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Consultant News from Sapphire

Welcome to the latest edition of our newsletter for the consultant community.

Ian Caswell  - Managing Director

In this edition we are pleased introduce the new SAP Business ByDesign solution – SAP’s new ‘Software as a Service’ application announced by SAP in September 2007 - and launched in the UK at the recent Softworld exhibition in February. We are hosting a showcase of this new solution for consultants on Wednesday 4th June 2008 so read on for further information - and book your place on this event by clicking here.

In further news, I am very proud to announce that Sapphire have been officially recognised as the leading SAP Business One partner in the UK. I attended the recent awards ceremony and am pleased to report that despite the recent economic uncertainty, the entire partner ecosystem is very upbeat about the opportunities for SAP Business One and is looking forward to a successful and profitable 2008.

As always, I welcome your comments on any of the articles contained herein - and if you have any suggestions for future newsletters we’d welcome your ideas.

To find out more about the benefits of working with Sapphire, you can download our full fact sheet here.

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SAP Business ByDesign

Speaking at the product launch SAP CEO Henning Kagermann commented: "SAP Business ByDesign is designed to dramatically simplify IT for mid-size companies by substantially reducing the cost of ownership and combining efficiency with business flexibility. The technical advantages allow customers to exploit the full potential of new business trends without becoming IT experts. Such an affordable, easy-to-use and complete offering has been missing for mid-size”.

Early adopters Compass Pharma Services commented: "It's clear that SAP really took the time to understand how smaller businesses think and operate. We now plan to spend less than 25 percent of our original IT budget.”

What is the SAP® Business ByDesign™ solution?

The SAP Business ByDesign solution is a new addition to the family of SAP solutions for small businesses and midsize companies. It is designed to target the unmet needs of these enterprises, which have traditionally not purchased an integrated business application. SAP Business ByDesign is a complete and adaptable on-demand business solution designed to unify and streamline core business operations for midsize companies.

What are the advantages of SAP Business ByDesign?

SAP Business ByDesign offers the following advantages:

Completeness – It’s an integrated business solution that supports a wide range of business operations. SAP Business ByDesign features fast setup through a personalised trial and its on-demand operation provides a very predictable cost of ownership.

Adaptability – Its rapid implementation delivers immediate business value, and its support for rapid change minimises disruption to business processes.

Power in the hands of the business – SAP Business ByDesign boasts the most modern business process platform in the industry. The underlying functionality allows business users to configure and adapt the solution to their unique and changing needs – without requiring extensive, expensive IT resources.

What areas will SAP Business ByDesign support?

SAP Business ByDesign supports the following areas:

• Financials

• Customer relationship management

• Human resources management

• Supply chain management

• Project management

• Supplier relationship management

• Compliance management

• Executive management support

Does SAP Business ByDesign cover industry-specific requirements?

SAP Business ByDesign supports common business processes across multiple industries. For businesses that require extensive customisation around industry-specific processes SAP recommend SAP Business One.

I hear that SAP Business ByDesign is available as an on-demand solution only. Does SAP have plans to offer an on-premise version?

SAP Business ByDesign is only offered with on-demand delivery. SAP hosts the solution and provides a scalable technology infrastructure, which includes built-in support and services.

How can I be sure my client’s system and data are safe if SAP hosts the software?

Data is protected by up-to-date access control systems and located in state-of-the art data centres, that maintain excellent standards in confidentiality, integrity, and security. They also provide off-site data backup to ensure security and availability.

Will SAP Business ByDesign replace the SAP Business One application or the SAP All-in-One solution?

SAP Business ByDesign does not replace any existing SAP products. It is one of several offerings from SAP for small businesses and midsize companies, along with the SAP ERP application, SAP Business One, and SAP All-in-One, which has been renamed SAP Business All-in-One.

What other SAP products might be a fit for my clients?

SAP currently has nearly 29,000 customers in the small and midsize enterprise space, and so understand that one size doesn’t fit all. SAP has several “business solutions that work the way you do,” delivered in an affordable, predictable way:

	SAP Business One is the right solution for mid-sized businesses that require a single, on-premise business solution to address their needs.
	SAP Business All-in-One is the right solution for small to midsize companies with deep industry-specific needs, multiple divisions, and a mature IT infrastructure.
	SAP Business ByDesign is the right solution for midsize companies that are focused on improving common cross-industry processes at a low cost and that are interested in an on-demand solution.

