NEC partnership one pillar in IFS plans

"What companies want from business applications vendors today has changed," says IFS President and CEO Michael Hallén. "It doesn't fit easily into acronyms like ERP, SCM, or PLM. What they want is a life cycle for customers, products, or assets. They want a business process."

To illustrate the point, Hallén could turn to at least two of his customers speaking at the IFS World Conference 2004 in Orlando in March.

Bethesda, Md.-based Lockheed Martin uses the IFS solution in a program relating to the F-35 Joint Strike Fighter project.

Ralph G. Giffen III, VP operations, simulation, training, and support for Lockheed Martin, says for the project, Lockheed required a Web-based component system for rollout and maintenance activities. "IFS was the only vendor that met that criteria. We take IFS applications and put them into the Lockheed Martin development platform. We end up with a soldier-proof computer system."

Birkenhead, U.K.-based Cosalt International, a supplier of safety equipment to the marine industry, has the "complete package" of IFS applications for its 18 sites, which handle more than 100,000 product lines. But what it really wanted, according to managing director Winston Phillips, was to improve an admittedly dismal customer service record.

For this, the use of the sales and marketing component, combined with that for business performance management, "proved to be the most important part."

"The problem wasn't with our strategy; it was with execution. With these tools we were able to drive uniform use of the system, and monitor its use across a wide range of detailed performance indicators for customer service."

High-tech behemoth NEC, with U.S. headquarters in New York, has acquired a 7.8-percent stake in IFS as a means to deepen an already existing relationship that to date has garnered more than 48 customers in the manufacturing sector. With opportunities expanding in the Asia-Pacific region—where NEC provides sales, consulting, and implementation support—"We expect our deeper relationship with IFS will accelerate growth within our solution business," says NEC President Akinobu Kanasugi.

Hallén points out that while IFS is publicly held, ownership resides in just a few hands, allowing for good, long-range decision-making.

What's more, says Hallén, the NEC partnership is one important aspect—but not the only aspect—of IFS' goal of "creating an environment to stay independent."

First cited is IFS' focus on key industrial segments. Hallén, as former head of software development, is quick to also include the company's consistent R&D investment, its commitment to open systems, and the significant work it has done "componentizing" its solution architecture over the last several years. The company is profitable, and has one global product and organization.

This resolve on IFS' part to remain independent is taking place amidst ERP industry consolidation that may or may not have reached its peak.