Page 133 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 7: ERP Market

7.2.1 sap advantages notes

R/3 offers integrated solution for client/server information system to create smoothly functioning
communication networks along with network administration and backup solution
SAP’s partnership with technology and service companies, hardware manufactures and database
providers helps to provide a complete business solution.

The server coordinates with actual applications and controls communication with the database
while client level, shares this database with the end users by distributing it across the various
levels. This client/server solution is infinitely expandable and can be used with anywhere
between 30 and several thousand end users. This ensures that R/3 can always grow with the
growing requirements of company.
The strengths and weakness of SAP are listed as follows:
1. Long term partnership with customers
2. In depth knowledge of business
3. Commanding market position
4. Brand recognition

5. Sound financial situation
6. Sustained investment in R&D
7. Very strong investment in R&D
8. Strong technology very broad and hard core ERP solution

7.2.2 Weakness

A problem for SAP is that the growth of the market for large companies SAP’s primary clients
tends to slow down Most of the large firms that need an ERP system have already implemented
one. SAP expects to sell a lot more R/3 modules to its existing clients but growth will be led by
converting the smaller organizations.
Some analysts say that SAP R/3 is too big and complex for smaller clients. SAP must develop
smaller and cheaper systems for this group.
7.3 Baan company

BAAN Company is founded in Netherlands in 1978 by brothers Jan and Paul BAAN. The
company has dual headquarters in Barneveld, the Netherlands and Reston, Virginia, USA. Since
1995 the company has expanded its sales and services in North America, Latin America, Europe
and Asia.
The BAAN Company provides enterprise business software and reduces complexity and
cost improves core business processes, adapting changes and optimizes the management of
information. The products offered by the company supports several business tools as well
as flexible suit of year 2000 complaint software solutions. The tools are based on multi-tier
architecture.

technology and products

The BAAN’s products are having open component architecture. The special feature of BAAN
product is, the use of BAAN DEM (Dynamic Enterprise Modeling).

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