Seminar Industry 4.

0: The bridge between Old and New

1

Common Elements of Connective Tissue

Copyright 2014 Vanenburg Software B.V. All rights reserved

Jan Baan

Interview March 2016: Ciscos John Chambers on the digital era

How significant is the digital era? Its the biggest technology transition
in history, according to Ciscos executive chairmanand requires a
proportional response from companies.
As leaders, if you dont transform and

This digital age is going from a thousand devices

use this technology differently - if you

connected to the Internet to 500 billion. It will create

dont reinvent yourself, change your

$19 trillion in economic value over the next decade.

organization structure; if you dont talk

But it will also result that probably 40 percent of

about speed of innovationyoure

enterprise customers around the world will not exist

going to get disrupted. The majority of

in a meaningful way ten years from now.

companies will not exist in a meaningful Most CEOs would agree. If they dont change, they
way 10 to 15 years from now.

get left behind.

Complex legacy ERP-systems increased by customization

No-Normalized Database

60.000+ Database Tables; complex query

Huge Data Duplication

languages
120.000 Parameters (average user: 12.000)
Procedural Language; Million Lines of

Multi-Instance with many silos

On Premise - 4GL - Handmade

Source Code
handmade

Customizations blocking new innovation

the craftsmanship
of bespoke in
legacy ERP

60.000
e
databas
ith
tables w
complex
guages
uery lan

ERP systems are complex like an aircraft turbo-jet engine

The complexity of legacy Software is the fuel for Maintenance Revenue

Ming.le
+
with 15.000
database
tables

Oracle sells their old legacy products (JD-Edwards,

ORCL-ERP, Siebel-CRM etc) which are build last
decade before the internet exist. ERP functionality of
ORCL is by fare below the SAP and Baan features.
Due to their M&A strategy most of the core designers
of the native products left the company.

Integration
of old 4-GL
apps is a
con-Fusion

60.000
e
databas
ith
tables w
complex
nguages
query la

SAP is extremely complex with over 60.000 database

tables with complex query; configured with 120.000
parameters (the average user works with only
12.000). The old millions lines of source code is build
by thousands of (most retired) developers. The SAP
HANA Database is by far to costly, compare with
ORCL New-SQL. Full-table scans cannot be avoided.
Although the functionality of Baan-IV is real complete,
the source code is very old. Founder Jan Baan and
the core designers left the company end last decade.
After many M&A deals over the last 15 years, the
product is now owned by Infor, but most original
Baan-engineers left the company.

The power of Rootstock ERP on Salesforce1 with the 700 Main Business Objects

New-SQL is the only database environment which is suitable of supporting

transactional systems in combination with IoT.

Legacy ERP is not capable of supporting these new demands. Organizations have
to create separate (not real-time) data-warehouse and OLAP legacy environments.

SAP tries to solve this with HANA; however Full-table scans cannot be avoided.

Compare 25 years old Legacy products with Todays Consumerized IT devices

Email Scourge

Consider an automobile
example. You could compare
these two different techniques
using a 1990 Jaguar and a
2016 Tesla. Both products
have mechanical and
electronic components, but
Tesla adds software

1990

components. The car is no

longer delivered as a final
solution from the factory but
can be continually improved
through innovative software
solutions. The Jaguar
components were built in the
last century and are therefore
obsolete, but the real
breakthrough was the
reduction of the number of
components.
The Tesla has only 15% of the
number of components of the
aging and fuel-guzzling Jaguar
but runs on clean and
inexpensive electricity.

2016
Improve the productivity of the Knowledge-Worker

Gartners Pace-Layered Application Strategy

Mode 2 is exploratory: Emphasizing

agility, speed and innovation

April 24, 2015

Social

Innovation

Digital

Multi-Tenant
Single
Instance

Salesforce

Mobile

Analytics

Differentiation

Payments Underwriting

SAP

E-mail

HR

Systems of Record

Mode 1
Mode 1 is traditional: Emphasizing
consistency, safety and accuracy

Illustrative examples

Governance

s
os
acr
red ure
sha ruct
are rast
ies , Inf
ilit
a
ab Dat
cap es:
in
od
rta
Ce oth m
b

