As larger enterprise becomes saturated with new-
generation client server ERP system, vendors are
forced to find new markets.
Vendors target small business client.
How do they attract new customers?
Supplementing their direct sales force with reseller
Lowering the entry price
Stratifying their software with reduced functionality
Improving the implementation methodologies
Porting the products to platforms such as Microsoft
Vendors are building reseller channels-idea is to
reach smaller business that cannot afford the
Making it financially attractive at entry level.
Oracle is very aggressive in this respect.
JD Edwards ventured in by introducing
“OneWorld” by lower-cost line.
Perception of vendors:
ERP is difficult and costly to implement
ERP takes lots of time (years) to implement
Delay in the implementation is going to effect my day-
Vendors are thinking of making implementation
SAP introduced : Accelerated SAP (ASAP)
(reducing implementation time to six months)
Oracle introduced Fast Forward.
The main reason of delay: Dearth of fully trained
and skilled consultants
Business Models and BAPIs
Need of a tool for the implementation team can
review its progress from time to time.
Reference Models can help the implementation.
Third party application to interact directly with
ERP package (say SAP R/3) directly.
Baan offers OrgWare which is tightly integrated
business modeling tool combined with business
specific templates that help automation.
Convergence on Windows NT
Growing popularity of Windows based O/S: NT,
Windows 2003, Windows SP, forces the ERP
vendors to make their software compatible for the
latest O/S being used by the customers.
SAP: over 200 R/3 installations on Windows NT
Baan: “Designed for Microsoft Back office”
Oracle: Touts its support for its own NT based
Peoplesoft: Shows recent switch to Backoffice
The idea is to extend the reach of its
software far and wide.
To make like an application platform rather
than just a suit of modules.
New Business Segment
provide service to vertical markets:
Governments, Healthcare, Financial, Services, Retail
Also into SCM, sales automation, market
The world is competitive
Not only for the user (of ERP)
But also for vendors (of ERP)
So to survive one should be on a constant look
out of New Business Segments
Vendors focuses on improving decision power.
What is DSS? Decision Support System
What is OLAP? On line Analytical Processing.
What is ROLAP? Relational On-line Analytical
What is OLTP? On line Transaction Processing
What is SFA? Sales Force Automation
What is DW? Data warehousing
What is D’Mart? Data Mart
What is DM? Data Mining
vendors moves from: (architecture)
Deliver: Self service and e-commerce
ERP vendors are using Java, rather than Microsoft’s Active-X
Move away Proprietary technologies to open tech.
ERP vendor now embrace:
more universally acceptable tools
SAP: The market Leader.
People Soft and Baan join to make the top three
Oracle has lately focused more attention on its
JD Edwards depends more on IBM’s AS/400
Everyone seek to fight to maintain their growth
No one want “just ERP” – need much more advance- eg
The Future is clear:
The ERP vendor which embraces the latest
management tools, and incorporates them in
their product would survive.
Since ERP teaches Integration to their clients,
should themselves integrate these
Management packets in their software.