SAP has expanded its AI assistant, SAP Joule, making it available for developers within its ecosystem. Previously introduced for business users in core SAP cloud products, SAP Joule now supports a wider range of users across SAP Build Process Automation, SAP Build Apps, SAP Build Code, and ABAP Cloud. The goal is to improve developer productivity by providing AI-driven assistance specifically tuned for SAP environments. Here’s a detailed breakdown of the announcement, its potential impact, and key industry insights.
SAP Joule’s Expansion for Developers
SAP initially launched Joule to help business users interact with SAP applications through natural language prompts. The company has now extended this capability to technical users, specifically developers, aiming to streamline the software development process across its platforms. Joule assists developers with several tasks, including:
Writing code in Java, JavaScript, and ABAP
Creating user interfaces for applications
Building data models and generating sample data
Refactoring and improving existing code
Writing unit tests for newly developed features
It also helps automate workflows by generating business rules from simple instructions. By analyzing input prompts, Joule suggests relevant templates and patterns from a library of over 400 prebuilt SAP applications. According to SAP, Joule is not designed to replace developers but to serve as an intelligent assistant that enhances developer productivity without removing the need for human expertise.
Specialization Within SAP Environments
Unlike general-purpose AI tools, SAP Joule is specifically trained to understand SAP’s platforms, standards, and programming practices. This specialization enables it to provide more accurate and relevant support compared to broader AI assistants that may lack enterprise-specific context. In SAP Build Code, for example, Joule assists with coding best practices and security considerations unique to SAP’s environment. For ABAP Cloud, it offers suggestions aligned with SAP’s clean core principles, ensuring that generated code maintains compatibility and upgradability.
SAP has introduced internal validation and guardrails within Joule to minimize AI hallucinations and enhance output quality. This is critical because enterprise development requires a higher level of trust, precision, and compliance compared to consumer applications.
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Industry analysts have responded positively to SAP’s extension of Joule into developer tools. Arnal Dayaratna, Research Vice President of Software Development at IDC, commented, “What SAP is doing is providing an AI-based developer productivity assistant that’s specialized for their development environments.”
Jason Andersen, Principal Analyst at GigaOm, noted, “The expansion of Joule into SAP Build Process Automation and SAP Build Apps is a smart move that will help developers across the skill spectrum.“
Analysts have highlighted that the biggest advantage of Joule is its deep integration into SAP’s development ecosystem, offering developers AI help that understands the specific frameworks, business processes, and governance models used by SAP customers.
Impact on Stakeholders
The rollout of SAP Joule for developers impacts multiple groups within the SAP ecosystem:
Developers: With access to AI-assisted coding, testing, and automation, developers can expect reduced development cycles, fewer repetitive tasks, and more time to focus on complex problem-solving.
Business Users and Project Managers: Faster development timelines and enhanced automation capabilities will enable quicker delivery of business solutions.
SAP Customers: Organizations using SAP solutions can benefit from more reliable and faster deployment of custom applications and automations, potentially reducing total cost of ownership.
SAP Itself: Offering Joule strengthens SAP’s position in the enterprise AI tools market, differentiating it from competitors such as Salesforce’s Einstein and GitHub Copilot.
Future Predictions and Industry Trends
The expansion of SAP Joule fits within a broader trend of creating domain-specific AI assistants rather than relying on generalized AI models. Enterprises increasingly demand AI tools that understand industry-specific language, workflows, and compliance requirements. Looking ahead, SAP is likely to enhance Joule further, deepening its integration with ABAP Cloud and SAP Build solutions. Future updates may introduce new support for cross-application workflows, deeper analytics integration, and multi-language support for global developer teams.
There is also potential for SAP to expand Joule into areas like predictive business process management, AI-driven security auditing, and intelligent debugging. These expansions would align with broader enterprise priorities around AI governance, observability, and resilience. Other vendors in the enterprise technology space are moving in a similar direction, indicating that specialization, trustworthiness, and enterprise readiness will become the defining characteristics of successful AI assistants over the next several years.
Key Considerations and Challenges
While SAP Joule offers clear benefits, certain challenges must be addressed:
Reliability of Outputs: Despite SAP’s efforts to prevent hallucinations, enterprises will need rigorous validation processes before deploying AI-generated code or workflows into production.
Security and Data Privacy: As SAP Joule operates within sensitive development environments, ensuring full compliance with GDPR, HIPAA, and other regulatory standards remains critical.
Developer Training and Change Management: To leverage SAP Joule effectively, developers must be trained not just on usage but also on understanding when to trust, edit, or override AI-generated suggestions.
Scope and Flexibility: SAP Joule currently focuses on SAP environments. Organizations using mixed vendor stacks or custom cloud architectures might need complementary AI tools outside of SAP’s ecosystem.
Cost Considerations: As with any AI integration, businesses will need to evaluate the cost-benefit balance, considering licensing, training, and support costs associated with adopting SAP Joule widely across their development teams.
FAQs
What is SAP Joule for Developers, and how does it help?
Joule for Developers is an AI-powered assistant designed to enhance developer productivity within the SAP ecosystem. It supports tasks like writing code (Java, JavaScript, ABAP), creating user interfaces, building data models, refactoring code, and writing unit tests. By offering intelligent suggestions tuned specifically for SAP platforms, it helps streamline development workflows without replacing human expertise.
How is Joule different from general-purpose AI coding tools?
Unlike general AI assistants, SAP Joule is trained specifically for SAP’s platforms, coding standards, and business processes. It offers context-aware support, suggesting templates, coding practices, and security measures tailored for SAP environments like SAP Build Code and ABAP Cloud. Additionally, SAP has implemented validation and guardrails to minimize errors, making Joule more reliable for enterprise-grade development.
What should organizations consider before adopting Joule for Developers?
Organizations should focus on validating AI-generated outputs carefully, ensuring compliance with security and privacy regulations. Training developers on how to effectively use and review Joule’s suggestions is critical. They should also assess the tool’s fit within their tech landscape, especially if they use a mixed-vendor environment, and evaluate the overall cost implications, including licensing and training investments.
Zendesk, a leader in AI-driven customer service solutions, recently announced its agreement to acquire Local Measure, an Australian-based Contact Center as a Service (CCaaS) provider. This Zendesk acquisition is aimed at expanding its AI-powered voice capabilities and deepening its integration with Amazon Connect, AWS’s cloud-based contact center solution. The move signifies Zendesk’s commitment to enhancing its position in the enterprise customer service market, especially in high-volume, complex service environments.
The Zendesk acquisition of Local Measure aligns with the broader industry trend of consolidating AI-driven customer experience platforms. As businesses increasingly shift towards cloud-based and AI-enhanced customer service operations, this deal could mark a significant milestone in redefining how companies approach customer interactions through voice technology. This article provides a detailed breakdown of the Zendesk Acquisition and an analysis of its potential impact on businesses, stakeholders, and the broader industry.
Breakdown of the Zendesk Acquisition
The Zendesk acquisition of Local Measure strengthens its AI-powered voice automation and deepens integration with Amazon Connect. This breakdown will explore the strategic intent behind the acquisition, its financial and legal aspects, and leadership perspectives.
Strategic Intent and Expansion into AI-Powered Voice Solutions
The Zendesk acquisition of Local Measure is a strategic move to strengthen its offerings in AI-powered voice automation. Local Measure specializes in enhancing customer interactions using AI-driven automation, intelligent call routing, and real-time insights. By acquiring this technology, Zendesk aims to provide a seamless, scalable, and intelligent voice solution for enterprises handling high customer volumes.
This acquisition will allow Zendesk to:
Provide businesses with enhanced customer service analytics and real-time decision-making tools.
Improve AI-driven automation and call routing.
Offer a fully integrated voice solution with Amazon Connect.
Strengthening AWS Integration with Amazon Connect
A key highlight of the Zendesk acquisition is the deeper integration with Amazon Web Services (AWS). Local Measure has been known for its seamless compatibility with Amazon Connect, a cloud-based contact center platform. The acquisition will likely boost Zendesk’s ability to offer cloud-native AI-powered voice solutions by leveraging AWS’s security, scalability, and automation features.
For Zendesk, this means:
A more robust partnership with AWS.
Better cloud-native capabilities for large enterprises.
Faster deployment of AI-driven customer support tools.
With AWS becoming a dominant player in the cloud contact center space, this Zendesk acquisition could position the company as a formidable alternative to traditional CCaaS providers.
The Financial and Legal Aspects of the Acquisition
The Zendesk acquisition of Local Measure is being executed under Australian corporate law through a scheme of arrangement. The deal, which is expected to close by May 2025, is subject to shareholder, regulatory, and court approvals. While exact financial details have not been disclosed, industry estimates suggest the deal values Local Measure at around $100 million.
The financial structure of the acquisition reflects Zendesk’s strategic investment in long-term growth rather than a short-term revenue boost. With AI-powered voice services gaining traction, this Zendesk acquisition could provide long-term competitive advantages, particularly in enterprise-level customer service markets.
Leadership Perspectives and Market Positioning
Zendesk’s leadership has emphasized that this Zendesk acquisition is a step toward providing a fully integrated AI-powered voice solution. CEO Tom Eggemeier stated, “With the acquisition of Local Measure, Zendesk is accelerating its ability to provide a fully integrated, AI-powered voice solution that combines the best of our platform with the flexibility, security, and scalability of Amazon Connect.”
From Local Measure’s perspective, CEO Jonathan Barouch remarked, “This acquisition means faster deployment, reduced complexity, and cloud-native innovation. Together with Zendesk, we are bringing a fresh alternative to legacy contact center providers.”
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The Zendesk acquisition of Local Measure reflects key industry trends, including the shift toward AI-powered customer service, cloud-based platforms, and market consolidation. This section will analyze how the acquisition aligns with these trends, its impact on various stakeholders, and potential challenges Zendesk may face in execution and adoption.
Industry Trends and Market Context
The Zendesk acquisition of Local Measure aligns with several key industry trends:
Shift to AI-powered Customer Service: Enterprises are increasingly investing in AI-driven voice solutions to enhance customer interactions.
Consolidation in the CCaaS Market: Major players are acquiring specialized companies to strengthen their AI and automation capabilities.
Impact on Stakeholders
The Zendesk acquisition is expected to affect various stakeholders in different ways:
Customers: Zendesk’s existing customers will likely benefit from a more comprehensive AI-powered voice solution. The integration with AWS could lead to improved scalability and security.
Competitors: CCaaS providers like Five9, Genesys, and NICE may face increased competition as Zendesk strengthens its AI-powered voice offerings.
Investors: If the integration succeeds Zendesk’s market position could strengthen, potentially leading to long-term stock growth.
Employees: Local Measure’s team will likely integrate with Zendesk’s AI and customer service divisions, contributing to product innovation.
Challenges and Potential Risks
While the Zendesk acquisition presents significant opportunities, there are potential challenges:
Integration Complexity: Merging AI-driven voice capabilities with Zendesk’s existing infrastructure could pose technical and operational challenges.
Regulatory Approvals: The acquisition must pass regulatory scrutiny in multiple jurisdictions, which could delay the timeline.
Competition from Other CCaaS Providers: Established CCaaS providers are also investing heavily in AI, which means Zendesk will need to differentiate itself in a crowded market.
Customer Adoption: While AI-driven voice solutions are growing, some enterprises may still be hesitant to transition from legacy systems.
FAQs
Why is Zendesk acquiring Local Measure?
