sample Apps / T + 8 months
Knowledge Base
Financing / Funding 2 T + 10 months
Alliances / Channels T + 11 months
(Schools, VARs, Telcos)
Education T + 12 months
SaaS / Market Place T + 12 months

16. SUMMARY
• Middle and Small Businesses, new implementations and
replacements.
Market • Complex organizations currently not served by SaaS providers due
to technology limitations.
• Document Mgt, Workflow, Case Management etc
Business Sectors • Vertical functions / solutions (eg. HR, Payroll, CRM etc)
• SaaS / PaaS
Deployment models • On-premise and on-demand
• Mobile and wireless platforms
• Direct Sales as required customization skills are negligible
Distribution channel • VARs where required by customer
• Cloud-enabled
• Object-oriented methodology
Technology • Embedded analytics
• Compliant with existing solutions and platforms at customer site.
• Fast and easy to develop, implement, customize, deploy and
Product update
• Cheap to maintain as needs low-skilled personnel
differentiating • Shorter payback period and measurable business benefits
• 0 CAPEX
factors