Epicor Insights 2018: Growth and Expansion

Epicor Insights 2018 annual conference drew more than 3,000 attendees, including existing Epicor customers, prospective customers, Epicor employees, market influencers, and media. This event also generated some additional interest by providing an opportunity for attendees to meet the new Epicor CEO Steve Murphy, whose tenure began in October 2017, for the first time (see figure 1).

Figure 1. Epicor CEO Steve Murphy at Insights 2018

Given that the previous CEO Joe Cowan was focused on “putting the house in order” in terms of fixing any past product quality issues and increasing the efficiency of the company’s global infrastructure (offices, support centers, etc.), Murphy seems to have been brought on board to intensify growth.

At Insights 2018, Murphy espoused the Epicor “Fit, Ease, Growth” mantra, which means that Epicor solutions “fit” the customer’s business via vertical focus (as opposed to customers having to adjust their business processes to suit the software or customize the software to fit their processes). This precise fit allows companies using Epicor solutions to use the software with “ease,” which in turn can unleash new power to drive business “growth.”

Doubling Down on Cloud ERP Software

For most companies, the big question is not if, but rather when they will adopt cloud computing for the bulk of their IT operations, including software such as ERP for manufacturing or distribution industries. In these days of globalization, digitization, big data, mobility, and industry specialization, companies struggle to find young talent. Indeed, as of yet few folks are proficient in artificial intelligence (AI), the Internet of things (IoT), robots, and other technologies that are necessary to remain competitive.

To help remove the obstacle to making use of these emerging technologies that this lack of employees with specialized knowledge can cause, Epicor aims to offer solutions that leverage these emerging technologies in a manner that will require minimal training to use them. Epicor University now offers free in-product and on-demand YouTube-like contextual training and help (via videos that are each just a few minutes long).

In its next software release, Epicor will also offer an add-on education module as well as the help file within its cloud-based Epicor ERP software suite. This will also allow Epicor to see usage metrics to glean which tips and tricks are used the most (or least).

Partnering with the Microsoft Azure Platform

During his opening keynote presentation, CEO Steve Murphy announced an expanded strategic partnership with Microsoft to deliver Epicor solutions globally on the Microsoft Azure platform. The vendor will initially standardize cloud deployment of its Epicor ERP and Epicor Prophet 21 ERP software suites on Microsoft Azure. The Epicor Eagle retail ERP software product, which currently has about 5,000 customers, will be the next one to follow suit.

In addition, Epicor will leverage a range of Azure technologies including IoT, AI, and machine learning (ML) capabilities to deliver ready-to-use and right-sized solutions for midmarket manufacturers and distributors. Epicor also plans to explore Microsoft’s technologies for advanced search, speech-to-text, and other use cases to deliver modern human-machine interfaces that improve productivity for its customers.

To offer choice to its customers, Epicor ERP software solutions will be available in the cloud, hosted, or on-premises. Given that enterprise data often resides in several dozen, or even hundreds of disparate systems, Epicor has selected Jitterbit as a preferred integration partner for Epicor customers moving to the cloud.

New Reusable Cross-Platform Solutions

Himanshu Palsule, Epicor Chief Product and Technology Officer, then fleshed out the pillars of the Epicor product development vision. As figure 2 shows, the vision starts with the aim to deliver leading industry-focused ERP software deployed across a global Microsoft Azure public cloud infrastructure. The other key tenets of the strategy include:

• Expanding the global ERP software capabilities;
• Providing global customers with solutions for evolving compliance and legislative needs;
• Leveraging an ecosystem of solutions for vertical extensibility; and
• Offering an appealing and consistent user interface (UI) model across the full product line

Figure 2. Epicor product vision

Epicor labs are working hard to develop and deliver common shared and reusable services that its partners and customers can build on. One example of such “develop once, deploy multiple times” services is Epicor Kinetic Design, which is a three-pronged common cross-platform user experience (UX) framework.

The new UX framework starts with Epicor Kinetic Design, which is a set of new UX guidelines and patterns for building applications for Epicor solutions. Delivering uniform colors, typography and icons, user interface (UI) elements, and page layouts, Epicor Kinetic Design aims to enable partners to deliver value-added solutions consistent with Epicor standards.

For its part, Epicor Kinetic Framework uses the aforementioned Epicor Kinetic Design principles and is a website accessible by approved Epicor partners and customers. They have access to sample code and tutorials, a UI component code library, application programming interface (API) documentation, and actual code, all with web native and responsive design for desktop, tablet, and mobile devices. The aim here is to dramatically reduce the need for forms and data entry via simplified workflows (i.e., from many forms to one), smart defaults, historical patterns, using optical character recognition (OCR) to scan, read, and load, etc.

