This publication has been discontinued on July 19, 2011.
Abstract
Small Businesses Rejuvenate Demand for ERP Software
The enterprise resource planning (ERP) software market in Singapore is on a
comeback trail as small- and medium-sized businesses (SMBs) step up deployment
of mid-market ERP (MERP) solutions, specifically designed to suit their
functional requirements. The market has returned to growth mode after a brief
lull caused by the demand saturation for traditional ERP software among large
organizations. However, marketing MERP software to SMBs is a difficult task, as
they are extremely cost-conscious and reluctant to invest in incremental
projects that would yield long-term benefits. To overcome this challenge and
cash in on the huge business potential, vendors are explicitly redesigning their
products to deliver comprehensive solutions.
Frost & Sullivan's recent research examines the emerging opportunities
for MERP and its impact on the total ERP market in Singapore. The study focuses
on five key segments in ERP, namely, financial management, manufacturing, sales
and distribution, human resources and payroll, and hosted ERP. It provides an
in-depth discussion about various vendor issues, prevailing market challenges,
and strategic recommendations to overcome them.
Greater Demand for MERP Drives Overall Growth of the ERP Market
Demand for MERP software is steadily increasing among SMBs that are always
innovating and customizing their products and services to meet the changing
business requirements. The inherent need to provide sophisticated solutions that
are capable of reducing complexities in back-end operations has intensified the
competition between Tier I and Tier II ERP vendors. This is only likely to
benefit SMBs, as they will have better products at competitive prices to choose
from.
Enterprises are keen to reduce costs and increase revenue, leading to
efficacious business management. "The escalating competitive pressure is
forcing companies to equip themselves with modern business processes that will
provide unlimited access to information and enable them to compete effectively
in the emerging global market," says the analyst. "These developments
are giving a fresh impetus to the ERP market."
MERP Software Market Holds Huge Untapped Revenue Potential
Apart from catering to the SMB segment, vendors are also focusing on
expanding their product offerings and providing solutions to specific verticals.
"Industry specific functionality is gaining importance as companies look
for meaningful solutions with appropriate differentiation tailored to match
their diverse requirements," says the analyst. "This is an exciting
development, which holds immense revenue potential."
Additionally, application service provider (ASP) initiatives are increasing
in Singapore with SMBs realizing the benefits of outsourcing the management of
their financials and operational systems through an ASP model. This is likely to
reduce costs and eliminate the dependence on limited internal IT resources.
However, market success will only favor those vendors that swiftly implement
MERP software at a reasonable cost besides facilitating a quicker ROI and
expansion of customer base. To execute this, vendors should identify the right
channel partners and value-added resellers (VARs) and continuously help
customers to derive value from their investments.
Table of Contents
- EXECUTIVE SUMMARY
- Market Overview
- Introduction to the Singapore mid market ERP Software Market
- Revenue Forecast
- Demand Analysis
- Competitive Analysis
- Conclusions
- SINGAPORE MID-MARKET ERP SOFTWARE MARKET
- Overview
- Introduction
- Research Scope and Methodology
- Market Dynamics
- Key Definitions
- Market Segmentation
- Market Engineering Measurements
- Market Forecasts
- Total ERP Software Market Forecasts
- Mid market ERP Software Market Forecast
- Demand Analysis
- Market Drivers and Restraints
- Market Drivers
- Market Restraints
- Trends
- Product Trends
- Technology Trends
- End-User Trends
- Pricing Trends
- Distribution Trends
- What the Future Holds?
- Product Life Cycle Analysis
- Purchase Decision Criteria
- Competitive Framework
- Competitive Analysis
- Market Share Analysis
- Challenges and Strategies
- Challenges and Strategies
