“We Don’t Want A Large Network With Resellers Competing Against Each Other”
CT: How are today’s enterprise needs for anytime, anywhere information on any device changing the relationship of ERP with its users?
Kanaran:Manufacturers are finding it necessary to move beyond the confines of their desk. They find it more convenient to use their mobile devices to monitor what’s happening in real time throughout the entire organization. Manufacturers are expected to respond quickly to changing conditions in their operations. Today they find it a challenge to obtain instant access to relevant information when they are away from the office. Even as manufacturers seek convenient real-time mobile access to their ERP system, data sensitivity and security has to be maintained.
We see more interest in real-time mobile access to ERP system data and we expect this mobile connectivity trend to continue, allowing for on-the-go responsiveness at all levels. Data integration, mobile access to business information, mobility-enhanced interfaces will continue to drive innovations in the ERP space.
How are you ramping up your product to align with the changing needs of users?
Kanaran: We have just announced the launch of Epicor ERP version 10. With Epicor ERP 10, we’ve taken our visionary blend of rich global functionality built on agile technology, and eliminated complexity to make ERP easier to use, more collaborative and more responsive. Manufacturers worldwide select Epicor ERP solution for its ease of use, ability to adapt to business and industry-specific requirements, and ultimately to scale as an organization expands or changes.
Epicor ERP version 10 empowers the workforce with a consistent user experience at their desk, or from their mobile device – designed for the way we work today. It gives you desktop independence so you work the way you want to from anywhere, on any device – facilitating efficiency and faster decision making.
CT: Why is the move towards collaboration within ERP important?
Kanaran: Collaboration provides a competitive advantage and is essential for the future prosperity of all companies, but especially for those in highly volatile markets or those that work with complex processes as it provides increased transparency and joins ‘silos’ of departments together. It’s not just for larger enterprises; it’s useful for SMEs too, where groups of people may have overlapping areas of responsibility. Collaboration tools enable users to document information, add traceability and provide a level of control.
An important aspect of collaboration within ERP is that it inspires innovation. Engagement inspires innovation, which is why collaboration has become increasingly important. Making it easier for staff and departments to share information and views means that skills and knowledge can be pooled, leading to quicker problem solving and project progression as well as sparking new ideas.
CT: With the advent of Cloud, what are the changes legacy apps like ERP will go through?
Kanaran: Today’s enterprises increasingly view cloud computing software as an important and meaningful sourcing option and smart investment because it offers a myriad of business benefits, including low initial and predictable ongoing costs, faster implementations and time to value, reduced cost of ownership, greater reliability, enhanced support, reduced IT complexity, and improved business focus.
Today, Epicor ERP cloud deployment is enjoying real success in the large North American marketplace. Like many other cloud companies, in particular those that offer a full SaaS-based ERP, our experience globally has been that not all companies in all countries are comfortable moving their core systems to the cloud just yet. It is a major decision for many organizations to move financial or manufacturing data to the cloud; however, we are confident that position will change as momentum continues to build, as it did with CRM and HCM.
CT: What is Epicor’s ERP value proposition as compared to its competitors?
Kanaran: One of the key differentiators for Epicor vis-a-vis other products is that the former is 100 percent SOA. Epicor is positioned as a visionary for the fourth consecutive time in Gartner’s magic quadrant for single-instance ERP for product-centric mid-market companies. Consider the challenges CIOs will face in the coming years, in things such as BYOD, security & storage, Epicor is future proofed, so if a customer is looking at making an investment in it today, they can be sure that they are investing in a product that will grow with them well into the future.
The other factor to keep in mind is that today, people are looking at web-based systems, systems which are more agile, flexible, and which also embrace all devices. And by devices we refer to tablets, smartphones etc. Because of its modern platform technology, Epicor ERP 10 is ready for a mobile enterprise regardless of whether an organization run , Windows 8, Android, or iOS..
CT: What is Epicor’s go-to-market strategy for India? What about any strategic alliances?