Mode 2

Rate of Change

Only 700 Inherited Salesforce Multi-Tenant Cloud Objects in One Instance

Marketing
Campaign

End-to-End ERP for Manufacturing,

Lead

Distribution and Project Supply Chains

Account
MPS
Long Term
Forecasting

PLM
PDM
CAD

Opportunity

Warehouse Mgt
WMS
Manufacturing
Production
Capacity
Scheduling

Quote-Cash
Steelbrick

Configure- Sales Order Engineering

Price-Quote ATP
Product
(CPQ)
Marketing

Forecasting
& Planning
MRP
DRP

Purchasing
& Receiving

Inventory
Warehouse

MES
APS

Accounts
Receivable

Case
SLA

Order
Fulfilment
Invoicing

Project
Cost Accounting

Time &
Attendance

Asset Mgt
EAM

Subscription
Billing

Accounts
Payable

Service
RMA
Repair
Field

A 360-degree
view of your
customer
Service Cloud

Financial Consolidation to Corporate

Bit-ERP
Business Operations Platform

Business
Process
Integration

Business Process Management Suite

Business Process
Management

Case
Management

Rules
Management

Business Activity
Monitoring

Service Oriented Architecture

Enterprise Service
Bus

Business
Services

Grid Foundation

Master Data
Management

Integration
Centric BPMS

Systems of Differentiation

Business
Process
Management

Enterprise
Application
Integration

Gartner Says IoT Adoption Is Driving the Use of Platform as a Service

By 2020 more than 50 percent of all new applications developed on PaaS will be IoT-centric, disrupting
conventional architecture practices.
IoT-centric business applications are around event-driven architecture, instead of built around traditional
master data. The focus is on real-time contextually rich decisions, event-analysis, lightweight workflow, and
broad access to Web-scale data."
The new comprehensive hybrid PaaS is integrated with:
application platform as a service (aPaaS)
integration platform as a service (iPaaS)
orchestration and business process management
(bpmPaaS)
database PaaS (dbPaaS) and analytics services
IoT device management (Container)
Through 2018, more than 70 percent of IT organizations
planning a private PaaS will deploy a container service

STAMFORD, Conn.,
March 8, 2016

Smart decoupling of IT

10

I
n
f
o
r
m
a
t
i
o
n
T
e
c
h

Systems of Record

Container
Service

Dynamic Business Applications

Core
Business
Solutions

Cloud Objects

Composite Applications
ERP

Transaction Oriented

Packaged
Enterprise
Applications

Systems of Innovation

Systems of Differentiation

Business
Process
Applications

Bespoke: Handicraft Customization with last century tools

B
u
s
i
n
e
s
s

The Knowledge Worker

Smart decoupling of IT

10

I
n
f
o
r
m
a
t
i
o
n
T
e
c
h

Systems of Record

Container
Service

Dynamic Business Applications

Core
Business
Solutions

Cloud Objects

Composite Applications
ERP

Transaction Oriented

Packaged
Enterprise
Applications

Systems of Innovation

Systems of Differentiation

Business
Process
Applications

Bespoke: Handicraft Customization with last century tools

B
u
s
i
n
e
s
s

The Knowledge Worker

Smart decoupling of IT

10

I
n
f
o
r
m
a
t
i
o
n
T
e
c
h

Systems of Record

Systems of Innovation

Systems of Differentiation
Container
Service

Dynamic Business Applications

Core
Business
Solutions

Cloud Objects

Smart
Industry
Process Apps

a-PaaS
Case
Container

Composite Applications
ERP

Packaged
Enterprise
Applications

Business
Process
Applications

BPM-PaaS
Collaboration on
Dynamic Forms
Case driven workflow
Apps as disruptive

B
u
s
i
n
e
s
s

Business Processes

Transaction Oriented

The Knowledge Worker

11

Gartners Pace-Layered Application Strategy

The Inbound Enterprise

aPaas
Unique
Multi-Tenant

Single Instance
Processes

Greater
Efficiency

Systems of Differentiation
industry-specific capabilities

Systems of Record
standardizations / compliance

bpm-Paas
Tens of thousands of database
tables and logic which are stored
in last century legacy systems
even before the Internet existed

11

Gartners Pace-Layered Application Strategy

The Knowledge Worker

Competitive
Threats

The Inbound Enterprise

Systems of Innovation
ad hoc apps / emerging opportunities

Game Changing

aPaas
Unique
Multi-Tenant

Single Instance
Processes

Greater
Efficiency

Systems of Differentiation
industry-specific capabilities

Systems of Record
standardizations / compliance

bpm-Paas
Tens of thousands of database
tables and logic which are stored
in last century legacy systems
even before the Internet existed

