significance of product leadership - macola · significance of product leadership ... understanding...

BEST PRACTICES RESEARCH

© Frost & Sullivan 2015 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

Product Family Attributes and Business Impact ........................................................ 3

Conclusion........................................................................................................... 7

Significance of Product Leadership ................................................................................ 7

Understanding Product Leadership ................................................................................ 7

Key Benchmarking Criteria .................................................................................... 8

Best Practice Award Analysis for Exact .......................................................................... 8

Decision Support Scorecard ................................................................................... 8

Product Family Attributes ...................................................................................... 9

Business Impact ................................................................................................... 9

Decision Support Matrix ...................................................................................... 10

The Intersection between 360-Degree Research and Best Practices Awards ..................... 11

Research Methodology ........................................................................................ 11

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 12

About Frost & Sullivan .............................................................................................. 13



Background and Company Performance

Industry Challenges

One of the biggest challenges facing the North American food and beverage industry is the

variability in some of the involved processes. A multi-level bill of materials is specified, yet

many times variations in the actual usage of a particular component of a finished good still

occur. Often, users working on the shop floor find it difficult to account for the variances.

Frost & Sullivan notes that a related challenge is in keeping the recipes and formulations

within the enterprise resource planning (ERP) systems, which are stored externally.

Usability is vital in the food and beverage industry. Food and beverage manufacturers

report to Frost & Sullivan now they are forced to make a choice between capturing a lot of

data to generate the necessary metrics pertinent to the amount of raw materials

consumed and fast production. They find it quite challenging to generate detailed reports

on both categories without exponentially adding more parameters to the metrics system

that demands additional data capture from the user end.

Under such circumstances, Frost & Sullivan agrees that companies must work to address

challenges particular to ERP systems. Solutions must configure, automate, and simplify

while accounting for the variances by swapping substitutions in and out as needed, must

be interactive and take actions that can make reporting simple, and must be dynamic and

provide the extended capabilities as required by food and beverage customers. Moreover,

all of these features must be bundled and offered at a budget-friendly price.

Frost & Sullivan believes that companies capable of properly addressing these needs are

best prepared to strengthen their leadership position in the North American food and

beverage industry.

Product Family Attributes and Business Impact

Match to Needs

Exact Macola 10 is a fully-functional ERP system that equips a manufacturing company

with several functions designed to help strengthen its competitive edge. The core

component of any ERP product is the ability to track what is happening on the shop floor

and to build a clear understanding of the manufacturing business. Exact built on this

understanding by adding Exact Synergy to Exact Macola 10. As a standalone product,

Exact Synergy’s functionalities include customer resource management (CRM), document

management, and process flow. When paired with the core Exact Macola 10 product, its

range of functionalities extends an ERP system to perform operations and applications not

possible before. Essentially, it gives customers access to the back end of workflows that

drive an ERP system.

Another noteworthy attribute of Exact Macola 10 is automation. Exact uses a product out



of its toolset called Exact Event Manager to drive the automation of food and beverage

production. Exact Synergy and Exact Event Manager are integrated within Exact Macola 10

and then applied into workspaces. Workspaces are the front-end of what users see on

Exact Macola 10, a kind of interactive dashboard with the ability to not only drill down into

numbers, but also to take action.

Take, for example, the automation of certain raw materials (such as flour or another

consumable in stock) that for some reason drop below a pre-determined level, even to a

negative level. The automation tool takes action, such as notifying the buyer responsible

for maintaining that inventory. The solution identifies substitute items and swaps them out

on the bill of materials of open-shop orders for that particular finished good. This feature

is a configurable, out-of-the-box solution. Therefore, on the manufacturing side, Exact

Macola 10 is capable of automating a lot of these tasks that, in the past, could only be

done by people working on shop floors and only after referring to a report or a physical

piece of paper, which is time consuming. A lot of Exact's customers are using workspaces

to help their employees take instant action - instead of wasting time flipping through

multiple product screens.

Exact Macola 10 has simplified the process of collecting production floor data through

automation and storing it in one central location. With its shop floor manufacturing

module, Exact has worked diligently to simplify accounting for the variances in processes.

Product/Service Value

Exact has attempted to render enhanced value to its customers in North America by

making its Exact Macola 10 system available at an attractive price. All ERP products,

typically, have manufacturing, distribution, and accounting capabilities. Exact took

different products and then added to and integrated them such that they all work

together. For instance, Exact has integrated CRM, human resources management,

document management, workflow, and automation capabilities into one complete solution,

unlike that of its competitors’ offerings that would come at a high price point. Therefore,

Exact’s customers enjoy the benefits of its Exact Macola 10 system featuring a rich set of

tools, all at a budget-friendly price that is unmatched in the North American market.