My client is an SAP customer. Will SAP Business ByDesign provide a migration path for their current SAP solution?

SAP Business ByDesign does not replace any other SAP solution, so there is no need for a migration path from your client’s existing solution to SAP Business ByDesign. SAP will continue to invest in all solutions and offer the innovations of SAP Business ByDesign as “process extensions”. Your clients can run these extensions side by side with their existing deployment, using the same SAP NetWeaver® platform. These innovations are intended to extend the other SAP solutions, not to replace them. As such, clients have the benefit of adopting them in an evolutionary manner with minimal risk.

My client is a large enterprise customer. Would SAP Business ByDesign be a good fit for their subsidiaries?

SAP Business One is the best solution for divisions of larger companies, who want on-premise delivery with the configurability and extensibility necessary to meet their needs. Both Sapphire and SAP continue to invest in pre-packaged best practices and flexible configuration functionality to ensure that SAP Business One is the best solution to meet the needs of divisions of large companies.

On the other hand, SAP Business ByDesign is targeted to midsize companies that traditionally have not been able to enjoy the benefits of an integrated business application because of their limited IT budgets and resources.

How long will it take to be up and running on SAP Business ByDesign?

SAP Business ByDesign is designed to speed deployment and user adoption with on-demand access, a personalised try-and-buy approach, ease of use, and built-in contextual help, service, and support. The goal is to enable customers to go live as soon as their company is ready – without software or deployment as limiting factors.

What is the minimum and maximum number of users for an SAP Business ByDesign installation?

There is no maximum user limit; however, a minimum of 25 users must be licensed.

For more information on SAP Business ByDesign please call our product advisory team on 020 7648 2000. Alternatively you can download our brochure here.

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Moat Housing select Proactis

Sapphire Systems is happy to announce that it is to supply and implement the Proactis Spend Control solution at Moat, a housing association based in the South East of England.

Located in Dartford, in the heart of the Thames Gateway and at the centre of their operating area, Moat is one of the main deliverers of affordable housing in three of the government's growth areas, as well as many other important localities throughout the wider South East.

As a result of an increase in both the size of the organisation and the volume of purchase orders generated, Moat determined that a formal system was required in order to maintain budgetary control and expenditure. The management team at Moat set about sourcing a purchase order processing system to manage the procure-to-pay process.

Moat short-listed both the 'Proactis' and 'Soprano' systems before making the decision that the Proactis Spend Control solution from Sapphire would best fit the requirements of the business. The Finance Team at Moat deemed that the proven track record of Proactis would meet the needs of the organisation today and in the future, with the sales ledger processing and dashboard reporting to be integrated into Moat‟s existing systems. Stuart McCreadie, Executive Director of Finance and Corporate Services at Moat, went on to comment "We were impressed with the positive referrals received from other customers of Sapphire and the quality of the sales and support offering.”

Once the Proactis Spend Control solution is up and running Moat expects to see better management of resources, the ability to process orders more efficiently and increased control over expenditure.

Clare Howard, Account Manager at Sapphire, concludes "Proactis Spend Control helps housing associations meet the requirements of corporate compliance demanded both by legislation and best practice. Finance Directors require instant cost-base visibility and there is a need to have a procurement system across the organisation in order to impose vital controls over spending, manage increased buying power effectively and dispense with disparate systems.

In addition to this I think we will start to see more of a trend towards automating typically inefficient paper intensive purchase-to-pay processes, to bring savings from procedure efficiencies and economies of scale. Organisations such as Moat are leading the way to improved efficiency within the housing sector.”

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Management Consultant Seminar

Need to keep your finger on the pulse of the business systems marketplace?

Free Market Update for Business Systems Advisors:

Date:    Wednesday 4th June 2008

Time:   08:00 – 11:00

Venue: Sapphire HQ, City of London

Enrol:   Click here

SAP Business ByDesign - the new on-demand solution from Sapphire

SAP Business ByDesign is a fully integrated, adaptable business solution built specifically to help dynamic, growing companies move beyond their IT limitations.

Join us for breakfast and find out more about the most complete on-demand business solution available for midsize companies. SAP Business ByDesign is:

	Adaptable and allows users to react quickly whenever business needs change
	Personalized to improve productivity with a role-based user experience, built-in learning, analytics, and collaboration
	Affordable and easy to adopt with the predictable cost of ownership of on-demand delivery by SAP

This morning session will include a demonstration of SAP Business ByDesign, as well as outlining the market position of this new SAP solution.

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Sapphire Whitepaper - Integrated Business Management Solutions for Mid-size Businesses

Click here to download your free Sapphire Whitepaper now!!

Mid-size companies share problems common to all businesses, regardless of size. These include meeting the needs of demanding customers, managing growth, reducing costs not quality, and ensuring that the business is always operating at maximum efficiency.

At the heart of the mid-size business is a complex balancing act: on one hand, the drive to create and manage growth, on the other, the need to maintain the flexibility and responsiveness that will continue to ensure business success.

If you would like to read the full whitepaper, please download it by clicking here.

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Sapphire Case Study: 19 Entertainment

 Introduction

19 Entertainment continues to redefine the rules of entertainment and achieve success for its creative and commercial partners, with triumphs including Pop Idol in the UK and American Idol in the United States.

The search for a new financial accounting solution

Significant growth and diversity of 19 Entertainment meant that the financial management team found that Sage, their existing accounting package, no longer met their requirements. They had a need for a financial accounting solution that would give them consolidation and flexibility.

Following a review of the accounting packages available on the market, the decision was taken to implement Infor FMS SunSystems. 19 Entertainment is made up of a number of statutory organisations, so SunSystems is a good fit as its excellent functionality make it possible to run 1 set of ledgers, rather than multiple sets; enabling consolidation of accounts for the group. Mike Feely, Finance Manager at 19 Entertainment, said “We have lots of projects and divisions, so the ability to cut and dice results – for example by project – is very useful.”

Sapphire’s credentials

Commenting on why 19 Entertainment decided to work with Sapphire Mike states “We chose Sapphire as our implementation partner as they are the leading provider of SunSystems.”

The Project Management team at Sapphire ensured that the implementation of SunSystems at 19 Entertainment went smoothly with Mike noting “The initial roll-out phase was pretty quick, just 3 or 4 months, which was well inside of our expectations.”

Now that the solution has been in use for a while, Mike says “SunSystems delivers pretty much everything we could want from an accounting package and the Vision reporting tool extremely flexible. Since implementation we have benefited from significantly improved reporting – previously there was a reliance on use of Microsoft Excel.”

The team at 19 Entertainment remain pleased with the decision to work with Sapphire; “We enjoy a good working relationship with Sapphire” states Mike, going on to add “The support provided is first-rate: the support team are very responsive and provide an excellent service via the support hotline and by email. The support desk is never understaffed and we always get the answers we need within a few hours”

Speaking on the day to day use of SunSystems Mike says “It’s different to smaller packages, so it took a little while for some members of the team to get used to it: SunSystems forces you to use basic accounting principles more than smaller systems. It’s pretty straight forward to train people that are new to SunSystems in the use of the solution; we now have no problem in training new starters in-house. I would say that we typically have 10 people at our London HQ logged into SunSystems at any time.”

Understanding your business

Mike advises others undergoing a review for a new financial accounting solution take as much time as possible over the planning stage, and really understand the output of the system before implementation. He recommends SunSystems as a “good mid-tier package that is very flexible, with good reporting capability.”

Ian Caswell, Managing Director at Sapphire, concludes “SunSystems copes well with multi-currency reporting, so is great for organisations with operations in more than one country. Also, I am often surprised by the number of organisations that are forced to rely on spreadsheets for important management information as their finance systems don’t work hard enough for them – it can cause disconnection between business strategy and operations. The unique combination of flexible analysis capabilities and integrated business analytics means that SunSystems delivers powerful reporting coupled with real-time alerts in order to highlight areas that need immediate action, anywhere within the business. In the highly competitive entertainment industry this kind of timely information is invaluable.”

For more information on Sapphire please call us on 020 7648 2000 or visit our website at: www.sapphiresystems.co.uk

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Sapphire win top SAP Business One reseller

 Sapphire named SAP Partner of the Year

SAP has named Sapphire the 2007 Channel Partner of the Year, based on revenue in the SAP Business One category at their recent UK Partner Awards.

The award ceremony took place on 10th April 2008 at the Landmark Hotel in London and was a celebration of a buoyant partner ecosystem that holds significant opportunities for all in 2008. Hosted by Bill Stewart, Head of SAP UK Alliances, the event included the entire UK Executive Board who attended to acknowledge the significant business contribution made by the SAP Partner Community throughout 2007.

Sapphire’s Managing Director, Ian Caswell, accepted the award from Donal Madden, Channel Director at SAP. Donal commented “Sapphire had another fantastic year in which they achieved double digit growth. They gained a phenomenal amount of new customers including companies as diverse as fund managers and media agencies, audio visual distributors and fabric suppliers to the military.” Donal concluded, “Sapphire led the way in the SAP Business One partner community by working closely with SAP and making major investments in their internal SAP Business One customer resources.”

On receiving the award, Ian said “We are delighted to have won this prestigious award. The SAP Business One team at Sapphire worked incredibly hard throughout 2007 and this award bears testament to their dedication. We attribute our success to our “customer-first” ethos which means the provision of a smooth implementation service, followed by a first class support and services offering - and we’ll continue in the same vein throughout 2008 and beyond.”

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Tightening your belt? Are you making the most out of your forecasting systems?

With media attention turning to the possibility of recession businesses will increasingly look to reduce the size of their cost base. For those with limited experience of a downturn the temptation is to make wholesale cuts across the business, for example a five percent reduction in overheads in every department. But such arbitrary cost cutting rarely fails to deliver a desirable outcome and potentially could be very damaging in the medium to long term. Furthermore, undue emphasis on cost cutting is to miss out on the opportunities for revenue growth and taking market share which inevitably arise when adverse trading conditions put competitors on the back foot. Gary Simon , FSN's managing editor examines how performance management systems can help.

Pragmatically, what can you do when the economy starts to slow down? When the economy starts to slow down, businesses need to take a close look at their profit forecasts and frequent re-forecasting should be high up on the agenda. A balanced approach to assessing business conditions is critical. Too little action leaves a business saddled with costs but taking too much overhead out of the business renders it potentially unable to respond when market conditions take a turn for the better.

Redundancies in particular should be treated with great caution. For many businesses people are certainly their most valuable and expensive asset but people are also expensive to recruit and train. It is therefore important not to over-react to a gentle recession. Theoretically, a swift re-forecast of likely sales demand will quickly identify appropriate resourcing levels but this assumes that that your business plans are integrated and consistent. A resource plan held in the HR department needs to be reflected in operational plans in each functional area and ultimately tied back to financial plans.

But companies whose plans are confined to discrete spreadsheets will find it difficult to respond to an urgent re-forecasting exercise, leaving them exposed to poor decision making. Companies that have invested in appropriate budgeting and planning systems that provide for integrated planning i.e. that link operational and financial forecasts will be much better placed to weather any economic storms.

Assuming that cut backs are necessary is the detail available within the plan to support decision making? Many budgeting, planning and forecasting systems hold only limited and high level information about employees making it difficult to identify individual resources and possible head count reductions.

Engaging with management at the ‘coal face' is even more imperative when businesses experience a down turn since local managers are best positioned to understand trading conditions at the sharp end of the business, for example, deals falling through, number of customers walking through their stores, or pricing resistance. But how well engaged are these managers? The spreadsheet based budget leaves Head Office virtually cut-off from its businesses with little real-time insight into trends and factors affecting performance. On the other hand, those businesses that use web enabled budgeting and planning software can quickly arrange a reforecast and gain up to date intelligence about trading conditions from across the entire business.

In the light of projected performance, decisions can be made in relation to the revenue side of the equation. What products should be promoted? Which products should be discontinued? Which stock items should be held in stock and what should be held on a re-order basis?

A clear understanding of sales demand is obviously high up the agenda but so is an appreciation of product profitability. The latter is not necessarily as straightforward as it seems since many businesses use outdated methods of measuring product profitability based on absorption costing. In these circumstances indirect costs and overheads are apportioned to products on the basis of fairly arbitrary cost drivers, such as number of people in a department or floor space rather than the true activities that give rise to costs. Companies that employ ABC (Activity Based Costing) techniques will have a far better understanding of which products and services to promote.

The same activity based principles apply to the assessment of customer and channel profitability, allowing businesses to quickly assess trade-offs between one sales channel and another or one customer and another.

Business intelligence suites, now a familiar part of overall Enterprise Performance Management (EPM) allow management to pull different strands of the business together. How many of your customers account for 50 percent of your earnings? How many of your products deliver 50 percent of your profits? If you cannot answer these questions on demand then you are probably using the wrong systems.

Budgeting, planning and forecasting systems set within the context of overall performance management are vital when the going gets tough, but the notion that systems alone can steer you out of trouble is misguided. Forecasting in difficult trading conditions needs collaboration and an open management style, unencumbered by remuneration and bonusing systems that discourage an honest assessment of performance.

But good governance without robust systems to match is equally unsatisfactory. The worry is that too many businesses are too heavily reliant on spreadsheets. With many businesses reporting increasing market volatility the ability to respond quickly can make the difference between survival and administration. Now is the time to examine your systems, shore up deficiencies and put performance building blocks in place. In a strong wind even turkeys can fly but when the going gets tougher only those that are well prepared will reach new heights.

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Industry Focus: Retail

Industry Overview: Sapphire solutions for the Retail Sector

According to the British Retail Council, it’s an industry that claims 11% of all VAT-registered businesses in the UK, and is one that generated sales of £265 billion in 2007 (accounting for 8% of the Gross Domestic Product of the UK). The retail industry really is business at the sharp end. Fast moving and complex, high profile and constantly changing, it is an environment where only the best managed and most innovative organisations succeed and thrive.

The Challenges

Strong competition, changes in consumer lifestyles and shopping habits, online trading and a 24/7 global economy have changed the face of retailing. To meet these demands your client may need a system that can help them deliver the very highest standards of customer service. A system that offers the agility to switch between day-to-day decision-making and tactical issues such as targeted promotions, seasonality and inventory management but that also offers strategic business support so that your client can manage global sourcing, business analysis, supply chain efficiencies and more.

Through solutions tailored for the retail sector, Sapphire can help your customer achieve operational efficiency. And by improving efficiency they can:

	Make faster, smarter decisions
	Respond quickly to market changes
	Control your cost structures
	Consistently meet performance standards

Sapphire offer solutions that connects information, systems and people so that your clients can provide an enhanced customer shopping experience, a more efficient store operation, improved inventory control and increased productivity.

We can provide:

	The ability to integrate with Point of Sale and bar code scanning technology
	An MRP module that’s fully integrated to Purchasing, Finance and Stock Control for intelligent and responsive re-ordering of stock and forecasting what to buy and when
	Full e-commerce
	A fully integrated Production module linked to the MRP module for responsive production of items
	Ability to conduct lead-time calculations from suppliers for ordering stock
	Full SKU Management
	Strong stock management with multiple bin-locations, fully integrated with sales and finance
	Multiple price list functionality for full gross profit calculations on items and stock lines
	Inherent landed costs functionality for import of goods and all relevant costings
	Intrastat reporting as standard for imported goods

Sapphire solutions for the retail industry can help all facets of a retailers' business. With Sapphire they can:

	Maintain consistent, company-wide views of financial and other information
	Devise optimal product assortments, pricing, and promotion strategies
	Gain control and visibility of all key business metrics from stores, suppliers, customers, and merchandise
	Increase customer satisfaction by identifying the products and services your customers value most
	Gain insight into customer behaviour and predict demand
	Optimise inventory levels across all locations and channels
	Manage all store locations from a single, integrated environment
	Match staffing levels with customer throughput levels
	Ensure that the right product is on the right shelf at the right time
	Offer targeted promotions to key customers
	Anticipate and take advantage of quickly changing market trends and requirements
	Implement world-class solutions in whatever countries you decide to trade

For more information on the solutions that can fulfil these requirements please visit our products and solutions section.
 

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