Applications for Midsize Organizations

You’ve probably never heard of JR286 but, if you’re a sports and fitness fan, you’ve likely seen their products. They manufacture high quality sports accessories emblazoned with the Under Armour or Speedo logos and sold in big box sporting goods retailers. I especially like their hats, one of which is now riding high on my young son’s head until he loses it or wears it out.

Last week, at the CIO Decisions near San Diego, I had the opportunity to hear the JR286 story first hand. Let me first mention that my mantra is never to say something that our customers wouldn’t say. Accordingly, the COO/CIO of JR286—Ruben Inofuentes—agreed to handle our presentation at this conference.

Under Armour is a hot brand rocketing toward stardom. JR286 needs to keep pace with that growth to meet the targets of their licensing agreement. As a small company, they didn’t need a top tier, integrated enterprise applications foundation until recently. But when the time came, they needed it bad and they needed it fast. You can read more about how they faced their challenges here.

Ruben captivated the audience with his account of how they implemented a broad footprint of Oracle applications in 90 days, taking advantage of a narrow window of opportunity before their next busy season kicked in. After the presentation, I listened in as attendees came to the front and asked Ruben questions.

Implementing a top tier suite of enterprise applications in 90 days always raises a few eyebrows. We always get questions on that but have the customer stories to back up our claims. Rapid implementations are fairly commonplace for Oracle now, in association with our Oracle Accelerate initiative.

The rest of the questions asked of Ruben centered on knowing precisely the right time to consider an integrated enterprise application suite and how to make it happen in a midsize company. I’m often asked the same questions.

Generally speaking, I see three categories of midsize companies that are ready for such a strategy:
· Rapid growth companies at the lower end of the revenue spectrum—like JR286—where business is overwhelming their legacy systems
· Midsize organizations that want to standardize on a single IT platform, consolidating multiple databases, replacing numerous point solutions, and settling on one financial management backbone
· Progressive companies of all types that want to leverage the best practices and flexibility of a top tier integrated application suite to develop a strategic advantage over their larger competitors.

The Economist Intelligence Unit (EIU) recently published a report, sponsored by Oracle, on the relationship between growth and an integrated information technology strategy at midsize companies. The EIU surveyed hundreds of senior IT, finance, and management executives in midsize companies ($10m-$50m USD) around the globe. This research provides insight into the perceived constraints to adopting an integrated information technology strategy. But for me the most interesting findings relate to lessons learned from top performing companies—those midsize companies that are growing much faster than their peers.

To quote the report, “Among other characteristics, the best-performing companies in terms of revenue growth tend to:
· Agree that IT makes the business more competitive;
· Agree that the return on IT investments is higher than anticipated;
· Have a high level of IT integration;
· Agree investment in IT has better returns than investments in other areas;
· Agree that IT gives the firm the flexibility to respond to market changes; and
· Buy integrated solutions, not disparate elements.”

Interesting stuff. For the record, Oracle sponsored this report but did not influence the primary research in any way. It is what it is.

This compelling whitepaper is available for download at www.growingbusinesslink.com/profitablegrowth. Growing Business Link is a partnership between Economist.com and ExecuNet. We recently did a webcast, “Sustaining Profitable Growth”, with Lauryn Franzoni, VP and Executive Editor of ExecuNet's Center for Executive Careers. It’s a discussion about the advantages of moving to an integrated enterprise applications strategy earlier rather than later.

JR286 is a great example of how a small company harnessed integrated enterprise applications to grow fast and profitably. Don’t look for their website—they don’t have one and don’t need one. Imagine that in a Web 2.0 world! But do look for their products in your favorite sporting goods store. The hats are cool and their bags carry a 100% lifetime guarantee. I’m buying one for my sports nut son this weekend. There’s no better test of any warranty than putting a product in his grubby little hands.

Jim Lein

The Gartner Midsize Enterprise Summit is a great opportunity for me to compare what Oracle customers are telling me to the observations of the market at large.Held in Orlando last week, the summit provided me many conversations with CIOs'many of whom are Oracle customers and some who are not.

