When you go out and sit with a client, are you selling ARIS or are you just helping to configure processes? Oevermann: We have no way of knowing. But it's not the first step to sell ARIS, because the methodology of ARIS in this dedicated area is part of SAP. But thinking in the future, that would be exactly the right question because if the client implements Business ByDesign they can use ARIS, but you can just look at old reports. But if you want to continue with ARIS, then you would have to buy ARIS.Lambrecht: Probably it would be ARIS on demand. That makes sense, since Business ByDesign is on demand. Oevermann: We have decided so far to really address the market with the on-demand solution. We are in a testing phase with several customers, but it has not been decided whether we will approach the market with an on-demand solution like Salesforce.com. Currently we are working with our basic solution in this area. But this is not the first step of our market approach right now to sell ARIS to these customers because now we are really building up some experience in this new SAP solution, and we're building up the teams right now. The next step will be really to cross-sell our own products in this area. If you were going to have an on-demand solution for the market, would that require rearchitecting your software for multitenancy or any other development considerations? Oevermann: Right now I don't want to give any comments to this area. It has not been decided and we are really not in the position to talk about a possible on-demand solution for ARIS. How much of your own [IDS Scheer's] resources are you putting into the Business ByDesign practice? Oevermann: One dedicated team in the U.S. It depends on how things go, but probably shared teams of seven to eight people in Germany. What are your expectations? Do you think this is going to be a big part of your business? Oevermann: No comment. We don't give any numbers or something like this. To be very clear, for us 2008 will be an investment. With the consulting that you do, do you focus on SAP or are Oracle and Microsoft in the mix as well? Oevermann: On a global level, we decided [in the] ERP implementation business to focus on SAP. That does not mean we don't work in the business process area with Microsoft and Oracle, but for the hard-core implementation of ERP we decided to focus on SAP. This has been our practice for many, many years What are you looking for in terms of a skill set to build out IDS Scheer's Business ByDesign team? Oevermann: This will be different from our traditional approach and the skills are very different. For example, on the consulting side, it's not the approach we had in the past, it's more of an aggressive sales approach because we want to, and SAP also wants to, have a higher number of customers, and the sales cycle will be much shorter than in the past. Our typical sales cycle is between four and six months ... the Business ByDesign cycle will be between one and three months, so we will need different people for the sales to hit this target. What is your expectation with customers, that they will have systems they remove in place of Business ByDesign, or that they use the software as an addition to what they already have? Oevermann: My expectation is that we will see customers that do not have any ERP software so far. And in other cases this will replace another solution-so maybe 50-50. We don't have a good feeling for this right now. Are divisions of larger companies a target market? Oevermann: Not yet. SAP has decided not to open this whole market segment yet. Does the whole on-demand environment change process requirements at all? Lambrecht: I don't think it changes the needs. It's a different delivery process but the need behind why am I doing this is the same. The process development time is not shortened either. It's different because you go to strongly preconfigured. So the client needs to adapt more than they probably would in traditional software, although the level of preconfiguration [with Business ByDesign] is going deeper and deeper. Did SAP provide any resources back to you to develop a Business ByDesign practice? Oevermann: Yes, yes there is a strong development program and training program because SAP knows that if they do not have partners [for] this special kind of business, together we will not be successful.
Would it be ARIS or ARIS-light, given that this is a midmarket product?