Why India Inc. Must Prepare for a Perfect Storm of Converging Crises
The Perfect Storm of Converging Crises: Covid 19, Depressed Economy, and Social Unrest India is staring at a Perfect Storm of converging crises including a depressed economy that is further hit by the Coronavirus Shock, the Pandemic itself that needs management and handling, and social unrest stemming from ham handed handling of the pandemic as […]
Situations Warranting Business Process Improvement
Business Process Improvement programs when designed with specific objectives and sponsored and facilitated by the senior management including Business Unit heads yields the desired results. Organizations use BPI as a tool to raise the bar and take their business operations to another level. BPI as a tool for effecting change management is effective especially when […]
Capacity Planning – Meaning, Classification and its Goals
The production system design planning considers input requirements, conversion process and output. After considering the forecast and long-term planning organization should undertake capacity planning. Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period. […]
Seattle’s Homelessness Crisis
The city of Seattle, Washington is one of the most prominent economic centers in the world. It houses companies like Microsoft and Amazon which are some of the wealthiest and most powerful companies in the entire world. However, this prosperous city in the most prosperous nation of the world has become a victim of its […]
Business Process Improvement Plan – Making a Beginning with BPI
Business Process Improvement has gained ground in all sectors of business as an on-going program that is implemented from time to time. Periodically business organizations embrace this program to reduce the barriers that create obstacles to the work flow as well as to remove redundant processes that are outdated and do not add value to […]
During 1990, ERP market was dominated by few vendors namely SAP, BaaN, Oracle, People Soft and JD Edwards, who were also known as big five of ERP market. The market was, then, was growing at compound rate of approximately 35%. Fortune 500 companies were the major customers.
Key focus of ERP vendors, during that period, was to expand functional scope of their product and provide sharper vertical focus. Manufacturing made up for the largest segment of ERP spending.
IT spending as a whole slumped after the collapse of internet bubble and 9/11 terrorist attack,. Market for ERP also saturated for fortune 500 companies. ERP vendors started to face financial difficulties. ERP market went into an upheaval and following trend emerges:
SSA Global was later merged with Infor, which was supported by a large private equity company. J. D. Edwards was merged People Soft which in tern was taken over by Oracle through a hostile takeover.
The market thus got segmented into tier 1 (large organization), Tier 2 (medium organizations) and tier 3 (small organization).
Major ERP vendors started offering products for lower end of the market either through extension/rationalization of their products or through acquisition.
ERP vendors were also diversifying their product to different verticals. Whereas, manufacturing provided the major chunk of their revenue, the focus area turned to retail, public sector, utility, financial sector, and telecom.
The explosive development of internet made possible seamless web based collaboration by organizations with their vendors and customers, such as “mySap.com” solution from SAP and e-business suite from Oracle.
R/3 software gives an option of around 1000 pre-configured business processes. This solution is available in all major currencies and languages and can be hosted on several Operating Systems and Databases.
As mid market option, SAP has brought out, Business All in One, a solution with industry tailored configurations. SAP offering for smaller organization is SAP Business One. SAP offers a hosted solution, namely SAP Business by Design, for organizations lacking IT resources.
It is the first to implement internet computing model for developing and deploying its product.
Oracle also took over various ERP solution providers during 2000 such as People Soft, JD Edwards, Retek (retail industry solution), and Siebel (customer relationship management software). It has taken up project Fusion (based on Service Oriented Architecture) to integrate various products, outcome of which is keenly awaited.
Its acquisition of SSA global during 2006 made it a forerunner as ERP solution provider.
SSA global had two strong product lines, BPCS and BaaN. SSA also made a number of other acquisitions, such as MAPICS, Lily Software Associate and GEAC. SSA is focused on building, buying and integrating best of breed solutions.
Microsoft is much dependent on channel partners, not only for sales and consulting but also for add on development. Their solutions are closely integrated with their office suit.
Your email address will not be published. Required fields are marked *
Configuration Control and Setting Up of Base in ERP System
February 12, 2025