Gartner's conference theme was "Closing the Gap Between Yesterday's IT Implementations and Tomorrow's IT Demands".I especially enjoyed the first general session on Monday by Barbara Gomolski, Gartner's Research VP who focuses on IT Staffing and Spending.Barbara talked about how, for years, IT has been fighting to get a seat at the table in the boardroom.As more and more CIOs win that battle, they face scrutiny from their peers.

Remember how your mother insisted that the whole family sit down for dinner?You could either volunteer lively observations or expect tough questions like, "How did you do on that Algebra test?", or "That Olson girl is cute, isn't she?"

You soon learned that monosyllabic answers didn't cut it, nor did changing the subject, "Please pass the peas". Only articulate, substantive responses were acceptable. Well, when CIO's win a place at the boardroom table they must always face the logical question, "What are we getting from all that money we're spending on IT?"

I continually reach out to Oracle customers for participation in marketing activities. Sometimes the response is, "No, thanks. I'm too busy." I don't take it personally but I think many times that translates to, "I don't see how this adds value to my company".

Ultimately, the many customers who do work with me, I believe, subscribe to a philosophy of how it is imperative to relentlessly inform the world - and their fellow employees - about how information technology is supporting or even creating competitive differentiation for their company. They've been given a seat at the table and know how to answer the question.

More often than not, the answer aligns with how technology enables their companies to perpetually drive the highest levels of customer service.

One of the most common stories I hear is about how Oracle applications enable midsize companies to go toe-to-toe with much larger competitors.One customer'CIO of a medical forms company'says he likes to ask his customers how big they think his company is.It's a good question to bring up midway through a round of golf or a nice dinner with customer executives.His company, of about 350 employees, competes with ginormous firms fortified by seemingly inexhaustible resources in an industry niche that is increasingly commoditized.

My friend explained that, yes, it's hard to argue that one form is superior to another.But his company's differentiation stems from the ability of customer service reps to advise their customers as to what products are available for shipment, what complementary products might be desirable, and what other options are available when something is out of stock. Most importantly, they need to make such recommendations on the fly, during the course of a single phone call.And, yes, Oracle applications contribute to that capability.

That constant added value might be why his customers typically guess his company is five to ten times larger than actual size.Universally, customers should never have cause to wonder how big their supplier is'whether it can provide the same level of service as the largest, most well known companies in its market segment.Just about every midsize company wants to be bigger but many recognize that there is a sweet spot where you have the resources to deploy top technology solutions yet retain the agility of a smaller firm.

If you'd like to learn more about how midsize organizations are leveraging Oracle applications customers to drive competitive differentiation, read the latest issue of Oracle Profit magazine online. See the story, "Putting Customers at the Center".

Being in the middle can be a good or a bad thing.  I love working with our �midsized� customers because, compared to my experiences with large companies, it�s just plain easier.  Things get done quicker as there is a pervasive urgency, less pretense, and fewer layers of bureaucracy.  But when �in the middle� equates to mediocrity, uncertainty, or being trapped, it becomes a less desirable descriptor. 

I�m headed back from the Minnesota High Tech Association Spring Conference.  It�s a typical Friday flight; packed with a mix of weary road warriors and jacked-up leisure travelers.  Having booked late, I�m banging this out in a middle seat with my knees crammed against the magazine pouch and my elbow in the ribs of the lucky guy in the aisle seat.

The conference theme was, �Innovation:  The New Global Currency�.  I sat on a panel discussing how Web 2.0 impacts marketing innovation, situated in the middle chair at a cramped table.  On my left, in a suit, was the intense founder of a local consulting firm specializing in helping small companies break through to the next level.   On my right, with her Mac open and ready, the VP of a consumer marketing services firm that�s focused on what�s going on in the heads of �baby geniuses to 20somethings�. 

