<p> Microsoft Dynamics Customer Solution Case Study</p><p>Specialty Printing Company Boosts Productivity with End-to-End Business Management Solution </p><p>Overview “Now, regardless of what a customer might ask us Country or Region: United States to do—to integrate with their system or do business Industry: Manufacturing the way they want—we will have the flexibility to do Customer Profile it, which will keep us growing.” Based in St. Louis, Missouri, Data2 Corporation was formed in 1996 through Jack Delo, President and CEO, Data2 Corporation the merger of two of the largest typesetting service bureaus in the United Data2 Corporation had custom-built an enterprise system to States. The company creates custom bar coding, labeling, bonding and protecting manage its primary business: printing custom bar-code labels solutions. for various industrial purposes. In recent years, the company </p><p>Business Situation has seen increasing opportunities to expand into other lines of Data2’s legacy enterprise system, business, but its system—designed for THEOS, a now-obsolete designed for an obsolete operating system, was not flexible enough to operating system—could not accommodate alternative business accommodate new business models and processes. After weighing the options, Data2 made a strategic increasingly difficult to update and maintain. decision to migrate to Microsoft® Business Solutions–Great Plains® and Microsoft Business Solutions CRM (both now part of Solution ™ Quilogy, a Microsoft® Gold Certified Microsoft Dynamics ). Microsoft Gold Certified Partner Quilogy Partner, implemented Microsoft Business implemented the system and adapted it to Data2’s industry- Solutions–Great Plains® and Microsoft Business Solutions CRM to streamline specific needs. Now live for four months, the solution is Data2’s business processes from end to beginning to deliver significant benefits to Data2: streamlined end. and accelerated workflow throughout the company, fewer errors, Benefits enhanced customer service, and perhaps most importantly, the  Increased productivity and accuracy company-wide flexibility to rapidly adapt to new business opportunities.  Enhanced customer service  Increased business agility "We had a strong belief Situation errors and bad service,” Delo recounts. “We were at a point where we couldn’t “We were expecting our business to grow that we would be afford to stand still,” says Jack Delo, in new directions, so it was only going to investing in an ever- President and CEO of Data2 Corporation, a get worse.” leader in bar-code label printing. improving system in In addition, Data2 was aware of the need to terms of both Data2 was managing its manufacturing, improve its customer service by increasing order-entry, and accounting functions the visibility of account data. “Our service functionality and through a system it had custom designed department could not access up-to-date integration. We saw to run on THEOS, a multiuser operating account information while they were talking system that had become obsolete. This to a customer on the phone,” explains the Microsoft solution legacy system employed a proprietary Delo. The company did not have a as a growth path.” database structure and an antiquated, customer relationship management (CRM) character-based screen interface. It was system in place; staff members maintained Jack Delo, President and CEO, Data2 clear the company had to make a major customer contacts on legacy system files Corporation change in the system because, as Delo or in individual Microsoft® Outlook® recounts, Data2 had essentially outgrown accounts. it. Finally, Data2 was finding it increasingly “The system had been written for a time difficult to find staff with the programming when the business was narrower than it is skills to maintain and upgrade its now,” he explains. “As we added more proprietary system. “At that point, we types of business with different decided to see if we could find a brand new requirements, we found it more and more solution that we could adapt to our difficult to accommodate the new business business, rather than trying to retrofit our models.” archaic architecture or custom-build a whole new system,” says Delo. For example, Data2’s business had previously only consisted of make-to-order Solution jobs, with the company responding to Data2 searched for a combined enterprise custom bar-code orders on a one-by-one resource planning (ERP) and CRM basis. Data2 saw opportunities for solution, and after careful consideration branching into finished-product sales, but chose Microsoft Business Solutions–Great its system simply couldn’t handle the Plains® software and Microsoft Business alternative ordering process. Nor could it Solutions CRM (both now part of Microsoft routinely accommodate orders for drop Dynamics™). The company believed that shipments to multiple locations or requests the familiarity and consistency of the to keep inventory at a customer site. Microsoft interface would result in greater productivity and less training. Data2 staff “Whenever we attempted to do something members were already using Microsoft outside of how we had been doing Windows® XP Professional operating business for the last 20 years, the system system and Microsoft Office 2000 was clumsy at handling it, which led to Professional on their desktops. “Quilogy provided In the course of ten months, Quilogy and “It was going to be enough of a challenge Data2 worked closely together to plan, great understanding of to train staff on how to use the new ERP design, install, configure, integrate, and test how Microsoft Great and CRM functions,” says Delo. “We didn’t this comprehensive enterprise system. The want to teach lessons on little differences in solution operates on five Dell PowerEdge Plains Manufacturing how one system navigates versus another.” servers running Microsoft Windows 2000 works, a strong ability Server operating system, as well as Delo says that another deciding factor was Microsoft Exchange 2000 Server, Microsoft to analyze our the future promise of the Microsoft solution. SQL Server™ 2000 (all three of which are business processes, “We had a strong belief