By Dennis Michalis

A very Happy New Year to everyone. On behalf of Glovia and Fujitsu, I wish you a most prosperous 2004.

Thank you again for your business in 2003. So many of you implemented a most impressive product mix, especially in the recent quarter — everything from Factory Planning, Supply Chain Management, and enterprise-wide/global Order Management capabilities to advanced XML Collaboration and Integration solutions for quicker, more efficient operations. You have definitely established us as a true extended enterprise solutions provider.

We also appreciated your strong, positive reactions to the first issue of The Extended Enterprise and hope you continue to let us know how our communications with you can be improved.

In the premiere issue we covered responsiveness — the need for manufacturers to respond to customer demands in real-time to stay ahead of the competition. Related to responsiveness and demand-driven strategies is a time-honored but somewhat misunderstood principle that has lately become the most discussed phenomenon in manufacturing: Lean.

Despite all the current lean coverage, there are still some misconceptions regarding the traditional usage of the term and what people mean now. Originally, lean referred to a Japanese auto manufacturer idea to remove waste and implement factory floor efficiencies. As with so many other manufacturing initiatives, the function has evolved to refer to a principle of continuous improvement to anything that adds customer value throughout the extended enterprise — regardless if it is for one factory or the entire company — and no matter what the industry. So if you think you know all about lean and that it does not apply to you, you probably want to take another look.

Another point to make clear is that lean is not another business fad or sales gimmick. Lean works. Moreover, the investment for most companies is not in software or money, but in time, effort, and energy. Lean is a process — again, of continual improvement. As an analogy, and now that the holidays are over, think of a lean diet. People set a goal to lose weight and be healthier over time. Everyone knows the only way to do this is not through quick fixes: radical fads, fasts, or new exercise equipment. You do your best to eat and to exercise as best you can throughout the day, on a long-term basis.

The fact is most of you reading this already have significant lean capabilities in your existing Glovia investment. We have been weaving lean functionality into the entire fabric of our solution over many years, much of it customer driven — and not just from the highly successful Japanese automotive sector but from capital equipment, electronics, and all sorts of manufacturing industries.

So while we are glad to see the market focus shift from an over-obsession on cost cutting to the improvement of processes and customer value, we also know that we have worked on this solution continually for over three decades. So as far as lean is concerned, you essentially need to dedicate operational energy — not IT energy — to yield capabilities that you already have from us, as opposed to acquiring new modules.

One of the very best ways to learn about lean manufacturing and Glovia is at our upcoming
User Group Conference. Among the customer presentations in the Operational Track will be hands-on Lean Simulation Training Workshops by Avery Dennison, the giant office products manufacturer whose products you all use. Avery Dennison has had great success with Glovia this year and the simulation and related best practices seminars are excellent opportunities for us all. Presentations are a true highlight of the conference and everybody, certainly including our staff, learns a great deal from them.

Lean is just one part of the story at Glovia and the annual User Group Conference. Many of you have told us about your impressive successes in eBusiness, Collaboration, Supply Chain Management, Compliancy, and many other areas using our solution this year. We want to hear from you this May in Orlando! Please do consider a presentation of your achievements at our event. There are important benefits for all when we share our successes.

Even if you cannot present, I hope to see you there so we can discuss these issues and your other needs in person, at greater length.

In the meantime, I hope you will write to me and let me know about your recent successes: dmichalis@glovia.com.

Have a great year. I look forward to seeing you in Orlando and hearing your story.

Sincerely,

Dennis R. Michalis
President and CEO
Glovia International, Inc.