002: The Benefits of Working With a SAP Partner

Simplify: SAP Partners Help Business Run Simple

Simplify is SAP’s show where we talk to our partners about how they work with small and mid-market companies to help them simplify business processes.

Here’s a summary of our conversation with Ralph Hess, VP of Sales and Marketing at Navigator Business Solutions, a SAP partner who understands why SAP partners are so important.

Ralph manages a national sales team from Massachusetts and focuses on selling cloud enterprise resource planning solution (also known as ERP) to small to mid-sized enterprises.

What is the benefit of working with a partner when working with SAP solutions?

SAP is structured around large enterprises and when SAP was ready to sell to smaller companies, they knew they would need to be more local. They recruited partners, like Navigator Business Solutions, to be closer to the customers.

What percentage of your customer base is small to mid-sized companies?

95%. Most of Navigator Business Solutions’ companies have a revenue of $5 - $400 million. Ralph and his team have come up with a few unique value propositions to match each company’s requirements for implementation.

What type of customer and/or industry does Navigator Business Solutions focus on?

Navigator Business Solutions focuses on companies who have core capabilities (SAP Business One and Business ByDesign, both cloud solutions) around distribution, wholesale, or consumer products. There are also project-based companies, and there is a focus in the life-sciences.

What are life-sciences?

The go-to idea of a life-science is pharmaceuticals or medical device companies, but there are other companies, like manufacturers, who also have a high degree of regulation.

How would you implement a solution for a life-science company?

A medical device company might have complex supply chains. For example, they might be a US company that develops the product in the US but manufactures overseas.

Before a company like this gets big, they might use spreadsheets to manage everything. Then, they get more sophisticated and started using accounting-specific software. After that, they are ready for an SAP solution.

How would a life-science company find you?

Usually, the company grows slowly and often gets a new CFO. New software developers are probably brought in and decide on SAP ByDesign.

When you’re a partner, like Navigator Business Solutions, the software publisher (SAP) has the name and reputation. The smaller company (i.e. the client) wants to go bigger and partners are the dedicated marketplace for these smaller companies.

What does a SAP partner do?

With a rigid sales process, including budget and process, Navigator Business Solutions interviews the company to help them articulate their business requirements. Then, Navigator Business Solutions does a demonstration using out-of-the-box SAP solutions to find the best fit for the specific company.

We, as a company, find the gaps and brainstorm solutions to make clients’ business run more smoothly. The client implements the solution, begins to see business efficiencies, and watches the company begins to grow.

What kind of benefits can a company see by using a SAP product?

In high growth companies, you look at being able to do more with less.

Clients can close the books and produce financial statements at the end of the month in just a couple days instead of weeks. Management of the goods/supply chain can be achieved through the use of a proper application.

Companies have been able to reduce the number of planned hires by being more efficient with SAP products. They can focus on the future of their business instead of handling multiple moving pieces.

Navigator Business Solutions deals have created implementation methodologies in 1 of 3 ways:

1. Standard Implementation – installing the software, teaching you how to use it, and running very quickly to get a fast ROI. You can be running in 12 weeks.

2. True Cloud Implementation (ERP*-like) – the customer may already have custom business processes and the business might need some customizations that adapt to the customer’s use. There are more consultancies and a longer implementation experience.

*ERP is an “enterprise resource planning solution” that takes all business functions and puts it into a suite of products, which allows the company to use the functionalities it needs and gives the company the opportunity to grow simultaneously.

3. Large Enterprise Edition (EPR-like) – a more sophisticated and complex company might require more project and change management that have extra layers of service to configure the product to look and feel how the customer expects.

One of the qualifying questions Navigator Business Solutions ask is, “What is your anticipated growth over the next 3-5 years?” Growth matters in this business, and it’s not taken lightly.

Two products Navigator Business Solutions promote are Business ByDesign and Business One.

Business ByDesign is a product SAP wrote from scratch born for the cloud, on the cloud. It’s the only ERP developed to be run on the cloud. This platform is best for a company with beginning revenue of $15-20 million and growing.

Business One is a product that is rapidly moving toward the cloud. This is best for a $5-40 million dollar business.

To connect with Navigator Business Solutions, visit www.nbs-us.com.