ST. PAUL, Minn.--(BUSINESS WIRE)--Aug. 8, 2007--Lawson Software (Nasdaq:LWSN) today announced that the industry analyst firm Aberdeen Group, based on a survey of 645 mid-size manufacturing companies, identified Lawson as the top provider of business performance improvement for the money, when compared to five other ERP vendors. Aberdeen's research reveals that Lawson delivers more measurable business improvement than its competitors, given the same investment in software and associated professional services. The other primary vendors identified in the research included QAD, Epicor, SAP, Oracle and Infor.
In the research report written by Cindy Jutras, vice president of research at Aberdeen, "The Total Cost of ERP Ownership in Mid-Size Companies," Lawson delivered an average 22.9 percent improvement in manufacturing process performance, better than the other five vendors. This includes an average 25 percent reduction in inventory costs, 28.8 percent improvement in complete and on-time shipments, and 18.1 percent reduction in manufacturing operational costs. In contrast, in this category, Oracle averaged a 13.2 percent improvement in performance and SAP averaged a 15.6 percent improvement.
Moreover, each percentage point improvement in performance cost Lawson's mid market customers $516 per user, versus SAP's cost of $969 per user and Oracle's cost of $1,791 per user. That is 88 percent and nearly three times more expensive respectively. Lawson was also significantly less expensive than the other two ERP vendors included in the study.
"These results prove that Lawson is not only cost-effective for mid-market manufacturers, but also delivers tremendous business benefits," said Harry Debes, president and CEO of Lawson. "Aberdeen's report validates what we have been saying since our merger with the former Intentia International, that simpler really is better for our customers."
Debes will highlight the study today during a presentation at Lawson's Financial Analyst Day at the NASDAQ MarketSite in New York.
Aberdeen further found that Lawson delivered an average 21.4 percent reduction in administrative costs and a 21.3 percent improvement in manufacturing schedule compliance, both significantly better than the other five vendors studied.
In an accompanying research report conducted by Jutras for Aberdeen Group, Lawson ranked No. 1 in cost per percentage point of functionality used. The report, "The Cost of ERP Functionality," examined both the depth and breadth of functionality deployed, as well as the cost of ERP in terms of software, services and maintenance for seven major ERP vendors. This study included 1,680 manufacturing companies of all sizes.
About the Studies
Aberdeen's results are based on a survey of 645 manufacturing companies with annual revenues between $50 million and $1 billion. The firm selected vendors for the two reports - "The Total Cost of ERP Ownership in Mid-Size Companies" and "The Cost of ERP Functionality" - based on the sample size available from its pool of survey respondents. Samples per vendor ranged from 41 to 275. If a sample size was less than 100, vendors were only included in the study if responses were uniform and consistent.
About Lawson Software
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. Visit Lawson online at www.lawson.com.
This press release contains forward-looking statements that contain risks 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission. Lawson assumes no obligation to update any forward-looking information contained in this press release.
SOURCE: Lawson Software