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QAD: The Big Picture

QAD: The Big Picture. Strong Company Consistently exceeds revenue and profit expectations Continues to grow in a difficult economy Financially strong, with $51 MM in cash Single Focus Develops solutions only for manufacturing Based on over two decades of experience Superior Execution

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QAD: The Big Picture

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  1. QAD: The Big Picture Strong Company • Consistently exceeds revenue and profit expectations • Continues to grow in a difficult economy • Financially strong, with $51 MM in cash Single Focus • Develops solutions only for manufacturing • Based on over two decades of experience Superior Execution • Lowest total cost of ownership • Fastest implementation • Best overall value Satisfied Customers • DSO now down to 55 days • 94% customer retention, the best in the industry

  2. Why QAD Leads in Manufacturing QAD’s manufacturing focus means: • More functionality • Higher Return on Investment • Lower Total Cost of Ownership • Faster Implementation Recent studies by two respected analyst firms, META Group and Gartner Group, confirm the benefits of a focused ERP solution.

  3. The META Study:“Deriving Value from 21st Century ERP Applications” January, 2003 • Comprehensive study by a leading research and technology firm compares the leading vendors: QAD, SAP, Oracle, PeopleSoft, JD Edwards, and Lawson. • Based on information from more than 200 of those vendors’ customers. • Results clarify the benefits of choosing a focused ERP package rather than one built to accommodate a variety of industries. • Confirms that QAD delivers lower cost of ownership, faster implementation and higher value than more diversified vendors can provide.

  4. Lowest for Manufacturing* when balanced by company size *Lawson is not a Manufacturing System Source:Meta Group, January 2003

  5. Study shows QAD has a 66% lowerTotal Cost of Ownership over SAP

  6. Fastest Time to Implement Source:Meta Group, January 2003

  7. Highest Value Source:Meta Group, January 2003

  8. “QAD’s Strengths”from the META Study “QAD has established itself among the front-runners in mid-market ERP when it comes to delivering strong functionality at a reasonable price. QAD has been able to deliver a surprisingly broad functionality footprint, while at the same time holding cost of ownership and implementation time at relatively low levels.”

  9. “QAD Strengths”from the META Study • “Very robust manufacturing and distribution functionality relative to the price. • It is a solid product and seldom breaks. • One of the easiest ERP systems to implement • Lack of heavy business process discipline allows users to react easily to change • QAD is user friendly even for people who have never used a computer before. • Total cost of ownership is very low – both initial and ongoing costs are below average. • Supports multi-mode manufacturing – discreet, batch process, repetitive, mixed mode.”

  10. The Gartner Group Report The 2003 Report on the ERP market from the highly respected Gartner Group contains this observation: “…user concerns ultimately affecting decisionsare vendor’s financial viability, depth and breadthof revenue sources, and ability to support the global needs of enterprises.” ’ QAD’s strong growth, solid financial health and global capabilities put it in a good position in allthree categories.

  11. Gartner 2003 Midmarket ERP Magic Quadrant

  12. What the Gartner Report says about QAD: “The company’s large installed base is segmented across a few vertical industries (including industrial, medical instrumentation and automotive). QAD has recently increased marketing activities to reach vertical-specific targets, and the vendor is reaping benefits in “mind share” and customer acquisitions. In addition, QAD’s broad geographic coverage and partnerships with regional midmarket service enterprises strengthen its overall deployment capabilities.”

  13. Gartner concludes: “Although there are compelling reasons to consider larger, more-viable vendors, they may lack proven capabilities to understand and provide the low-cost, high-support, feature-rich and rapid-implementation. Users lured by larger vendors that have designed special implementation programs with special pricing should also consider product complexity, global availability of local resources and long-term maintenance, as well as reference sites of their size and in their industry”.

  14. Market Positioning:Focus is back as a better strategy H 2007 1999 Mega-suite Vendors Industry Breadth Focused Vendors L Focused Depth L H

  15. Leadership • “Focused” Applications Leader • Total Cost of Ownership Leader • Time to Implement Leader • Return on Investment Leader • Vertical Leadership (& sub topics)

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