Enterprise Resource Planning Software Will Grow to $29 Billion in 2006

BOSTON, Oct. 10 /PRNewswire/ — Today, AMR Research released a report that stated the enterprise resource planning (ERP) applications market grew to $25.4B in 2005, and will reach $29B in 2006. Over the next five years, the market will grow at an average of 10%. The ERP market continues to benefit from a widespread acceptance of the idea that businesses must have integrated information systems to be competitive. Management and IT organizations are realizing that the most effective way to satisfy this need is to purchase an ERP package that features broad functionality and pre-built integration.”The integrated versus best-of-breed debate still goes on in some organizations, but the suite advocates are clearly winning,” said Jim Shepherd, senior vice president of research at AMR Research. “In addition, we now see many of the remaining ERP vendors compete effectively with companies of all sizes.”Continuing the trend of fewer vendors owning a larger share of the market, SAP and Oracle now represent 65% of new license sales.

Growth
Revenue Growth Rate
2005 Revenue Revenue Share Rate, Forecast,
Revenue Share, Share, Forecast, 2004- 2005-
Rank Company Name 2004 2005 2006 2005 2006
 
1 SAP 40% 42% 43% 12% 17%
2 Oracle 10% 20% 23% 110% 29%
3 Sage Group 5% 6% 5% 16% 10%
4 Microsoft 3% 4% 4% 15% 18%
5 SSA Global 3% 3% 3% 7% 3%

AMR Research’s depth and breadth of quantitative research is augmented with industry expertise by the firm’s research analysts. The Market Analytix Report Series provides technology vendors with targeted marketing and competitive information on key application markets of ERP, SCM, CRM, procurement, PLM, and HCM. For more information or a copy of the formal ERP report, please contact AMR Research at (617) 542-6600. Additional information can also be found on the company’s website .About AMR Research:Research and Advice that Matters: AMR Research is the No. 1 advisory firm focused on supply chain, enterprise applications, and infrastructure. Founded in 1986, AMR Research provides advisory services and peer networking opportunities to supply chain and technology professionals in the manufacturing and retail sectors. To learn more about our research and services, visit http://www.amrresearch.com .

Manufacturers Don’t User Most of Their ERP Software’s Features, Says Aberdeen

Manufacturers Don’t User Most of Their ERP Software’s Features, Says Aberdeen

Published: September 18, 2006

by Timothy Prickett Morgan

Based on a detailed report put together by Aberdeen Group and commissioned by a bunch of ERP software suppliers, companies with ERP software don’t use most of the features that have been painstakingly woven into their software.

Aberdeen based its analysis on a study of more than 1,000 manufacturers. The study was underwritten by Infor, Lawson Software, Plexus Systems, QAD, and SoftBrands, and presumably they provided some of the customers that Aberdeen talked to as well as the cash to do the survey and report that resulted from it. Aberdeen also talked to customers using other ERP suites, including those who have deployed Oracle and SAP suites.

According to the study, called “The ERP in Manufacturing Benchmark,” two thirds of the manufacturers surveyed said that they make their choice of which ERP software to use based on features and functionality, but then, on average, they use only … Read More

Best Practices in ERP Software Selection

This is a great post that gets right to the point about ERP Selections:

Best Practices in ERP Software Selection
Posted 8/2/2006 by Eric Kimberling (ERP Consultant)

ERP vendor selection can be a daunting task, and one that is often not given the appropriate attention. CIOs or other executives in charge of making such major decisions often make decisions based on perception, gut feel, or faulty information. For example, executives often choose ERP software vendors based on what competitors or other large companies have chosen. However, information such as this does not necessarily reflect what is appropriate or inappropriate for your specific company. Further, planning for a successful implementation involves more than choosing the right software; it also involves preparation to ensure that ERP enables measurable improvements to your business.
In choosing an ERP or IT software package and planning for the overall project, executives need to make decisions based on objective and unbiased information rather than gut feel. In particular, organizations should consider the following:
Read More…

The ERP Software Market – What’s It All About?