Last but not least, Epicor Kinetic application is any application for web, phones, and tablets that is coded to Epicor Kinetic Design standards using reusable assets. Soon to be available will be the proof-of-delivery (POD) app for Eclipse and Prophet 21 as well as the ERP to manufacturing execution system (MES) app for manufacturing. Other planned solutions include:

• Epicor Kinetic Design UI for Epicor CMS ERP;
• Epicor for Service Enterprises (E4SE) Epicor Kinetic applications for travel and expenses (T&E);
• A handheld app for multiple ERP products;
• Automated order entry for multiple distribution and manufacturing ERP products; and
• Extend Epicor Kinetic Design and Epicor Kinetic Framework to tech-savvy customers.

Related to Epicor Kinetic Design is a new Alliance independent software vendor (ISV) program, which is designed to simplify the way Epicor engages, manages, and helps its ISV partner ecosystem tap into the latest technology advances. The company’s ISV partners will receive a number of resources (e.g., ERP code base, API tutorials, online help, user guides, quality analysis, etc.) and go-to-market support to help grow their Epicor business opportunities.

The ISV program features a developer enablement hub, training, a three-tiered solution certification program, and marketing support to provide partners significant opportunities to grow their business. Certified partner products will be showcased in the new Epicor Alliance ISV Solution Gallery for increased market visibility.

Ongoing Product Enhancements

The flagship Epicor ERP software suite continues to be the company’s main growth generator, given that the manufacturing sector represents about 70% of Epicor revenues. There are currently about 4,500 Epicor ERP customers. Figure 3 shows the cadence of the suite’s recent enhancements—mobile customer relationship management (CRM), field service automation, smart inventory planning and optimization, and persona-based active home pages are just some of the most recent new capabilities.

Figure 3. Epicor ERP enhancements

Closely related to Epicor ERP is the Epicor HCM suite, which came from the 2010 acquisition of Spectrum HR Systems. Epicor HCM currently has about 400 customers (200 of those jointly with Epicor ERP). This the human capital management (HCM) software suite can be sold as a stand-alone module, but the focus will be on penetrating the Epicor ERP install base to generate cross-sales.

Epicor HCM suite may be able to make the most of a niche opportunity in the senior community care sector in Australia and New Zealand.  Epicor HCM is also cloud-enabled and has a fairly broad HCM functional footprint. However, third parties could add some supplemental functionality, such as payroll in certain geographies, a Broadbean partnership for job boards integration, learning content management, etc.

In addition to the flagship product updates, many other Epicor products are being modernized (see figure 4). The distribution ERP products, which contribute about 20% of the company’s revenues, will receive special attention. Prophet 21, which currently has about 1,700 customers, is now also cloud and mobile enabled. Key recent improvements include carton packing for distributors doing business with and through Amazon as well as with big-box retailers, updates to refunds and return merchandise authorizations (RMAs), and added capabilities for distributors who provide value-added light manufacturing services, and an expanded API.

Figure 4. Epicor product enhancements

Prophet 21 has also launched a new data analysis module, XL Connect 7, built to function within Microsoft Excel, and now with real-time automatic connectivity to all Prophet 21 ERP data. It includes the ability to create ad-hoc reports and perform functions and analyses; drill-down capabilities to provide details behind the numbers; and immediate access to the data anytime and anywhere—including interactive reports—even when users are offline.

For its part, Epicor Eclipse is a distribution ERP software solution, with about 650 customers, for wholesalers in the electrical; plumbing, heating, ventilation, and air conditioning (HVAC); and the pipe, valve, and fittings (PVF) industries. There are significant recent improvements to the product data warehouse module, which has improved UX and process speed and to the Job Management module, which has expanded functionality. Additionally, several more Epicor cross-platform products, Epicor Data Analytics (EDA) and Epicor Commerce Connect (ECC) are available for both Eclipse and Prophet 21.

Epicor ECC is tightly integrated and provides a modern, cloud-based business-to-business (B2B) solution for wholesale distributors. Online users of ECC will also be able to select an Eclipse order status and specify a require-by date as well as make payments on outstanding balances.

Last but not least, Epicor EDA is available for customers who wish to add historical and predictive analytics software features. As well, Epicor EDA provides customers with integrated dashboards, modular pre-built content packs, and allows users to drill down into any direction the discovery goes. Epicor Eclipse can be hosted, but Epicor will evaluate the possibility of moving the product to Azure (this is not likely to happen soon given that a serious technological rewrite is required before cloud-enablement can take place).

Other Growth Opportunities

Epicor, with over 3,700 employees and estimated nearly $1 billion revenues, could pursue a number of growth avenues. For one, increasing international revenues is a possible strategy, but Murphy and his team will need to do some serious decision-making about the go-to-market options in various regions (e.g., going directly, via partners, etc.). Making Prophet 21, Eagle, Eclipse, and BisTrack (a lumber retail product) available worldwide is a growth option too.

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