RightWorks Corp has announced the delivery of its first product, ProcureWorks 1.0, a software system designed to manage purchasing and other corporate functions. The San Jose-based company describes the product as a distributed, web-based application that allows for automation and management of the procurement process across an enterprise. It is designed to deliver a five- pronged service: reduce order processing costs and cycle times, provide enterprise-wide access to corporate procurement capability through self service, achieve integration with key back-office systems, provide real-time metrics that enable management to maximize spending efficiency, and elevate procurement to a position of strategic importance within the organization. Director of product management Lenny D’Amico says the main differences between RightWorks’ product and those of its competitors are that it is web-based, truly scalable and rests on every desktop. D’Amico says ProcureWorks doesn’t just automate purchasing but provides the ability to more proactively manage all the processes associated with it. He also boasts that his product offers a guaranteed deployment time of 120 days, far less time than it would take for large companies to build their own purchasing management systems. It is a matter of configuring, rather than customizing, he says. The product snaps on to existing infrastructure and currently features an interface with SAP and Oracle ERP software. Support for PeopleSoft and Baan is expected to be announced later this year. On the database side, it supports Oracle MS/SQL, Informix and Sybase. ProcureWorks is actually the first in a line of four applications to come from RightWorks. Scheduled to arrive within the next 6 to 12 months, are AssetWorks, ExpenseWorks and TimeWorks, which will offer management capabilities in the areas that their names imply. All of the applications should be available in an integrated suite within 12 to 14 months, D’Amico promises. Rightworks, founded in 1996 under the name MediaKola, claims its business as the emerging field of operational activity management systems. The company says it changed its name because it found the word media was confusing to potential clients. The company has also announced ProcureWorks’ first two accounts: semiconductor manufacturer Applied Materials Inc and E-Tek Inc, a provider of optical electrical solutions for the telephony industry. It claims to be announcing several big name customers in the coming weeks. RightWorks is banking on research that says Global 2000 companies spend between 20% and 50% of annual gross revenue on high-volume, indirect goods and services – and through strategic purchasing can reduce annual procurement expenses by 4% to 7%. A recent study by Hambrecht & Quist indicates that the market for advanced procurement management systems is expected to reach roughly $500m by 2000. ProcureWorks will be distributed initially through direct sales, but D’Amico says the company is developing relationships with several major systems integrators to cover the channel distribution part of its strategy. ProcureWorks is available now and is priced at $250,000 to $500,000 depending on the number of seats and application servers required.
