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Enterprise Resource Planning

notes Global ERP vendor revenue grew by some 14% in 2004, although a substantial portion of this can
be attributed to favorable, Euro to U.S. dollar exchange rates. There was however, substantial
organic market growth of between 8-9% in 2004, regardless of exchange rate issues. While many
ERP vendors struggle din 2004, SAP AG increased worldwide revenues by 17% and license
revenues by 20% without any acquisitions.
Analyzing ERP market share is quite different when compared with reviewing the market
segments for any other product or service. The segmentations in that case will be numerous
and in the form of many criteria like physical, geographical, functional, distribution level and
many more factors. ERP the segmentation falls in three main categories, namely, type of the
industry, size of the industry and geographical areas in terms of the nations where the product is
demanded. This helps in arriving at ERP market and ERP software market share.

While discussing size of industry it refers to the volume of business transacted and the capacity
of the firm in terms of large sized or mid sized or low rung. When it comes to the question of
type it refers to the mode of business viz. hospitality or insurance or manufacturing or health
etc. The market for them purely depends on the services offered by the vendor. The question of
geographical segmentation involves a detailed study when it comes to ERP markets.

ERP calls for constant modifications and upgradations. ERP developers are facing tremendous
pressure both from vendors and companies. In this context it becomes important to analyze
ERP’s trends and modalities.
Thus to conclude, by reflecting on what has been said above with regard to an ERP and what
implementing this into your business strategy can do for your business success, it is imperative
that you should deeply consider an ERP solution for the benefit of your company. Identifying that
your company needs aid in order to achieve its ultimate goals and dreams at the end of the day
is the first step to putting your company on the right track towards total business improvement
and success. ERP is a popular business solution subsequently being implemented by a number
of companies which are enjoying the benefits of this solution for themselves today. Enterprise
Resource Planning is a great, if not the best way, to ensure that you allow your company the
opportunity to become the success of which it has the potential to ultimately attain.
7.2 sap and its technology

SAP (System Applications and Products in data processing) based in Walldorf, Germany is one
of the top most (more than 107 countries) ERP vendors providing the client – server business
application solution. SAP serves as a standard in the industries like chemicals, consumer
products, oil and high technology and electronics.
The SAP group has offices in more than 50 countries worldwide and employs a workforce of over
19300. SAP is most successful vendor of standard business application.
In 1998 SAP AG reported revenues of DM 847 billion and 41% increases over 1997’s revenues and
at the some time sales of SAP R/3 rose by 31%.
In 1988, SAP AG introduced its shares publicly. In 1995 the company was added to the DAX,
the index of German blue – chip companies. In 1998 SAP listed its ADRs (American depository
Rights) on the NYSE (New York Stock Exchange).
SAP’s ERP packages comes in two versions i.e. mainframe version (SAP R/2) and client server
version (SAP R/3). SAP provides the enterprise application suit R/3 for open client /server
systems. With SAP customers can install the core system and one or more of the software as a
complete package.

124 LoveLy professionaL university