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274       Chapter 7  Processes, Organizations, and Information Systems

                                          ERP Market
                               Company       Rank             Remarks                        Future

                               Epicor         5        Strong industry-specic  Epicor 9 designed for exibility (SOA).
                                                       solutions, especially retail.  Highly congurable ERP.  Lower cost.
                               Microsoft      4        Four products acquired:   Products not well integrated with O”ce.
                               Dynamics                AX, Nav, GP, and        Not integrated at all with Microsoft
                                                       Solomon. AX and Nav more  development languages. Solutions not
                                                       comprehensive. Solomon on  integrated and product direction
                                                       the way out? Large VAR  uncertain. Microsoft Azure hosts Oracle and
                                                       channel.                SAP products. Conict with Azure hosting
                                                                               of Microsoft ERP products.
                               Infor          3        Privately held corporation that  Many solutions, not integrated, particularly
                                                       acquired an ERP product  specialized for manufacturing and supply
                                                       named Baan, along with more  chain management. Will evolve with
                                                       than 20 others.         revolution in 3D printing practices.
                                                                               Watch for public ošering in 2014.
                               Oracle         2        Combination of in-house and  Intensely competitive company with strong
                                                       acquired (PeopleSoft, Siebel)  technology base. Large customer base.
                                                       products. Expensive.    Flexible SOA architecture. Will leverage
                                                                               strong technology base into innovative and
                                                                               ešective cloud-based solutions. Strong
                                                                               challenge to SAP market leadership. Claims
                                                                               number 1 in CRM.
                               SAP            1        Led ERP success with    Technology older. Expensive and seriously
                                                       client-server hardware. Largest challenged by less expensive alternatives.
                                                       vendor, most comprehensive  Huge customer base. Future depends on
        Figure 7-16                                    solution. Largest customers.  ešectively migrating to cloud. Claims
        SAP Characteristics                            Expensive.              number 1 in CRM.
        of Top ERP Vendors





                                    industries. Over time, SAP, which first provided such solutions, and other ERP vendors cre-
                                    ated dozens of such starter kits for manufacturing, sales and distribution, healthcare, and
                                    other major industries.


                                    Which Companies Are the Major ERP Vendors?

                                    Although more than 100 different companies advertise ERP products, not all of those products
                                    meet the minimal ERP criteria. Even of those that do, the bulk of the market is held by the five
                                    vendors shown in Figure 7-16. This figure shows market rank rather than market share because
                                    it is difficult to obtain comparable revenue numbers. Both Epicor and Infor are owned by pri-
                                    vate equity investors and do not publish financial data. Their rankings are based on what little
                                    sales data is publicly available. Microsoft’s ERP revenue is combined with its CRM revenue, and
                                    its true ERP revenue is unknown. Similarly, Oracle and SAP combine ERP revenue with revenue
                                    from other products.




                        Q6          What Are the Challenges of Implementing and
                                    Upgrading Enterprise Information Systems?


                                    Implementing new enterprise systems, whether CRM, ERP, or EAI, is challenging, difficult,
                                    expensive, and risky. It is not unusual for enterprise system projects to be well over budget
                                    and a year or more late. In addition to new ERP implementations, numerous organizations
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