Scala Reveals 66% Cost Savings in First Independent Analysis of Collaborative ERP

In-depth study depicts key role for Enterprise Resource Planning in development of the second generation of e-business

20 August 2002: Scala Business Solutions has released the first independent, in-depth analysis of its recently-launched iScala Collaborative ERP platform in a white paper written by the UK-based Lian-James technology consultancy. 'Collaborative ERP -- The Second-Generation of Realistic E-Business considers how organisations can exploit the capabilities of Internet technology to provide essential business processes and the key role of enterprise resource planning (ERP) in that process.
Global businesses will find that attempts to impose an e-business infrastructure from the top down are likely to be doomed to failure," says Mike Burdett, Scalas Chief Executive Officer, citing the fact that the majority of global companies do not operate realistically as single entities. In practice, each is a blend of acquired and merged businesses split down into regional, divisional and semi-autonomous operations. Individual entities still need to conform to local legal and business requirements -- a hugely complex task to fulfil with a large, traditional ERP system."

"Whats more, in a global economy, it is a rare company that does not and will not need to collaborate ever more closely with business partners, regardless of size and location" says Burdett. The goal of genuine collaboration must be to create a business which interoperates with other businesses, not just other locations running an identical ERP system."

The report notes the capability of iScala 2.1 to scale from a single installation in a single business to multiple locations across a global operation. Enterprises can buy iScala to automate and manage the business processes of their subsidiaries and divisions and get a complete e-business infrastructure as a by-product. With the total cost of ownership of our software running at around 66% less than the cost associated with Tier-1 suppliers such as SAP, the costs of developing and evaluating business processes in a new e-business environment are much more containable and manageable," states David Topping, Scalas Senior Vice President of Marketing.

Whilst iScala 2.1 is the worlds first purpose-built collaborative ERP system, it has been built on the knowledge gained producing a tried and tested ERP system with an established user base across the world. Topping dismisses the attempts by other vendors to hijack the term 'collaboration. Other vendors talk a lot about collaboration but in reality this varies from either deploying a single application across the Internet or a WAN or just hard coding links between systems or companies. What weve built is a product designed to connect to other systems using standards such as XML and which allows our users to automate how those connections work, in other words automating how systems work together, that how we define collaboration."

Since its commercial release, 24 companies are already live or in the process of implementing iScala 2.1. For example, Partek Cargotec was already using Scala at some of its offices when they heard about the new technology. The developments that Scala is doing with the iScala 2.1 platform are very important to us both now and in the future, allowing us to collaborate with other companies, as well as internal subsidiaries, online," says Tomas Blomberg, Project Manager for Business Process Development at Partek Cargotec, the world's leading supplier of load handling equipment for vehicles.

The full white paper and case study can be found at: http://www.scala.net/iscala/

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Notes to Editors

About Scala Business Solutions

Scala Business Solutions creates collaborative ERP software -- integrating Internet technology and traditional ERP functionality -- to make global business simple. With Scala, global companies can fully integrate all their ERP systems anywhere in the world, whether in a subsidiary, division or headquarters, and extending to their partners and suppliers. Scalas collaborative ERP software makes it possible for global companies to meet the requirements for advanced e-business as well as use a standard ERP product for managing traditional business processes. This enables them to gain measurable benefits from trading electronically, building a private exchange or global portal, or optimising the supply chain.
From offices in Europe, North America and the Far East, and through its network of partners and dealers, Scala delivers software and services that are available in over 30 languages in more than 140 countries.

Scala is listed on the Euronext Amsterdam Stock Exchange (symbol: SCALA). 2001 revenue was USD 70.6 million (€ 79.1 million).
Visit Scalas website at www.scala.net for press information including press releases, information for investors, and company and product information.

© 2002 Scala Business Solutions, NV. All rights reserved. Scala® is a registered trademark. Other trademarks or registered trademarks are the property of their respective owners.