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by MarketFlash Bureau Delhi
Nov 23, 2009
Eastern
Software Systems (ESS), India’s leading ERP Company has announced that it has
launched an aggressive campaign to strengthen its channels route. ebizframe, the
flagship ERP product of ESS is a 10 year old, mature, highly successful web
enabled ERP software with over 600 customers using it across 25 countries. ESS
is a CMM Level5 certified company, a demanding software development maturity
certification that has been achieved only by around 160 companies globally.
That ESS is also an ISO9001:2008 certified company tells you that it is keen to
keep up quality standards with global best. A totally ERP focused organization,
ESS is proud of its sustained growth and consistently positive balance sheets
even in worse of economic scenarios
ESS’ market research points out that the existing channels of ERP companies are
finding it difficult to sustain their business considering the inherent lacunae
in the business and delivery model of these partnerships. The partners who
already are into ERP product distribution and implementation know it very well
that who does the difficult work and who makes the margins in such a
partnership. A major share of the product license revenues are typically
cornered by the product owners whereas the partner is left with the tough task
of implementing with hardly any margins left for them. For the Partners the
margins are practically non-existent and even if they do exist they are hardly
commensurate to justify any returns on the investments. To add to the woes,
there is a long recovery cycle of whatever little margins they make. No wonder a
lot of ERP partners who went into this business with high hopes have dropped out
as they have found it difficult to sustain their business with such a tough
proposition.
The existing model where partner does the implementation and the product
companies corner the majority of product license revenue, does not utilize the
strengths of its entities and ends up as a win-loss situation in favour of the
product owners. The partner’s strength typically lies in their last mile
connectivity (their reach to the end-customer). On the other hand the product
owners know the product the best and have the necessary knowledge and
implementation infrastructure to manage the ERP implementations successfully and
profitably. The present model utilizes the last mile connectivity of the Partner
but does not use the knowledge / implementation infrastructure of the product
company. Instead it puts the onus of implementation on the partner with little
help from the product owners. The partners typically with their thinner
knowledge and implementation infrastructure have limited capabilities for
implementing the ERP. Hence they have ended up making losses or little margins
on a lot of their projects.
A model which uses the strengths of both the entities in the partnership is
likely to be win-win situation for both. Also the last mile connectivity or the
reach of the partners must be rewarded commensurately and not at the existing
percentages that they get. There is an ample research that proves that in any
sales cycle the lead generation and its efficacy impacts the quality and
quantity of sales closures. So logically the lead generation should also be
rewarded well as opposed to the existing percentages.
According to Mr. Anil Bakht, Managing Director, ESS, “ESS is offering a
partnership model where a partner will only be required to refer the leads
through its last mile connectivity whereas ESS will bring in their product
licenses and the knowledge / implementation infrastructure. This coupled with
much better commissions is a win-win situation. The partners end-up making more
money in lesser time and with much less effort which was required if they were
also implementing the ERP themselves. The model will bring in promising and
commensurate rewards for both. The model is well tried and tested and ESS’
existing partners have reaped benefits by partnering with ESS on this model.”
ESS is aggressively looking at partners (company or individual) who want to get
into the ERP space as well as the existing players in the ERP space. ESS will
also approach some of the partners of competing ERPs who had dropped out of this
business because of the loop holes in the model. Companies who are interested in
having their slice of the cake of the booming ERP market can write in to
marketing@essindia.co.in
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