Benchmarking Business Processes Key to Success in Global Market, European Union Study Finds.

PHILADELPHIA--(BUSINESS WIRE)--Oct. 5, 1998--

Survey Finds Increased Worth in Quantitative Facts,

Not Subjective Opinions of Multinational Companies' Performance

Companies seeking to improve the way they do business and become more competitive in the global economy should perform regular benchmarking studies of their internal business processes, according to a new study.

The survey, sponsored by the European Union (EU) and the Swiss Government, was aimed at identifying "best practices" at mid-sized to large companies, with the objective of helping them maximize their multi-million dollar investments in Enterprise Resource Planning (ERP) systems, such as SAP(R) R/3(TM).

One section of the "Project Achieve" project, focused on Business Process Benchmarking, finds: -0-

     -- the best results for companies seeking to streamline their
        processes are not accomplished through a one-time redesign,
        but must be constantly monitored
     -- "best performing" companies work continuously to integrate
        their systems and processes
     -- process improvement requires quantifiable process-related
        measurement and management, not a subjective approach to
        measuring performance.

IMG, an internationally-based integrator and implementor of R/3-based solutions, provided expert assistance to Project Achieve. In addition, IMG expertise was utilized in providing benchmarking analysis, through the company's relationship with the University of St. Gallen, a leading European research facility.

"The survey clearly confirms what we at IMG have been saying and doing for almost a decade," said Andrew Harriss, IMG Americas president. "Companies which regularly, and scientifically, measure their performance are better positioned to take and keep leadership in their markets," he added.

Conversely, Harriss said, companies which infrequently benchmark their systems' performance or only perform a one-time examination may actually be worse off than if they had done nothing at all. "Best practices regularly improve, and it's human nature to backslide," he commented. "The combination can form a wide chasm that may swallow all of the time, money and effort which a company put into a single effort."

The issue of regularly benchmarking a company's business processes to achieve maximum value in ERP implementations was a major issue at SAP's recent SAPPHIRE '98 conference in Los Angeles. During his keynote address, SAP co-chairman Dr. Hasso Plattner cited the importance of defining and regularly measuring key performance indicators as a key element in improving a company's Supply Chain Management (SCM) system.

IMG has been a pioneer in providing regular benchmarking studies at companies implementing SAP-based solutions, and continues to provide leadership in this area, through its own work as well as its close ties with the Institute of Information Management (IWI), based at the University of St. Gallen.

About the "Project Achieve" benchmarking study

IMG provided consulting expertise in helping Project Achieve examine SAP-based business processes. The study, which surveyed process benchmarking at five multinational companies considered to be leaders in their respective fields, sought to establish "best practices," as well as the conclusions which can be drawn for companies seeking to enhance their business performance.

It analyzed the companies' supply chain processes, including procurement, inventory management and sales/distribution. IMG also analyzed several key indicators of performance, such as service levels, on-time delivery and cycle times.

IMG found that "best performing companies": -0-

     -- agree on standardized processes
     -- define clear standards for customer service, including
        delivery performance
     -- communicate these standards both inside the company and to
        customers
     -- implement dedicated process measurement tools
     -- integrate process performance indicators into management
        reporting
     -- have clear targets on process improvement, and enlist employee
        support in meeting them
     -- continuously improve their business processes.

About IMG Americas

With its expansion into the Americas, IMG continues its pattern of global growth. From its beginning in Switzerland in 1989, IMG has brought a full complement of integration and consulting services to SAP clients, doubling in size and revenues each of the last three years.

IMG Americas is headquartered in the SAP complex in Lester, Pa. The IMG Corporation is based in St. Gallen, Switzerland, with offices throughout Europe and in Japan. More information is available at www.img-a.com, or by calling 888/446-4872.