|

March
2,1998
Electronic-Business Developers --
Doing battle over mind share
By Pedro Pereira
& Jerry Rosa
New York --
Electronic-business developers are elbowing to gain mind share among
channel companies plunging into channel assembly.
Developers
PcOrder.com, Calico Technology Inc., Elcom International Inc. and
Spaceworks Inc. are pitching such tools as electronic configurators,
online catalogs, order-entry devices and inventory-tracking engines.
The developers
jumped into the frothy waters of channel assembly because of problems
posed by the myriad of vendor systems that interface with the channel.
Hooking up to all vendors' systems is difficult because of the differences
between each system.
While these
developers pitched their tools before the advent of channel assembly,
they now are finding more success in forging partnerships with integrators
and distributors. Channel assembly has instilled an urgency to automate
configurations and inventory management.
A year ago,
distributors and integrators preferred, for the most part, to develop
the technology in-house. But an increasing number have turned to
licensing bits and pieces of the developers' technology, said PcOrder.com
President Christy Jones.
CompuCom Systems
Inc., MicroAge Inc. and Entex Information Services Inc. are among
the companies that use Austin, Texas-based PcOrder.com technology,
which provides data for ordering, price comparisons and configurations.
Ed Anderson,
president and chief executive of CompuCom, Dallas, said PcOrder.com
has won the battle between the technology providers because it has
the most comprehensive offering. "It's over," he said. "There is
no battle going on because PcOrder.com won."
Calico does
not believe the fight is over, said Ashish Mohindroo, manager of
strategic marketing for the San Jose-based software developer, whose
clients include Tech Data Corp.
"We believe
PcOrder.com is a very proprietary model and they restrict you. We
believe in open standards. As far as configuration goes, PcOrder.com's
configuration technology is based on the needs of the late '80s,
and it hasn't changed," Mohindroo said.
But PcOrder.com's
Jones is confident about her company's position, saying it not only
offers broad range of applications, but it is looking for technology
partners to provide value-added functions, such as tracking the
costs of freight and taxes, online credit applications and credit-card
transactions.
"We're very
pleased with the progress we made over the last year," she said.
"We really don't see a lot of competitors out there, and maybe that's
because what we offer is a little broader. " Rockville, Md.-based
developer Spaceworks, which licenses its technology to distributor
Merisel Inc. and reseller Pomeroy Computer Resources Inc., has a
tool called OrderManager. Rather than develop a host of applications,
the company sticks with its main product and seeks partnerships
with other software developers when appropriate, said Liz Sara,
Spaceworks' vice president of marketing.
"In a couple
of cases, we have walked in to visit a company with Calico, for
example," Sara said. "Depending on what the particular client needs,
we're prepared to partner with another company."
Though willing
to partner with other developers, Spaceworks nonetheless is adding
functionality to its product. Version 3.0 of OrderManager will contain
a router feature that sends orders to supervisors for approval when
a purchasing department employee exceeds spending limits, said Sara.
Integrators
and distributors involved in channel assembly have invested millions
of dollars and want to make sure they get a return on that investment
through a narrowing of the pricing delta between indirect and direct
vendors.
A robust electronic
infrastructure is necessary because channel assembly changes the
playing field, from one based on using a tool to find product availability
to one where a tool can predict when a product arrives in a company's
warehouse. CompuCom's Anderson calls it "product arrivibility."
BACK
TO RELATED ARTICLES
|