PSDI is a leading solutions provider for streamlining the MRO supply chain. Through its subsidiary, MRO.com, Inc., the company complements its MAXIMO® work and materials management software with its MRO.COM brand Internet-based B2B marketplace for buyers and suppliers, a suite of online procurement software products that improve purchasing efficiency, and Internet-based content management tools and cataloging services. Businesses, government agencies, and other organizations use PSDI's products across their enterprise to assist them in the management of their high-value capital assets, such as plants, facilities, and production equipment, to cut inventories and supply chain costs, control maintenance expenses, reduce downtime, and more effectively deploy productive assets, personnel and other resources. Based in Bedford, Mass., PSDI markets its products through a direct sales force with sales offices throughout the United States, Argentina, Australia, Canada, China, France, Germany, Hong Kong, India, Italy, Mexico, the Netherlands, Sweden, Thailand, and the United Kingdom, combined with a network of international distributors. All PSDI news releases are available via the PSDI Home Page at http://www.psdi.com. The following research is brought to you by PSDI and is reproduced in its entirety with permission from Gartner. Based on PSDI's vantage point as an MRO supply chain, solutions provider, we offer this information to provide updates on technology issues. Source: PSDI Interim EAM Magic Quadrants: 2Q00Users choosing EAM products or crafting systems with ERP and asset management components should use these EAM Magic Quadrants. Vendor position is based on market segmentation from recent ERP Magic Quadrants. As in our enterprise resource planning (ERP) Magic Quadrant, we have realigned Tier 1 to represent enterprises with more than $800 million and the midmarket to be enterprises with revenue from $50 million to $800 million. Users should not interpret the shifts in vendor position without understanding the driving function that caused the movement the realignment or a fundamental shift in vendor performance. Tier 1: In this category (see Figure 1), the new market size break points have caused realignment. We have maintained the distinction between comprehensive systems and best-of-breed (BOB) products that require integration with an ERP system to provide full enterprise asset management (EAM). Leaders: SAP returns to this category due to large enterprises' broader acceptance of SAP's PM module (see Note 1). Project Software & Development, Inc. (PSDI) remains a leader, but scalability to large users remains an issue. (Users looking for BOB functionality should consider Maximo and others.) Challengers: Datastream's MP5 product reflects improved vision and consistent execution vis-a-vis Maximo; enterprises should compare the two if shortlisting either one. Mincom moves to the challengers category (see Note 2), and Indus International still articulates a challengers vision for BOB EAM, but execution (e.g., robust delivery on all supported platforms) is an issue. Both Indus and Mincom offer the highest work and materials management functionality in the EAM segment, and enterprises should consider both, as well as the leaders.
Note 1 SAP Users PM should not be a driving function for the selection of SAP. R3 users at r.4.6b or higher should consider PM, since its integration benefits outweigh any functionality or usability shortfalls. Release 3.X.X users should upgrade to r.4.5 or higher before eliminating alternatives to PM. Source: Gartner
Note 2 Mincom's movement is caused by delays in bringing a cohesive global product to market under its new organizational structure. Lack of MRP and intrinsic CRM functionality offset the benefits of integrated financials and human resources, given the industry trends toward BOB architectures. Source: Gartner Visionaries: Industrial and Financial Systems (IFS) remains a visionary, as scalability to multibillion-dollar enterprises (from an EAM perspective) and third-party service relationships with EAM systems integrators remain an issue. Fluor's application service provider (ASP) strategy with Tabware Online is developing an identity and user appeal based on aggressive pricing. Niche Players: Here, we see Ramco Systems and ADB Systems advancing due to market redefinition, rather than overt activity on their parts. (ADB remains a niche player due to its oil and gas focus. Enterprises in that segment should consider it, as well as the broader market providers.) Marcam Solutions is repositioned due to its Wonderware acquisition. Its process integration via the Factory Suite products adds in-process alarming functionality, but the lack of an "e" strategy makes it best suited to be a floor front-end plant product for most Tier 1 enterprises. Walker Interactive Systems is reidentified as Immpower, based on the product sale to Gores. Gartner does not recommend Immpower for new acquisitions due to the number of systems from companies with better product investment strategies. Midmarket: In this expanded Magic Quadrant (see Figure 2), we have identified BOB vs. full-function applications, which was not done previously. The midmarket redefinition necessitates this distinction. Enterprises should incorporate the BOB vs. integrated architectural decision in the overall evaluation. Leaders: The midmarket segment (see Note 3) is more competitive, with PSDI and Datastream retaining leadership spots. Challengers: J.D. Edwards (JDE) gains position here due to its total EAM solution, although it is better suited to reactive/preventative maintenance than predictive or reliability-centered maintenance/total productive maintenance (RCM/TPM) models. Users should only consider JDE when an integrated system is required. JDE PEMS should not be a driver for a total JDE selection, given its reactive/preventive maintenance focus.
Note 3 The Competitive Midmarket The MP product set and Maximo both offer clients solutions that are scalable to enterprises in this segment with high functionality and comparatively straightforward implementations. An approximate 1:1 license/service ratio or less is achievable and is a key criteria for leadership in this segment. Source: Gartner
Visionaries: IFS, a visionary due to its EAM offering's lower global penetration, is more suitable for enterprises looking for a total EAM solution from a single provider with an RCM/TPM focus. Fluor's ASP model appeals here, as well as Tier 1. Niche Players: Vendors here (see Note 4) are positioned for disparate reasons. Users should generally not rule out niche vendors, as BOB EAM vendors are all niche players to a degree, but should realize that long-term viability is the greatest challenge to EAM niche players.
Note 4 Other Niche Vendors Mincom is a niche player due to scalability downwards, Ramco due to low market penetration globally and Indus due to dual-product strategy confusion in clients' minds. Marcam is positioned to become a challenger if it can leverage traditional Wonderware channels to drive sales beyond that as a front-end. Ivara is added based on its relationship with Siemens, which has yet to bear fruit, but offers significant promise. Maincor from MAPICS and Mainsaver from Titan have returned due to new ownership, but have unproven results thus far. Source: Gartner Bottom Line: Tier 1 enterprises should look to leaders or challengers for BOB or integrated systems on a global basis and, regionally, should consider visionaries or niche players based on industry. Midmarket, BOB is the most viable strategy, but total solutions can be had, with a trade-off between viability or vision. Enterprises will see continued delineation, as niche players struggle for long-term viability unless focused on a specific industry with unique demands. Gartner's Manufacturing Applications Strategies Research Note M-11-1649, 26 June 2000.
Posted on July 24, 2000.
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