We provide business application software, services and support to specific markets including healthcare, retail, financial services (banking, insurance and other financial services), education, local/state governments and professional services.
Our software includes financials, human resources, procurement, healthcare supply chain, distribution, retail operations, service process optimization, and enterprise performance management applications designed to help manage, analyze and improve our clients’ businesses. Our applications help automate and integrate critical business processes, aiding in collaboration among our clients and their partners, suppliers and employees. Through our consulting services we primarily help our clients implement their Lawson applications. Through our support services we provide ongoing maintenance and assistance to our clients.
Founded in 1975, we have more than 2,000 clients. We generate revenue through license fees, fees for consulting, training and implementation services, and fees for client support and maintenance. We market and sell our software and services primarily through a direct sales force, which is augmented by channel partners and resellers outside of the United States and Canada.
Lawson Software is a Delaware corporation. In February 2001, we were reincorporated through a merger with our predecessor, Lawson Associates, Inc., a Minnesota corporation, which was incorporated in 1975. Our principal executive office is located at 380 Saint Peter Street, St. Paul, Minnesota 55102-1302. Our telephone number is (651) 767-7000, and our website is www.lawson.com.
Benefits of Our Software
We provide business application software that helps automate and improve the business processes of our clients. The open architecture of our software gives clients a choice to deploy a pre-configured, industry-tailored application or customize the application quickly and easily to conform to the client’s unique business processes.
Types of Software
Our software is comprised of core business applications, enterprise performance management applications and software extension tools.
Core Business Applications include ERP and Supply Chain Management (“SCM”) solutions that can automate tasks related to financial management, human resources, procurement, healthcare supply chain, distribution, retail operations, and service-related projects or processes. These core business applications include components in each functional area, which we license separately or bundle together as suites designed for our targeted markets. Our applications enable organizations to execute standard business processes as well as provide functionality specific to the industries we target. The following list details each core business application:
Lawson Financials Suite. Lawson Financials applications may enable our clients to create and track financial and accounting data across multiple companies, languages, currencies and books of accounts. These applications can provide extensive analytical capabilities and integrate our clients’ financial management processes with other core business applications.
Lawson Human Resources Suite. Lawson Human Resources applications can assist in developing and managing employees. These applications interface with our financials applications to update the financial reporting functions for changes in employment and payroll.
Lawson Procurement Suite. Lawson Procurement applications may automate the operational and administrative procurement processes, promote adherence to purchasing policies, assist businesses in negotiating pricing for supplies, lower materials and services costs and improve inventory practices.
Healthcare Supply Chain Management. Lawson’s healthcare-specific software streamlines and optimizes the supply chain operations from start to finish for one hospital or an entire network. Healthcare Supply Chain software can help standardize buying processes, manage supply costs, improve contract utilization, and ensure consistent supply availability.
Lawson Distribution Suite. Lawson Distribution applications can provide sales order management, warehouse fulfillment, client invoicing and accounts receivable in an integrated solution.
Software for Retailers. Lawson’s retail-specific software includes Retail Operations and Retail InSight applications. Retail Operations applications are built for high-volume retail enterprises to manage item information, category planning and review, assortment, pricing, promotions, warehouse replenishment, multi-channel ordering, store replenishment, forecasting and order determination. Retail InSight applications can help retailers select store locations, find the right product mix, and run successful promotions.
Lawson Service Process Optimization Suite. Lawson Service Process Optimization includes Services Automation, which provides professional services organizations with tools to manage work, resources, time, expenses, and finances; Portfolio Manager, which analyzes all active and prospective engagements to help determine which ones will deliver the best returns; and Time and Expense, which captures time and expense data in one place for employees, non-employees, offsite workers, and international staff.
Enterprise Performance Management (“EPM”) is an integrated suite of capabilities and applications designed to optimize corporate performance and corporate governance. It can access a variety of common data sources in an organization and application data directly from Lawson and non-Lawson sources. As a result, Lawson EPM provides actionable, role-based self-service information from a single data source to help empower the key decision makers throughout an enterprise. Principal components include: Lawson Reporting Suite which can streamline the way organizations gather, analyze, share, and act on business data.; and Budgeting and Planning, which may enable organizations to conduct budgeting, periodic forecasting, and dynamic planning—quickly, accurately, and productively.
Software Extension Tools can be added to almost any Lawson application to tailor the application to a client’s specific needs. These include User Productivity Tools, which provide additional information sharing, collection, and process/analysis capabilities; Data Integration Tools, which connect Lawson software with legacy systems, transaction systems, custom applications, and handheld devices; Development Tools, which allow developers to customize Lawson’s interface, and deploy Lawson software in new ways; and System Tools, which allow an IT team to monitor and manage an organization’s Lawson system.
We offer comprehensive consulting, training and implementation services and ongoing client support and maintenance, which support our software applications. Generally, we charge our clients for these services on a fee-for-service basis. Client support and maintenance typically is charged as a percentage of license fees and can be renewed annually at the election of our clients based on available support offerings. Our in-house services organization also is responsible for educating Lawson-selected third-party system integrators on the use of our software to assist them in providing services to our clients. Given our current base of more than 2,000 clients, our services organization is a large and important part of our overall business. As of May 31, 2005, our services organization consisted of approximately 575 employees.
Our professional services are integral to our ability to provide clients with successful business software. Our experienced, professional consultants work with clients to design and execute an implementation plan based on their business objectives. We also provide our clients with education and training. Our training services include providing user documentation and training at our corporate offices in St. Paul, Minnesota, in several regional offices and at the client site. We also provide Web-based computer-based training that our clients can access from their own offices.
As of May 31, 2005, we had approximately 1,400 employees, including approximately 250 in sales and marketing, approximately 340 in research and development, approximately 575 in services and client support and approximately 200 in administration. Our performance depends to a large extent on our ability to attract, train and retain highly qualified personnel. None of our employees is represented by a labor union and we believe our relations with our employees are good.