Page 143 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 7: ERP Market

new system. Identify situations where this standardization would be desirable, and notes
other situations where it would be undesirable.
3. Can you think of circumstances where a company might want to install and
enterprise management system, such as SAP R/3, even though it appears that this
would be significantly more expensive than developing a comparable system in-
house? Discuss.
4. Go to the site at sap.com. Follow the links on the page to look at the features of some
cross-industry solutions. Prepare a report on the capabilities of the SAP solution.
Source: Condensed from Sieber et al. (1999) and sap.com (2003).

7.9 summary

l z The ERP market is a very competitive and fast growing market. According to AMR Research
the enterprise resource planning (ERP) market is experiencing double-digit growth in 2007,
and is expected to continue to grow at an average of 10% over the next five years.

l z The ERP market saw solid growth in 2004, even as the vendor landscape continued to
consolidate Going forward SAP is expected to boost overall growth of this market as its
share approaches 50% offsetting flat to declining revenues of several mature, mid-size
vendors.

l z Oracle’s acquisition of PeopleSoft and JD Edwards may limit near term license revenue
growth due to product overlaps and customer hesitancy to commit to add-on purchases
until project fusion is more clearly defined and upgrade paths are evaluated.

l z The mid-market remains a fertile area for growth as well as a key competitive battleground
with industry specialization representing the best opportunity for differentiation.
l z The ERP market continues to benefit from a widespread acceptance of the idea that business
must have integrated information systems to be competitive. The integrated best-of-breed
debate still goes on in some organizations, but the suite advocates are clearly winning.
l z AMR Research predicted that the would grow about 14% in 2006, from $25.4 billion to $29
billion in 2007.

7.10 keywords

Investment Management: Investment management monitors the projects from planning to
settlement.
Quality: Defined as “that aspect of things under which they are considered in thinking or
speaking of their nature, condition, or properties”.
SAP R/3 System: SAP R/3 system is the world’s most standard business solution for
client/server system.
7.11 self assessment

Fill in the blanks:
1. ....................... system is the world’s most standard business solution for client/server
system.
2. ....................... is ideal for all types of industries and can optimize the business functions.

LoveLy professionaL university 137