Charles Phillips
Analyst Morgan Stanley
President Oracle
CEO Infor

Ray Lane (Pres. Oracle)

35 years+ of
entrepreneurial drive
and VISION

Shai
Agassi

Ed Zander
Pres. Sun
CEO Motorola

Baan Company

Cordys

Vanenburg Software

13

Baan Company & Cordys showed both Excellent Technology Leadership

2011
Forrester Wave

By June 1998
Gartner deemed
that Baan and
SAP occupied
the leading
positions in the
ERP segment
for big
companies

Letter of Boeing in 1998:

You can take great pride in knowing that
wherever you sea a Boeing airplane, your
efforts at Baan helped building it.

PaaS for ISVs

14

Infor Baan customers finally have a real update path Rootstock!!

Bruce Richardson Chief Enterprise Strategist

joined salesforce.com in 2011. This is taking
me back to my research roots. I will continue
to push us to move into new opportunities,
especially supply chain. Lots of customer
requests to create a Sales Cloud-like app for
supplier management and for supply chain
visibility.' In 2010-2011, Bruce was Chief
Strategy Ocer of Infor Global Solutions and
also Chief Research Ocer of AMR Research
(acquired by Gartner) for almost 22 years.

Quote Bruce Richardson:

"Tremendous interest in Cloud ERP
in Benelux and Nordic regions.
Baan customers finally have a real
upgrade path -- Rootstock!"

The ERP-veterans Per Norling, Jan Baan, Pat Garrehy, and

Bruce Richardson at the Salesforce World Tour in Amsterdam

15

Clip of Bruce, Steve, and Achyut talking specifically about Rootstock

https://www.youtube.com/watch? Bruce Richardson: Manufacturing companies, now prisoners to old methods,

v=onGvR7xEyAE
need to prepare themselves for revolutionary change.The potential which IoT
offers, in combination with smart applications, to streamline business processes,
is huge. But companies have to simplify their IT landscape before they are able to
take advantage of the IoT innovation. Bruce Richardson Chief Enterprise
Strategist joined salesforce.com in 2011. This is taking me back to my research
roots. I will continue to push us to move into new opportunities, especially supply
chain. Lots of customer requests to create a Sales Cloud-like app for supplier
management and for supply chain visibility.' In 2010-2011, Bruce was Chief
Strategy Officer of Infor Global Solutions and also Chief Research Officer of AMR
Research (acquired by Gartner). for almost 22 years.

Pat Garrehy: Building a world class platform and levering the growing salesforce eco system, with a
Multi-Tenant Cloud ERP Solution, were 700 Main Business Objects are deployed as Single-Instance,
is undoubtedly the product to beat in the market for manufacturing and distribution, as we enter the
new era of Cloud ERP replacing that legacy on premise software over the next decade. Pat Garrehy
is the Founder, President, and CEO for Rootstock Software and has an extensive background as a
software architect and engineer.

16

Larry Ellison DESTROYS Questioner

Rolfe Winkler Reporter, The Wall Street Journal. A technology
reporter in the Journals San Francisco bureau, where his primary
focus is Google and all the industries the company touches.

Question Rolfe Wrinkler:

Oracle generates a tremendous cashflow, due to a lock-in of their customers with

legacy software. You're raising maintenance fees a lot years after years.

Marc Andreessen mentioned that no one of the start-ups are working with Oracle.

It looks that your business is shrinking dramatically.

Larry Ellison: Indeed were not working with start-ups but companies like General
Electric, AT&T, Verizon are more interesting for us. Our business is not shrinking. We
have all our applications in the cloud starting by June 6. It took us 7 years! to rewrite
all these stuf for the cloud. (Like Cordys has in 2008, integrate on-premise legacy code with BOP
(Business Operating System in the cloud). Our major competitor SAP did not do this. Together
with SAP we are the two leading companies in applications.

Workday is primitive. They dont use a Database. They use an

object store. They cant do reporting. They use Flash, as a
user interface. So they cant run on iPhones or i-Pad. Besides
that they are great (big smile) I am not worry on Workday.

Salesforce build their franchise over a long period of time and

they will be a formal competitor in their space. I dont see
Workday. We always win in the competition (with HR
solutions). Their products are to immature, they are small and
frail, and they made a horrible architecture with no database.

