Product Development Strategy Graham Cardwell Head of Product

Product Development Strategy Graham Cardwell Head of Product Marketing Sage - Enterprise Solutions Division

Line 500 v 5 • Reporting – Integration with Analyst Financials • Usability – Installer • Ease of use to be improved, this is to include less dialogs, ensure typical installation is as simple as possible and ensure upgrading keeps existing information – Client enhancements (menu management, form controls) – Help enhancements · Enhanced design in several areas of the help system. · Dynamically loading Contents list, giving much faster response times to the user. · New layout and additional cross-references for topics in 'Working With' section, providing easier navigation to help on key areas of functionality. · Descriptions of licensable projects and system key help added as pop-ups where mentioned in 'Working With' section. – XML Interfaces - enabling EDI to work with XML files

Example – XML Printing Bold font Lines and intersections Footers Font & Size

Line 500 V 5 • Infrastructure • IBM i. Series – Linux Port – Port Sage Line 500 V 5. 0 product to the IBM i. Series platform. – The product will run on Su. Se Linux 7. 3 and will be powered by an IBM UDB V 5 Release 1 database. • Intel – Linux Port – Port Sage Line 500 V 5. 0 product for Oracle 9 i and Informix IDS Version 9. 30 to Su. Se Linux 7. 3. Informix is the priority.

Line 500 v 5 Features – Product and customer hierarchies – Discounting – Discount apportionment – Multicurrency accounts receivable – Commercial papers – Subcontract purchase orders – Serial number entry – XML interfaces – Web portal – Waste packaging reports

V 5 - GA Dates • Available Now – Microsoft Windows 2000 over Sql Server 2000 and Oracle 8. 1. 7. – ISeries running Su. SE Linux Enterprise Server 7. 3 over UDB/DB 2 VR 51 • End of March – – – Intel Su. Se Linux over Informix Dynamic Server 9. 3. , Oracle 8. 1. 7 Sun Solaris 8 over Informix Dynamic Server 9. 3, Oracle 8. 1. 7 Sco HP Tru 64 5. 1 A (formerly known as Dec) over Oracle 8. 1. 7 HP UX 11 over Oracle 8. 1. 7, Informix Dynamic Server 9. 2 Intel Su. Se Linux over Oracle 9. 0. 1. 0.

V 5 GA Dates • TBA – AIX over ORACLE, INFORMIX IDS – CALDERA OPEN UNIX / UNIXWARE – databases to be defined. These 2 platforms require 29 man days testing effort each and 5 days Production / Building effort. An approximate delivery date would be 60 days from the commission of the relevant hardware, subject to resource being available to resolve any issues found.

Minor Beneficial Enhancements (MBE) – Customers have voted on their priorities for minor enhancements. – Current work in progress: · · · POTRANCOA, POTRANCOB & POTRANCOC to be available without the use of Supplier Contracts (215443) Provide ability to force F 6 numbering in Accounts Receivable - Invoice Batches, Cash Batches, Refund Batches & Journal Batches (221294) In OP history cleardown - If changed to y and no date entered, a warning message will be given (227669) Provide ability to force F 6 numbering in Accounts Payable - Invoice/Credit Note Batches, Cash Batches (including Generate payments from List), Journal Batches (221297) PL & SL enquiries to include a browse on 2 nd ref/cheque no. field (224224) Open item enquiry screens in Accounts Receivable and Accounts Payable to display currency exchange rate (222072)

Minor Beneficial Enhancements (MBE) – Customers have voted on their priorities for minor enhancements. – Current work in progress: · · · Inter-Warehouse transfers to allow transfer of items with different UOM's (217388) In General Ledger Transaction Enquiry, hold period date selection values and only clear on exit from option. - (219573) Print currency code & description on Accounts Receivable statements (220470) Allow entry of negative value in Production Issues (220580) Payroll log to record details of what causes payroll parameters to trip (224192) Print order quantity on order status report if POQTYKEEP = YES (229721)

The Future

Roadmap Strategy - What do we need to Address • • Infrastructure UI Platforms Features – Core – Verticalisation • CRM

Roadmap Strategy - How do we deliver • Organic – Main Development – CPD • Jointly funded development that WILL go into future product release – MBE • Acquisition – Core, competitive • OEM – Speed to market

Roadmap Strategy - When we will Deliver • Accelerated delivery – Interim updates particularly • OEM and Acquisition • Critical as available 3 -9 months 9 -18 months • Scheduled Delivery – Infrastructure, UIG – Version x in 24 months time 24 months

Roadmap - Infrastucture • Need to be friendly to Integration – While ERP solutions were designed to consolidate data management - ‘one version of the truth’. Business are now as badly ‘integrated’ as ever before – The main challenge/opportunity for organisations ‘getting their house in order’ is to make use of new technologies and standards - enabling integration beyond organisational boundaries • New Applications Framework - Build API’s an integration framework • Generic Browser – Addressing usability concerns

Roadmap - User Interface • Concentrate on inspecting and navigating data. Drill down, search and find capabilities • Can’t re build UI fully until infrastructure work completed. • Enhanced Web Client coupled with portal

Roadmap - Platforms • Properly architected application server environment – Improve performance on RDBMS – Removal of Cisam platform facilitates • Platforms – Ms SQL – Oracle – Informix IDS – DB 2

Roadmap - Core • e. Fax and e. Forms solutions • Reporting – Inquiries – Formatted Reports deliver templates • Migration Utility • Payroll – 2003/4 updates – e. Filing returns • HR Solution • Alerts • Workflow