Veronica Fredriksen

This DeveloperEye.com market study gives an overview of the ERP applications market, the key players as well as the benefits and obstacles with implementation of an ERP solution.

London, UK (PRWEB) March 31, 2005 — In general, Enterprise Resource Planning (ERP) software attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs.

ERP combines all departments within an organisation (HR, Manufacturing) together into a single, integrated software program that runs off a single database. In turn, the various departments can more easily share information and communicate with each other.

When one department finishes with an order, it is automatically routed via the ERP system to the next department. To find out where the order is at any point, you need only log in to the ERP system and track it down.

Segments within the ERP software Market
The ERP applications market falls into three primary segments by customer size: Enterprises, Mid-Market and Small Companies. The major ERP application vendors to each segment group is illustrated below:

Market Segment ERP Vendors

Enterprises:
SAP, Oracle/PeopleSoft

Upper Mid-Market:
Microsoft, Lawson, SSA Global, Geac, SAP, Oracle/PeopleSoft

Lower Mid-Market: Microsoft, Epicor, Exacta, Sage, NetSuite, SPA BusinessOne

Small Companies: Sage, Intuit, ACCPAC, NetSuite

Key Players
SAP is the market leader in the ERP applications market. SAP and Oracle have been in intense competition for customers in recent years. After Oracle’s acquisition of PeopleSoft, they are now ranked as the second leader of the ERP software market. SAP is holding the leadership within vertical sectors such as Government, Financial Services, Healthcare and Education across the European countries.

When looking at the leading ERP vendors for the European countries, SAP is the market leader in Germany, Spain and Italy. Oracle, on the other hand, has a strong market leadership in certain segments within the UK and France.

Most industry analysts are watching i2 Technologies, Siebel Systems, Broadvision, Ariba and CommerceOne as ERP solution providers that would like to have their share of the market.

In addition, there are also predictions that the ERP battle amongst ERP solution providers will move rapidly to the mid-market as Microsoft begins to actively compete with vendors such as SAP and Oracle for market share.

Benefits of implementation of ERP solutions
Integrate financial information – To avoid receiving conflicting information from the Finance-, HR- or Manufacturing Department, the ERP system creates a single version of the truth that cannot be questioned because everyone is using the same system.

Integrate customer order information – ERP systems can become the place where the customer order lives from the time a customer service representative receives it until the loading dock ships the merchandise and finance sends an invoice. By having this information in one software system, organisations can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time.

Standardize and speed up manufacturing processes –
Standardizing a company’s processes using a single, integrated computer system can save time, increase productivity and reduce head count.

Reduce inventory – ERP helps the business process flow more smoothly, and it improves visibility of the order fulfilment process inside the company. In turn, this may lead to reduced inventories of the stuff used to make products (work-in-progress inventory).

Standardize HR information – Especially in companies with multiple business units, HR may not have a unified, simple method for tracking employees’ time and communicating with them about benefits and services.

ERP software challenges
·There is often a gap between package functionality and business needs
·ERP environments are costly to maintain
·ERP Implementation is costly and time consuming
·Larger companies typically have multiple ERP packages and vendors
·Integration of systems is complex
·Companies Are Simplifying Their ERP Environments

About DeveloperEye.com
DeveloperEye.com is the premiere online resource for the European application development and IT infrastructure communities. Localized news and events information coupled with technical articles, informed editorial and market studies make the portal and its associated offerings make Developer.Eye.com the ideal multilingual information resource center. For further information, please visit www.DeveloperEye.com.

http://www.developereye.com

2005 Review of the Year: Enterprise software – vnunet.com

Oracle/SAP duopoly in the enterprise software space heats up the competiton
Tom Sanders in California, vnunet.com 30 Dec 2005
ADVERTISEMENT

As Oracle continued its buying spree in the enterprise software space, the vendor exchanged some carefully aimed punches with SAP.

The most visible confrontation occurred early in 2005. SAP unfolded a $496m plan in February to acquire Retek, a maker of enterprise software for retail clients.

Oracle quickly responded and in March launched …
2005 Review of the Year: Enterprise software – vnunet.com