The Zendesk acquisition of Local Measure is aimed at enhancing its AI-powered voice capabilities and deepening integration with Amazon Connect. This move aligns with the growing industry trend of AI-driven customer experience solutions, allowing Zendesk to offer enterprises a more scalable, intelligent, and cloud-native contact center platform
How will this acquisition impact Zendesk’s customers?
Zendesk’s customers will benefit from improved AI-driven voice automation, better call routing, and enhanced real-time analytics. The integration with AWS’s Amazon Connect will also provide greater scalability, security, and flexibility, making customer service operations more efficient.
What challenges might Zendesk face with this acquisition?
Potential challenges include technical complexities in integrating Local Measure’s AI capabilities with Zendesk’s platform, regulatory approvals across jurisdictions, and competition from established CCaaS providers like Five9 and Genesys. Additionally, customer adoption of AI-powered voice solutions may take time as businesses transition from legacy systems.
SAP has unveiled Joule AI Agents, an expansion of its generative AI copilot, Joule, aimed at transforming enterprise collaboration and automation. By integrating AI-driven agents across business functions like finance, sales, and customer service, SAP seeks to streamline processes, reduce inefficiencies, and enable faster decision-making. These AI agents leverage SAP Business Data Cloud and SAP Knowledge Graph to ensure accurate, context-driven actions. This article provides a detailed breakdown of SAP’s announcement, the key components of Joule AI Agents, and an analysis of its potential impact on businesses, stakeholders, and the broader industry.
Breakdown of SAP’s Joule AI Agents
Joule AI Agents are designed to streamline business operations by improving cross-functional collaboration and leveraging enterprise data effectively. With features like automated classification, knowledge management, and dispute resolution, Joule AI Agents enhance workflow efficiency across various departments.
One of the primary objectives of Joule AI Agents is to resolve inefficiencies in business workflows, where different departments operate in silos. Many organizations struggle with aligning data, decisions, and actions, leading to delays and miscommunications. Joule AI Agents aim to bridge these gaps, ensuring seamless coordination across business functions.
Foundation: SAP Business Data Cloud & SAP Knowledge Graph
SAP highlights that AI effectiveness depends on access to high-quality, unified data. The SAP Business Data Cloud serves as a centralized data layer, combining SAP and non-SAP sources to provide AI agents with relevant business context. Additionally, the SAP Knowledge Graph acts as a semantic bridge, helping Joule AI Agents understand relationships between data and processes. This allows the agents to make informed, context-aware decisions rather than relying solely on generic AI models.
Key AI Agents Introduced by SAP
SAP has launched ready-to-use Joule agents across multiple business functions, with further expansions planned in 2025. Some of the notable agents include:
Cash Collection Agent: Analyzes and resolves disputes in seconds by working across finance, customer service, and operations.
Q&A Agent: Proactively identifies customer questions and provides accurate answers based on internal knowledge bases.
Knowledge Creation Agent: Converts new case resolutions into structured knowledge articles, improving knowledge management.
Case Classification Agent: Intelligently classifies and routes customer inquiries, even when specific keywords are missing.
These AI agents work collaboratively, enabling end-to-end process automation. For example, the Case Classification Agent can detect a billing dispute and immediately assign it to the Cash Collection Agent, reducing resolution time.
Customization with Joule Studio
SAP plans to launch a custom agent builder within Joule Studio, allowing businesses to create AI agents tailored to their specific processes. This no-code/low-code tool will empower companies to design AI-driven workflows using SAP Build, ensuring adaptability to unique business needs.
AI Orchestration: Beyond a Copilot
SAP positions Joule not just as an AI assistant but as an AI orchestrator capable of managing multiple AI agents across different business areas. By coordinating out-of-the-box and custom AI agents, SAP aims to create a fully automated, adaptive AI ecosystem within enterprises.
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The introduction of Joule AI Agents aligns with the growing trend of AI-driven enterprise automation, positioning SAP alongside key industry players. As businesses integrate Joule AI Agents, factors like data security, AI adoption challenges, and evolving workforce roles will shape the long-term impact of this technology.
Industry Trends & Competitive Landscape
The rise of agentic AI, where AI systems autonomously complete complex, multi-step processes, is a growing trend. Competitors like Microsoft Copilot, Salesforce Einstein AI, and Google Duet AI are also moving towards AI-powered workflow automation.
SAP’s focus on trusted business data differentiates Joule from general-purpose AI assistants, as data governance and reliability are major concerns in enterprise AI adoption.
Future Predictions
SAP’s planned expansion of Joule AI Agents across its Business Suite suggests a long-term vision where AI becomes deeply embedded in ERP systems, potentially reducing human intervention in routine processes.
The introduction of a custom AI agent builder signals an upcoming trend where businesses will increasingly develop tailored AI solutions rather than relying on pre-built AI models.
Impact on Stakeholders
Enterprises: Organizations using SAP’s ERP solutions can expect faster decision-making, reduced manual effort, and enhanced process efficiency. However, they may need to invest in AI training and integration to maximize benefits.
Employees: While AI-driven automation can increase productivity, concerns over job displacement in areas like customer support and finance may arise. Instead of replacing roles, AI is likely to augment human workers by handling repetitive tasks.
SAP Partners & Developers: The Joule Studio AI agent builder presents opportunities for developers and SAP partners to create and monetize custom AI solutions.
Challenges & Considerations
Data Privacy & Security: As AI agents access sensitive business data, ensuring compliance with GDPR, CCPA, and enterprise security policies will be critical.
Integration Complexity: Businesses operating on hybrid IT infrastructures (SAP + non-SAP applications) may face challenges in achieving seamless AI integration.
User Adoption: Despite automation benefits, enterprise AI adoption often faces resistance due to concerns over AI reliability and trust. SAP may need to focus on AI explainability and user training.
FAQs
What are SAP Joule AI Agents, and how do they improve business processes?
SAP Joule AI Agents are AI-driven assistants designed to automate and optimize business workflows across various functions like finance, sales, and customer service. They leverage SAP Business Data Cloud and SAP Knowledge Graph to access relevant business data, enabling seamless collaboration, faster decision-making, and more efficient process execution.
How do Joule AI Agents ensure data accuracy and reliable decision-making?
Joule AI Agents rely on SAP Business Data Cloud to unify data from both SAP and non-SAP sources, ensuring AI models have access to accurate and context-driven information. Additionally, the SAP Knowledge Graph helps these AI agents understand data relationships, making their recommendations and actions more precise and relevant.
Can businesses customize Joule AI Agents to fit specific operational needs?
Yes, SAP plans to introduce Joule Studio, a tool that allows businesses to build custom AI agents tailored to their unique processes. This no-code/low-code platform will enable organizations to configure AI-driven workflows using SAP Build, ensuring greater adaptability and alignment with business requirements.
ThoughtSpot Analyst Studio, a new data preparation and analytics platform, has been launched to enhance efficiency for data teams. Designed to streamline workflows, it aims to address challenges such as slow time-to-value, data silos, high costs, and limited technical capabilities. By incorporating AI-assisted tools, the platform empowers analysts to optimize data readiness for AI and business intelligence.
As organizations increasingly depend on AI-driven insights, the demand for seamless, cost-effective data preparation has grown. ThoughtSpot Analyst Studio bridges the gap between raw data and actionable intelligence, offering tools to prepare AI-ready datasets, reduce costs, and improve accessibility. Below is a detailed breakdown of its features, target audience, technical aspects, and strategic implications.
Purpose and Benefits
Solving Key Challenges in Data Preparation
ThoughtSpot Analyst Studio is built to address several pain points for data teams and organizations:
Eliminating Data Silos: It integrates various sources into a unified workspace, ensuring seamless data access.
Reducing Analytics Costs: Features like Datasets allow users to choose between real-time or periodic data snapshots, optimizing cloud expenditure.
Enhancing AI Readiness: The AI-assisted SQL editor and real-time collaboration tools help analysts prepare structured datasets for AI applications.
Improved Collaboration: The platform fosters cross-functional teamwork between analysts, engineers, and business teams.
Optimized Cloud Resource Utilization: With configurable data extraction and live querying, organizations can balance performance and cost efficiency.
Key Features and Functionality
AI-Ready Data Preparation
ThoughtSpot Analyst Studio enables direct connectivity to multiple data sources, including cloud data warehouses, databases, and applications like Google Sheets.
The AI-assisted SQL editor includes autocomplete, query history tracking, and NLP-based query generation, making it faster and more accessible for users of all skill levels.
End-to-End Analytics Workflow
ThoughtSpot Analyst Studio combines ad-hoc analysis and advanced data science, eliminating the need for multiple tools.
Users can choose between live data connections and extracted datasets, helping them optimize cloud performance and costs.
Unique Features Compared to Other Data Preparation Tools
Seamless Multi-Language Support: The platform supports SQL, Python, and R within a single interface, eliminating the need for separate tools.
Datasets for Performance Optimization: The “Datasets” feature allows users to work with either static snapshots or real-time data feeds, ensuring efficient resource usage and cost control.
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Data Analysts: Gain access to AI-assisted SQL querying and seamless integration with major cloud platforms.
Business Teams: The platform enables real-time collaboration, reducing reliance on technical teams.
Enterprises and SMBs: While large enterprises may see the most impact, smaller businesses can also leverage its advanced tools for cost and performance optimization.
Compatibility with Cloud Platforms
The tool is designed to be user-friendly, with AI assistance making it accessible to both technical and non-technical users.
ThoughtSpot Analyst Studio integrates with leading data platforms like Snowflake, Databricks, and Google BigQuery.
Strategic Value and Industry Relevance
Industry Trends Driving the Launch
Self-service analytics is growing, increasing demand for user-friendly data tools.
AI-powered query generation and automated data preparation are becoming key differentiators in the analytics market.
Businesses are seeking cost-optimized cloud solutions as cloud computing expenses continue to rise.
Enhancing Collaboration Between Data and Business Teams
ThoughtSpot Analyst Studio supports multi-language data manipulation and real-time collaboration, thus ensuring smoother workflows.
The ability to perform ad-hoc analysis without needing additional tools particularly reduces dependency on IT and data engineers.
Future Developments and AI Expansion
Potential expansions could include automated data cleansing, predictive analytics, and also customizable AI models.
While no specific enhancements have been announced, ThoughtSpot’s investment in AI suggests further AI-driven features may be introduced.
Practical Details and Access
Availability and Pricing
For Existing ThoughtSpot Customers: ThoughtSpot Analyst Studio is available as an add-on for ThoughtSpot Cloud users.
Pricing: While exact pricing is not disclosed, interested users can contact ThoughtSpot for customized pricing based on their requirements.
Adoption Considerations
Learning Curve: While AI-assisted tools simplify workflows, organizations may require training to maximize usage.
Vendor Lock-in Risks: Businesses using Tableau or Power BI may face integration challenges when transitioning.
Cost-Benefit Analysis: Organizations should assess whether live vs. extracted datasets align with their budget and data usage needs.
Analyst’s Take: Key Considerations and Market Impact
Impact on Different Stakeholders
Data Analysts: Gain greater control over data preparation, thus reducing IT dependency.
Business Leaders: Improved data accessibility accelerates AI-driven decision-making.
Data Engineers: Workloads may shift as analysts take on more data transformation tasks.
Competitive Landscape
ThoughtSpot Analyst Studio vs. Tableau, Looker, and Power BI: The platform is positioned as a self-service, AI-powered alternative but will compete with established BI tools.
AI in Analytics: AI-assisted query generation and automation are likely to become industry standards, particularly making ThoughtSpot Analyst Studio increasingly relevant.
Long-Term Viability: Buyers should assess whether ThoughtSpot’s AI-driven approach aligns with their long-term analytics strategy.
