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A shared vision
[February 13, 2007]

A shared vision


(Manufacturing Business Technology Via Thomson Dialog NewsEdge) The typical office worker routinely checks email at the beginning and

end of each work day. In between, they tackle numerous projects using
word-processing programs, spreadsheets, and other desktop applications. And at
least a few times each day, a typical worker also must tap into an
enterprise-class application such as ERP or a supply chain management
system.

These simple facts underpin much of the strategy that
Microsoft
the world's largest supplier of desktop
applications, and a leading developer of IT infrastructure productshas
adopted in working with independent software vendors (ISVs) that serve the
manufacturing space. While manufacturing-centric ISVs have a long history of
building and running applications on Microsoft technology, the level of
cooperation between Microsoft and its partners has reached a new level in
recent months. In fact, several of these partners have taken a step that
previously might have seemed blasphemous: making Microsoft Office the primary
user interface for some of their enterprise applications.

Both Microsoft and the ISVs say this heightened level of collaboration
is a direct response to manufacturers' stated desire for streamlined IT
solutions that can be easily applied to multiple business problems.

"Our goal in serving this market is to address manufacturers' overall
pain points, both today and tomorrow," says Charles Johnson, Microsoft's
worldwide managing director for manufacturing. "That means we not only want to
address problems manufacturers are experiencing now; we also want to be
forward-thinking and anticipate problems that will arise in the future. Working
closely with our partners helps us validateand at times accelerateour
thinking about what we need to do with our technology."

Johnson says Microsoft ensures itself of covering the gamut of
manufacturers' problems by working with ISVs in four key areas:

Product development;

Business operations, inside the plants, as well as in the areas of
finance and government compliance;

Supply chain management; and

Customer relationship management.

In each area, Microsoft wants to give peoplesuch as the typical
office workerthe tools they need to perform their jobs most effectively. The
proper set of tools, in Johnson's view, involves a combination of IT
infrastructure products like Microsoft's SQL Server database, a collaboration
platform like Microsoft SharePoint Server, and an ISV-developed application
focused on a specific business problemsuch as demand planning or engineering
change management.

Johnson says Microsoft builds its closest working relationships with
partners who share this vision.

Game-changing solutions "There are still some partners who simply want to have their
applications run on Windows," Johnson says. "Then there are those who want to
create potentially game-changing solutions. Those are the ones we have the most
direct go-to-market plans with, because they are accelerating the timetable for
bringing our vision of serving the manufacturing space to life."

One potential game-changer is ERP market leader SAP
,
which last summer unveiled a joint solution with Microsoft called Duet that
makes the Microsoft Office suite the primary user interface for multiple parts
of the mySAP application suite.

Udo Waibel, SAP's senior VP for emerging solutions, says SAP entered the
Duet initiative with an eye toward making life easier for typical office
workers, who have to "rethink and refocus" each time they switch between a
desktop application like Microsoft Outlook, Word, or Excel to a portion of
mySAP.

"Our thought was, 'Wouldn't it be nice if you could access all of those
applications within the same environment,'" Waibel says.

Apparently, users agree. SAP reported more than 200,000 Duet licenses
sold in the first three months after the product's release, a figure that
Waibel did not find completely surprising.

"Users have been asking for this type of integration for years," he
says. "But only recentlywith the advent of new technology infrastructure
tools like Web serviceshas the timing been right to make this happen."

Microsoft and SAP, which are working together to both develop and sell
Duet, have created a road map for the functionality that users can expect to
get through the single Office interface. The first manufacturing-specific
linkconnecting the Office suite to SAP's demand-planning applicationis
scheduled to debut early this year.

"Users will be able to download demand plans from the mySAP supply chain
management systems into Excel spreadsheets," explains Waibel. "From there they
can sort through the data in any way they like, and even define fields they
want to use in demand-planning models."

Creating this link to Microsoft Office required SAP to acknowledge what
for years has been something of an open secret in the supply chain management
community: Planners in most SAP shops actually do the bulk of their preliminary
data gathering and analysis in Excel, which they find more user-friendly, and
then load the results into the SAP planning engine for complex number
crunching.

"The SAP supply chain solutions are not known for being easy to use,"
Waibel now concedes. "They are most often accessed by power users who are
specifically trained in working with such advanced planning applications."

Spreading the wealthWith Duet offering an Excel-based link to the SAP planning application,
Waibel says companies will be able to get more people involved in planning
processes, which should give them better results. "Anyone using the Duet
interface is interacting directly with the SAP system, even if they don't
realize it," Waibel says. "That means whole new groups of users can have input
into the planning process."

Best-of-breed supply chain management software vendor i2
Technologies
counts ease of use as just one factor, albeit an
important one, behind the tightening of its relationship with Microsoft. "One
of our goals as a company is expanding into the midmarket," says Karen Laucka,
who manages i2's partnership with Microsoft. "And the cost of ownership that a
Microsoft platform provides, along with the ease of use, is particularly
appealing to that market segment."

Laucka also notes that without some of the recent enhancements to the
Microsoft technology stack, the i2-Microsoft alliance might not have been as
close.

Microsoft's move to boost the scalability of the SQL Server database was
critical for i2. "They made [SQL Server] a large-scale, enterprise-class
database option," Laucka said. "That allowed us to take our first big step in
working with Microsoft, developing i2 Demand Manager, Microsoft Edition."

