Providing tools for e-business

By ADAM GIFFORD

Despite all the talk of electronic business, leading United States consultancy AMR Research says only 3 per cent of manufacturing companies and 4 per cent of distribution firms worldwide have deployed business applications over the web.

That represents a huge opportunity for software vendors who can provide the right tools, says Johan Berg, the head of research and development at Swedish enterprise software manufacturer Intentia.

"Our offering is now entirely based on Java so we're in a good position to take advantage," he said.

Java, the programming language developed by Sun Microsystems, allows the same program to be used on any computer. It is one of the key technologies adopted in recent years by software companies as they try to reach customers who do not want to be locked into proprietary systems that might retard their growth.

But converting the huge code base of the older ERP (enterprise resource planning) systems, most of which were originally developed, like Intentia, for the IBM AS/400 platform, has driven some vendors into the ground.

Mr Berg said Intentia achieved the transformation in just over two years.

"We had a few Russian rocket scientists and they came up with some very clever software for us," he said.

The key scientist, Intentia chief architect Karl Kullman, is an Estonian Mr Berg discovered in IBM's Stockholm offices doing bug fixes for IBM DB/2 databases.

"I talked to him a few times, found we had something in common, and he came over to us and brought in some of his friends."

Those friends included mathematicians able to contribute optimisation tools that are becoming a standard part of the modern ERP suite.

"Our focus when it comes to e-business is on the specific demands generated by the traditional supply chain," Mr Berg said.

"Our whole strategy is to wire the supply chain so it is cheaper and more effective than it is today."

While most clients still use EDI (electronic data interchance), firms are turning to the internet as security and reliability problems are overcome.

"ERP is still the plumbing. We still need transaction processing. That is the basis for everything.

"But the ERP market is not growing as fast as it used to, so we have invested in supply chain management, advanced planning, in net collaboration and e-business applications.

Mr Berg said Intentia chose to focus on nine industries, tailoring versions of its flagship Movex suite for apparel, food and beverage, paper, steel, second-tier automotive companies, distribution firms, service companies and companies specialising in maintenance, repairs and operations.

Intentia entered New Zealand aggressively about three years ago, quickly picking up five customers.

Since then things have gone quiet, although another sales drive under new country manager Dougie Beck has netted camping firm Kathmandu.

ON THE WEB: Intentia