Roadmap - Core • German Accreditation – Traceability – Enabling Ease of Auditing – Vat Extensions – Archiving • US Sales Tax support • Reallocation of AP/AR Items (e. g. bounced cheques) • UK & International Payments (new European Banking Rules) • Corporate Charge Cards

Roadmap Core - Reporting • Positive market feedback and successful early reseller installations – Sage Winnersh implementing for internal Finance use • Opportunity now is to widen the scope of Analyst Financials • Optional report packs based on organisation roles – Financial; Distribution; Inventory; Manufacturing; Projects – Report packs will comprise a minimum of four management reports, developed, and supported by Sage – Licensed by Sage in addition to the core Analyst Financials license • Actively marketing through conferences, newsletters and mailers

Roadmap Core - e. Commerce • 57% MB expect to increase purchases via the internet next year • 69% of all UK MB purchase goods and services over the internet up from 46% in 2001 • Most popular products – Printers &Peripherals 60% – PC Networking Software 57% – Computing/electronic products 55% – Publications (Books) 50% • e. Commerce 48%-75% will use secure on line transactions. B 2 b will become dominant 57% by 2006 • Need to address Web Sales

Roadmap Core - e. Commerce • Transaction Mail Enablement – EDI/XML already there and most of the message sets needed • Sales Quotations in development – Line 50 enabled now – 30 -40% of your customers and suppliers use a Sage Solution

Roadmap core - e. Commerce Customer Supplier Enquiry Quotation Order Acknowledgement Delivery Note Invoice Payment

Roadmap - Manufacturing • Play to strengths – 30% SME in Manufacturing, Sage via 50/100, 200 and 500 large encumbent base with upgrade potential and the biggest vertical market. – Upgrade pull for line 50/100 customers • Extend solution adding advanced planning and scheduling systems.

Roadmap - Manufacturing • Additional Modules – Production Backflush – Engineering Change – Works order and MRP extensions – Features Module (1) • Additional reporting and enquiry – Contract Estimating & MTO – Automatic WO & PO issues – Vendor Returns – Features Module (2)

Production Backflush • • • “Works Orderless” Production Specify product and quantity Standard Bill or Adjusted Stock Issues/Completions Cost Variance - Actual v Standard Forecast Consumption Negative Backflush Checking - Disassembly Bin Validation with Wild Cards Shortages Management Multi-level - Phantoms/All

Engineering Change • Manage changes to Sage Assembly and Routings within a controlled and audited environment. • Includes a Pre-Production Design facility. • Register of Drawings and Change Notes • Cross-reference Revisions to ECNs • Department/User Authorisation • Re-build Previous Versions • Use-up Date Prediction • E-Mail Notification of Actions • Classified Part Search and Retrieval • Extensible for Links to CAD

PO/WO Automatic Issues/Allocations • • • Auto-book stock received from Purchase GRN receipts Auto-book stock received from Works Order Completion Locate Sales Orders Awaiting Despatch Locate Parent Works Order Allocate SO/Issue WO

Contract Estimating • • • Project or Contract Based Manufacture Top-Down Project Build ‘Single Order MRP’ Where Used - Contract network enquiries Best Price Sourcing Aggregation and Cost Roll-Up Trial Scheduling Production and Purchase Lists Recommendation Adjustment Long Lead Time Advanced Orders Automatic Enterprise Ordering

A ‘Make to Order’ Solution • Contract Estimating – Creates Master Network shows Order-to- Parent relationship and bookings • Stock Reservation to Contract • PO/WO Auto-Issue – Now driven on Contract Basis from Master Network Data • Works Order Extensions – Issue Stock Reservations

Features Module 1 • • • MRP Schedule Report MRP PO Recommendation Consolidation BOM Print on PO Aggregate BOM Report Works Order Print Multi-Location Stock Enquiry Enhanced Stock History Report BOM Circuit Reference Print Enhanced PO Print

Vendor Returns • • • Manage the Vendor Return Cycle Aimed at Distribution Operations True Cost of Service Vendor Return Notes Purchase History Search Consignment Management – Create/Despatch/Inventory • Return Tracking Vendor • Vendor Chasing/Progressing

Roadmap - CRM • Completes product footprint in an integrated environment • To be effective, a CRM system must integrate seamlessly with the company's data warehouse and with all corporate applications such as ERP and e-commerce applications • CRM's value is greatly diminished if it is not integrated with back -office systems – e-CRM is the final step in the evolution towards a truly extended enterprise which few companies have achieved to date – SME companies have largely escaped CRM angst • Application integration Server, Back office viewer

Roadmap - Construction • Modules written based on multisoft product shares same label names etc. • Construction pack • Modules (Contract Costing, CIS Subcontractors Ledger, Contract Sales Ledger, estimating) • Financial pack • Commercials pack • Payroll • Health & Safety Compliance

Roadmap - Services • Project Billing now live and running in sites • Enhancements – Reconciliation's – Enquiries – Speed entry of Codes – Short code support – Projects in Purchase Accrual – EDI

Conclusions • • • We will have a new architecture - need to be friendly to integration We will deliver a new UI - both browser and forms themselves and we will deliver a solution not a piecemeal toolkit that customer needs to build themselves We will extend core functionality We will deliver a properly architected application server environment - a true relational model We will exploit vertical market opportunities We will provide an integrated CRM solution We will deliver an e. Commerce solution We will exploit OEM opportunities We will Acquire solutions where appropriate

Finally • We are Listening • We are Delivering • We are Investing

Product Development Strategy