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Killer VARS: Vertical VirtuosoAccounting Today, June 2002, by Carly Lombardo, Richard McCausland, and Robert Scott --
It all started with a wine distributor that needed to track not only reds and whites and vintage years, but also compliance with each state’s distinct reporting requirements. As Business Management International president Larry Schiff recalls, "They came in and said, ‘Tell us how we can get a software solution that will do business our way." Drawing on its staff of programmers, installers, and spec analysts, New York-based BMI was able to deliver a satisfactory Navision-integrated solution. Schiff’s story continues: "Now that customer tells a colleague, ‘Hey, these guys are good, and I know you’re looking for a system,’ and suddenly we have our second sale." At this point, "You’re going in there with an awful lot of built-in functionality," says Schiff. With that install completed, "we heard about a third [wine distributor] and had them speak to the first two," continues Schiff. "And after that, it became a focus for us." And that’s how wine distribution recently joined the list of industry-specific software packages developed by BMI for the clothing sector, retail, warehouse management, manufacturing, and jewelry production. This focus on vertical markets recently helped BMI claim title as Navision’s No. 1 Solution Center for the second year in a row. BMI is more than a value-added reseller, stresses Schiff. For him, VAR connotes "someone who deals with heavily discounted software, who’s primarily concerned with getting the package out." Too often, in his view, the VAR is confused with the vendor he represents. "It’s not our product," says Schiff. "It’s a piece of technology we’ve taken on to service the customer." And increasingly, the customer wants the reseller to understand the finest nuances of his industry, and to have vertical solutions available if necessary. "When we walk into a meeting, sometimes we have ten people to address all [the prospect’s] questions," notes Schiff. The group might comprise an e-commerce person, a manufacturing specialist, a wireless applications developer, SQL system manager, Oracle specialist-whoever can assist in developing a truly customer-specific solution. All the leading accounting software packages, even at the lower end now, have "multi, multi, multi modules," notes Schiff. These can include manufacturing, job costing, warehouse management, point of sale, HR, and e-commerce. "There’s no way one person can know them all, which immediately suggests a team approach" when doing an install. "If you want to have a successful implementation, given all the technology that’s out there, you need the best people you can find,"” says Schiff. That, of course, includes programmers who can modify existing code and, more important, create new applications and enhancements. BMI currently employs about 60. Recruitment slowed due to September 11th incidents and the general economic slump, "but we’re back on a big hiring spree again," reports Schiff. He expects head count to exceed 100 quickly. The company recently opened an office in Toronto, joining those in New York, Saddle Brook and Cranbury, N.J.; Farmington, Conn.; Warminster, Pa.; Framingham, Mass.; Towson, Md.; Palm Harbor, Fla.; and Austin, Texas. There’s also a European office in Copenhagen, Denmark. There’s one driving reason for this expansion. "Make no mistake, this is still a local business," states Schiff. "People like local." Customers absolutely prefer to work with someone in their area who knows the finer points of the marketplace, but it’s crucial they get excellent service, too, explains Schiff. Otherwise, "Once they get burned, they won’t care where the [implementation] people are." |
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