Nucleus Research Study Finds that 67% Of Manhattan Associates Reference Customers Achieved a Positive ROI

"Real ROI" Report Cites Increased Employee Productivity, Reduced Cost of Operations and Deployment Challenges as Key Findings

Nucleus Research, the leading provider of bottom-line focused technology research, today announced the results of an independent study of Manhattan Associates (Nasdaq: MANH), a provider of warehouse management, supply chain execution, and logistics software. The study found that 67% of Manhattan Associates customers interviewed had achieved a positive ROI from their deployments, after an average deployment time of 2.5 years. An executive summary of the report is available at NucleusResearch.com.

The Real ROI from Manhattan Associates

The report is the newest in Nucleus Researchs' "Real ROI" series, which had previously examined supply chain vendors i2 and Manugistics. Nucleus analysts independently contacted Manhattan Associates customers without the vendor's knowledge to analyze the return on investment achieved by its customers.

For this report, Nucleus conducted 21 in-depth interviews with customers who agreed to participate in the study, out of the 79 reference customers listed on the Manhattan Associates Web site. Specifically, Nucleus examined the up-front and 3-year costs and key benefits and challenges for customers, as well as the time for deployment.

"Supply-chain solutions can provide organizations with real, tangible benefits. The key is to manage the deployment with a view on bottom-line results from the beginning of the project through deployment to retirement," said Rebecca Wettemann, vice president of research at Nucleus Research. "Organizations should only purchase IT solutions by realistically studying all the costs involved in a deployment – from license costs to hours spent on the deployment. The Real ROI reports help software customers base their decisions on facts, not sales propaganda."

Some of the key findings in the report included the following:

• 67% of Manhattan Associates customers achieved a positive ROI from their deployment.
• Benefits included increased employee productivity, increased inventory and shipping accuracy, improved customer management and retention, and reduced cost of operations.
• The average 3-year cost of a deployment was $2.8 million; the median cost was $1.7 million.
• The average software license maintenance charge was 17% of initial license price; the median was 16%.
• Companies required an average of 2.7 full-time personnel to support their solution.
• Over 50% completed deployments on time and within budget.
• Challenges for deployments included training, aligning business processes with technology, and integration with existing proprietary systems and applications.

About Nucleus Research

Nucleus Research is an independent global research and advisory firm that provides CFOs and CIOs with the financial and technology insight they need to make clear, accurate assessments of the returns from their technology investment. The company is the first firm of its kind to blend financial analysis with comprehensive technology expertise to deliver 100% impartial return-on-investment (ROI) information to organizations worldwide. Nucleus Research uses an uncompromising set of processes and tools to evaluate the financial return on IT assets throughout a technology's life cycle, from selection and deployment to upgrade and retirement. Nucleus Research's ROI assessment methodology can be applied to virtually any technology investment. For more information, please visit NucleusResearch.com.