overview of the global erp market

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Presented By: KundanYadav (2/E14) Sandeep Moorthy (2/E15) Mahender Singh (2/E16) Nishant Yadav (2/E 17) Vikram Ahalawat (2/E18)

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Page 1: Overview of the Global Erp Market

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)

Page 2: Overview of the Global Erp Market

• Over $18 billion market

• Driven by acquisitions

• Increasing maintenance revenues &

shrinking licensing revenues

Page 3: Overview of the Global Erp Market

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

Page 4: Overview of the Global Erp Market

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.

Page 5: Overview of the Global Erp Market
Page 6: Overview of the Global Erp Market

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

Page 7: Overview of the Global Erp Market

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.

Page 8: Overview of the Global Erp Market

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

Page 9: Overview of the Global Erp Market

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

Page 10: Overview of the Global Erp Market

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

Page 11: Overview of the Global Erp Market

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

Page 12: Overview of the Global Erp Market

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

Page 13: Overview of the Global Erp Market

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

Page 14: Overview of the Global Erp Market

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

Page 15: Overview of the Global Erp Market

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

Page 16: Overview of the Global Erp Market

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

Page 17: Overview of the Global Erp Market

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

Page 18: Overview of the Global Erp Market

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

Page 19: Overview of the Global Erp Market

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

Page 20: Overview of the Global Erp Market

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

Page 21: Overview of the Global Erp Market

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

Page 22: Overview of the Global Erp Market

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

Page 23: Overview of the Global Erp Market

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

Page 24: Overview of the Global Erp Market

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

Page 25: Overview of the Global Erp Market

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

Page 26: Overview of the Global Erp Market

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

Page 27: Overview of the Global Erp Market

Thank You