Company Applies New Strategy and Sees Immediate Results
INDIANAPOLIS, July 12, 2004—Made2Manage Systems Inc., a leading provider of comprehensive enterprise software for small and midsize manufacturers, today announced improved customer satisfaction levels, financial results, and operational performance since being acquired and taken private in August 2003.
Jeff Tognoni, president and CEO of Made2Manage Systems, believes the improved performance reaffirms the company's strategy to deliver increased value to its more than 1700 customers. "It is no secret that software is now a mature market where the grow-at-all-costs strategies of the past simply don't work any longer," said Tognoni. "Most of our competitors are still spending all of their resources on acquiring new customers instead of delivering real value to the customers they already have. As a result, the overall software industry has very low levels of customer satisfaction and financial performance."
According to Tognoni, "Made2Manage Systems' balanced approach to success is supported by several key initiatives across the business that are driven by actual customer needs-versus vendor needs imposed upon customers." These initiatives include:
Strengthened customer relationship management processes and resources.
Redefined product development priorities focused on quality, stability, depth of functionality, and 100 percent customer-driven product enhancements.
Customer-centric support and professional services process improvements.
A tightly focused target market and results-based new system sales and marketing operations.
Tognoni, who has been at Made2Manage Systems' helm since the company's acquisition in the third quarter of 2003, commented, "We came into this business with a simple but aggressive strategy-to shift resources away from the buying experience and toward the post-buying experience. In other words, we are focused on enriching the software ownership experience for our customers-to the point where they volunteer to influence prospective buyers." As a result of setting this strategy in motion, Made2Manage Systems has seen virtually unprecedented performance. Key indicators throughout the post-acquisition period (Q303-Q204) include:
Four consecutive quarters of industry-leading profitability and positive cash flow-a feat unaccomplished since 1998.
54 new system sales across a variety of vertical manufacturing industries, including industrial and commercial machinery, electronics, and fabricated metals.
Significantly improved customer satisfaction and loyalty metrics.
79 new system implementations.
46 customer win-backs (customers who chose to reinstate annual maintenance contracts).
Delivery of the highest-quality release of Made2Manage software to date, Version 5.5, featuring more than 200 customer-driven enhancements.
A 25 percent spending increase by Made2Manage Systems' customers for professional services (as compared to the previous four quarters).
A 33 percent spending increase by Made2Manage Systems' customers for software to extend the capabilities of their existing systems (as compared to the previous four quarters).
"The milestones we have achieved in such a short period of time are demonstrative of our commitment to making Made2Manage Systems the undisputed leader in the SME marketplace," said Tognoni. "We believe our value- and customer-focused strategy is cornerstone to both our existing and future customers."
Indeed, Made2Manage Systems' customer base has responded positively to the software company's unique strategy to focus resources toward improving solution quality and increasing customer satisfaction and loyalty. Brian Spitz, vice president of finance for American Tank & Fabricating Company, a Cleveland, Ohio-based steel fabricator of components and parts for pressure vessels, magnesium melting crucibles, and nuclear material handling containers, said, "The strategic message presented at Made2Manage Systems' user conference was exactly what I wanted to hear. As a customer, I am focused on driving product enhancements that are meaningful to my business." Spitz also commented that he has experienced improved customer service from Made2Manage Systems. "Both the quality of and the response time to my current [support] cases have improved immensely," he said.
About Made2Manage Systems Inc.
Made2Manage Systems delivers a comprehensive enterprise business system designed specifically for the unique needs of small and midsize manufacturers. The company's extensible, end-to-end solution and award-winning customer services are designed to evolve with a manufacturer's individual business environment while protecting the original technology investment. The suite of Made2Manage products and services, driven by customer requirements and a focus on quality, are designed to help manufacturers improve customer service, maximize shop floor throughput and profitability, conduct e-business, and make better-informed business decisions. With more than 25,000 licensed users, Made2Manage Systems works with discrete manufacturers-servicing a variety of industries, yet specializing in delivering functionality that meets the vertical industry specifications of industrial and commercial machinery, electronics, and fabricated metals manufacturers.
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