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01/31/2006

Manufacturing Insights(TM) Customer Satisfaction Survey Unveils High Scores for SAP; Customers Concerned with Endless Upgrade Cycle and Changing Pricing Models

FRAMINGHAM, MA – JANUARY 31, 2006 – A recent survey of manufacturing companies conducted by IDC's Manufacturing Insights reveals customers are generally satisfied with SAP, giving an overall ranking just shy of superior. Graded on a scale of one to four, SAP received its highest scores (above three) for functionality–both breadth and industry depth–and user experience. SAP received lower marks for total cost of ownership (below three), with customers citing frequent upgrades and changing pricing models as both frustrating and confusing.

"SAP must improve customer experience to achieve superior satisfaction ratings," says Bob Parker, Vice President of Research for Manufacturing Insights and author of the report. "Companies can also take an initiative in increasing satisfaction levels and value realization by taking a more active role in SAP-related activities."

Manufacturing Insights' survey results find that companies actively managing the relationship with SAP have a more satisfied user community and can better maximize the value of its investment. The survey, conducted amongst companies with over $1 trillion in revenue and 1 million employees collectively, also revealed that for SAP customers with relationships at higher levels in the organizations (i.e., CEO, senior executives, etc.) have satisfaction results that reach higher levels.

These findings, and more, are part of a recent report published by Manufacturing Insights entitled "Harvesting Value from Your SAP Investment" (Doc# MI10136), the first in a series of reports evaluating customer satisfaction for the SHOMI (SAP, HP, Oracle, Microsoft, IBM) vendors. As part of these evaluations, Manufacturing Insights' report series reveals survey findings, as well as provides best practices and specific recommendations for vendors on how to improve their scores.

NOTE TO EDITOR: Data reported from this survey must be sourced as originating from Manufacturing Insights, an IDC company.

ABOUT MANUFACTURING INSIGHTS, AN IDC COMPANY

Manufacturing Insights, an IDC Company, provides business and IT decision-makers with fact-based research and analysis to inform and support critical business decisions. The global independent research and advisory firm closely follows processes associated with the design, development and distribution of goods across markets including Discrete Manufacturing, Process Manufacturing, High Tech/Electronics Manufacturing, Consumer Packaged Goods and Retail. Manufacturing Insights' research and analysis is critical for end-users, as well as hardware and software vendors, service providers, and purveyors of IT outsourcing. Founded in January 2005, Manufacturing Insights is headquartered in Framingham, Mass. Visit www.manufacturing-insights.com for more information.

IDC is a subsidiary of IDG, the world's leading IT media, research and exposition company.

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