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Even
though I
didn’t
attend
Lawson
CUE this
year in
San
Diego, I
did
receive
my usual
eyewitness
reports.
I also
viewed
the
video
feeds of
keynotes
and
listened
in on
the
executive/analyst
briefings.
And,
naturally,
I do
have my
opinions.
First
though, let’s
take a
moment
to
digest
this
news
item
(see
http://biz.yahoo.com/e/070306/lwsn8-k.html):
Form 8-K
for
LAWSON
SOFTWARE,
INC.
6-Mar-2007
Costs
Associated
with
Exit or
Disposal
Activities
Item
2.05
Costs
Associated
with
Exit or
Disposal
Activities
(a) On
February
28,
2007,
the
Company's
management
completed
a
roadmap
for
aggressively
optimizing
our
productivity
by
enhancing
our
global
sourcing
capabilities
and
resources.
We
currently
anticipate
that
over the
six
quarters
ending
May 31,
2008, we
will be
rebalancing
our
resources
between
various
locations
primarily
in the
United
States,
Europe
and our
global
support
center
in the
Philippines.
This
rebalancing
will
result
in a
reduction
of
between
325 and
375
employees
primarily
in our
US and
European
operations,
as we
continue
to build
our
staff
and
facilities
in the
Philippines.
All
areas of
our
organization
will be
affected,
predominantly
in
consulting
and
research
and
development.
In
accordance
with
Statement
of
Financial
Accounting
Standard
(SFAS)
No. 112,
Employers'
Accounting
for
Postemployment
Benefits,
we will
be
recognizing
a charge
of
between
$11
million
and
$13.5
million
for
severance
and
related
benefits
in the
third
quarter
ended
February
28,
2007.
All
terminations
are
expected
to be
completed
by the
end of
fiscal
year
2008,
with
substantially
all
related
payments
to be
completed
by the
end of
the
second
quarter
ending
November
30,
2008. As
management
concludes
on the
details
of the
actions
to be
taken in
pursuing
these
goals,
additional
charges
related
to this
roadmap
which
are not
in the
scope of
SFAS No.
112 may
be
recorded
in
future
periods,
but the
timing
and
extent
of these
charges
are not
currently
determinable.
Wow. I
do find
it
interesting
that
they
released
this on
the big
SeaWorld "event
night"
at CUE.
Perhaps
Lawson
figured
that
could
temper
the
blow?
Lawson
is
hyper-focused
on
offshoring
what I
would
term the
"repeatable
part of
consulting".
In my
mind
this
isn't
consulting--it's
commodity
services.
Call it
remote
installation,
training
and
billable
support
(always
a
contentious
subject).
I would
contend
that in
order to
do
heavy-lifting
and
innovative
organization
changing,
etc.
requires
a client
presence
and
can't be
done
offshore.
Therefore,
I see
the
“Lawson
services
ecosystem”
evolving
into two
camps:
1)
repeatable
services,
with
Lawson
becoming
the
primary
provider
by
offering
these
services
remotely,
and 2)
process-reengineering
and
software
tailoring
organizations
who
offer
higher-end
consulting,
customized
training,
and
process-oriented services
wrapped
around
Lawson's
products.
Now, on
to my
thoughts
on this
year's
CUE:
-
Harry
Debes’
“keynote”
spoofed
David
Letterman’s
Late
Show,
complete
with
“The
Lawson
Orchestra”,
led by
Henning
Schulze-Lauen
(who
runs
Lawson
Support)
playing
the part
of Paul
Schaffer.
Harry
was
impressive
as a
Letterman-like
host
(even
wore his
sneakers!)
as he
interviewed
his
“guests”--both
Lawson
employees
and
clients.
Several
clients
told me
they
thought
it was
just too
corny
and went
on too
long.
Honestly, can you
imagine
anyone
bad-mouthing
Lawson
in
response
to
Harry's
repeated question:
“So, would
you say
that
Lawson
is doing
a better
job?”
Maybe
next
year,
they'll
do an
American
Idol
spoof
and let
me play
the role
of
Simon!
-
Was it
just me
or did
others
think
that
perhaps
Harry’s
penguin
segment
was
going to
be a
lead-in
to
announcing
Lawson
running
on Linux
platforms?
-
Did
anyone
else
notice
that
Joanne
Byrd
[Lawson's
head of
sales]
was
introduced
with the
band
playing
Red Hot
Chili
Pepper's
"Give It
Away"??
-
I’m not
sure if
the
entire band
was
composed
of all
Lawson
employees,
but I
thought
they
were
excellent
and
wished
they had
returned
for the
second
day’s
keynote;
I hope
that
Lawson
uses
them in
coming
years.
Bravo,
Henning!
-
Guest
keynote
speaker
Tim
Sanders
definitely
stole
Monday’s
show,
imploring
those in
the
audience
to turn
off
their
cell
phones,
BlackBerries,
stamp
out
‘Reply
To All’,
and to
put it
simply, just
shut up
and
listen
to your
fellow
employees.
-
Dean
Hager’s
talk on
Tuesday
was less
“demo-focused”
this
year,
and
relied
more on
having five of
Lawson’s
own
customers
tell
their
own
stories.
Dean of
course
had his
own
stories
to tell,
including
video
from his
recent
sky-diving
adventure,
and
ending
with his
own
“high-wire”
exit
from the
stage.
-
Here are
my CUE
take-aways:
-
Stabilization
and
letting
the
clients
get
caught
up.
Lawson
recognizes
that
they've
released
a heck
of a lot
of
product
in both
the S3
and M3
product
spaces
as well
as the
LSF9 and
LBI
products,
etc. And
it's
taking a
long
time for
the
client
base to
absorb
it and
understand
it.
-
Lawson
will be
slowing
down the
release
cycle
(perhaps
this may
be tied
to their
downsizing
of
R&D?).
There is
a big
push to
get
clients
onto
LSF9 and
9.0
Apps,
which
will be
the
platform
for
future
Landmark-based
products,
etc.
The idea
behind
Landmark
apps is
that
they
will be
slipstreamed
into
LSF9 and
run
alongside
9.0
apps.
-
Speaking
of
Landmark,
they
didn't talk
about
it as much
as I
expected. I was
surprised
because
I really
expected
them to
show off
the
newly-rewritten
HR
product;
perhaps
this means
its
not
nearly
as close
to
release
quality
as I had
previously
heard.
-
S3 and
M3
product
convergence
is
starting
to
happen.
For
example,
by using
Design
Studio,
LBI, and
ProcessFlow
you can
marry up
IC, RQ/PO
in
conjunction
with
M3's
Enterprise
Asset
Management.
That was
the idea
behind
the
merger,
and it's
starting
to show
value.
-
The more
stuff
Lawson
can
piggyback
on IBM
the
better.
Remember:
Lawson
should
be an
apps
company,
not a
technology
company.
The
benefits
of
moving
more of
the
stack to
IBM: it
works
better,
it
scales
better
and it's
got a
heck of
a lot
more R&D
and
features
behind
it.
-
An
interesting
product
that
didn't
get much
press
was the
new
"smart
client"
for M3.
Expect
it to
make its
debut
with S3
sometime
in
2008.
One
thing I
always
have to
remember
(and
remind
all of
you):
This is
Lawson's
show,
and that
is what
it is—a
show.
After
the
party’s
over,
execution
is
always
the
bigger
challenge. |