that we would be part of Microsoft Windows Server System™ investing in an ever-improving system in integrated server software), and Terminal and good advice on terms of both functionality and integration. Server, which allows for remote access to where we should bend We saw the Microsoft solution as a growth the system from Data2’s offices in path.” California. After adding Microsoft Great to fit Great Plains and Finding the Right Partner Plains Financial, Supply Chain, and where we could adjust Because implementing the new system Manufacturing modules, Quilogy used would affect Data2’s most basic business Microsoft Great Plains Integration Manager the software to do what processes, it was critical to the company to connect the ERP system with a Web- we needed.” find a savvy, experienced partner. “To based order-entry application developed by make this kind of business transition Data2 using Microsoft Visual Basic® .NET Jack Delo, President and CEO, Data2 successfully, you have to tend to the 2003 development system. The cultural issues and workflow as much as to implementation team then used Scribe technical matters,” comments Delo. To that Insight from Scribe Software as an end, Data2 hired Quilogy, a Microsoft Gold integration tool to pass data between Great Certified Partner, to deploy the solution and Plains and Microsoft CRM. Finally, Quilogy manage the migration. “Quilogy provided implemented FRx® Financial Reporter, great understanding of how Microsoft Great Microsoft Business Solutions for Analytics– Plains Manufacturing works, a strong ability Forecaster, and Accountable Software’s to analyze our business processes, and AnyView to build in enhanced reporting good advice on where we should bend to fit capabilities and transitional screens to help Great Plains and where we could adjust the Data2’s business process run more software to do what we needed.” smoothly.</p><p>Implementation “The implementation process was logical Quilogy’s implementation team included and methodical—Quilogy took a very consultants with extensive experience in organized approach,” comments Delo. many facets of the project including “They gave us the right advice at every manufacturing (a former manufacturing turn, so we didn’t have the false starts that plant manager), distribution, accounting we’d been experiencing before. We think (CPAs), project management, and IT (a extremely highly of Quilogy. Up and down former IT Director and Microsoft-certified the line, it’s a good organization.” developers). Benefits Data2 now has a unified system that any discrepancies, Data2 knows right streamlines and tracks its comprehensive away. “We now have a much more business process from initial customer accurate handle of what we have in stock contact through ordering, manufacturing, at any point, as well as when we need to shipment, invoicing, and accounting. After order more,” says Delo. “Implementing just four months, the company is starting to the inventory bar-coding system has led realize significant business benefits as a to reducing our inventory cycle count result. times from three days to one, which means faster month-end closings.” Increased Productivity, Accuracy Company-  Efficiency boost in shipping. Quilogy Wide developed custom code to consolidate The combined Great Plains and Microsoft multiple shipments to customers, saving CRM solution has enabled Data2 to Data2 postage, materials, and labor. eliminate numerous manual processes, Quilogy also developed code to resulting in less labor, lower overhead, and automatically pull shipping charges from “With Microsoft Great fewer errors. For example: FedEx and UPS systems into Great Plains and Microsoft  Streamlined customer communication. Plains, to be added to customers’ Previously, to send out order invoices. “We have seen big CRM our ability to acknowledgements and shipping improvements in productivity in our access, analyze, and confirmations, a staff member had to shipping department—and are also print out 150–250 documents per day seeing fewer errors there, which distribute information and manually send them through a fax increases customer satisfaction,” says electronically, both machine. To eliminate this repetitive Delo. manual task, Quilogy implemented  Expedited manufacturing process. As part internally and Liaison’s Messenger software, which of the new implementation, all of Data2’s externally, is nothing searches Great Plains and automatically travel and order-picking documents are sends out the appropriate message to now bar coded. As a job runs through the short of amazing….” the customer in their preferred format system, staff can simply scan the Michael Borgna, Vice President and Chief (fax or e-mail) without need for human accompanying documents, feeding Financial Officer, Data2 intervention. status updates directly into Great Plains.  Automated inventory tracking. Before, This gives the company real-time Data2’s raw materials inventory had to information on manufacturing workflow be routinely counted by hand. Now, as and eliminates the need for staff to part of the new system, Data2 has bar physically check on orders when a coded all of its stock, so staff members question comes up. In addition, simply scan the materials when they pull manufacturing specifications and them for a production order and again instructions, which used to be when they return them to the shelves. handwritten, are now all in the system, The bar-code readers integrate with further eliminating errors and delays. Great Plains by way of QualityCount “We are now seeing a faster turnaround software from QBD Systems. That way, time on our orders,” says Delo. Great Plains always has real-time  Automated job cost posting. Previously, inventory data available, and if there are Data2’s machine operators kept manual “The Microsoft logs on the time and materials they used And, because we have Microsoft CRM as they ran each job. “Then, someone integrated with Microsoft Great Plains, our Business Solutions from accounting had to spend an hour or staff can use it to look not only at platform is forward- two every day running around to find out opportunities, but also related data