• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Enterprise Resource Planning Market for Tier 3 SMBs to Grow 11% Annually

Enterprise Resource Planning Market for Tier 3 SMBs to Grow 11% Annually

September 19, 2007
From ARC Advisory Group

The market for Enterprise Resource Planning (ERP) systems sold to small and medium businesses (SMBs) is fragmented, and contains opportunities for most suppliers. The Tier 3 SMB ERP market will grow at a compounded annual growth rate of over 11% to reach $8.9 billion by 2011, according to a new ARC Advisory Group study.

Most Tier 1 and 2 manufacturers made their ERP decisions in the mid 1990s, so the key current strategy of suppliers to this market is to maintain their existing customer base, and to expand their customer's use of their applications. "Within the Tier 3 market, the 10 year ERP replacement cycle remains a major factor, and penetration levels are relatively low, making this an interesting market," according to European Research Director Simon Bragg, the principal author of ARC's Enterprise Resource Planning for Tier 3 SMBs Worldwide Outlook.

The dynamics of the Tier 3 SMB ERP market are quite different than the Tier 1 and 2 ERP markets, in which the gap is increasing between the three leading players--SAP, Oracle and Infor--and the others. The range of SMB purchasing criteria will ensure that this market remains fragmented in the short term. Put simply, some customers want a solution based on Microsoft technologies, because their other applications run on Microsoft. Others want a supplier that focuses on their industry vertical. Some businesses want a local supplier/developer as they perceive they will get superior support and availability of staff. Some see themselves as a large company, and will end up acquiring a solution from a major Tier 1 supplier.

Technology challenges create opportunities for suppliers. Suppliers need to dramatically reduce implementation effort and allow manufacturers the ability to change processes post implementation. The big prize will go to those suppliers that develop a multi-tenanted Software as a Service (SaaS) offering. The key first step is to migrate to a Service Oriented Architecture (SOA), which a few suppliers have already achieved.

Unsurprisingly, the largest growth markets for Tier 3 ERP solutions are China, Asia, and Latin America, albeit from a small base. Local suppliers to these markets enjoy the cost base to exploit these markets profitably, which is a challenge for North American and European suppliers. Nevertheless, in North America and EMEA, market growth will be faster than the overall ERP market.
http://www.arcweb.com

RELATED CONTENT

RELATED VIDEOS

Forecasting & Demand Planning Technology
KEYWORDS Forecasting & Demand Planning Technology
  • Related Articles

    Collaborative Production Management for Discrete Market to Grow 14.4% Annually

    Collaborative Production Management for Process Manufacturing Market to Grow 14% Annually

    The Supply Chain Execution Market to Grow 10% Annually

From ARC Advisory Group

Warehouse Management System Market to Reach $1.8 Billion  

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • DOCUMENTS BEARING THE INSIGNIA OF US CUSTOMS AND BORDER PROTECTION LIE ON A TABLE

    New CBP Regs Call for Greater Diligence by Brokers in Reporting Security Breaches

    Freight Forwarding/Customs Brokerage
  • A WORKER IN A WAREHOUSE, SUPERIMPOSED WITH GRAPHICS SHOWING SUPPLY NETWORK

    Enabling Intelligent Visibility With Supply Chain Analytics

    Data Management (Big Data/IoT/Blockchain)
  • GSCMS-Promo.png

    Watch: Introducing the Global Supply Chain Marketing Summit

    Education & Professional Development
  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • DEEPLY CRACKED EARTH UNDER A BLUE CLOUDY SKY

    Why Maritime Supply Chains Must Adapt to Sustainability Regulations

    Ocean Transportation

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing