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Lawson Ranks No. 1 in ERP Software Cost Per User in Independent Research Firm’s Report on Manufacturing Industry

  • 10 November, 2006 15:24

<p>Study validates Lawson’s total cost of ownership advantage</p>
<p>Lawson Software (Nasdaq:LWSN) today announced that independent research firm Aberdeen Group's recent study found that Lawson is the No. 1 provider in software cost per user among five leading manufacturing ERP vendors.</p>
<p>The Oct. 17, 2006 research report by Cindy Jutras, The Total Cost of ERP Ownership, examines how five of the top ERP vendors compare against specific metrics designed to measure Total Cost of Ownership (TCO). Aberdeen based the results on a survey of 689 manufacturing companies that were using a single ERP vendor.</p>
<p>The research validates Lawson's advantage in three key TCO areas: price, price performance and cost of business benefits achieved. In price, Lawson has the lowest average software cost per user among the ERP vendors at $2,086. The other vendor applications profiled cost up to 48 percent more per user for software and services.</p>
<p>In price performance, the report ranked Lawson as tied for the leadership position in the highest number of ERP modules used by companies - 11.11 modules out of a generic set of 24. Modules are applications such as General Ledger, Accounts Receivable, Human Capital Management, Forecasting and Demand Planner that are found within the broader ERP suite. "The fact that our customers are using so many of our modules tells us that customers are getting more value out of their investments with Lawson," said Dean Hager, senior vice president of product management, Lawson.</p>
<p>The report also showed that of the five vendors in the study, Lawson secured the lowest average cost per user per percentage point of functionality used in the ERP modules. Using the same criteria, the other vendor applications are up to 46 percent higher in cost.</p>
<p>Aberdeen also recognized that the success of an ERP implementation needs to be measured by the achievement of business benefits such as the reduction in manufacturing operational costs and improved manufacturing schedule compliance. The study revealed that Lawson has a lower average cost per percentage point of business benefit improvement than the largest ERP vendors.
"We know that factors such as cost, industry expertise and financial viability as a vendor are important to our customers and prospects," said Hager. "We're addressing all of those with an ERP system from a company that keeps it simple in a complex world of globalization, compliance requirements and a myriad of application options."
A related August 2006 Aberdeen study, the ERP in Manufacturing Benchmark Report, also by Cindy Jutras, said functionality and TCO were clearly the top two selection criteria in ERP software decisions.
Scott Macaulay, financial controller, Ballantyne, concurs that functionality, cost and knowing the market were critical to their business. "When we initially selected Lawson, we were impressed with the system's functionality, pricing and Lawson's implementation team," said Macaulay. "We especially like the company's market focus--Lawson's demonstrated commitment to the middle market tier was a valuable factor for Ballantyne. At the time, we reviewed several vendors, including SAP, but Lawson proved to be a much better fit to our needs from a cultural and developmental perspective."</p>
<p>Lawson M3 applications are designed for the "make, move, maintain" markets and include Manufacturing Operations, Enterprise Performance Management, Enterprise Asset Management, Supply Chain Management, Customer Sales and Service, Finance Management, and Business Process Management. The Lawson S3 applications are designed for the "staff, source, serve" markets and include Human Capital Management, Enterprise Financial Management, Supply Chain Management and Enterprise Performance Management.</p>
<p>About the Study</p>
<p>Aberdeen selected vendors for the The Total Cost of ERP Ownership report who were competing for market share in the same or significantly overlapping market segments. The vendors also each had more than 100 of their customers participating in the study. Aberdeen developed this latest report based on a survey that also produced the ERP in Manufacturing Benchmark Report, by Cindy Jutras, which was published in August 2006. Lawson was one of four vendors that sponsored the study.</p>
<p>About Lawson Software</p>
<p>Lawson Software provides software and service solutions to 4,000 customers in manufacturing, distribution, maintenance and service sector industries across 40 countries. Lawson's solutions include Enterprise Performance Management, Supply Chain Management, Enterprise Resource Planning, Customer Relationship Management, Manufacturing Resource Planning, Enterprise Asset Management and industry-tailored applications. Lawson solutions assist customers in simplifying their businesses or organizations by helping them streamline processes, reduce costs and enhance business or operational performance. Lawson is headquartered in St. Paul, Minn., and has offices around the world</p>
<p>Visit Lawson online at www.lawson.com.</p>
<p>Forward-Looking Statements</p>
<p>This press release contains forward-looking statements that contain isks and uncertainties. These forward-looking statements contain statements of intent, belief or current expectations of Lawson Software and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company is not obligated to update forward-looking statements based on circumstances or events that occur in the future. Risks and uncertainties that may cause such differences include but are not limited to: uncertainties in Lawson's ability to realize synergies and revenue opportunities anticipated from the Intentia International acquisition; uncertainties in the software industry; uncertainties as
to when and whether the conditions for the recognition of deferred revenue will be satisfied; global military conflicts; terrorist attacks; pandemics, and any future events in response to these developments; changes in conditions in the company's targeted industries; increased competition and other risk factors listed in the company's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. Lawson assumes no obligation to update any forward-looking information contained in this press release.</p>

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