FAQs
How does ThoughtSpot Analyst Studio improve data preparation for AI and analytics?
ThoughtSpot Analyst Studio streamlines data preparation by integrating AI-assisted tools that simplify SQL querying, automate data structuring, and enhance collaboration. It connects to multiple data sources, including cloud warehouses and applications like Google Sheets, ensuring seamless access. Additionally, features like real-time and extracted datasets allow businesses to optimize costs while maintaining AI-readiness.
Who can benefit the most from ThoughtSpot Analyst Studio?
ThoughtSpot Analyst Studio is designed for data analysts, business teams, and enterprises of all sizes. Analysts gain AI-powered SQL assistance, business users can collaborate in real-time without technical dependencies, and organizations benefit from cost-optimized cloud resource utilization. Both large enterprises with complex data needs and smaller businesses leveraging cloud analytics can take advantage of its flexible data preparation tools.
What makes ThoughtSpot Analyst Studio different from other data preparation tools?
Unlike traditional data preparation tools, ThoughtSpot Analyst Studio offers seamless multi-language support (SQL, Python, and R) within a single interface, eliminating the need for external platforms. Its AI-driven query generation, real-time collaboration, and Datasets feature provide greater flexibility by allowing users to choose between live connections and extracted snapshots, ensuring optimized performance and cost efficiency.
Blackstone and Vista Equity Partners have completed their Smartsheet acquisition, a work management and collaboration platform, in an $8.4 billion all-cash transaction. Smartsheet shareholders received $56.50 per share, a price reflecting an 8.5% premium over the company’s last closing price before the announcement and a 41% premium over its 90-day volume-weighted average stock price as of July 17, 2024. Following the completion of the deal, Smartsheet has officially transitioned into private ownership and has been delisted from the New York Stock Exchange.
The Smartsheet acquisition is part of a broader trend of private equity firms investing in high-growth SaaS companies, particularly those that integrate AI and automation into enterprise workflows. With Blackstone and Vista Equity Partners taking control, the focus will likely shift toward enhancing Smartsheet’s AI capabilities, expanding its market reach, and improving operational efficiency. This transition raises key questions about its impact on customers, employees, and the competitive landscape of the work management software industry.
Breakdown of the Smartsheet Acquisition
The Smartsheet acquisition agreement includes several key elements:
Transaction Value and Premium: The deal was completed at $56.50 per share, representing an 8.5% increase from Smartsheet’s last closing price before the announcement and a 41% premium over its 90-day volume-weighted average stock price as of July 17, 2024.
Go-Shop Period: The agreement allowed Smartsheet a 45-day “go-shop” period to explore alternative acquisition offers. However, no competing proposals emerged.
Delisting from NYSE: With the Smartsheet acquisition finalized, the company’s shares have been removed from public trading, making it a privately held firm.
This deal highlights the growing interest of private equity firms in the SaaS market, where recurring revenue models and AI-driven automation make companies like Smartsheet attractive investment opportunities.
Strategic Rationale for the Smartsheet Acquisition
Blackstone and Vista Equity Partners have been actively investing in enterprise SaaS platforms. Their investment in Smartsheet signals confidence in its potential for long-term growth and scalability. The Smartsheet acquisition is expected to enable the company to:
Enhance AI and Automation Capabilities: AI-driven automation is a key focus area in work management software. With additional investment, Smartsheet is likely to integrate more AI-powered features, such as predictive analytics and workflow automation.
Improve Operational Efficiencies: Private equity firms often streamline operations in acquired companies, which could lead to restructuring efforts aimed at enhancing profitability and cost management.
Expand Market Reach: Smartsheet may prioritize global expansion and deeper penetration into the enterprise sector.
These strategic priorities align with broader trends in SaaS, where automation and AI-driven solutions are becoming critical competitive differentiators.
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Impact of the Smartsheet Acquisition on Stakeholders
The acquisition of Smartsheet by Blackstone and Vista Equity Partners is expected to bring changes across multiple stakeholder groups, including customers, employees, and competitors. Here’s how each group may be impacted by this acquisition.
For Smartsheet Customers
Existing users of Smartsheet may see continued investment in AI-driven features, though potential adjustments to service structures could occur.
AI and Automation Advancements: Smartsheet is expected to introduce new AI-powered tools to enhance workflow efficiency.
Potential Pricing Adjustments: Private equity ownership often leads to reevaluated pricing models. While no immediate changes have been announced, customers may see modifications in subscription tiers.
Long-Term Product Development: The Smartsheet acquisition provides the company with financial backing to innovate further, but its long-term direction will depend on the priorities set by Blackstone and Vista.
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While private equity ownership brings financial discipline, it may also introduce shifts in corporate culture and management strategies.
For Competitors in the Work Management Market
The Smartsheet acquisition could have implications for competitors such as Asana, Monday.com, and Atlassian.
Increased Market Competition: Backed by Blackstone and Vista, Smartsheet may enhance its enterprise positioning, prompting rivals to strengthen their offerings.
Potential Industry Consolidation: The deal signals a trend of private equity investments in SaaS, which could lead to more mergers and acquisitions.
Shifts in Market Strategy: Competing vendors may need to refine pricing models, introduce new integrations, or differentiate their AI capabilities.
With AI and automation becoming key drivers of innovation, competitors will likely accelerate their technological advancements to remain competitive.
Analyst’s Take on the Smartsheet Acquisition
The Smartsheet acquisition by Blackstone and Vista Equity Partners presents both opportunities and challenges as the company transitions to private ownership. While increased financial flexibility could support long-term innovation, a shift in strategic priorities—such as profitability and operational efficiency, may influence its future direction.
Smartsheet’s Future Under Private Ownership
The Smartsheet acquisition presents both opportunities and challenges. While private ownership offers financial flexibility to pursue long-term innovation, new priorities, such as profitability and operational efficiency could shape Smartsheet’s future direction.
Key factors influencing its trajectory include:
Operational Adjustments: Changes in pricing, service structures, or internal processes could affect users and employees.
AI and Automation Integration: Continued advancements in AI-driven tools could reinforce Smartsheet’s market position.
Expansion Strategy: The company may focus on international markets and enterprise growth.
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Regulatory Scrutiny: Large technology deals sometimes face regulatory reviews, particularly regarding competition.
Customer Adaptation: If service models change significantly, user retention could be impacted.
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What does the Smartsheet acquisition mean for its customers?
With Smartsheet now under the ownership of Blackstone and Vista Equity Partners, customers can expect continued investment in AI and automation-driven features. However, private equity ownership may also bring changes to pricing models and service structures over time. While no immediate modifications have been announced, customers should stay informed about potential updates to subscription tiers and product offerings.
How will the Smartsheet acquisition impact employees?
The transition to private ownership could lead to organizational shifts at Smartsheet. Increased investment in AI and automation may create new opportunities for teams focused on product development, but there is also the possibility of operational restructuring. Private equity acquisitions often involve efforts to streamline costs and improve efficiency, which may result in adjustments to workforce roles or management strategies.
How does the Smartsheet acquisition affect the competitive landscape?
The acquisition positions Smartsheet as a stronger competitor in the work management software market, potentially challenging companies like Asana, Monday.com, and Atlassian. With financial backing from Blackstone and Vista, Smartsheet may expand its enterprise reach and enhance AI-driven capabilities. This move also reflects a broader trend of private equity firms investing in SaaS companies, which could lead to further consolidation and shifts in market dynamics.
At its Analyst Day 2025, Zoho Corporation outlined its vision for enterprise automation, emphasizing Agentic AI and IoT-driven business solutions. The company’s latest advancements indicate a shift toward task-specific AI agents and an expanded IoT ecosystem. This positions the company as a key player in AI-powered enterprise software. While many technology companies focus on large, generalized AI models, Zoho has adopted an industry-specific approach. It is developing lightweight AI agents tailored for automation, security, and real-time decision-making. According to the company, these Agentic AI systems offer greater adaptability and explainability compared to traditional AI models.
Alongside AI developments, Zoho introduced new IoT solutions for manufacturing, smart buildings, energy management, and connected OEMs. It has fully integrated these solutions with its software suite and enabled support for third-party applications. This expands their use cases across various enterprise environments. The event also brought leadership changes, with co-founder Sridhar Vembu transitioning to Chief Scientist. He will focus on AI research and innovation. Meanwhile, Shailesh Kumar Davey, another co-founder, was appointed CEO, ensuring continuity in Zoho’s long-term strategic direction.
This article provides a detailed breakdown of Zoho’s key announcements and their implications for enterprises. It also includes an analyst’s perspective on opportunities, challenges, and future predictions for Zoho and its customers.
Breakdown of Key Announcements
Zoho Analyst Day 2025 brought several strategic updates, highlighting the company’s focus on AI, IoT, and enterprise automation. From leadership transitions to the introduction of Agentic AI and expanded IoT capabilities, Zoho’s latest developments signal a strong commitment to innovation. The following sections provide a detailed look at Zoho’s key announcements and their potential impact on businesses.
Leadership Transition and Strategic Vision
Zoho has undergone a major leadership transition, with former CEO Sridhar Vembu becoming Chief Scientist. He will focus on AI research and deep-tech innovation. Meanwhile, Shailesh Kumar Davey, a co-founder of Zoho, has been promoted to CEO. This is ensuring continuity in leadership as the company accelerates its AI and IoT expansion. This shift reflects Zoho’s long-term commitment to AI development, reinforcing its strategy to stand out through practical, industry-driven AI solutions. Unlike competitors investing in large-scale generative AI models, Zoho is prioritizing Agentic AI. It is smaller, task-specific AI agents designed for real-world business applications.
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Zoho has introduced its next-generation Agentic AI framework, marking a significant step forward in its artificial intelligence capabilities. The company’s AI evolution has progressed through several stages, beginning with Proactive AI, which focused on basic automation. It was followed by Prescriptive AI, designed for recommendation-based intelligence. This was later expanded with Generative AI, enabling content creation and workflow automation. The latest development, Agentic AI, brings AI-driven decision-making and autonomous agents capable of operating independently in business environments. Unlike large, compute-intensive AI models, Zoho’s approach prioritizes specialized, task-specific AI agents designed for practical, real-world applications.
Core advantages of Zoho’s Agentic AI approach:
Task-Specific AI Agents: These agents handle specific tasks like decision-making, automation, and workflow optimization.
Explainability & Testability: AI decisions are not just automated but also verifiable through machine-checkable logic, making them more reliable for enterprises.
No-Code AI Customization: Businesses can train AI agents without needing extensive technical expertise, accelerating adoption.
ERP Selection: The Ultimate Guide
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Zia Agent Studio: A no-code AI builder that allows businesses to create and customize AI agents without programming knowledge.
Zia Agent Marketplace: A repository of over 1,500 prebuilt AI models, making it easy for companies to deploy AI agents with minimal setup.
Zoho’s Retrieval-Augmented Generation (RAG) AI architecture allows AI to learn from real-time data instead of relying on large, pre-trained datasets, reducing bias and improving accuracy.
IoT Expansion: Industry-Specific Solutions
Zoho has announced a significant expansion of its IoT capabilities, introducing solutions tailored for industries such as manufacturing, smart buildings, energy management, and connected OEMs. In manufacturing, the company is focusing on industrial IoT solutions that enable predictive maintenance, smart factory operations, and real-time monitoring. For smart buildings, Zoho is offering energy-efficient automation, security management, and remote monitoring solutions designed for commercial infrastructure. In the energy sector, its AI-driven tools aim to enhance grid monitoring and power optimization for providers.
