overview of the global erp market
TRANSCRIPT
Presented By:Kundan Yadav (2/E–14)Sandeep Moorthy (2/E–15)Mahender Singh (2/E–16)Nishant Yadav (2/E – 17)Vikram Ahalawat (2/E–18)
• Over $18 billion market
• Driven by acquisitions
• Increasing maintenance revenues &
shrinking licensing revenues
ERP Vendors
Fortune 2000 / Enterprise ERP Leaders• SAP (Germany) • Oracle
Middle Market ERP Leaders• Infor
• Epicor Small Business ERP Leaders
• Microsoft Some other big ERP vendors:
• J.D. Edwards
• Baan• QAD
Segment
Size range
(annual
revenues) Solution characteristics
Large
companies
$1 billion plus Global functionality, high network and transaction
scalability, sophisticated reporting and analysis
Upper
midmarket
$250 million to
$1 billion
Multinational functionality, but less scalability.
Often sold through channels rather than direct to
customer
Lower
midmarket
$50 million to
$250 million
Multinational functionality but significantly less
scalability. Often solf through channels rather than
direct to customer.
Smaller
business
Under $50
million
Single location, country specific, PC- or LAN-
based. Standardized packages with lower cost and
complexity.
SAP (Systems, Applications & Products in data processing):• founded in 1972• headquarters at Walldorf, Germany• installations in more than 110 Countries
SAP‟s ERP Package:• The Mainframe Version (SAP R/2)• The Client/Server Version (SAP R/3)
Product and Technology:• Seamless Real time integration b/w processes and
applications.• Extensive library of around 800 predefined business
processes.
• Available in 24 languages
SAP R/3 Features
• Three tier Client/Server architecture
Data Layer
Application Layer
Presentation Layer
• Incorporated Intranet and Internet technologies into
their offerings
• R/3‟s runs on hardware platform of most of the
international vendors
• Best business practices and new technologies
• Suitable for both medium and large sized industries.
BAAN Company ( now part of INFOR)
• Founded in 1978
• Global headquarter at Netherlands
• Presence in more than 90 countries with more
than 7000 customer sites
Product, technology and features
• Most complete set of single vendor business
applications
• Differentiated through Open component
architecture
Popular Baan DEM• Provides rapid configuration and redeployment
for Baan applications through single view
• Applications are isolated from the system
Environment, hence allowing easy hardware
modifications and upgradation
• First one to get “Designed for Microsoft
BackOffice” logo certification
• Recognized as the Leader in ERP solutions for
Aerospace and Defense
PeopleSoft ( acquired by Oracle)
• founded in 1987
• originally Headquartered at Walnut Creek and eventually at Pleasanton, California
• Employs around 7000 people around the globe
Product and Technology• Famous products like HRMS, CRM, Financials, EPM
(Enterprise performance Management) & Student Administration software
• Known for its ability of easy customization
Features
• SCM Solution: Demand forecasting, Planning
module using real time and historical data
• Service Industry Solutions: SRM ( Service
revenue Management)
• PeopleTools : Set of client/server business
applications for customizing and work flow
Management of PeopleSoft applications
• Self-Service Applications
• Web Client
ERP calls for different operations and
applications in different industries
Each industry has it‟s own drawbacks
and plus points in dealing with the
enterprise applications
The benefits sought and delivered by
ERP varies from industry to industry
Manufacturing
• Increase the efficiency and quality of the
manufacturing process
• Ensure right and timely communication
• ERP provides solutions by coordinating the
actions of supply chains, ware house and
logistics
• ERP tracks and provides product status
information at all times for various purposes
Biggest Beneficiary
Software• This sector can be rated as the one who uses ERP
easily because it is a product from their domain• Easy of managing projects with acute deadlines• Easy to train and make people work on ERP in this
sector than anywhere else
Insurance• Provide a common platform for insurers and his
agents• Curbing procedural delays and inefficiencies• IBM-ERP is the biggest player
Healthcare
• The sharing of databases among hospitals is the
biggest advantage
• Removes the need for patients to maintain records
Hospitality
• ERP has helped a lot in bringing down the
operational costs and coordinating the acts of
individual departments
• Hotels are well known for the segregation of
functions and ERP offers a common medium to
coordinate their actions
Oracle has emerged as the biggest acquirer in theERP space with acquisition of:• PeopleSoft
• JD Edwards
• Siebel
This has given Oracle competencies in HRMS,Manufacturing and CRM based ERPs
Oracle is also working on Oracle Fusion to provideall ERP services under one umbrella and a betterintegration of acquired ERP software with OracleApps its in-house developed ERP platform
Cloud computing and SaaS model are the new buzz
words in ERP
Salesforce.com has given a new direction to ERP usage
and implementation by providing services on cloud or
through SAAS model
18% of U.S companies and nearly 40% of Brazilian and
Chinese companies said they would prefer to buy their
ERP systems on a SaaS or Cloud basis
Major players like Oracle and SAP have also started
giving ERP system on SaaS model or over cloud basis
Microsoft Dynamics AX, GP, NAV, and SL
NAV and AX are for companies requiring highly customized ERP
GP is for small companies wanting out-of-the-box functionality
SL is for service- or project-based companies
They're about 30% less expensive.
