Executive Summary

Enterprise Resource Planning (ERP) systems provide executives with the information they need to run their businesses; and they do actually work. Given that apparent penetration and saturation of ERP systems is still relatively low, we would have expected the roll-out of ERP technology to have continued apace in 2002. In particular, we expected two main areas of activity: roll-out into mid-sized companies, and extension of the ERP backbone into Customer Relationship Management (CRM), Supply Chain Management (SCM) and Supplier Relationship Management (SRM). These opportunities still exist.

Uncertainty over the world economy and geopolitical turmoil seem to have had a negative impact on the 2002 market for Enterprise Applications. Faced with uncertain times, companies appear to have cancelled projects, postponed upgrades and shelved plans to extend their ERP systems. Whether these plans are resurrected or postponed indefinitely will most likely depend on a number of factors outside the control of the industry - events in the Middle East, consumer confidence and the speed at which the economy bounces back from the current trouble. It is reminiscent of the well-known apocryphal Chinese curse "May you live in interesting times".

2002 was a tough year for the Enterprise Applications vendors, with revenues falling in Europe as well as globally. End-user expenditure fell by a greater extent, with a dramatic fall in software sales leading to corresponding falls in related hardware and service sales.

SAP remains the dominant player globally, with the familiar names of Oracle, PeopleSoft, Siebel and J.D. Edwards as the contenders for the remaining top five positions. In European manufacturing, the Europe-based companies Baan, IFS and Intentia are also amongst the top players.

Dan Roberts
dan.roberts@cambashi.com

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The full version of the 2002 report is available online:
Enterprise Applications market review 2002