Halfway through Q&A, a polite battle broke out between the two, centered on the delicate balance of employing personal information captured on the web�is it stalking or simply providing tailored content to willing recipients?  I felt like John McCain standing at a podium between Clinton and Obama but the moderator regained control and I got my two cents in.

My session was sandwiched between general sessions featuring pillars of the local community.  Across the board, the credentials of every panelist were beyond impressive.  The closing session focused on the role of the public sector in fostering innovation.  Each of the moderator�s questions was answered with a colorful soliloquy blatantly extolling a political stance that was decidedly left or right but, ultimately, completely predictable.  In an earlier session, top executives of three large local firms swapped success stories.  All were conservatively dressed�almost matching uniforms�and offered succinct, carefully crafted responses to the moderator�s inquiries. 

I realize innovation can be a drawn-out, incremental process, but most midsize companies would associate the concept with radical change.  Shaking things up. Turning things upside down.  Knocking things over.  Looking at every part of their business from a different angle.  Irreverence for status quo.

In that vein, the opening session set the bar pretty high.  It featured two local entrepreneurs.  Paul Douglas, a local weatherman, developed a wireless weather information service and recently sold it to Garmin for a cool $45 million.  But it was Robert Stephens, Founder and Chief Inspector of The Geek Squad that set an appropriate tone for the conference.   

Profane, spontaneous, animated, and dressed in the ubiquitous Geek squad uniform (modeled after the CIA dress code), Stephens continues to personify everything that is compelling about the American entrepreneurial culture.  From humble roots of a garage startup, he�s now an executive of a $40 billion dollar giant.  He still looks and acts like the founder at the helm of an emerging company, even with a zillion dollars in the bank.  My pen could scarcely keep up with the pearls of wisdom Stephens laid down but I�ll focus on three points that really hit home.

Thinking Small to Get Into A Billion-Dollar Business�Stephens talked about how small companies, with no money to advertise, can bump into ideas if they remain open minded.  In that spirit, the new Geek Squad Action Figures program focuses on quick, small prototypes.  Team members are limited to no more than three weeks and $3,000 on each project.  Wistfully, Stephens pines for a new corporate facility that is simply a row of garages.

Hiring for What You Cannot Train�For the Geek Squad, it�s curiosity, ethics, and drive.   Coincidentally, their hiring practices have become their best advertising.  Anyone reading their job ads knows what kind of company they are.  When expanding into the London market, recruiters hosted a Saturday night double feature�one Kung Fu and one science fiction flick�at a seedy London theater.  Much cheaper than a monster.com ad, �Kung Fi� attracted the perfect Geek Squad recruit�someone who goes to Kung Fu and science fiction movies on a Saturday night. 

The Paranoia of Near-Death Experiences�Stephens attributed three near-death business experiences to his obsession with constant innovation.  Best Buy was a maverick company long before he came into the picture.  In 1981, the original company (�The Sound of Music�) almost went down the tubes in 1981 when a tornado blasted their flagship store.  The surviving goods were moved from the warehouse to rows of metal shelves for a big sale in which buyers could walk right up and grab the stuff they wanted.  This no-frills approach has stuck with them every since. 

Stephens warns small business owners that you will always spend faster than planned and take in revenue slower than planned, so plan accordingly.

In the end, Stephens stresses most about compromising�taking the middle ground.  He constantly worries about the classic founder�s dilemma in a growing company�how to keep the company focused on its unique competitive advantage through persuasion and influence rather than authority.

So much of what Robert Stephens said echoes the sentiments of what I hear in my conversations with Oracle midmarket customer executives.  It�s why I love my job. 

Would you like to join the discussion on this or any other topic relating to the challenges facing midsize companies and how applications can help solve them?  Join in on mix.oracle.com.--the group, "Oracle Accelerate Applications Solutions for Midsize Companies". The link to register is on the sidebar as well as those for a couple articles about Robert Stephens and the Geek Squad.  And, just for fun, check out Stealers Wheel video of the classic, �Stuck in The Middle Again�. 

Thanks for listening.

