Ernst & Young introduces first Baan Enterprise Reference Model for engineer-to-order manufacturers; Business model reduces enterprise business application implementation time

Business Wire, June 6, 1996

NEW YORK and EDE, The Netherlands--(BUSINESS WIRE)--June 6, 1996--Ernst & Young LLP today unveils the first in a series of Enterprise Reference Models for organizations implementing Baan software applications.

Enterprise Reference Models, a component of Baan's Orgware solution, facilitate rapid implementation of Baan's Enterprise Business Software by providing a template to map an organization's business processes to the Baan software. The ETO Enterprise Reference Model is designed to improve return on investment by decreasing the time and costs associated with implementing and continuously improving enterprise-wide software applications.

"The Model addresses the critical issues facing ETO manufacturers today: shorter time to market, project and logistical financial control issues, cost reduction by decreasing engineering cost and outsourcing, and throughput time reductions," states Rene Hol, Ernst & Young executive consultant with Moret Ernst & Young in The Netherlands. "The Model incorporates Ernst & Young's experience working with a variety of clients in engineer-to-order and assemble-to-order environments into a tool supporting continuous evolution of a client's business." The industry leading practices incorporated into the Model build on the general library of business processes and procedures available with Baan's Orgware solution.

Baan's Enterprise Modeler component of Orgware graphically depicts the organizational structure, functional aspects of the business model, and sequential business processes. The ETO Reference Model enables dynamic enterprise modeling by providing a starting point for organizations to begin the modeling process. The Model guides management in reengineering business processes, rapidly generating an organization specific business model. The business model ties the reengineered vision for business functions and processes to key performance indicators and roles.

The ETO Model is integrated with Baan's applications, enabling automatic generation of individual desktops based on the relationships defined by the system. The Model supports phased implementations and the continuous improvement of business processes. As an organization's business processes evolve with changing requirements, the Model is continually updated and drives the evolution of the Baan software.

"The Enterprise Reference Model is a valuable tool which allows ETO manufacturers to rapidly translate a business vision into improved business processes, supported by the Baan solution," says John Cordio, partner responsible for Ernst & Young's worldwide Baan practice. -0-

Ernst & Young is a leading integrated professional services organization. Ernst & Young International includes more than 67,000 people in over 600 cities in more than 100 countries. The firm's news, thought leadership and other useful information are available on Ernst & Young's World Wide Web site (http://www.ey.com).

The Baan Company (NASDAQ: BAANF; Amsterdam Stock Exchange: BAAN) is a leading provider of enterprise-wide business software applications. Founded in 1978, The Baan Company has more than 1,750 employees, 1,700 customers, and 1,900 installations worldwide.

CONTACT: Ernst & Young LLP

Dusya Broytman, 212/773-1196

dusya.broytman@ey.com