Infor bets on ‘micro-verticalisation’, sees uptick from SAP customers

Infor is sharpening its focus on “micro-verticalisation” – segments within broader industries – to capture growth across Asia-Pacific and Japan, shunning a one-size-fits-all approach to challenge established enterprise software players.

In an interview with Computer Weekly, Terry Smagh, Infor’s senior vice-president and general manager for the region, said the company’s deep industry specialisation is a key differentiator, particularly in areas such as automotive, food and beverage, retail supply chain, chemicals, industrial manufacturing and warehouse management.

That also means Infor is not going all out to break into certain industries, such as financial services, telecommunications, healthcare and defence. Rather, the supplier is more focused on offering “very strong, tacit knowledge” and pre-built, best-practice templates for customers in the segments it plays in, Smagh said.

While some may see Infor as a mid-market supplier of business applications, Smagh distances the company from that perception, pointing out that Infor is the “top-tier” player that serves some of the largest firms in the region. “If it’s in our wheelhouse and industry, then we are literally number one or number two right now," Smagh said.

In Japan, for example, the largest carmakers and automotive parts suppliers are using Infor’s CloudSuite Automotive application which supports the Kanban process methodology widely adopted by the country’s automotive industry. This deep expertise extends to customers including a shrink-wrap manufacturer in Japan, and QL Resources, a major fish paste manufacturer in Malaysia.

Infor, which Smagh insisted is a “cloud industry application company” rather than an enterprise resource planning (ERP) software provider, is also seeing “hyper growth” in Southeast Asia, with Thailand, Malaysia, Vietnam and the Philippines being key markets. “We are now seeing multi-million-dollar projects where customers are looking to expand their current footprint,” he said.

Smagh attributed the growth to several factors, including the post-Covid realisation among businesses of the need for agility and growing adoption of cloud, particularly among third-generation business owners who are savvier and prefer to treat software spending as operating expenditure.

Interestingly, Infor is fielding more inquiries from SAP customers. “It’s not that we’re going after SAP accounts, it’s SAP customers who are calling us,” Smagh said, adding that the catalyst is often SAP’s push for customers to move to S/4 Hana. “It’s not an upgrade, as you clearly know – it’s the implementation of a new technology stack. So, the customer is saying, if that’s the case, then what’s stopping me from looking at other options?”

A significant driver of Infor’s current and future value proposition is its artificial intelligence (AI) capabilities, delivered through its Velocity Suite that combines process mining, AI and robotic process automation. Smagh revealed that process mining is particularly resonating with customers.

Infor’s process mining tools help businesses map and optimise their operational processes, benchmark against industry peers, and identify critical bottlenecks. “AI plays a big part there,” Smagh said, adding that it can anticipate process failures or suggest optimisations. The Velocity Suite is also designed to be modular, allowing customers to adopt it incrementally.

Looking ahead, Infor’s priorities include expanding its revamped partner programme, launched globally in January 2025, which Smagh claimed to offer “one of the best margins” for partners. The company also recently conducted a global study examining the attributes of highly productive organisations, which found that companies in the region are looking to increase tech investments by 15-20% to boost efficiency.

Despite a general market slowdown, Smagh remains optimistic about Infor’s traction in the region. “The business, in general, has been very positive, even in this so-called downturn. We see a lot of activity. It’s not slowing down because of the lack of business; it’s just general market sentiments.”