Integration is Driving Investment in ERM Solutions, Says IDC
NORTH SYDNEY – MAY 1, 2003 – IDC estimates the Australian Enterprise Resource Management (ERM) software market was valued at A$373.7 million, and is projected to grow at Compound Annual Growth Rate (CAGR) of 6.3% over the period 2002 to 2007. This is reflected in the new study titled, Australian ERM Solutions Market Forecast and Analysis, 2002-2007.
SAP retained its leading position among Enterprise Resource Management (ERM) software vendors with 34% market share in 2002, followed by PeopleSoft and Oracle with 8% and 7% market share respectively. For most vendors the strategic focus in Australia is to continue supporting real-time enterprise applications and delivering solutions aimed at business process improvements.
The following factors will drive sophisticated and selective investment for Enterprise Resources Management Solutions:
Increased focus on integration;
Demand for greater efficiencies from their existing technology investment;
Corporate anxiety over financial reporting and transparency.
Phillip Allen, IDC Senior Analyst for Services, said, The state of many organisations systems is a manifestation of the way they are organised and have grown. Businesses are looking to operate these systems in an integrated way, with processes that cross geographical, functional or enterprise boundaries. This need for greater integration can be a compelling reason to invest in ERM solutions.
Companies are also looking for solutions which offer a clear link between spending and improved business results, as well as looking for solutions that can bring about business process cost efficiencies from their existing investments. However, in this cost containment environment, many companies are deploying ERM slowly, making it a buyer's market for technology vendors.
Bharati Poorabia, Senior Analyst for software, added, As demand for integrated enterprise applications become apparent, many best-of-breed vendors who develop specialised, niche vertical solutions, may be targets for acquisition by larger vendors. This will lead to market consolidation in IDCs view, whereby larger vendors will get stronger, and weak vendors get weaker. This consolidation could lead to some ERM software vendors disappearing completely, or being target for acquisitions.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at www.idc.com.au