Wise Move: Sage Software Undergoes a Restructuring
Sage Software announced that it is restructuring its organization with two new divisions to better address its customers by aligning business units more closely to its customer segments. The company's new Business Management Division brings it accounting, ERP, CRM, and related businesses into a single organization to serve the broad needs of SMBs with core business management solutions. Nina Smith, currently CMO for Sage Software, will head up the division.
The new Industry and Specialized Solutions Division provides industry-specific solutions for businesses and organizations in the construction, real estate, and nonprofit industries, as well as serving businesses of all types with human resources management systems, online payroll services, and other employee-management solutions. Doug Meyer, currently president of Sage's Small Business Division, will take the role of president of this division.
These new divisions join the company's Healthcare Division, which serves healthcare practices, and the Payment Solutions Division, which supports merchants' payment processing needs. "As our customers' needs evolve our business must evolve to ensure we are presenting the best products and services to them," says Ron Verni, Sage Software CEO. "Our new organizations position us to provide the right face to our customers, and deliver products and services that can contribute the most to their success."
Verni says bringing the company's core accounting, ERP, and CRM business management applications under one roof will let the company focus its development and customer service resources more effectively on customer needs. "As we bring more products and services to the market, we see our customers automating more processes within their businesses and looking for more commonality and simplicity in the applications they use every day," he says.
Bob Anderson, a research vice president for SMB at Gartner, acknowledges that SMBs are looking for applications that not only integrate data, but provide support for processes that exceed the traditional boundaries of individual business applications. "Businesses don't see a border between their customer relationship tasks and their core accounting tasks. They want a single approach that makes it easy for their people to manage workflow, both inside the four walls of the business and by reaching out to their partners in the supply chain. Smart vendors are proactively transforming their organizations to reflect this reality, but the vast majority targeting SMBs still don't get it."
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