Kanaran:India is a 100% channel market for Epicor, managed by a team of channel managers. Epicor currently has 14 channel partners across India such as Orient Technologies, Daksha, Corporate Serve and RheinBrucke. Keeping in mind the country’s geographic spread, Epicor partners have been strategically chosen to expand our reach so that we are able to support companies with branches across the country and deliver solutions through varied vertical channels.
We believe that a differentiated and enabled partner network is vital to its success and this will be our focus as we continue to grow in India We plan to recruit more partners and the goal is for us to have nearly 30 partners by the end of 2015.
Epicor has a strategic partnership with Defiance Technologies to work on local compliance challenges for its ERP solutions in India. It customizes the Epicor ERP suite to help Indian customers benefit from a world class ERP product that meets specific local business requirements.
CT: How optimistic are you on the business opportunities for you and your channels in India?
Kanaran:We find that there is high demand for business software solutions and our customer base made up of mainly manufacturers, is steadily and surely growing and is exceeding the general growth trends of the industry. On-premise ERP is growing at a CAGR of 15-17% as per Gartner.
Besides, manufacturing as a vertical has traditionally been at the forefront of technology adoption. In India today, ERP forms the backbone of large manufacturing organizations. Industry estimates suggest that nearly 65-70% of large manufacturers use some form of ERP solution. The adoption rate of ERP in manufacturing is 50% higher than the segment with the next highest rate of adoption, i.e. wholesale distribution.
CT: Why should enterprise channels work with you, rather than their long term alliances with big ERP vendors?
Kanaran: Epicor partners have been strategically selected to create coverage across India. However it is important that each reseller has enough opportunity to create a sustainable Epicor business and that they are provided with the tools and resources to be successful. Unlike some of our competitors we don’t want a large channel with resellers that compete against each other. Epicor offers true partnerships, often with some sort of specialism, perhaps domain or vertically driven or to cover certain geographic areas.
Epicor solutions are designed to deliver a rapid return on technology investments for customers while maintaining one of the lowest total costs of ownership in the industry. These industry-leading solutions, as well as support and implementation capabilities, are unmatched and they are a genuinely attractive offering for resellers.
By joining the Epicor Inspired Partner Network, partners can gain an edge on their competition by
increasing profitability by winning enterprise-wide projects with margins designed to increase the bottom line. Winning more business by offering an end-to-end suite of integrated enterprise software solutions designed for specific industries.Improving professional services revenue utilizing the proven Epicor Signature implementation methodology and customization tools.
CT: With enterprise market preferring an Opex model, is it the end of the road for Capex –intensive ERP solutions?
Kanaran:The attraction to an OPEX model for ERP solutions is easy to understand. Businesses have a limited amount of capital expenditure available, and because that capital investment is limited, companies usually want to direct their investment toward revenue-generating activities that will achieve immediate results.
ERP software can be replaced without a large capital expenditure by considering moving business applications to the cloud, or to a hosted environment. By using OPEX to budget software expenses monthly, it’s easier to account for additional costs such as upgrading software licenses, yearly maintenance, training or adding new users.
Shifts in application flexibility, responsiveness, agility and personalisation mean cloud solutions are overcoming the one-size-fits-all challenge which continues to result in many organisations running applications on premise so they can customize to retain their competitive advantage.
However, many organisations still have doubts about the barriers for adoption; security, performance, resilience, and legislation around data residency. This means that the CAPEX model of on premise implementations will not suddenly disappear, and OPEX versus CAPEX will be a matter of choice rather than force.
CT: Could you throw light on some of the wins that Epicor has seen in India?
Kanaran: Epicor has a range of customers in the manufacturing segment. Some examples of Indian manufacturers who have selected Epicor’s next generation ERP solution include PC Sons Castings, Pradeep Metals and many others.
CT: What is the company’s road map over the next one year?
Kanaran:Epicor has a long term vision for the Indian market. We are committed to strengthening our local customer base and channel community. Partner enablement and new partner recruitment is therefore very important in order for us to expand our presence in the large Indian market. This is coupled with rolling out new products as and when these become available.