Sopheon de­liv­ers prof­itable growth with high mar­ket po­ten­tial

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Listed on AIM, Sopheon (SPE:AIM) has spent re­cent years suc­cess­fully evolv­ing from a niche soft­ware of­fer­ing into a mis­sion-crit­i­cal en­ter­prise plat­form in a mar­ket in­creas­ingly ac­knowl­edged by in­dus­try an­a­lyst firms like Gart­ner and For­rester Re­search.

This mar­ket – En­ter­prise Strat­egy & In­no­va­tion Man­age­ment – is ex­pected by some to be­come the next ma­jor pil­lar of en­ter­prise soft­ware along­side en­ter­prise re­source plan­ning (ERP) and cus­tomer re­la­tion­ship man­age­ment (CRM). The re­wards for Sopheon of this shift are ap­par­ent.

Rev­enue and profit are up; new client ac­qui­si­tion in the first half of 2018 was up by 50% over the same pe­riod last year; the strong busi­ness mo­men­tum in the per­for­mance dur­ing the first half of this year con­tin­ued into a record third quar­ter, tra­di­tion­ally the qui­etest quar­ter of the year for the com­pany. This ro­bust per­for­mance has caused bro­ker fin­nCap to raise Sopheon’s rev­enue es­ti­mate and EBITDA (earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion) fore­cast for 2018.

Many view the con­tin­ued de­liv­ery of com­mer­cial re­sults as em­blem­atic of the grow­ing ma­tu­rity of the mar­ket Sopheon serves, and of its ris­ing rep­u­ta­tion for value un­der­pinned by in­creas­ing adop­tion of its so­lu­tions.

SOPHEON EX­PLAINED

Sopheon is listed on the AIM ex­change. Ini­tially of­fer­ing knowl­edge man­age­ment soft­ware so­lu­tions, Sopheon later ap­plied these knowl­edge-man­age­ment con­cepts to a new soft­ware so­lu­tion named Ac­co­lade.

Ac­co­lade was the first soft­ware to au­to­mate a man­ual busi­ness process called StageGate, which was em­ployed by over 70% of com­pa­nies

IN­TRO­DUC­ING… SOPHEON A provider of en­ter­prise soft­ware that con­nects strat­egy with op­er­a­tional ex­e­cu­tion for im­proved cor­po­rate growth per­for­mance.

in high-in­ten­sity re­search and devel­op­ment (R&D) in­dus­tries like chem­i­cals and con­sumer goods.

‘As the busi­ness ma­tured, we de­vel­oped unique do­main ex­per­tise in the in­no­va­tion in­vest­ment de­ci­sion-mak­ing process and how it var­ied across dif­fer­ent in­dus­try ver­ti­cals,’ says Sopheon CEO Andy Michuda.

‘We have a his­tory of lead­ing the mar­ket with tech­nol­ogy “firsts” and con­tinue to do so in our devel­op­ment of the ex­panded en­ter­prise soft­ware mar­ket. Ac­co­lade is used to man­age over $25bn in cor­po­rate in­vest­ment bud­get, which has earned the trust of some of the world’s largest and most widely-recog­nised mar­ket lead­ers to part­ner with Sopheon in our ex­pan­sion ef­fort.’

Fast for­ward to to­day, and Sopheon’s soft­ware has been im­ple­mented by over 250 cus­tomers – many Global 500 or­gan­i­sa­tions as well as mid­cap com­pa­nies – and is used by more than 60,000 users in over 50 coun­tries.

Sopheon counts amongst its clients Pep­siCo, P&G, Beiers­dorf, BASF, Honey­well, Merck, Lock­heed Martin, Northrop Grum­man, Elec­trolux and Philips. Sopheon is the only com­pany named in Gart­ner re­search across all ar­eas of the En­ter­prise In­no­va­tion Man­age­ment life­cy­cle, and is named a ‘Leader’ in the For­rester Wave for Strate­gic Port­fo­lio Man­age­ment.

Sopheon has tran­si­tioned its soft­ware from an R&D de­ci­sion sup­port and process au­to­ma­tion tool into a mis­sion­crit­i­cal en­ter­prise plat­form for in­vest­ment de­ci­sion mak­ing and strat­egy ex­e­cu­tion. By con­nect­ing strate­gic funded ini­tia­tives to the op­er­a­tional ex­e­cu­tion ac­tiv­ity, Sopheon is now help­ing cor­po­ra­tions nav­i­gate and stay ahead in to­day’s fast mov­ing and highly dis­rupted dig­i­tal mar­kets.

THE IN­VEST­MENT CASE

Dig­i­tal dis­rup­tion and con­sumeri­sa­tion are cre­at­ing enor­mous mar­ket op­por­tu­nity for com­pa­nies like Sopheon.

• Ac­cord­ing to the Yale School of Man­age­ment 75% of the S&P 500 will be re­placed by new firms by 2027.

• En­tre­pre­neur Daniel F Prosser reck­ons only 13% of com­pa­nies ex­e­cute on strat­egy, and ac­cord­ing to The Econ­o­mist only 56% of ini­tia­tives are con­sid­ered suc­cess­ful.

The ex­ter­nal mar­kets are mov­ing and chang­ing faster than com­pa­nies can re­act. This has cre­ated ur­gency at the ex­ec­u­tive lead­er­ship level and in the board­room to act with the speed and nim­ble­ness of a small start-up in or­der to re­main rel­e­vant.

To re­alise this am­bi­tion com­pa­nies need to op­er­ate with in­creased trans­parency and align­ment to ex­e­cute on their strat­egy more quickly and more suc­cess­fully. This is achieved by con­nect­ing strate­gic funded ini­tia­tives with op­er­a­tional ex­e­cu­tion ac­tiv­i­ties into a sin­gle, shared sys­tem of record en­abling fast, in­formed and it­er­a­tive de­ci­sion mak­ing.

Sopheon is well po­si­tioned to be­come this new en­ter­prise sys­tem of record.

AC­CEL­ER­AT­ING GROWTH

Sopheon’s fo­cus on ex­pand­ing its so­lu­tion to the emerg­ing En­ter­prise Strat­egy & In­no­va­tion Man­age­ment mar­ket ex­tends the com­pany’s am­bi­tions to sus­tain its own im­pres­sive growth tra­jec­tory.

The out­look for the En­ter­prise Strat­egy & In­no­va­tion Man­age­ment so­lu­tions mar­ket ap­pears par­tic­u­larly pos­i­tive.

When con­sid­ered along with the mar­ket op­por­tu­ni­ties be­ing cre­ated by the rush to­ward dig­i­tal and busi­ness trans­for­ma­tion, Sopheon has the po­ten­tial to con­tinue to sat­isfy both cus­tomer and share­hold­ers alike suc­cess­fully into the fu­ture.

Sopheon is help­ing com­pa­nies drive busi­ness per­for­mance with strat­egy-driven en­ter­prise in­no­va­tion man­age­ment

Sopheon con­nects the en­ter­prise to en­able col­lab­o­ra­tion, speed and busi­ness agility

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