Additionally, for connected OEMs, Zoho is introducing automated quality control, smart supply chain monitoring, and equipment analytics to improve operational efficiency. To ensure seamless integration, Zoho’s IoT ecosystem now supports over 40 communication protocols, including MQTT, BACnet, Modbus, Zigbee, and CoAP, enabling compatibility with a broad range of enterprise systems.
Integration with Zoho and Third-Party Applications
Zoho’s AI and IoT solutions integrate seamlessly with its applications, including Zoho CRM, Zoho Analytics, Zoho Creator, and Zoho Desk. Businesses can also connect Zoho’s AI agents to SAP, Oracle, and Salesforce through API integrations for broader interoperability..The platform is built for scalability, allowing enterprises to deploy AI-driven automation across multiple departments and workflows, enhancing efficiency and operational flexibility.
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Zoho has implemented end-to-end encryption across its AI and IoT-driven automation to enhance data privacy and security. In addition, device authentication mechanisms have been introduced to prevent unauthorized access and ensure system integrity. The company is also working toward compliance with major global security frameworks, making its solutions suitable for highly regulated industries such as finance, healthcare, and government.
Future Roadmap: AI-First Vertical Strategy
Zoho is refining its vertical sales strategy by focusing on industry-specific AI solutions to drive enterprise adoption. As part of this effort, the company is developing AI-powered GenAI chatbots that will enable businesses to simplify AI and IoT deployment through natural language interfaces. Looking ahead, Zoho aims to enhance its AI-first approach across all enterprise applications, making automation more intuitive, efficient, and secure.
Analyst’s Take
Zoho’s approach to Agentic AI and IoT integration reflects a strategic focus on enterprise-centric automation, distinguishing itself from competitors that emphasize generalized AI models. By developing task-specific AI agents and expanding secure, scalable IoT solutions, the company is positioning itself within the enterprise software market with a more targeted and adaptable approach.
Strengths & Market Opportunities
Structured & Explainable AI Zoho’s Agentic AI framework follows a structured, testable model that prioritizes transparency and verifiability in AI-driven decision-making. This approach addresses concerns related to unpredictable AI outputs, which remain a key challenge for enterprises adopting AI technologies.
Enhanced Enterprise IoT Integration The company’s IoT expansion strengthens its position in industries such as manufacturing, smart infrastructure, and energy management, where real-time monitoring and automation are critical.
IT & Security Expansion Zoho’s ManageEngine portfolio continues to grow, enhancing its credibility in enterprise IT automation and making it a viable competitor in compliance-heavy industries.
Seamless AI Deployment Tools like Zia Agent Studio and Agent Marketplace provide businesses with the flexibility to customize AI models without requiring deep technical expertise, simplifying AI adoption across multiple industries.
Considerations & Challenges for Enterprises
Adoption & AI Maturity Before full-scale deployment, enterprises may benefit from conducting pilot implementations to evaluate the real-world effectiveness of Zoho’s AI agents in specific use cases.
Enterprise System Compatibility Organizations that rely on SAP, Oracle, or Salesforce should assess potential integration complexities when incorporating Zoho’s AI solutions into their existing workflows.
Regulatory & Security Considerations Businesses operating in regulated sectors such as healthcare and finance must carefully examine Zoho’s compliance with industry-specific security standards to ensure data privacy and regulatory adherence.
What the Future Looks Like for Zoho and Its Customers?
Deeper AI Integration Across Zoho’s Software Suite – Zoho is likely to expand its AI-driven automation across core applications, including CRM, analytics, customer support, and finance. The introduction of AI-powered workflows may improve operational efficiency and enhance decision-making for businesses.
AI-First Vertical Strategies for Industry-Specific Adoption – Zoho’s emphasis on industry-focused AI suggests the development of sector-specific AI solutions tailored for industries such as retail, healthcare, manufacturing, and logistics. This aligns with increasing enterprise demand for AI tools designed to address specialized business challenges.
Growth in AI-Powered IoT for Industrial Applications – As part of its IoT expansion, Zoho is expected to focus on applications like predictive maintenance, smart infrastructure, and energy management. AI integration within IoT could enable more efficient, real-time decision-making for industrial operations.
Increased Focus on AI Security and Compliance – With growing enterprise reliance on AI, Zoho is likely to strengthen its security and compliance framework, ensuring data privacy and AI transparency. This could include advanced governance tools that allow businesses to monitor and audit AI-driven decisions.
Evolution of Leadership and Research-Driven AI Development – With Sridhar Vembu shifting to the role of Chief Scientist, Zoho may prioritize AI research and innovation, focusing on secure, explainable AI models rather than black-box automation. This approach could help enterprises build trustworthy AI systems with improved testability.
Expansion into Enterprise IT Management & Security – Through ManageEngine, Zoho is expected to enhance its role in enterprise IT automation and security. This makes it a stronger contender in the IT management space. This move could attract large-scale enterprises looking for integrated AI-powered IT solutions.
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What is Zoho’s approach to AI, and how does Agentic AI differ from traditional AI models?
Zoho has adopted an industry-specific approach by developing lightweight, task-specific AI agents instead of relying on large, generalized AI models. Agentic AI focuses on explainability and adaptability, allowing businesses to automate decision-making and workflows with more transparency and control.
How does Zoho’s IoT expansion benefit enterprises across different industries?
Zoho’s IoT solutions are designed for industries such as manufacturing, smart buildings, energy management, and connected OEMs. These solutions enable predictive maintenance, real-time monitoring, and automated quality control while integrating seamlessly with Zoho’s software suite and third-party applications.
What leadership changes were announced, and what do they mean for Zoho’s future strategy?
Zoho’s co-founder, Sridhar Vembu, transitioned to the role of Chief Scientist to focus on AI research, while Shailesh Kumar Davey was appointed CEO. This leadership shift reinforces Zoho’s commitment to AI innovation and long-term enterprise automation strategies.
SAP has introduced the SAP Business Data Cloud, a new solution developed in collaboration with Databricks, aimed at unifying and governing SAP and third-party data across organizations. The platform integrates data engineering and analytics functionalities, offering businesses a streamlined approach to data management and AI-driven decision-making. Utilizing Databricks’ technology, SAP Business Data Cloud provides real-time insights and supports AI-powered automation. Early adopters, including Henkel, have begun exploring its potential to enhance data infrastructure and support strategic initiatives.
Let’s Break It Down
Introduction of SAP Business Data Cloud: SAP has launched the SAP Business Data Cloud, a data management solution developed with Databricks to unify and govern SAP and third-party data across organizations.
Integration with Databricks: The platform integrates Databricks’ data engineering and AI capabilities, supporting real-time insights and AI-driven decision-making.
Data Product Economy: It introduces the concept of a data product economy, providing business-ready datasets for finance, supply chain, and HR analytics.
Enhanced AI Capabilities: SAP Business Data Cloud automates workflows and enhances decision-making through AI, including deeper cross-functional insights with SAP’s Joule AI copilot.
Real-Time Data Integration: The solution enables real-time data integration, reducing the need for complex transformations.
Early Adopters: Companies such as Henkel are exploring its potential to optimize data infrastructure and support strategic initiatives.
The 2025 Digital Transformation Report
Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.
SAP has introduced “Business Unleashed,” a new strategy that includes a cloud-based Business Suite integrating functional modules along process chains. This builds on the company’s existing on-premises Business Suite and expands its cloud ERP offerings. The move is expected to influence competition among ERP vendors, prompting further innovation in the market. For existing customers, transitioning from on-premises to cloud solutions may present challenges, including potential short-term disruptions.
ERP Selection: The Ultimate Guide
This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.
SAP’s new strategy emphasizes three core elements: processes, data, and AI. The approach aims to help companies design process chains and prepare data for AI-driven insights. However, smaller vendors could face challenges in keeping pace with SAP’s technological advancements.
Integrated Modules
The cloud-based Business Suite includes integrated modules such as SAP ECC, SAP CRM, SAP SRM, SAP SCM, and SAP PLM. The inclusion of these modules within a unified suite may increase competition for vendors offering standalone applications.
Business Technology Platform
The new Business Suite is built on the BTP platform, which integrates various technology stacks and cloud services to enable end-to-end processes in the cloud. This foundation provides a unified platform for business operations, reinforcing SAP’s position in the market.
ERP Selection Requirements Template
This resource provides the template that you need to capture the requirements of different functional areas, processes, and teams.
SAP introduces the SAP Business Data Cloud (BDC) to create a uniform semantic level for data from SAP systems and third-party providers. The introduction of BDC simplifies data management and harmonization, setting a new benchmark for data integration. This development may lead to increased competition among vendors to offer more efficient and user-friendly data management solutions.
AI Integration
The new Business Suite is designed to prepare data for AI applications, supporting data-driven decision-making and process optimization through AI-driven tools.
Customer Hesitation
SAP aims to address customer hesitations about migrating business-critical applications to the cloud with its new SAP Business Data Cloud Suite. The transition may require investment and effort, leading to potential short-term disruptions.
End-to-End Processes
The SAP Business Data Cloud Suite enables the integration of entire user process chains within a single package, offering a comprehensive approach to business operations in a cloud environment.
Analyst’s Take
From an analyst’s perspective, SAP’s introduction of the SAP Business Data Cloud, in collaboration with Databricks is a strategic move that aligns with the company’s growth objectives and industry trends. Here are some key points to consider:
Demand for Cloud Solutions: SAP’s cloud-first approach reflects the increasing demand for cloud solutions in the market.
Unifying Data for AI Analytics: The SAP Business Data Cloud aims to streamline fragmented data by integrating SAP and third-party sources.
Partnership Significance: SAP leverages Databricks’ expertise to enhance the platform’s capabilities.
Scalable Data Management: The platform supports flexible data management across SAP and third-party systems.
User Experience: Early feedback highlights an intuitive interface, efficient workflows, and improved decision-making.
What Should You Know As An ERP Buyer?
Overall, this is very exciting news for both enterprise software buyers as well as SAP. With this alignment, enterprise software buyers receive pre-built and pre-integrated data connections populating the majority of SAP datasets as well as third-party industry standards. Databricks is a market-leading platform among data platform providers without requiring an army of data engineers to build enterprise decision support workloads. But some considerations for buyers as they plan to take advantage of SAP Business Data Cloud offering.
Implementation Challenges: Transitioning to a technology, even if it is pre-baked, requires careful planning due to complexities in data migration, system integration, and user training.
Data Security: Businesses must implement strong security measures to protect sensitive information and comply with data protection regulations.
Vendor Lock-In: With the proprietary IP sitting on top of Databricks from SAP, buyers need to understand their vendor lock-in obligations especially if they don’t prefer as much vendor lock-in.
Cost Considerations: While cloud solutions may reduce infrastructure costs, expenses related to implementation, subscription fees, and maintenance should be evaluated.
Customization Limitations: The data applications don’t impact the operational state as much, but the underlying data structures must support the end-to-end data flows to work and the decision support system to work effectively.
Resistance to Change: Employees may be hesitant to adopt a new system, requiring effective change management and training programs.
FAQs
What is SAP Business Data Cloud, and how does it benefit organizations?
SAP Business Data Cloud is a data management solution developed in collaboration with Databricks to unify and govern SAP and third-party data. It enables businesses to integrate, analyze, and leverage AI-driven insights for better decision-making, real-time analytics, and streamlined workflows.
How does SAP Business Data Cloud support AI and automation?
The platform integrates AI capabilities, including SAP’s Joule AI copilot, to automate workflows, enhance decision-making, and provide deeper cross-functional insights. It also enables real-time data integration, reducing the need for complex transformations.
What challenges should businesses consider before adopting SAP Business Data Cloud?