These products include
• Office (personal productivity)
• SharePoint (Web services, collaboration, portal interface,
workflow and document management capabilities)
• Office Communications Server (Web 2.0 features such as blogs
and instant messaging, and voice over IP)
• Content Management Server, and MapPoint
Lawson Software: Industry Specific Enterprise Software Suite
Targeted towards fashion companies including brand owners and manufacturers of apparel and accessories as well as private brand retailers meet sourcing and production needs
It combines core enterprise business software with industry-specific applications, such as Lawson Fashion PLM and Assortment Replenishment Planner
It also includes Analytics for Fashion, a pre-configured Business Intelligence solution with KPIs and scorecards specific to the fashion industry
Lawson for Fashion includes many application enhancements like:
Assortment & Replenishment Planner: Helps companies manage assortment planning, buy plans and inventory push all the way to eventual product phase out
Lawson Analytics for Fashion: Provides business intelligence without having to develop analytic tools in-house
New package management functionality: Includes capabilities for complex package structures and SSCC (Serial Shipping Container Code) plates, which helps speed products through shipping and receiving
Advanced costing and pricing toolbox: Provides capabilities to help merchandisers source more effectively based on the cost of alternative supply methods
Standard PLM (Product Lifecycle Management): Interface between Lawson Fashion PLM and the Lawson M3 Enterprise Management System, which helps companies more easily transfer style information between the two systems
Segmenting & Analyzing ERP market shareis quiet different when compared withreviewing the market segments for anyother product or service
The segmentation criteria are numerous
ERP market segmentation has just 3 criteria:• type of the industry
• size of the industry
• geographical areas in terms of country
Malaysia• The markets remain untapped at large
• Quiet promising with the encouragement of ERP intervention in Small and Medium industries
• The manufacturing sector occupies the chunk (benefactor and beneficiary) however the others are not lagging far behind
Australia• ERP exposure in all sectors
• Even the conventional small businesses demand ERP
• Niche market for ERP vendors wherein they can target everyone right from big players to S.M.E.„s
Singapore• Promising for the vendors providing low cost
solutions for small and medium enterprises
• Lot of competition
• Good opportunity for vendors who can offer additional facilities like ASP
South Korea• Market here is highly fragmented
• It calls for specialized knowledge to provide for services in the relevant areas
• Known for high rejection rate of ERP products due to the greater emphasis on functions and cost
Europe• The continent has big potential for ERP market
• However the success rate of ERP vendors is not
encouraging
• Diverse requirements so it becomes difficult for
vendors to meet the demands
• Integrated application suites are in high demands in
this continent where employees are demanding
software programs with multiple options
Japan• The market here is quiet disappointing both for the
vendors and companies
• Lot of abnormalities in functional designs occur this
needs to be solved
• The mistakes in functional design are mostly due to
implementing ERP for particular functions
• A country like Japan needs full fledged ERP
implementation
The ERP market is very volatile with
many players, providers and vendors
New forms of computing are entering the
market place
The market segments discussed reflect
the large potential in many places
However the service can penetrate well
only if the companies utilize it properly
Thank You