Design

One of the key differentials of the Exact Macola 10 system is the workspaces. The

workspaces are built on SQL server reporting services (SSRS), which makes them dynamic

as well as configurable by anyone with SSRS skills. Exact has been able to tie workspaces

closely with workflows and make their coordinated functioning seamless.

The roadmap ahead for Exact Macola 10 and Exact’s other major innovations is centered

on the International Financial Reporting Standards (IFRS) to render greater international

support that the company has been pursuing, specifically for Central and South America,



in terms of not only language, but also legislation, taxing, and reporting standards. With

the release of Exact Macola 10.2, support extends to goods and services taxes as well as

Annex 24, a new regulation in Mexico. In addition, many of Exact's product innovation and

design implementation goals target Web services (mobile device–iOS, hand-held

functionality for instant accessibility to information), which makes them accessible by

both third parties and companies engaged in carrying out product development

autonomously.

Operational Efficiency

Generally, ERP involves accounting, manufacturing, distribution, quality management,

CRM, human resources, and many other working components. Through workspaces, Exact

has made operations role-specific. For instance, if an accounting person is not actively

involved in the manufacturing or distribution process, Exact Macola 10 can list down the

most important steps either for that particular role or based on the individual’s skillset. In

addition, workspaces do not need to be confined to the user's office in a client-server type

environment. This means that they can access the workspaces either from an app or via

the Web to keep business moving. This role-based configurable workspace is a powerful

concept.

Customer Acquisition

The Exact Macola 10 software is the next in the series of what has been 40 years in the

making. The Macola brand started in the mid 70's and Exact acquired Macola in 2001 and

has been working on the product line ever since. A part of the Exact strategy is to acquire

customers early and retain them long term. For instance, good2grow, one of Exact's elite

customers (since 2002) that creates healthy juices and children’s beverages with unique,

spill-proof toy tops, has deployed Exact Macola ES, Exact Synergy, Exact EDI, and Exact

Business Analytics (EBA) solutions. Exact provided more capabilities, such as automation

enhancement and electronic data interchange (EDI) capability as good2grow found

increasing success on account of these solutions.

The re-emergence of Exact's product line has given a real boost to its existing customer

base. G.L.Mezzetta, Inc. and Woodstock Farms are two other elite food and beverage

customers that have reaped benefits that result from the Exact Macola 10 system. Frost &

Sullivan independent analysis confirms that Exact’s clear ability to enhance the quality of

experience for its customers through a comprehensive product portfolio and the

continuous innovation of offerings with best-in-class capabilities unmatched in the North

American market can be largely attributed to its more than 40 years of rich experience

and in-depth know-how. Frost & Sullivan also points out that most of Exact's other

competitors reach out to their customers with one product and then move to another

product, and so on. This creates havoc for the customers due to the constant need to

change from an IT systems management perspective.



Exact has introduced numerous customer-centric programs. In particular, it runs a

customer advisory board that includes 10 customers among the members. This valuable

program meets regularly for 2 to 3 hours, wherein everything from the sales and

consulting process to customer requirements and the issues they face are discussed. In

addition, Exact organizes the Exact Macola Evolve customer conference every year, along

with surveys and interactive sessions to not only collect feedback, but also to improve its

customer's knowledge on Exact’s pursuits and endeavors.

Conclusion

Exact has offered an easy-to-use and well-integrated Exact Macola 10 ERP solution that is

truly dynamic, configurable, and customizable. This has helped a number of food and

beverage manufacturers in North America to successfully and easily account for process

variances, in addition to helping them save time, avoid delays otherwise caused due to

paper-based tasks and human errors, and provide a user-friendly work experience that is

accessible at any time and from anywhere. Most importantly, Exact Macola 10 ERP

supports customer growth by offering extended capabilities they need as businesses

evolve. With its strong overall performance, Exact has earned the 2015 Frost & Sullivan

Product Leadership Award.



Significance of Product Leadership

Ultimately, growth in any organization depends upon customers purchasing from a

company, and then making the decision to return time and again. A comprehensive

product line, filled with high-quality, value-driven options, is the key to building an

engaged customer base. To achieve and maintain product excellence, an organization

must strive to be best-in-class in three key areas: understanding demand, nurturing the

brand, and differentiating from the competition.

Understanding Product Leadership

Demand forecasting, branding, and differentiation all play a critical role in finding growth

opportunities for a superior product line. This three-fold focus, however, must be

complemented by an equally rigorous focus on pursuing those opportunities to a best-in-

class standard. Customer communications, customer feedback, pricing, and competitor

actions must all be managed and monitored for ongoing success. If an organization can

successfully parlay product excellence into positive business impact, increased market

share will inevitably follow over time.