This version of i2's solution for demand forecasting, planning, and
collaboration runs on the SQL Server database and relies on Microsoft
SharePoint server as a means of creating role-based portals for users to access
data tailored to their needs. Now, i2 is working to make Microsoft Office 2007
the user interface for a business intelligence platform.

A demonstration version of this solution, called i2 Intelligence, was
unveiled at i2's user conference last fall; it's scheduled for release early
this year. Laucka says i2 Intelligence relies on the business intelligence
capabilities embedded in Microsoft Office 2007 to analyze supply chain data.
SharePoint portals will be the primary user interfaces for i2 Intelligence, but
Laucka says users can tap into the solution through any Office application,
including Word, Outlook, or Excel.

"We see the SharePoint portal as the first-level user interface that
gives users the key performance indicators (KPIs) they would monitor as part of
their individual jobs," Laucka says. "Let's say a VP of sales is monitoring
customer-service levels for the top five customers. He logs into a SharePoint
portal, where he will see KPIs and alerts related to those customers. Inside
that same portal, he will have access to Microsoft Outlook and Excel, along
with workflow and collaboration capabilities."

Clicking on a KPI or alert will send the VP to i2 Intelligence, where he
will find a full report on that KPI, and a series of related reports.
SharePoint Server also has document-control capabilities, which Laucka says
ensure that users will only see reports that are relevant to them.

Johnson says discussions with partners like i2 about global supply chain
collaborationwhich requires companies to communicate openly with trading
partners while ensuring sensitive information is protectedinfluenced much of
Microsoft's development work on Office 2007.

A new delivery modelEpicor
, a midmarket ERP supplier, is giving users
direct access to its applications through Office 2007. Epicor used the
service-oriented principles of the Microsoft .NET Framework to create its
solution, called Epicor Information Worker (IW).

The solution gives users access to any Epicor application through an
Office interface. Users can synchronize information from any Office application
with data from any Epicor application. For instance, salespeople can look up
appointments in Outlook and jump to the area of Epicor that contains the sales
histories of the customers they are scheduled to meet with.

Users also can drag information from Epicor applications into Word
documents or Excel spreadsheets. They can save such documents to SharePoint and
initiate a workflow process that calls for other workers to review and act on
that information.

Workflow and collaboration are at the heart of the solution product
life-cycle management vendor Sopheon built on Office 2007.

Sopheon's primary product is Accolade, which manages the process of
shepherding products from the concept phase into production. Accolade, in
effect, automates a methodology known as stage-gating, in which members of a
product development team are required to review the status of a project as
certain milestones are met, and then decide whether work on that product should
continue.

The decision makers, who typically are executive-level people, review
high-level project information in an Accolade interface. But that high-level
information is based on data created in other applications, including Excel
spreadsheets.

Sopheon is attempting to make all aspects of stage-gating easier by
linking Accolade with the Microsoft Project component of Office 2007.

"Accolade was built on Microsoft technology from inception because most
people in the product innovation arena already use Microsoft applications, and
we believed that leveraging tools potential customers were familiar with would
magnify the benefits our solution," says Bryan Seyfarth, Sopheon's solutions
marketing director.

With Office 2007, adds Seyfarth, those benefits are magnified even more,
which is why Sopheon has decided to offer direct integration between Microsoft
Project and Accolade.

"The value of this integration is making it easier for the people making
decisions about investing in new products to get the information they need
without forcing them to wade through data they don't need", Seyfarth says.
"Executive-level decision makers don't want to see Gantt charts. The want
summary information that lets them know immediately that a project is 350
person-days behind schedule, and what that means from a financial standpoint."

With the new level of integration, project managers can use Microsoft
Project to disseminate detailed project schedules to workers and monitor the
progress of those tasks. Then, when it's time to summarize information for the
executives who decide on project funding, the pertinent information can be
pulled from Microsoft Project and fed directly to Accolade.

"There also is the ability to synchronize schedules between Project and
Accolade," Seyfarth explains. "So when the detailed schedules are set for the
project, that information is used to generate the high-level milestones that
Accolade presents to upper management."

Seyfarth says the features in Office 2007 prove that Microsoft
understands what manufacturers need in an underlying technology platform.

"They definitely understand our customers' requirements for improving
productivity, and how important it is for them to effectively create, present,
and share information," concludes Seyfarth.

Vendor

Solution

Microsoft Integration

SAP

Duet

Microsoft Office is the primary user interface for select SAP
applications. The first manufacturing-specific link allows users to go directly
from an Office application to SAP's demand planning application.

i2 Technologies

i2 Intelligence

Microsoft SharePoint Portal is the primary user interface to an
application that allows for analyzing data from i2's supply chain management
solutions. i2 also offers Demand Planner Microsoft Edition, a demand management
application that runs on Microsoft's SQL Server database.

Epicor

Information Worker

Allows Microsoft Office to be the primary user interface for
accessing any Epicor application. Data from Office and Epicor can be
synchronized to improve worker productivity.

Sopheon

Accolade, with Microsoft Integration

Application for managing new product introduction process
tightly integrated with Microsoft Project and Excel. Executive-level users of
the Accolade system get data directly from Project and Excel that is filtered
and tailored to their individual needs.

Copyright 2007 Reed Business Information. All Rights Reserved.

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