TechOne Makes Room for Growth at Endeca

Feature Article | March 25, 2009 by Lindsay Alessi

Flexibility is king in a growing business – not only in terms of integrating systems and processes, but also in the potential to adapt quickly to changing demand. Midsized businesses need strong scalable solutions, tailored to their industry, that can grow with the business and yield a rapid return-on-investment. But small doesn’t mean small-time. Companies in the midmarket are looking for the same big benefits large companies get from their ERP solutions – but without the big risks that can sometimes go with it.

Growth has become a welcome challenge for Endeca Technologies in recent years. With its information access technology set to revolutionize how businesses explore and deploy information, the Massachusetts-based company is on course for another major growth spurt. Endeca’s existing software systems were unable to provide the business visibility the company needed to increase its productivity and support revenue growth. Facing inefficient business processes, disjointed applications and scattered spreadsheets, Endeca looked to SAP to take its business to the next level.

Scaling up

TechOne at a glance

TechOne is tailored to high-tech companies that:

  • Develop and sell configurable/custom software
  • Sell hosted software products via subscription
  • Deliver professional services and training
  • Sell configurable hardware

Business areas include:

  • Financials
  • Sales and Distribution
  • Enterprise Management & Support
  • Quote-to-Cash
  • Procure-to-Pay
  • Product Development
  • Web-Based Portals

“Selecting a solution that was extensive, scalable, and based on industry best practices was vital,” said John Komola, Vice President for Finance and Administration at Endeca. “We had specific requirements of scalability. It had to be intuitive to our industry and provide the functionality we needed to run our business efficiently.” TechOne met these criteria on all counts. Developed by SAP partner YASH and built on SAP Best Practices for High-Tech, the preconfigured solution delivered the processes, content, and methodologies Endeca was looking for.

Endeca’s existing solution required significant customization to support reporting and “carve-outs” for accounting purposes. The rigid order entry process relied on manual manipulation of product and pricing data to satisfy GAAP (Generally Accepted Accounting Principles). Endeca also needed a more formal General Ledger system to manage revenues and expenses as it grew. TechOne’s preconfigured processes were able to deliver. Endeca now enjoys automated order entry and accounting allocation. Revenue recognition is sleek and streamlined with processes integrated within the transactional system – helping Endeca cut through red tape and ease compliance.

The bigger picture


In order to scale appropriately, Endeca needed to re-engineer its financial processes across the board – Accounts Receivable, Accounts Payable, Fixed Assets, General Ledger, Purchasing and Cost Center Reporting. TechOne made this process far less daunting, providing SAP Best Practices for every area. Endeca was also looking for a fuller business picture through improved integration. TechOne brought applications such as Salesforce.com, QuickArrow, and Endeca’s own information access platform into the loop to give the company real-time business visibility.

Industry focus was crucial to Endeca in its choice of solution. The company needed a platform that could address specific high-tech needs, such as contract management, perpetual or subscription license sales, as well as comply with FASB (Financial Accounting Standards Board) and AICPA (American Institute of Certified Public Accountants) for revenue recognition. TechOne’s SAP Best Practices fit the bill, specifically targeting pain points in the industry, while YASH’s own best practices added further industry expertise to the mix.

Implementation ASAP

TechOne’s preconfiguration and out-of-the box functionality paved the way for an efficient implementation at Endeca. ASAP Focus methodology was also a significant accelerator, designed to implement SAP Best Practices at minimum risk and maximum time to benefit. YASH best practices further accelerated the initial implementation phase, which took only six months. John Komola commented: “The implementation was smooth and we met all of our goals for the project including elimination of manual processes, one powerful, integrated system, and most importantly streamlining the revenue recognition process.”

ASAP Focus methodology offers:

  • A step-by-step roadmap to implementing a prepackaged solution in the shortest possible timeframe
  • Preconfigured and pre-tested processes for specific business activities supported by data conversion tools to validate the solution with customer data
  • Ready-made documentation on business processes and configuration to allow project teams to focus on preparing organizations
  • Predefined reports, print forms, authorization roles and test scenarios to ensure a cost-effective implementation
  • A pre-implementation method for customer completion before the SAP project team arrives to further reduce costs

Full steam ahead

Better data integration and business visibility mean better business for Endeca, and further business process re-engineering is on the cards for the future as the company continues to explore SAP opportunities. In the meantime, with TechOne in place, Endeca can concentrate on doing what it does best – growing. And according to Chad Wright, Director of Enterprise Applications at Endeca, confidence is high: “The support received from SAP and YASH has been beneficial to our entire organization. Having the confidence in knowing that this SAP Business All-in-One solution will scale to meet our needs as we grow our business is a true return on investment.”

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