Marc Benio (Salesforce) has a good database; it is Oracle.

NetSuite has the best database (smile Oracle) and good
middleware (Oracle con-Fusion). Your Question: Are we a
loser? No, were not.

Rolf: What about the cloud companies Salesforce and Workday?

Larry E: We beat Workday all the time with Fusion. (With the legacy PeopleSoft solutions build
by Dave Dueld who sold the on premise PSFT and started after this Workday). Salesforce and
Workday are much smaller companies. We are in the cloud with a fully integrated suit.
I expect Salesforce will continually to grow. But we (ORCL) are bigger in pure SaaS
with a one billion $ revenue. Our biggest competitor SAP has a problem, we take
shares from them. Salesforce doesnt do ERP (Larry isnt aware of the briljant Rootstock
solution native build on the Salesforce1 platform).

https://www.youtube.com/
watch?v=LrDnuvHfBr4

17

The Salesforce / Rootstock new break-through in Cloud Applications

Solutions

Database

Multi
Tenant

Mfg
functions

Oracle

New-SQL

SAP

Salesforce/
Rootstock

Hana

New-SQL

Scalable
Cloud

Mobile

ORCL relies stil on their old legacy products (JD-Edwards, ORCL-ERP, Siebel-CRM etc) build last decade
before the internet exist. ERP functionality ORCL is by fare below the SAP and Baan features. Due to their
M&A strategy most of their core designers left the company.

100%

SAP is extremely complex with over 60.000 database tables with complex query; configured with 120.000
parameters (the average user works with only 12.000). Old source code is build by thousands of (retired)
developers. Rebuild in Cloud version SAP-BYD not successful. HANA Database is by far to costly, compare
with ORCL New-SQL; Full-table scans cannot be avoided.

75%

Rootstock Founder himself build four times this ERP system with 40 years of deep domain expertise in
manufacturing and supply chain, designed for complex requirements. After NetSuite Cloud (due to scalability
problems) build on the most trusted cloud platform Salesforce1. The only 700 main business objects results
in a clear maintainable platform, complete overseen by the smart CEO-Founder and a few experienced
engineers who build these rich native cloud (inherited) objects, easy deployable and much simpler, compare
to the complex legacy systems. Rootstock connect the CRM & Service Cloud with Best of Breed Salesforce
App-store products (Fairsail - Tracton) to a unique one instance Industry Solution.

Ranking

Comments

aPaaS

Infor/Baan

SQL

50%

Although the functionality of Baan-IV is real complete, the source code is very old. Jan Baan and the core
designers left the company end last decade. After many M&A deals over the 15 years, the product is now
owned by Infor, but most original engineers left the company. The same complex 4GL sessions with complex
update steps are stil in use. Only a small part of this are connected to the XML-objects. No mature Multi
Tenant Cloud version is available.

MSFT

SQL

25%

Microsoft with their M&A solutions: Axapta, Navision and Great Planes was never able to build this to one
consolidated mature ERP system. There ISV partners build the individual vertical solutions, which are only
available on premise. They have no vision for the new Smart Industry 4.0

NetSuit

New-SQL

0%

No real robust ERP solution and no robust platform for scalable us; compare to Salesforce.

Workday

Object
store

A reliable HR platform, without ERP functionality. Populair by big companies and interesting to integrate with
the Salesforce/Rootstock platform.

18

From legacy ERP (records) via Salesforce Industry Suite to Smart Industry 4.0
Systems of Record

Systems of Differentiation

Operational Efficiency

Systems of Innovation
Game Changing

Competitive Advantage
ERP as the pinch-point
connecting the best-of-breed
Salesforce platform Apps

Enterprise
Application
Integration

Business
Process
Integration

Business
Process
Management

n
ratio
Integ
PMS
ric B
Cent

Group

BaanRootstock
Centre of Excellence (CoE)
Smart Industry 4.0

18

From legacy ERP (records) via Salesforce Industry Suite to Smart Industry 4.0
Systems of Record

Systems of Differentiation

Operational Efficiency

Systems of Innovation
Game Changing

Competitive Advantage
ERP as the pinch-point
connecting the best-of-breed
Salesforce platform Apps

Case
Container

Enterprise
Application
Integration

Business
Process
Integration

Business
Process
Management

n
ratio
Integ
PMS
ric B
Cent

Group

BaanRootstock
Centre of Excellence (CoE)
Smart Industry 4.0