'ERP systems are designed to be static'

The enterprise software solutions space has been going through a
consolidation phase in recent years. A lot of specialist players, especially
those in the arena of supply chain software like Manugistics have been losing
ground. The US-based Manugistics recently set up a development center in
Hyderabad. Rob Thomas, vice-president for group product development, was in
Bangalore recently and he spoke to Priya Padmanabhan of CyberMedia News about
its product development strategy and its plans for the Indian development
center.

What kind of solutions would the Hyderabad center be working on?

In conjunction with Manugistics' development center in its Rockville,
Maryland headquarters, Manugistics India will be the hub for high-level
development of strategic software solutions. The India center will be
responsible for full lifecycle product development of supply chain management,
logistics and revenue management solutions. We will have 250-300 skilled
professionals with leading-edge experience in areas such as web-enabled
architecture; development skills in Java/J2EE, algorithm, C++, SQL and UNIX,
data modeling, database administration and system administration; and product
management and business analysis with supply chain, ERP, manufacturing,
logistics management expertise, and core and domain quality assurance.

What are the cost savings for the company as a result of having a
development center in India?

By the end of fiscal year 2006, Manugistics expects to see costs savings of
between $2-3 mn a quarter. We are transitioning a majority of development skills
from Manugistics US and hiring employees in India.

How have you positioned your supply chain solutions against enterprise
solution providers like SAP, Peoplesoft and Oracle?

Unlike these competitors, Manugistics delivers supply chain solutions, not
ERP systems. We are uniquely positioned to deliver services, knowledge, and
solutions, and support the retailers, consumer goods, government and the
travel/transportation/hospitality industries that require dynamic supply chains.
Also, with the marketplace globalizing, the complexity and variability of the
supply chain is in constant change. Manugistics solutions have been optimized
and synchronized to meet the very nature of dynamic supply chains. By the very
nature of supply chains, they are dynamic, not static and Manugistics solutions
address evolving/changing needs. ERP systems are designed to be static.

Can you provide some pointers on the market drivers in the supply chain
space and where the market is headed?

The supply chain is becoming global and will depend on synchronization
across the entire supply chain network. The key will be to have relationships up
and down the supply chain from retailers to the suppliers and manufacturers and
everything in between including logistics, transportation and pricing solutions.