Organizations may face challenges such as data migration complexities, system integration efforts, potential vendor lock-in, and employee adaptation. Strong security measures, cost evaluations, and effective change management strategies are crucial for a smooth transition.
In a significant move to modernize its operations and support its rapid global expansion, AIRSYS Cooling Technologies has selected Rootstock ERP to replace its legacy ERP solution. This decision is particularly driven by the need for a scalable and integrated ERP system that can enhance manufacturing processes, supply chain visibility, and reporting capabilities. This blog will delve into the details of this news, provide an analyst’s perspective on the implications of this decision, and also conclude with the potential impact on AIRSYS’s future growth.
Company Background
AIRSYS Cooling Technologies, founded in 1995 by Yunshui Chen in China, is a global leader particularly in mission-critical cooling solutions. The company provides sustainable, advanced, and also data-driven cooling solutions. It is particularly designed for industries such as telecommunications, data centers, semiconductor manufacturing, and medical imaging. With customers in over 100 countries, AIRSYS has grown into a global enterprise. It now has its headquarters in the United States.
The 2025 Digital Transformation Report
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AIRSYS has chosen Rootstock ERP to replace its legacy ERP solution. The need for a modern, and also scalable ERP solution to support its global supply chain and rapid expansion drove the decision. Rootstock ERP is built on the Salesforce platform, thus allowing seamless integration with Salesforce Sales Cloud and Propel Software. This creates an interconnected technology stack, enabling real-time visibility, automated processes, and also enhanced decision-making capabilities.
ERP Selection: The Ultimate Guide
This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.
One of the key reasons for selecting Rootstock ERP is its integration with the Salesforce platform. AIRSYS has been using Salesforce Sales Cloud for at least five years and wanted an ERP solution that would work seamlessly with this platform. Rootstock ERP, being built on the same platform, also ensures that customer data is already hosted on the same platform, eliminating the need for complex integrations.
Global Deployement
The deployment of Rootstock ERP will cover AIRSYS’s operations in the United States, China, and Europe. The implementation will begin with the manufacturing division, scheduled to go live in Q1 2025, followed by the U.S. operations. This phased approach ensures a smooth transition and minimizes disruptions to ongoing operations.
Consulting Partner
AIRSYS has partnered with Nagarro, a consulting firm, to implement Rootstock ERP. Nagarro will leverage its global and local teams to ensure a seamless implementation that supports AIRSYS’s innovation and global supply chain alignment. This collaboration showcases Nagarro’s expertise in delivering sophisticated ERP and digital transformation projects across geographies.
ERP Selection Requirements Template
This resource provides the template that you need to capture the requirements of different functional areas, processes, and teams.
The selection of Rootstock ERP is part of AIRSYS’s strategic plan to modernize and consolidate its enterprise solutions, enabling the company to scale for exponential growth over the next three to five years. The company operates in rapidly evolving industries, including AI semiconductors and medical imaging, and needs a modern, scalable ERP solution to support its global supply chain.
New Facility
AIRSYS is expanding its business with a new manufacturing and distribution center in Greer, South Carolina, which will serve as the company’s global headquarters. This new facility will support the company’s growth and enhance its manufacturing and distribution capabilities.
Analyst’s Take
From an analyst’s perspective, AIRSYS’s decision to select Rootstock ERP is a strategic move that aligns with the company’s growth objectives and industry trends. Here are some key points to consider:
Scalability and Flexibility: Rootstock ERP’s scalability and flexibility make it an ideal choice for AIRSYS, which operates in rapidly evolving industries. The ERP solution can adapt to changing business needs and support the company’s growth over the next few years.
Integration with Salesforce: The seamless integration with Salesforce is a significant advantage, as it ensures that customer data is already hosted on the same platform. This eliminates the need for complex integrations and enhances data visibility and decision-making capabilities.
Global Deployment: The phased deployment approach ensures a smooth transition and minimizes disruptions to ongoing operations. This strategic approach demonstrates AIRSYS’s commitment to a successful ERP implementation.
Consulting Expertise: Partnering with Nagarro, a consulting firm with expertise in delivering sophisticated ERP and digital transformation projects, ensures a seamless implementation that supports AIRSYS’s innovation and global supply chain alignment.
Strategic Goals: The selection of Rootstock ERP aligns with AIRSYS’s strategic goals of modernizing and consolidating its enterprise solutions. This move will enable the company to scale for exponential growth and support its global supply chain.
Industry Trends: AIRSYS operates in industries that are rapidly evolving, such as AI semiconductors and medical imaging. The adoption of a modern, scalable ERP solution positions the company to stay ahead of industry trends and meet the demands of its customers.
Key Industry Trends
The AIRSYS and Rootstock ERP collaboration highlights several key industry trends that are shaping the future of ERP solutions.
Cloud Integration: The integration of ERP solutions with cloud platforms like Salesforce is becoming increasingly popular. This trend is driven by the need for real-time data visibility, seamless integration, and enhanced decision-making capabilities.
Focus on Scalability: Companies are prioritizing scalable ERP solutions that can support their growth and adapt to changing business needs. This is particularly important for industries that are rapidly evolving, such as AI semiconductors and medical imaging.
Partnerships with Consulting Firms: Partnering with consulting firms for ERP implementation is a growing trend, as these firms bring expertise and resources to ensure successful deployments.
Focus on Innovation: Businesses are prioritizing ERP solutions that support innovation and digital transformation to stay competitive in their industries.
Is It Good For All?
The selection of Rootstock ERP addresses AIRSYS’s need for a modern, scalable ERP solution that supports their global supply chain and rapid expansion. The integration with Salesforce ensures a seamless transition and enhances their operational efficiency. For Rootstock, the partnership with AIRSYS showcases their ERP solution’s capabilities and strengthens their reputation in the market. Nagarro benefits from demonstrating their expertise in delivering sophisticated ERP implementations, enhancing their credibility and attracting future clients.
What ERP Buyers like AIRSYS must know/might not know?
While the decision to adopt Rootstock ERP brings numerous benefits, there are several potential concerns that AIRSYS must address to ensure a smooth and successful implementation.
Implementation Challenges: Deploying a new ERP system across global operations can be complex and may face challenges such as data migration, user training, and system integration. AIRSYS must have a robust implementation plan and support from experienced partners like Nagarro.
Change Management: Adopting a new ERP system requires significant changes in business processes and workflows. AIRSYS must ensure that employees are adequately trained and supported during the transition to minimize disruptions and maximize the benefits of the new system.
Data Security: With the integration of cloud-based ERP solutions, data security becomes a critical concern. AIRSYS must implement strong security measures to protect sensitive business data and also ensure compliance with data protection regulations.
FAQs
Why did AIRSYS choose Rootstock ERP over other solutions?
AIRSYS selected Rootstock ERP due to its seamless integration with Salesforce, scalability, and ability to support global supply chain operations. The solution aligns with AIRSYS’s strategic goals of modernizing its enterprise systems while ensuring real-time data visibility and operational efficiency.
How will the ERP implementation impact AIRSYS’s global operations?
The phased deployment will begin with the manufacturing division in early 2025, followed by U.S. operations, ensuring minimal disruptions. This approach will enhance supply chain visibility, streamline manufacturing processes, and support AIRSYS’s rapid global expansion.
What role does Nagarro play in the ERP implementation?
AIRSYS has partnered with Nagarro, a consulting firm with expertise in ERP and digital transformation projects. Nagarro will manage the implementation, ensuring a smooth transition, optimizing workflows, and aligning the ERP with AIRSYS’s global supply chain and innovation goals.
Unlike most other industries, field service industries have their own “personalities,” with varying business processes depending upon the micro-vertical. An example of these micro-verticals could be traditional field service categories such as appliance repair – or home cleaning (think field workers carrying mobile devices!). However, they could also be the field service department intertwined with other business processes such as engineering, production, or post-sales service. While several ERP systems contain a field service module, the field service systems are generally best-of-breed. With transactional speed requirements similar to those of a POS or CRM-centric architecture, they are generally not as embedded with other operational processes.
Often regarded as another touchpoint from the customer perspective, field service processes sometimes overlap with CRM instead of ERP processes. But generalized CRM systems struggle in this industry, requiring substantial tailoring, which is especially challenging for organizations with limited IT maturity and budget, so field service systems generally incorporate CRM processes as well. With the integration and CPQ requirements being fairly unique, the integration could be very similar to CRM or EDI categories. In these integration scenarios, external sales or marketing channels may funnel the pipeline while the field service system acts as the order capture interface. Due to the layers with quoting variables, the CPQ requirements might be equally challenging.
Additionally, field service systems may integrate with CAD systems, particularly in industries like oil and gas or Industry 4.0. In these cases, they support device servicing, data collection, and monitoring. Overall, field service systems have evolved significantly, and now their suites could be as thick as a CRM or ERP.
The 2025 Digital Transformation Report
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Definition of a field service company. The companies in this market segment would include companies of all sizes with field service operations such as home service, appliance repair, paint or small construction jobs, large CapEx medical devices, insurance, financial services, or data center companies.
Overall market share/# of customers. Higher market share among field service companies drives higher rankings on this list.
Ownership/funding. The superior financial position of the field service vendor leads to higher rankings on this list.
Quality of development. How modern is the tech stack? How aggressively is the field service vendor pushing cloud-native functionality for this product? Is the roadmap officially announced? Or uncertain?
Community/Ecosystem. How vibrant is the community? Social media groups? In-person user groups? Forums?
Depth of native functionality. Last-mile functionality for specific industries natively built into the product?
Quality of publicly available product documentation. How well-documented is the product? Is the documentation available publicly? How updated is the demo content available on YouTube?
Product share and documented commitment. Is the product share reported separately in financial statements if the field service vendor is public?
Ability to natively support diversified business models. How diverse is the product in supporting multiple business models within the same product suite?
Acquisition strategy aligned with the product: Any recent acquisitions to fill a specific hole for field service industries? Any official announcements to integrate recently acquired capabilities?
User Reviews: How specific are the reviews about this product’s capabilities? How recent and frequent are the reviews?
Must be a field service product: this needs to be a best-of-breed product. It can’t be a module of an ERP system.
10. Jobber
Jobber primarily functions as a relatively small system designed to integrate with QuickBooks for field service management. While it offers effective scheduling capabilities, its inventory management may not be as comprehensive. This can pose challenges, particularly with job costing, from an operational and project management perspective. Although you’ll be able to schedule resources and manage calendars efficiently, tracking the profitability of jobs could be difficult due to the limitations in inventory coding. On the positive side, these simplified features also mean the implementation process will be much easier. Therefore, Jobber secures the #10 spot on our list of top field service systems.
Strengths
Easier implementation as data models are not coded. Switching from QuickBooks makes implementation easier since data like customers, vendors, and inventory doesn’t require recoding.
Great for scheduling. The operational scheduling is robust with integrated resource availability. But any cost-related scenarios might be a stretch for Jobber.
Great for timesheets. Since it codes resources and availability as part of the calendar functionality, the timesheet capabilities would be a plus with this system.
Weaknesses
Data integrity issues. These issues arise because of loosely coded datasets, a design choice aimed at reducing implementation costs. You can easily fix them manually by applying governance rules and processes, as the fluid data model without business rules allows flexibility.
Not scalable for financial cross-functional use cases. From a process governance perspective, it won’t scale well for cross-functional, finance-centric use cases.
Billing and invoicing might be challenging. Missing connectivity between your inventory and financial data sets requires relying on ad-hoc arrangements, especially if you frequently edit invoices or billing.
