Supply chain company Manugistics Group Inc is throwing all of its eggs into the Microsoft Corp basket in an attempt to carve out a future and get back into the black. Although the majority of its algorithms currently run on Unix, CTO Fred Rook told ComputerWire there is an evolution underway at Manugistics that will see the company hitch a ride on Microsoft’s coat tails as the Redmond bandwagon head towards the enterprise with SQL Server 7 and NT. A second part of the plan will see Manugistics develop a high-end decision support business from its supply chain base rather than extending farther down into the execution space where it would be competing more directly with the ERP vendors. Rook said Manugistics’ data warehousing and e-commerce strategies are both early indicators of these changes of direction. Specifically Manugistics this week unveiled plans to begin selling a range of applications which will enable users to analyze supply chain data alongside other operational information from ERP, point-of-sale, marketing and financial applications. It will sell packaged versions of Microsoft SQL Server 7 and OLAP services tailored for supply chain analysis, including data marts with pre-built logic, interface and reporting tools. It will also support Oracle data warehouses. Rook said the company’s strategy differs materially from its supply-chain rivals such as i2 Technologies which is creating a discrete supply-chain OLAP solutions using Hyperion’s Arbor Essbase technology, rather than enabling users to analyze supply chain data alongside other information. In many cases supply chain data is only 20% of the solution, says Rook. It will go with the enterprise application integration program and use Oberon Software Inc to develop plug-ins enabling customers to link Manugistics supply chain applications to other ERP, data warehouse and manufacturing programs. Jumping early to SQL Server 7 technologies as well as developing products in other related sectors should improve Manugistics’ ability to differentiate itself within the traditional supply chain application market. Staying in one place has led it to be squeezed by all sides from increased competition. The company recently reported a second- quarter net loss of $6.0m on revenues up 35.5% at $52.9m, compared to net income of $2.7m in the year-ago quarter.
