The Changing ERP Landscape: Dassault Acquires IQMS to Extend Technology Solutions for Small, Mid-Sized Manufacturers

The ERP vendor landscape is entering into a new era of transformation as Dassault Systèmes recently announced its definitive agreement to acquire IQMS, developer of manufacturing ERP software.

With a purchase price of $425 million, closing of the transaction is expected in early 2019.

It’s a significant development, especially for the mid-market manufacturing sector. IQMS has differentiated the value chain ERP vendors bring to the market and will be more of a major player in MES and ERP.

IQMS’s ERP and MES solutions – accessible as Software as a Service, Managed Cloud, and Premise deployment modules – are specifically targeted to mid-market manufacturers for managing engineering, manufacturing and business ecosystems by digitally connecting order processing, scheduling, production and shipping processes in real time. By integrating IQMS’s solutions into the 3DEXPERIENCE platform on the cloud, Dassault Systèmes offers game-changing value from a single, affordable system for operations that improves the collaboration, manufacturing efficiency and business agility needed to serve the mid-market manufacturer successfully.

Small to mid-range manufacturers – many of them SOLIDWORKS users – also gain the flexibility to rapidly scale up as a business grows.

Sector Implications

Today’s manufacturing ERP mid-market is estimated at $5 billion, with a 7-8 percent annual growth rate through 2023.

In this era of “Smart Manufacturing” and Industry 4.0, small and mid-sized manufacturers must adopt and optimize new ways of producing and doing business through digital transformation in order to innovate and accelerate their growth in an increasingly competitive marketplace.

Dassault,  IQMS Statements

In the official IQMS announcement, Bernard Charlès, Vice Chairman and CEO, Dassault Systèmes noted: “We must no longer think of industry as a set of means of production, but as a process of value creation. This applies not only to disruptive startups and established corporations, but also to the hundreds of thousands of mainstream manufacturers that produce parts integral to the development of new consumer experiences. IQMS has cultivated a deep knowledge of manufacturing and manufacturer needs. We welcome IQMS to our team as we create a new category of business solutions that expands our offer for companies similar to those using SOLIDWORKS. They can embrace the platform phenomenon and flourish in today’s Industry Renaissance.”

“For years, our business has been committed to maximizing our manufacturing customers’ success by delivering a comprehensive manufacturing ERP system built specifically for the mid-market manufacturers and backed by extensive support and educational services, which has earned us recognition in a number of industry reports and numerous business awards,” said Gary Nemmers, President & CEO, IQMS. “As part of Dassault Systèmes, we can take the next steps in providing customers with new approaches to achieving operational efficiency and effectiveness and doing so with a global reach.”

Ultra’s Take

This announcement is a key development in the enterprise technology landscape with implications for the mid-market organizations served by Ultra Consultants.

The sector has gained an integrated set of technology platform options. Dassault Systèmes will help IQMS expand its customer base by leveraging the presence in the mid-market space achieved with Dassault Systèmes’ SOLIDWORKS applications, which are delivered and supported by the company’s Professional Solutions global partner channel.

Ultra’s Vendor Relationship Manager Michael Chesin spoke with Steve Bieszczat, IQMS Chief Marketing Officer. Bieszczat noted, “Mid-sized manufacturers seek digital transformation in today’s era of Industry 4.0 and with this acquisition, project teams gain efficiency and agility to better serve customers. ”

Adds Bieszczat, “We see this as a new era of collaboration for the mid-market sector through seamless integration of PLM, CAD, collaboration platform, ERP, MES, shop floor tracking and more.”

Keeping Watch in 2019

In all, Dassault strengthens its position to serve the mainstream mid-market with IQMS ERP and MES.

And IQMS is in a position to offer expanded value to the mid-market with end-to-end design to production value chain via CAD, product development and PLM to manufacturing operations and shop floor.

Ultra’s team of independent ERP consultants will be keeping watch in the upcoming year for how this acquisition plays out in the marketplace.

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