Jim Lein

Enterprise software vendors catering to midsize organizations generally fall into two categories. Countless niche vendors struggle to prove they can match the scalability and product capabilities of the big vendor products while a handful of industry juggernauts attempt to convince the market they have manageable Total Cost of Ownership (TCO) for smaller companies.

We, in marketing, are continually challenged to argue our cases by distilling complex concepts into the fewest possible words and in a business language that can be easily grasped by all interested parties.  Plus, in today�s frenzied and easily distracted Web 2.0 world we�re also urged to make those concepts sound more exhilarating�inject the �Wham�, �Bang� and �Zowie� into the mix.  Words are simply groupings of letters if they are not read.  Subsequently, we are occasionally chastised for over-simplifying complexity and glossing over challenges.

Case in point�Oracle Accelerate solutions represent our strategy for quickly delivering industry-specific enterprise applications to midsize companies.  They�re delivered via savvy, certified partners committed to our Oracle Business Accelerator rapid implementation methodology.  When you get at chance, check out the links in the sidebar to learn more.

As we developed the messaging around this �exhilarating� program, we searched for snappy words that roll off the tongue�terms that would compel prospects to knock down our doors in search of Oracle Accelerate solutions.  We settled on three simple descriptors�Complete, Industry-focused, and Easy to Own.

Now, hold on there, I know you�re saying, �Since when has ERP been easy to own?�   In all my years of presenting to customers and prospects, I would dare not stand up in front of any group and say ERP is easy.  Stick with me here while I explain. 

Owning ERP can be broken down to purchasing, implementing, using, maintaining, and adapting the software to meet both your initial and ongoing needs.  And, let�s face it, for most midsize CIOs, �easy to own� equates to �cheap�.

You�ve heard the adage about companies being fast, good, and cheap.  The game around the water cooler is to try and name companies that are all three.  Invariably, any given company can only be two of the three and a big paper cup sloshing high five if you can name one for which all three adjectives apply. 

It�s no problem to substantiate that Oracle Accelerate solutions are good and fast.  We�ve got great midsize references in virtually every industry segment and our Oracle Business Accelerators are quickly gaining a reputation as the best practice other vendors are scrambling to duplicate. 

So then we come to �Easy�, or if you will, �Cheap�.   When I present on this subject, I speak to how Oracle constantly strives to make it easier for our midsize customers to own integrated enterprise applications.  It�s not as snazzy but I see a lot of heads nodding as I identify our efforts. 

And just what are we doing?  My colleague, Ron Berry, is Product Strategy Director for Oracle Accelerate solutions.  Ron and his team are charged with constantly poking their noses into Oracle�s applications developer offices to make sure the needs of midsize organizations are prominent in their thoughts.  Oracle leverages customer and partner forums such as the Oracle Applications User Group (OAUG) and Ron�s Midsize Strategy Council to gather midsize company requirements and convey them to development.

Oracle has always attracted some of the best software engineers but our acquisition strategy has provided an even more multi-faceted and exceptionally skilled talent pool.  Many of our developers come from companies that were largely focused on the midmarket�G-log (Oracle Transportation Management), JD Edwards, and Agile to name a few.  Consequently, our products increasingly reflect these varied perspectives�applications that are more intuitive and simpler behind the curtains, which ultimately make them easier to use, maintain, and adapt. 

Besides having an application strategy geared toward the midsize market, we�ve developed pricing that is specific to the midsize market and streamlined the process our partners go through to order software.  These certified business partners couple documented implementation successes in their target industries with Oracle Businesses Accelerators to make our applications easier to implement. 

�Good� and �Fast�?  We�ve got you covered.  �Cheap-er�?  We�re working on it every day.

Jim Lein

For an example of how Oracle constantly strives to make integrated enterprise applications more affordable for midsize organizations, read the whitepaper, �The Business Value of Oracle E-Business Suite Release 12 for Midsize Businesses�.

The view expressed on this blog are my own and do not necessarily reflect the views of Oracle.