9. Oracle Field Service
Oracle Field Service is an enterprise-grade solution, unlike Jobber, which is more introductory. It is ideal for companies using Oracle Cloud ERP, typically large enterprises. Oracle has a significant market share in industries like media, oil and gas, and service-centric businesses, offering tailored capabilities. It’s also highly robust in the public sector, particularly for scenarios like emergency communication that require device integration in the field, with many of these features natively built into the solution. Therefore, Oracle Field Service secures the #9 spot on our list of top field service systems.
Strengths
Great for complex enterprise use cases such as call handling and dispatching.An excellent fit for enterprises with large call centers and complex dispatch processes.
GPS routing, including traffic. Scenarios involving highly complex GPS routing, especially with weather patterns and other variables, make Oracle Field Service a perfect fit.
Global cloud footprint for companies concerned about their data locations.Funding organizations in the nonprofit or public sector often impose data residency requirements, mandating that data be stored within a specific country. In such cases, Oracle Field Service is likely the better solution.
Weaknesses
Bloated for SMBs. The limitations of Oracle Field Service include the complexity of its layers, as well as the data and process modeling required.
Steep learning curve. Enterprise-centric use cases make the system implementation significantly more expensive. Additionally, the multiple layers contribute to a steep learning curve.
Not mobile friendly. It’s likely that Oracle Field Service won’t be as mobile-friendly as some of the other solutions on the list, such as Jobber. Newer technologies tend to offer better mobile compatibility.
ERP Selection: The Ultimate Guide
This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.
ServiceNow offers various templates tailored for field service companies. However, it has traditionally been more focused on IT-centric, data center-centric businesses that require IT planning and compliance. It handles more complex tasks like integrating with data center devices, managing billing and invoicing, and supporting hardware-based consumption billing. These are the scenarios where ServiceNow is an ideal fit. Hence, ServiceNow Field Service Management secures the #8 spot on our list of top field service systems.
Strengths
Fluid architecture for ad-hoc business processes. ServiceNow is a great fit when you need a fluid architecture for ad hoc business processes that aren’t formalized enough to be hosted within an ERP.
Data model and processes pre-populated for IT-centric processes. IT-centric businesses will benefit greatly from the pre-populated data model and processes, as many of the compliance procedures are particularly relevant to those industries. They are likely to find a solution that is more aligned with their needs.
Mobile-friendly. The technology is designed to be highly mobile-friendly and scalable, making it suitable for mobile-centric interfaces. It works well with various devices, whether you are integrating with industry-standard folders, IoT devices, or edge devices.
Weaknesses
Overly bloated IT data model for SMBs. ServiceNow can be overly bloated, and its complex data model may not be well-received by SMBs, as navigating the various layers to operate within the model can be challenging. While it excels for enterprises, it may not suit SMBs seeking simpler, more prescriptive processes and interfaces.
Expensive consulting help. As a result of these factors, consulting costs are likely to be significantly higher.
Service Fusion is ideal for home services SMBs looking for a suite that combines commerce and field service. It’s slightly more advanced than Jobber, but still a smaller solution compared to some of the other products on this list. Therefore, Service Fusion secures the #7 spot on our list of top field service systems.
Strengths
Pre-integrated suite.Service Fusion would be especially friendly for companies that might have overlapping field service processes with eCommerce. Certain industries require it, making it an ideal option for them without expensive integration.
Easy to set up and use. It will be easy to set up and use due to its prescriptive workflows, but your data sets may not be as well integrated.
Weaknesses
Glitchy. It is likely to be glitchy, as users have reported minor issues on various review forums.
Poor support after acquisition. While the vendor-provided and maintained integration of commerce and field service capabilities is a benefit, support quality may be a concern due to their private equity acquisition.
No updates to the software. Their private equity seems to be prioritizing marketing makeup over product innovation. Consequently, expect issues with Service Fusion.
6. ServicePower
ServicePower is ideal for relatively larger companies seeking a stronger scheduling engine along with fully managed offerings, including field service workers for verticals, especially for insurance or utility industries. Without a strong ecosystem, especially for industries such as home or appliance repair, ServiceTitan might not be a great fit for those industries, securing its rank at #6 on this list.
Strengths
Enterprise-grade scheduling. One of ServicePower’s biggest strengths is its enterprise-grade scheduling component. In fact, some other solutions on this list also use this advanced, patented scheduling technology to power their scheduling capabilities.
Managed services. A unique aspect of ServicePower is its managed service offering, which allows you to completely outsource your field service functions, including hiring, recruiting, retaining, and communicating with third-party vendors.
Can manage both employed and third-party service providers. ServicePower can manage both in-house employees and third-party service providers using the same solution.
Weaknesses
Might not be as integrated as ServiceTitan. The ecosystem with marketing or compliance is far more developed with other solutions, requiring custom integrations with Service Power.
Not as complete suite as Service Fusion. For industries requiring eCommerce embeddedness, other solutions on this list might be a superior fit.
Not for enterprises. While Service Power technology is used by larger solutions to power enterprises, their solution might not be the best fit for larger enterprises.
5. ServiceMax
ServiceMax is ideal for enterprises seeking a native Salesforce platform with industry 4.0 use cases. Now owned by PTC, ServiceMax is a great fit for industries where field service needs integrate closely with CAD or PLM products. It’s particularly useful in industry 4.0 scenarios that involve communication with edge devices, data collection, and combining that data with field service monitoring. Hence, ServiceMax secures the #5 spot on our list of top field service systems.
Strengths
PTC offerings provided as part of the suite. The integration with PTC offerings can be a great fit, depending on the industry. However, if you seek more Industry 4.0 capabilities in your solution, ServiceMax may be the better choice.
Salesforce embedded experience. ServiceMax is built on the Salesforce platform but lacks deeper capabilities and integrations found in Salesforce’s native field service solution. Salesforce offers two primary solutions, with their own offering being the preferred choice. However, in specific industries, ServiceMax may be a better fit due to its alignment with certain needs.
Communication challenges with core Salesforce objects. Communication with core Salesforce processes won’t be as seamless as with Salesforce’s native solution like the one offered through the Salesforce Service Cloud.
Not SMB friendly. With its enterprise-grade workflow and process layers, it might be too overwhelming for SMB companies.
Limited mobile capabilities. Due to its legacy technology, mobile capabilities are not as user-friendly and flexible as with other solutions on this list.
4. Microsoft Dynamics 365 Field Service
Microsoft Dynamics 365 Field Service is ideal for companies already using Microsoft Dynamics products, whether it’s the CE suite or any of Microsoft’s ERP solutions. Its enterprise-grade and customizable model fits uniquely for companies seeking to customize these capabilities on top of the Microsoft Dynamics 365 Field Service Platform. With the risk of being perceived as overwhelming, it might not be the best for SMB companies simpler and prescriptive solution without requiring an expensive implementation.
Strengths
Integrated MS suite. Similar to the CRM category, the field service solution will necessitate more variations, whether you are considering field service payments or integrating with multiple channels to acquire these needs. Therefore, Dynamics 365 Field Service could be an excellent fit for your requirements.
Cloud-native. Unlike other solutions on this list with legacy interfaces, this solution has been completely rearchitected using cloud-native technologies, which is especially relevant for the field workforce.
Extensibility for custom workflows. It will be especially friendly for companies requiring custom workflows without as many constraints as are generally found with smaller solutions.
Weaknesses
Reliance on third-party add-ons for suite offerings. The limitation of this solution is its reliance on various third-party add-ons, which introduces implementation risks and a longer vendor list. This can lead to higher implementation costs and require significant IT expertise for architectural design.
Ecosystem not as integrated or developed for field-service sales-centric use cases. Unlike ServiceTitan, which is likely to have integration with several customer-facing channels and marketing-centric use cases, MS Dynamics would require custom integration, increasing the implementation costs.
Not fit for SMBs. The layers with this solution might be too over-bloated for companies looking for simpler solutions to be implemented on a limited budget.
3. Salesforce Field Service
Salesforce Field Service is another solution within the Salesforce ecosystem, part of the Field Service Cloud they offer. It’s fit for comapnies already on Salesforce looking for embedded experience with Salesforce CRM and CPQ processes.It might not be the best fit for companies not on Salesforce or seeking prescriptive solutions with pre-configured processes for industries such as home services or paint, securing its rank at #3 on this list.
Strengths
Seamless integration with other Salesforce offerings. This solution offers superior communication with your Salesforce objects and integrates seamlessly with the CRM and marketing automation platforms. Therefore, when seeking a consolidated view in one solution, Salesforce Field Service is an excellent choice.
Salesforce ecosystem. It is ideal for all call center-centric scenarios, as it offers numerous apps designed to enhance customer experience. When these processes align with your field service operations, Salesforce Field Service becomes an excellent choice.
Enterprise-grade service management capabilities. If you’re considering enterprise-grade service management capabilities, whether from a specialized or scheduling perspective, you will find all those functionalities available.
Weaknesses
Not SMB friendly. It is not particularly friendly for SMBs and is primarily designed for specialized, service-centric workflows. You may encounter difficulties if your operational processes need to be integrated with your field service processes.
Only designed for best-of-breed service-centric workflows. It is not the best fit for industries where the interconnectedness of financial, cost, or inventory data with customer-facing workflows would be a requirement.
Requires consulting and enterprise architecture expertise. Designing a solution around this particular framework will necessitate extensive consulting and expertise in enterprise architecture.
2. IFS Field Service Management Software
IFS field service management offers the best of both worlds, combining field service capabilities with tight integration into the ERP layers provided by the same vendor. While IFS excels in managing operational processes, challenges may arise with CX-centric processes, such as integrating with your call center or CRM systems. This can become more costly, as these capabilities may need to be custom-built. IFS offers flexibility similar to ServiceMax for Industry 4.0 scenarios, but it doesn’t cover all aspects of customer experience. Choosing the right architecture depends on your priorities. If operational integration and flexibility in field service are key, IFS is a solid choice. Hence, IFS field service management software has secured the #2 spot on our list of top field service systems.
Strengths
Suitable for industries with intertwined EAM and field service workflows. IFS is an excellent choice for asset-centric companies with distinct operational models as part of their EAM solution.
Supports both best-of-breed and embedded workflows. The key strength of IFS is that it can support both best-of-breed and embedded workflows, unlike most point solutions on this list.
Cloud-native. IFS is a cloud-native technology, which is essential for field service companies. Its scheduling component has demonstrated effectiveness with large workloads, including those from Fortune 500 companies.
Weaknesses
Overwhelming for SMBs. The extensive process coding, and data required could be overwhelming for SMBs. This might prove to be very costly for them, and they may not appreciate the multiple layers involved with the solution.
Limited North America presence. While they are performing well in North America, their presence remains limited, as they do not have as many logos, at least for now.
Limited integration with marketing and call center-centric workflows. Unlike modern solutions that are designed to embed marketing and call-center-centric workflows, IFS is not the right fit for those use cases.
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ServiceTitan is ideal for SMBs, particularly those in residential services, seeking a user-friendly solution with a lower implementation cost. It offers strong connection points, especially for CRM and lead management. In field service businesses, ServiceTitan often functions as the CRM, with robust capabilities to support these workflows. Most companies in this sector likely won’t need an additional CRM to manage their processes. Therefore, ServiceTitan holds the #1 spot on our list of top field service systems.
Strengths
Pre-baked integration. From the ServiceTitan perspective, you can expect a greater number of pre-built integrations. The design philosophy of ServiceTitan is highly workflow-centric, focusing on enhancing both the customer and employee experience in field service.
Marketplace. The marketplace and ecosystem represent one of the largest and most comprehensive suites available for SMBs, particularly in the residential services sector.
