Australasian Intentia distributor BCM Systems has merged with Computer Results Team (CRT) and the new company, now majority-owned by Intentia, is to be known as Intentia Australia and New Zealand.
BCM was a distributor of the Swedish company’s Movex enterprise resource planning (ERP) software, while CRT is a service provider with a 60% consulting/40% product mix.
Intentia Sweden owns 51% of the merged company, with the remainder owned by former BCM managing director Steve Ironside, who now heads the new local operation.
Ironside says Sweden’s Intentia has invested about $A10 million in Intentia Australia and New Zealand, which includes buying CRT and setting up an Intentia “university” (initially just for staff).
Intentia Australia and New Zealand has about 230 people and revenue projects for 1998 of more than $A40m.
Ironside says the main reason for the name change was a need for a seamless approach to doing business globally, and one consistent image. He says Intentia is in the top eight ERP vendors worldwide and the top three in Europe.
Ironside believes in the near future there will be three or four major vendors in this part of the world, including SAP and SSA. “And one will be ourselves.”
So far this year the company has signed 10 new Movex contracts in Australasia.
Gartner Group Asia-Pacific research centre vice-president Bob Hayward said last year that by 2000 just five or six ERP vendors would account for 85% of shipped manufacturing solutions worldwide. He said SAP and Oracle would be in the top five and that PeopleSoft and perhaps JDE and Baan would also be there, but that you could toss a coin when naming who else might be there.
IDC New Zealand manager Graham Penn says the reality in the New Zealand ERP market is that SAP and PeopleSoft are “setting the running”.
“Everyone else is scrambling to catch up.”
He says that below them are JD Edwards and Geac. Intentia and Baan have accounts in New Zealand, but aren’t major players yet.
“That’s not to say they won’t pick up customers, obviously, but what they’re fighting all the time is not just PeopleSoft and SAP themselves.
“There are also all the consultants who are working with their clients to install ERP software. They’re going with SAP and PeopleSoft most of the time.”
He says major organisations are starting to “come down the totem pole” in New Zealand, looking to pick up smaller opportunities because many of the bigger ones have been accounted for.
He says the New Zealand manufacturing market is small compared to other countries.