such as what they meant, and manually post the active accounts, last orders, current looking enough that it data into our accounting system,” recalls invoices, and shipping status—all in one will allow us to stay Delo. Now, operators enter this data place. We use the information that comes directly into the system. “We were out of Great Plains to improve the competitive with even concerned that the manufacturing staff relationship with our customer by talking much larger suppliers.” would get bogged down in data entry,” knowledgeably about their account when Delo adds, “but Quilogy has made the they call.” Jack Delo, President and CEO, Data2 system extremely easy for them to use and it doesn’t take any extra time at all. The company’s increased accuracy and Automating our job-cost posting process speed in order fulfillment are also eliminated an entire full-time position in contributing to enhanced customer accounting. So, it gave us a big increase satisfaction. And, Data2 has improved its in accounting productivity without the image by upgrading the look and feel of the expected drop in manufacturing documents it sends out. “Our old system productivity.” turned out invoices and order  Improved reporting. The Microsoft acknowledgements that looked like solution has also dramatically increased computer reports,” comments Delo. “Now the speed and power with which Data2 we can send out publishing-quality can analyze its business data, leading to documents that are easier to read. This better decision making. “With Microsoft presents the company in a better light and Great Plains and Microsoft CRM our allows us to incorporate our branding ability to access, analyze, and distribute strategy messages.” information electronically, both internally and externally, is nothing short of Increased Business Agility amazing compared to our prior platform Perhaps most importantly, Great Plains of disparate systems,” says Michael and Microsoft CRM have given Data2 the Borgna, Vice President and Chief flexibility to adapt its business model to Financial Officer of Data2. changing market conditions. The new system has already supported the Enhanced Customer Service company in branching into sales of finished Another significant outcome of Data2’s goods such as precision-cut seals, gaskets, implementation of Great Plains and and bonding products. And, Data2 now has Microsoft CRM is the upgrade in its the capacity to accommodate requests customer service capabilities. “For the first including drop shipments or stocking time, we have a solid CRM system in inventory at customer sites. In addition, the place,” says Delo. “This gives us more new system will make it easy for Data2 to consistent, up-to-date, accessible customer integrate with customer and supplier contact information, which means we can systems when needed. “Since this is a better facilitate sales and service functions. For More Information SQL-based system, we’ll be able to mesh Microsoft Dynamics For more information about Microsoft with any other SQL system,” says Delo. Microsoft Dynamics is a line of integrated, products and services, call the Microsoft adaptable business management solutions Sales Information Center at (800) 426- “Now, regardless of what a customer might that enables you and your people to make 9400. In Canada, call the Microsoft ask us to do—to integrate with their system business decisions with greater confidence. Canada Information Centre at (877) 568- or do business the way they want—we will Microsoft Dynamics works like familiar 2495. Customers who are deaf or hard- have the flexibility to do it, which will keep Microsoft software such as Microsoft of-hearing can reach Microsoft text us growing,” Delo concludes. “If you stay Office, which means less of a learning telephone (TTY/TDD) services at (800) absolutely still, eventually there will be curve for your people, so they can get up 892-5234 in the United States or (905) fewer new opportunities to pursue because and running quickly and focus on what’s 568-9641 in Canada. Outside the 50 you can’t accommodate the requirements.” most important. And because it is from United States and Canada, please Microsoft, it easily works with the contact your local Microsoft subsidiary. “The Microsoft Business Solutions platform systems that your company already has To access information using the World is forward-looking enough that it will allow implemented. By automating and Wide Web, go to: www.microsoft.com us to stay competitive with even much streamlining financial, customer larger suppliers,” he adds. “Eventually, relationship, and supply chain processes, For more information about Quilogy Data2’s implementation will go far beyond Microsoft Dynamics brings together people, products and services, call (866) our original set of expectations by fueling processes, and technologies, increasing QUILOGY or (866) 784-5649 or visit the growth rather than simply supporting the productivity and effectiveness of your Web site at: www.quilogy.com growth.” Data2 now plans to upgrade to business, and helping you drive business Microsoft Business Solutions–Great Plains success. For more information about Data2 8.0 and incorporate a Microsoft Business Corporation products and services, call Solutions Business Portal into the solution. For more information about Microsoft (800) 876-3844 or (636) 278-8888 or visit Dynamics, go to: the Web site at: www.data2.com www.microsoft.com/dynamics </p><p>Software and Services Hardware  Microsoft Office XP Professional  2 Dell PowerEdge 1600SC servers  Microsoft Visual Basic .NET  3 Dell PowerEdge 2600 servers  Microsoft Exchange 2000 Server  1 Dell PowerEdge 600SC server  Microsoft SQL Server 2000  Microsoft Windows 2000 Server Partners  Microsoft Windows XP Professional  Quilogy  Microsoft Dynamics − Microsoft CRM − Microsoft Business Solutions–Great © 2006 Microsoft Corporation. All rights reserved. This case Plains study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, FRx, Microsoft Dynamics, Outlook, Visual Basic, Windows, and Windows Server System are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.</p><p>Document published February 2006</p>