Key Benchmarking Criteria

For the Product Leadership Award, Frost & Sullivan analysts independently evaluated two

key factors—Product Family Attributes and Business Impact—according to the criteria

identified below.

Product Family Attributes

Criterion 1: Match to Needs

Criterion 2: Reliability and Quality

Criterion 3: Product/Service Value

Criterion 4: Positioning

Criterion 5: Design

Business Impact

Criterion 1: Financial Performance

Criterion 2: Customer Acquisition

Criterion 3: Operational Efficiency

Criterion 4: Growth Potential

Criterion 5: Human Capital

Best Practice Award Analysis for Exact

Decision Support Scorecard

To support its evaluation of best practices across multiple business performance

categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool

allows our research and consulting teams to objectively analyze performance, according to

the key benchmarking criteria listed in the previous section, and to assign ratings on that

basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;

ratings guidelines are illustrated below.

RATINGS GUIDELINES

The Decision Support Scorecard is organized by Product Family Attributes and Business

Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions

for each criteria are provided beneath the scorecard). The research team confirms the

veracity of this weighted scorecard through sensitivity analysis, which confirms that small

changes to the ratings for a specific criterion do not lead to a significant change in the

overall relative rankings of the companies.



The results of this analysis are shown below. To remain unbiased and to protect the

interests of all organizations reviewed, we have chosen to refer to the other key players

as Competitor 2 and Competitor 3.

DECISION SUPPORT SCORECARD FOR PRODUCT LEADERSHIP AWARD

Measurement of 1–10 (1 = poor; 10 = excellent)

Product Leadership

Product Family

Attributes

Business

Impact Average Rating

Exact 9.0 9.0 9.0

Competitor 2 8.0 8.0 8.0

Competitor 3 7.0 7.0 7.0


Criterion 1: Match to Needs

Requirement: Customer needs directly influence and inspire the design and positioning of

the product family

Criterion 2: Reliability and Quality

Requirement: Products consistently meet or exceed customer expectations for

performance and length of service

Criterion 3: Product/Service Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market

Criterion 4: Positioning

Requirement: Products or services unique, unmet need that competitors cannot easily

replicate or replace

Criterion 5: Design

Requirement: The product features an innovative design, enhancing both visual appeal

and ease of use

Business Impact

Criterion 1: Financial Performance

Requirement: Strong overall financial performance in terms of revenues, revenue growth,

operating margin and other key financial metrics

Criterion 2: Customer Acquisition

Requirement: Product strength enables acquisition of new customers, even as it enhances

retention of current customers



Criterion 3: Operational Efficiency

Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high

quality standard

Criterion 4: Growth Potential

Requirements: Product quality strengthens brand, reinforces customer loyalty and

enhances growth potential

Criterion 5: Human Capital

Requirement: Company culture is characterized by a strong commitment to product

quality and customer impact, which in turn enhances employee morale and retention

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard,

analysts can then position the candidates on the matrix shown below, enabling them to

visualize which companies are truly breakthrough and which ones are not yet operating at

best-in-class levels.

DECISION SUPPORT MATRIX FOR PRODUCT LEADERSHIP AWARD

High

Low

Low High

Bu

sin

ess I

mp

act


Exact

Competitor 3

Competitor 2



The Intersection between 360-Degree Research and Best

Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often, companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation

platform for benchmarking industry players and for identifying those performing at best-

in-class levels.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices

Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess

their fit with select best practice criteria. The reputation and integrity of the Awards are

based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

Conduct in-depth industry research

Identify emerging sectors Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

Interview thought leaders and industry practitioners

Assess candidates’ fit with best-practice criteria

Rank all candidates

Matrix positioning all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

Confirm best-practice criteria Examine eligibility of all

candidates Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

Brainstorm ranking options Invite multiple perspectives

on candidates’ performance Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

Share findings Strengthen cases for

candidate eligibility Prioritize candidates

Refined list of prioritized Award candidates

6

Conduct global industry review

Build consensus on Award candidates’ eligibility

Hold global team meeting to review all candidates

Pressure-test fit with criteria Confirm inclusion of all

eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

Perform final performance benchmarking activities

Write nominations Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

Review analysis with panel Build consensus Select winner

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

Present Award to the CEO Inspire the organization for

continued success Celebrate the recipient’s

performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company may share Award news with stakeholders and customers

Coordinate media outreach Design a marketing plan Assess Award’s role in future

strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth

and achieve best in class positions in growth, innovation and leadership. The company's

Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined

research and best practice models to drive the generation, evaluation and implementation

of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in

partnering with Global 1000 companies, emerging businesses and the investment

community from 31 offices on six continents. To join our Growth Partnership, please visit

http://www.frost.com.

http://www.frost.com/

significance of product leadership - macola · significance of product leadership ... understanding...

Documents