Comprehensive suite for SMBs. The capabilities captured as part of the suite are fairly comprehensive for SMBs seeking a prescriptive solution with a limited implementation budget.
Weaknesses
Not meant for enterprises. The prescriptive process and data model might not have the flexibility and the layers that an enterprise would require because of the complexity of its business model.
Limited to best-of-breed setting. Another limitation is that it is restricted to best-of-breed scenarios where your field service must operate independently. If you seek operational correlation with your ERP processes, this could present a challenge.
Only fit for residential services. Overall, while ServiceTitan is well-suited for residential services, it may not be the best fit or as widely adopted in other industries, such as insurance or utilities.
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Each solution reviewed here excels in specific areas, from enterprise-grade scalability to SMB-friendly implementations and specialized workflows. However, selecting the right field service management software hinges on understanding the unique requirements of your industry, business size, and operational model. While Jobber and ServiceTitan are strong choices for smaller businesses focused on ease of use and residential services, Oracle and ServiceNow offer robust, complex capabilities ideal for larger organizations with advanced operational needs. Solutions like IFS and ServiceMax provide flexibility for industries requiring tightly integrated ERP and field service workflows, supporting complex use cases like Industry 4.0. Ultimately, the best choice depends on aligning the software’s strengths with your business objectives and resources. While this list offers valuable insights, seeking advice from an independent ERP consultant can greatly enhance the implementation success.
FAQs
What industries commonly use field service management systems?
Field service management systems cater to a wide range of industries, including home services, appliance repair, small construction, medical devices, insurance, financial services, and data centers. These systems are also tailored for enterprise-grade industries such as oil and gas, utilities, and manufacturing that integrate field service with engineering and production workflows.
How do field service systems differ from ERP or CRM systems?
Field service systems are designed specifically for managing field operations like scheduling, dispatching, and servicing, with a focus on transactional speed similar to POS or CRM systems. Unlike ERP systems, they prioritize mobility and customer interaction touchpoints. They often overlap with CRM processes but provide deeper functionality tailored for field service use cases, such as quoting (CPQ), device integration, and mobile workforce management.
What factors should businesses consider when selecting a field service management system?
Key factors include the company size, industry requirements, and operational complexity. Considerations include ease of implementation, integration with ERP or CRM systems, mobile capabilities, support for custom workflows, scalability, and vendor support. For SMBs, user-friendly and cost-effective solutions like ServiceTitan or Jobber may be ideal, while enterprises may benefit from robust systems like Oracle Field Service or IFS Field Service Management.
Plastic extrusion companies. Used in various industries such as construction, automotive, aerospace, medical, packaging, consumer goods, electronics, and agriculture, they specialize in the manufacturing process called plastic extrusion. Because of its material efficiency, continuous production, and minimal post-processing needs, it differs from other manufacturing companies. The business model could be B2B or B2C. In the case of B2B, it involves large-scale production, long-term contracts, and customization services to meet specific client needs while focusing on cost efficiency and quality assurance.
Plastic extrusion business processes. The process starts by selecting and preparing raw plastic materials, melting and mixing them, and then forcing them through a die to create specific shapes. The next steps are cooling these shapes, cutting them to a length, and applying additional finishing processes. Additionally, effective supply chain and logistics management ensures the smooth flow of materials and finished goods, including inventory management, packaging, and distribution. Regular maintenance of equipment and providing customer support for product customization and after-sales services are also vital to ensure efficient, high-quality production and delivery.
Plastic extrusion ERP needs. Requiring advanced capabilities in inventory management, production planning, and scheduling, and integrated quality control, they need mature capabilities in supply chain management to streamline procurement and logistics. These processes might also be comparatively complex due to the diverse range of raw materials, coordination of multiple extrusion lines, and adaptation to fluctuating order demands. Additionally, handling custom orders requires flexible processes and effective communication, making ERP selection substantially challenging for plastic extrusion companies.
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Definition of a plastic extrusion company. They specialize in the manufacturing process called plastic extrusion, used in various industries such as construction, automotive, aerospace, medical, packaging, consumer goods, electronics, and agriculture.
Overall market share/# of customers. The higher market share among plastic extrusion companies drives higher rankings on this list.
Ownership/funding. The superior financial position of the ERP vendor leads to higher rankings on this list.
Quality of development. How modern is the tech stack? How aggressively is the ERP vendor pushing cloud-native functionality for this product? Is the roadmap officially announced? Or uncertain?
Community/Ecosystem. How vibrant is the community? Social media groups? In-person user groups? Forums?
Depth of native functionality. Last-mile functionality for specific industries natively built into the product?
Quality of publicly available product documentation. How well-documented is the product? Is the documentation available publicly? How updated is the demo content available on YouTube?
Product share and documented commitment. Is the product share reported separately in financial statements if the ERP vendor is public?
Ability to natively support diversified business models. How diverse is the product in supporting multiple business models in the same product?
Acquisition strategy aligned with the product: Any recent acquisitions to fill a specific hole for plastic extrusion industries? Any official announcements to integrate recently acquired capabilities?
User Reviews: How specific are the reviews about this product’s capabilities? How recent and frequent are the reviews?
Must be an ERP product: Edge products such as HCM, CRM, eCommerce, MES, or accounting solutions that are not fully integrated to support enterprise-wide capabilities are not qualified for this list.
10. Plex
Plex is an excellent choice for plastic extrusion companies, particularly those operating within the Ford or Toyota ecosystems. It adopts a strong MES-first approach, making it a great fit for businesses with highly active shop floors that prioritize Industry 4.0 scenarios. Therefore, plastic suppliers within the automotive ecosystem are likely to find Plex especially appealing. Hence, Plex has secured the #10 spot on our list of top plastic extrusion ERP systems.
Strengths
MES-first approach. It adopts a MES-first approach, making it an ideal choice for businesses with highly active shop floors and a focus on Industry 4.0 scenarios. It’s particularly well-suited for plastic suppliers within the automotive ecosystem, where the capabilities are likely to be highly valued.
Stronger automotive last mile compliance capabilities. It offers robust automotive last-mile capabilities that come pre-built, reducing the need for third-party solutions. This ensures that you have comprehensive, ready-made street capabilities that might require additional vendors with other systems.
Cloud-native. They started as a cloud-native platform, so the experience is likely to be superior.
Weaknesses
Weaker plastic-centric core product and scheduling layers. The plastic industry has unique complexities, particularly in process manufacturing. While some products gain wide adoption for covering plastic-centric processes, these processes often present complications, especially with formulation recipes. Although issues like catch weight may be less prevalent, other typical process manufacturing challenges still arise. While certain systems like Plex tailor and enhance other industry processes, plastic-centric processes may lack some detail.
Not as scalable for diverse business models. It is less scalable for diverse business models, and if your business falls outside the automotive sector, you may encounter challenges despite claims of supporting mixed-mode manufacturing.
Not as well adopted among plastic extrusion companies. Plastic extrusion companies adopt it less widely. While they do have some clients in this sector, their presence isn’t as strong as that of other systems on the list.
9. SYSPRO
Plastic extrusion companies outgrowing QuickBooks and needing a more robust solution find SYSPRO well-suited. These companies are typically looking for a smaller ERP system that provides end-to-end traceability within a single country. SYSPRO offers a solution that includes both discrete and process manufacturing capabilities, making it ideal for handling complex business models. Thus, SYSPRO secures the #9 spot on our list of top plastic extrusion ERP systems.
Strengths
Complex inventory layers. In the plastics industry, inventory management is complex due to various product attributes integral to supply chain and scheduling planning. Some systems may struggle with this, but SYSPRO handles these challenges well, making it an ideal choice.
Formulation and recipe support. The product has natively built formulation and recipe support.
Discrete and process manufacturing in one solution. SYSPRO has both discrete and process manufacturing natively built into one solution.
Weaknesses
Complex plastic extrusion capabilities such as scheduling. Products specifically focused on plastics provide more detailed coverage of complex processes from a plastic perspective.
Not as well adopted among plastic extrusion companies. It has limited overall adoption, with relatively few logos, especially among plastic extrusion company logos.
Limited global consolidation capabilities. You will also have very limited global consolidation capabilities. Therefore, if your company operates in multiple countries and values operational supply chain synergies and collaboration, SYSPRO might not be the best option.
8. QAD
QAD is ideal for companies dealing with highly commoditized products that heavily rely on their supply chain. One of the key strengths of QAD is its integrated solution, which combines both the supply chain suite and ERP within a single platform. This integration is crucial because many other products require separate systems for components like PLM, CAD, ERP, and supply chain management, including WMS and TMS. Plastic extrusion companies, where products are generally commoditized and supply chain planning is essential, tight integration of these components is invaluable. The busy and complex nature of their warehouses necessitates seamless coordination between WMS, TMS, ERP, PLM, CAD, and other processes, making QAD an excellent fit by offering everything from one vendor in a unified solution, eliminating the need to manage multiple systems and ensuring smooth operations. Thus, QAD has secured #8 on our list of top plastic extrusion ERP systems.
Strengths
Supply chain suite + ERP as part of the suite. The solution integrates the supply chain suite and ERP into one system. It is beneficial for plastic extrusion companies with commoditized products. These companies require effective supply chain planning, as well as WMS and TMS capabilities due to their busy warehouses. QAD fits well because it offers all these components—WMS, TMS, ERP, PLM, CAD—within one solution from a single vendor, avoiding the challenges of managing multiple systems and ensuring seamless integration.
Process + discrete. QAD has both discrete and process manufacturing natively built into one solution, just like SYSPRO.
Global capabilities. If you seek global operational synergies, QAD could be a great choice. It localizes in many countries and maintains a broad consulting presence worldwide.
Weaknesses
New technology might not be stable or rolled out to all modules.They have announced plans to migrate their product to cloud-native technology, but it may take a few years to stabilize, and not all modules will migrate immediately. Understanding which modules have transitioned and how these changes will affect you is important, as the full cloud version may take several years to implement completely.
Ecosystem. The ecosystem, including the consulting base, isn’t as extensive as what you’ll find with more generalized products, which is typical for prescriptive solutions.
Not as well adopted among plastic extrusion companies. It’s not as widely adopted among plastic extrusion companies as some of the other products we discuss in business.
7. Oracle Cloud ERP
Oracle Cloud ERP is a robust solution that stands out compared to other products like QAD or SYSPRO, which are generally smaller and used by smaller companies. As companies grow and outgrow these smaller products, Oracle Cloud ERP becomes a more suitable option. Usually, publicly traded companies use Oracle and they operate with diverse business models that require comprehensive solutions for global financial traceability, along with operational and supply chain traceability when needed. Oracle Cloud ERP is a large-scale product and designed to meet the complex needs of these larger enterprises. Therefore, Oracle Cloud ERP has secured #7 spot on our list of top plastic extrusion ERP systems.
Strengths
Diversity of the solution supported different business models. Publicly traded companies often have various business models they need to accommodate within a single solution. They prioritize end-to-end global financial traceability, and sometimes operational and supply chain traceability as well, depending on their consolidation needs and the level of traceability they require. In that case, Oracle Cloud ERP will be a great fit.
Depth of ERP layers for large enterprises. Oracle Cloud ERP provide a better fit for large companies. Its strength lies in its ability to support diverse business models. However, this broad functionality can also be a drawback, as it lacks specialized industry capabilities and integrated suite functions, which can make implementation more costly. The extensive ERP features offer great flexibility for various business transactions, but this complexity often results in longer, more expensive implementations due to the need for thorough testing, configuration, and industry-specific adjustments.
