To compete effectively in the global marketplace, companies realize that it
does not make sense to go solo. To grow fast, companies need to establish
key partnership and sourcing agreements. But as time goes by, these
relationships can get exceedingly complex. Dell Computer, for example, uses
sophisticated technology to manage its myriad suppliers and partners. Of
course, the result has been super-charged growth — as competitors have
lagged.
It was interesting that Dell selected Agile Software (AGIL)
recently as a software solution for its manufacturing sites. The
agreement includes 3,500 users for the Web-based Agile system. In fact,
prior to the IPO, Dell invested in Agile.
Yes, Agile has done quite well since its IPO last year. But expect more
success. Actually, yesterday Agile signed a deal with Agilent Technologies,
a leader in monitoring technology for medical devices, semiconductors and
optical components.
The product that these companies want is called Agile Anywhere. The
technology is a full suite of applications that automate the distribution
and synchronization of product information along the e-supply chain.
Companies can then review, in real-time, the critical information within
the supply chain through Agile e-hubs. For example, companies like Dell and
Agilent are continually introducing new products — globally. Managing the
information flow can be a nightmare. Agile Anywhere takes the heartache out
of the process.
The company is monetizing its success. In the past quarter, sales were
$8.56 million, compared to $4.59 million for the same period a year ago. As
for losses, these were manageable: $1.71 million, which compares to $2.22
million in the same period a year ago. In the past quarter, Agile added 49
customers.
With its penetration into the enterprise market supply chains, Agile is
expanding into business-to-business. The company launched its MyAgile.com
business-to-business portal. There was also a strategic partnership with
SupplierMarket.com, a leading B2B hub for custom manufactured products, and
the purchase of Digital Market, which provides e-procurement capabilities
for direct production materials.
Agile has the clear first-mover advantage. True, there is competition on
the horizon. But by the time competitors come in, Agile will probably be
too big to topple.
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Will Agile’s first-mover advantage last? Is the stock a buy? Internet stock investors are talking about the stock here
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