• Founded in 1972 in Waldorf, Germany • 4th largest software supplier in the world • Revenues over $5 billion in 1998 • SAP growing over 40% a year • 1997 market share was 31% of the worldwide • Over 9,000 installations at 6,000 companies with more than 2,500,000 users in over 50 countries • An average of 25% of revenue invested in R&D SAP - The Product • Integrated turn key solutions • Open systems • Client / server architecture • Enterprise data model • Extensive functionality • Non-industry specific • Multinational SAP - Control Feature • SAP standard delivered automated enablers – Document balancing, database integrity, automatic posting, match codes. • SAP Work Flow • SAP configurable enabler • Application Security • Reports – ABAP, ABAP Query, Report Write Oracle - The Company • Founded in 1977 • 2nd largest software supplier in the world • Revenues over $8 billion in 1998 • More than 6,000 customers in 76 countries PeopleSoft - The Company • Revenues over $1.3 billion in 1998 • Growing over 60% a year • 1997 market share was 8.4% of total ERP • software license market • International growth and expansion will be focus • 1997 ERP market share was 8.3% of total ERP license revenue – 50% of applications revenue comes from services
• Oracle’s applications license revenue is
growing at 18% a year; significantly less than its rivals Baan - The Compan • Founded in 1978 in the Netherlands • 5,500 employees worldwide – Announced 20% headcount reduction in Oct. 98
• Revenues over $684 million in 1997
• n 3,000 clients in 5,000 sites worldwide • n 1997 ERP market share was 5% • n Sales strategy changed in 1997 to drive 50% of • sales through channels and value-added resellers Top 10 ERP Vendor • SAP • PeopleSoft • Oracle • Computer Associates • Baan • J. D. Edwards • System Software Associates • Geac Computer Corp. • IBM • JBA Holding Human Resources • Recruiting • Compensation • Assessment • Development and Training • Planning Accounting and Finance • General Ledger • Financial Reporting • Costing • Budgeting • Accounts Payable • Accounts receivables Sales and Marketing • Lead tracking • Sales forecasting • Customer management Operations • Order management • Inventory management • Customer service Manufacturing • Inventory • Planning What makes ERP different • Integrated modules • Common definitions • Common database • Update one module, automatically updates others • ERP systems reflect a specific way of doing business • Must look at your value chains, rather than functions Benefits of ERP • Common set of data • Help in integrating applications for decision making and planning • Allow departments to talk to each other • Easy to integrate by using processed built into ERP software • A way to force BPR (reengineering) Vendors Difficulty in implementation • Very difficult • Extremely costly and time intensive • Typical: over $10,000,000 and over a year to implement • Company may implement only certain modules of entire ERP system • You will need an outside consultant Common Pitfalls • Do not adequately benchmark current state • Did not plan for major transformation • Did not have executive sponsorship • Did not adequately map out goals and objectives • Highly customized systems to look like old MRP systems