Global financial consolidation and localization. Global financial consolidation and localization features are crucial, especially in regions like South America and Europe where some products have minimal market presence. These areas can be challenging due to their smaller market share, leading many companies to avoid them due to high R&D costs for localization. In such cases, more generalized products like Oracle Cloud ERP provide a better fit.
Weaknesses
Limited plastic centric capabilities natively built. The plastic-centric suite capabilities are not as natively developed or supported by the same vendor.
Expensive implementation. The ERP implementation will be on the expensive side as you are dealing with multiple ERP vendors.
Not as well adopted among SMB plastic extrusion companies. SMB plastic extrusion companies do not widely adopt it. Large firms might use Oracle Cloud ERP for its strong financial features, but it may not be the best fit if they need comprehensive operational consolidation in a single solution.
6. SAP S/4 HANA
SAP S/4 HANA is quite similar to Oracle Cloud ERP in many ways. However, SAP S/4HANA tends to be more prevalent in product-centric industries. Its HANA database is slightly superior, particularly for transactional integrity and business models focused on transactions. For product-centric companies that require end-to-end supply chain collaboration across multiple countries and need to consolidate all MRP workflows, SAP S/4HANA is often a better fit. This is especially true when dealing with tightly correlated products or serial numbers, which can increase the overall system workload. Therefore, SAP S/4 HANA secures the #6 spot on our list of top plastic extrusion ERP systems.
Strengths
ERP layers for complex organizations. Designed for global, highly regulated organizations with very complex business models ranging from discrete to process.
Process + discrete. Both process and discrete manufacturing are integrated into SAP S/4 HANA. These features are natively built into the solution.
Global compliance and localization. Supports localization and compliance requirements of most countries across the world, for companies aiming to consolidate all of their global entities in one database and data model.
Weaknesses
Limited plastic centric capabilities natively built. Just like Oracle Cloud ERP, the plastic-centric suite capabilities are not as natively developed or supported by the same vendor.
Expensive implementation. The implementation may be slightly more expensive because you’re dealing with many different vendors and many different add-ons.
Requires mature internal IT team. In tailoring, customizing, and configuring these capabilities, the same capabilities that are already included as part of the suite, SAP S/4 HANA also requires a very mature internal IT team.
5. Epicor Kinetic
Epicor Kinetic is better suited for plastic extrusion companies that are more discrete in nature rather than process-oriented. These plastic extrusion companies often operate with a hybrid business model. Epicor Kinetic is also ideal for companies that combine manufacturing with distribution. Many plastic companies have a strong presence in e-commerce, and in such cases, they require robust distribution planning and manufacturing-focused solutions. Thus, Epicor Kinetic has secured #5 spot on our list of top plastic extrusion ERP systems.
Strengths
Complex inventory. The inventory is highly complex, which benefits plastic-centric industries. Generally, this complexity will be reflected throughout your end-to-end processes.
Formal engineering governance. For industries like aerospace, where you rely heavily on OEMs and need formal engineering processes, or for metal-based manufacturing requiring detailed tracking of attributes, Epicor Kinetic is a great fit. It can handle complex scheduling and planning effectively.
MES-architecture friendly. If you need a more MES-centric architecture, where quality and production processes are managed within the MES layer rather than the ERP layer, this can be crucial for industries where production is more critical than end-to-end traceability. In such cases, Epicor Kinetic would be a great fit.
Weaknesses
Limited plastic-centric capabilities natively built. The plastic-centric capabilities and integration workflows that you can find with IQMS would require add-ons or customization with Epicor Kinetic.
Weaker suite capabilities for plastic extrusion companies. The suite is not as strong for plastic-centric companies because of missing crucial capabilities for plastic companies.
Not as well adopted among plastic companies. It’s not as widely adopted among plastic extrusion companies as some of the other products we have discussed in the list.
4. Aptean Process Manufacturing ERP
Aptean Process Manufacturing ERP is well-suited for smaller companies with limited budgets, particularly those seeking a comprehensive suite from a single vendor to simplify implementation. This makes the implementation process generally easier. Compared to other products like Acumatica or Epicor Kinetic, Aptean’s solution is smaller in scale, with fewer layers and less detailed ERP features. In terms of product size, if you were to compare them, Odoo would be the smallest, followed by Acumatica, with Aptean Process Manufacturing ERP falling somewhere in between. Larger systems like Infor CSI and Epicor Kinetic are on the other end of the spectrum. Aptean is ideal for budget-conscious companies. Thus, Aptean Process Manufacturing ERP takes the #4 spot on our list of top plastic extrusion ERP systems.
Strengths
Full suite pre-integrated. Because a full pre-integrated suite is present, the implementation costs are going to be cheaper.
Tailored plastic extrusion capabilities. Plastic-extrusion-specific capabilities such as specific PLM, scheduling flows, and quality workflows per customer are natively built with the product.
Well adopted among process manufacturing companies. Aptean Process Manufacturing ERP has a much higher penetration among plastic extrusion companies because of cheaper ERP implementation and tailored workflows.
Weaknesses
Expensive with partial implementation. Buying the complete suite from Aptean may be cheaper. However, if you opt for a rip-and-replace approach or wish to use your favorite tools with Aptean’s solution architecture, costs could increase. You may encounter fewer pre-baked integrations and fewer consultants knowledgeable about these integrations. Aptean may not prioritize supporting external products or suites, which could pose challenges during partial implementations. Thus, choosing between Aptean’s complete architecture or similar products may depend on your specific needs and desired diversity.
Not as diverse. This is not a good fit for companies with hybrid business models as the data and process model is highly tailored for specific plastic extrusion verticals.
Some logos but not as well adopted as other plastic-specific capabilities. Aptean is less widely adopted by plastic extrusion companies than its peers. While they do have some clients in this sector, their presence isn’t as strong as that of other systems on the list.
3. Infor CloudSuite M3
Infor CloudSuite M3 is a much larger product compared to Aptean Process Manufacturing ERP. It is designed for global companies that need to manage global supply chains, operational synergies, collaboration, and consolidation. Infor CloudSuite M3 becomes a better fit when companies outgrow Aptean Process Manufacturing but still require similar capabilities. These companies may have a fixed business model, don’t anticipate significant growth, and are still mindful of budget constraints. Infor CloudSuite M3 offers all these capabilities within a single suite from the same vendor. Therefore, Infor CloudSuite M3 secures #3 spot on our list of top plastic extrusion ERP systems.
Strengths
Comprehensive process manufacturing capabilities. Process manufacturing capabilities are one of the most robust to support the operations of global process manufacturers with many different business models including retail and rental operations.
Comprehensive suite supporting most manufacturing processes. Plastic extrusion companies with other business models, such as machinery or food and beverage, would find Infor CloudSuite M3 to be suitable without requiring multiple ERP systems.
Complex inventory. The inventory is highly complex, which benefits plastic-centric industries. Generally, this complexity will be reflected throughout your end-to-end processes.
Weaknesses
Not as diverse. This is not a good fit for companies with hybrid business models as the data and process model is highly tailored for specific plastic extrusion verticals.
Not suitable for SMBs below $250M in revenue. The advanced layers provided as part of the product might be too detailed for smaller companies looking for ERP systems. Thus, posing adoption challenges.
Ecosystem. The consulting base and marketplaces are limited for Infor M3 compared to other solutions on this list.
2. Microsoft Dynamics 365 F&O
Microsoft Dynamics 365 F&O is a highly generalized product designed for companies with diverse business models seeking a global presence. It enables these companies to manage all their entities within a single solution, ensuring end-to-end traceability from both financial and operational perspectives. However, because of its broad focus, it doesn’t offer highly tailored capabilities for specific industries. To address this, companies must rely on the partner ecosystem, where vendors provide specialized solutions that are widely adopted alongside the core ERP. Therefore, MS Dynamics 365 F&O secures the #2 spot on our list of top plastic extrusion ERP systems.
Strengths
Comprehensive localization across the globe. It supports a wide range of business models and offers global localization in areas where other products may not be available, with strong consulting and localization support.
Ecosystem. Their ecosystem has many options available for plastic-extrusion manufacturers if they want different options if one of the add-ons doesn’t work while having access to a diverse ERP supporting multiple business models.
The recipe and formulation are supported natively. The product data model has native support for both process and discrete manufacturing modes.
Weaknesses
Last-mile plastic extrusion capabilities through third-party vendors. It is ideal for regions lacking other solutions, providing native localization and expert consulting for local taxation, regulations, and processes.
Expensive implementation. The ERP implementation may be slightly more expensive because you’re dealing with many different vendors and many different add-ons.
Requires a mature internal IT team. In tailoring, customizing, and configuring these capabilities, the same capabilities that are already included as part of the suite, MS Dynamics F&O also requires a very mature internal IT team.
1. DELMIAWorks
DELMIAWorks (formerly known as IQMS) tops our list because it is the go-to solution for SMB plastic extrusion companies. It remains the most widely adopted product in this sector, even if some companies are still using legacy technology or older versions. These companies value the solution because it incorporates plastic-centric processes, making scheduling, inventory management, and supply chain planning feel seamless and natural. This deep alignment with industry needs is why DELMIAWorks is so highly regarded among plastic extrusion companies. Therefore, DELMIAWorks secures the #1 spot on our list of top plastic extrusion ERP systems.
Strengths
Most adopted among plastic extrusion companies. IQMS has one of the highest penetrations among SMB plastic extrusion companies because of its tailored workflows and integration.
Tailored advanced plastic capabilities. The specific plastic-centric capabilities, such as customer-specific quality specifications and unique scheduling requirements with constraints and bottlenecks, are already supported as part of the solution.
Tailored pre-integrated suite for plastic companies.The plastic-extrusion-specific PLM and supply chain planning add-ons are pre-integrated and managed by the same vendor.
Weaknesses
Legacy technology. The system technology is very legacy compared to other systems that we have on this list.
Not as scalable for diverse business models. It may not be as scalable for different business models but is particularly strong for plastic-centric business models. This can also be beneficial for machinery manufacturers who produce their own molds, as they sometimes have plastic components.
Limited ecosystem and consulting base. Their ecosystem and consulting base are likely to be limited, as is common with other niche products.
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In conclusion, selecting the right ERP system for plastic extrusion companies is crucial for optimizing operations, enhancing efficiency, and meeting industry-specific needs. Each of the top systems reviewed, from DELMIAWorks, which excels in plastic-centric functionalities, to Microsoft Dynamics 365 F&O, known for its diverse business model support, offers unique strengths tailored to different operational scales and complexities. Companies must consider their specific requirements, including inventory management, production capabilities, and the integration of supply chain processes when choosing an ERP solution. While this list offers valuable insights, seeking advice from an independent ERP consultant can greatly enhance your implementation success.
FAQs
What industries typically use products from plastic extrusion companies?
Plastic extrusion companies serve a variety of industries, including construction, automotive, aerospace, medical, packaging, consumer goods, electronics, and agriculture. Their products are highly versatile and can be customized to meet specific requirements in these sectors.
How is the plastic extrusion process different from other manufacturing methods?
Plastic extrusion is known for its material efficiency, continuous production, and minimal post-processing needs. The process involves melting and mixing raw plastic materials, shaping them through a die, cooling, cutting, and possibly additional finishing. This efficient workflow distinguishes it from other manufacturing methods.
What are the ERP requirements for plastic extrusion businesses?
Plastic extrusion companies require ERP systems with robust inventory management, production planning, scheduling, and integrated quality control. These systems must also streamline supply chain and logistics management, handle diverse raw materials, and support custom order processes to meet fluctuating demand and client specifications.
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