Dassault Systèmes aims to provide value by connecting all business processes from product design and planning to execution for supply chains. Supply chain leaders must ensure Dassault will expand Quintiq services and support.
On 24 July 2014, Dassault Systèmes (DS), a French design and product life cycle management vendor, announced that it plans to acquire Quintiq, a Dutch planning and optimization vendor with strong supply chain credentials. The deal is due to complete in September 2014.
DS's latest acquisition will enable it to expand into the supply chain management market, and supply chain planning in particular. Quintiq is a strong vendor in planning, scheduling and optimization — its solution can address most planning problems through its functional depth and configurability, and its talent pool is deep. DS believes that, through planning and execution, it can create value for customers by connecting all business processes from product/service innovation, design and production to final delivery.
DS's vision is a bold one that should be valuable to users. DS is likely to maintain Quintiq's value. It will probably successfully articulate a strong vision to customers and prospects. But the challenge for DS will be delivering this vision to the market and selling it to organizations at the right level of readiness.
In the short term, DS will move Quintiq to its Delmia business group where it will remain a separate entity. DS looks set to take on all Quintiq's employees. Quintiq is known as an innovative vendor and we believe this will continue.
DS and Quintiq focus on different industries with only some overlap in manufacturing and workforce management. This gives DS growth opportunities. The few areas of industry overlap give some medium-term opportunities for both product lines.
DS is likely to offer a combination of modeling and simulation, and Quintiq planning, scheduling and optimization, to joint customers in industries such as mining. We expect the companies will then develop solutions in other industries. But DS must ensure that Quintiq's resources aren't stretched so far in focusing on areas of alignment that it threatens Quintiq's ability to remain a force in logistics planning and scheduling.
DS will find it challenging to expand Quintiq's ability to adapt the solution to customer requirements. Quintiq is capable in this area, but DS will need to mature and improve. Quintiq exploited its ability to customize the solution throughout the customer engagement life cycle, starting in the sales process, where it would invest days building configured workflows to demonstrate its capabilities.
In the longer term, DS will talk about "business operations planning" in its Delmia business group. It will try to use Quintiq to drive planning across all types of resources at every level, linking DS product design and manufacturing/logistics execution capability (from its Apriso acquisition). Converging these areas may create synergy if DS executes well. However, big acquisition strategies are rarely successful. DS has a good track record of keeping acquired talent, but it will probably take years to pull off this ambitious convergence strategy — if it does at all.
Quintiq customers: Secure assurances about the availability of key Quintiq personnel, particularly in logistics. Check any new terms and conditions (T&Cs), as DS's T&Cs are tougher than some.
Delmia customers: Evaluate Quintiq if a planning requirement develops.
Quintiq/Delmia prospects: Evaluate the solutions on their individual merits. Don't factor in any potential value from a converged offering until such a solution exists. Prospects of Quintiq's logistics offerings should conduct extensive due diligence.