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Chapter 1 • Introduction to Enterprise Systems for Management 27

EPICOR This company provides enterprise software solutions for midmarket companies around
the world. The company claims to have solutions to a variety of needs, whether a customer is
looking for a complete end-to-end enterprise software solution or a specific application. It
provides solutions for a limited number of specific industries, including nonprofit, distribution,
manufacturing, and hospitality. Epicor is headquartered in Irvine, California (www.epicor.com).
The ERP market has matured to a point where heightened competition has brought declining
sales. As a result, ERP vendors are committed to bundling new functionality (e.g., CRM, SCM, and
Compliance) to provide more value to their customers.
Software Extensions and Trends

In the mid-1990s, during the Internet and dot-com boom, many IT experts predicted the doom of
ERP systems because virtual organizations, or e-Business, would eliminate the need for ERP.
The focus of ERP has always been on supply chain management, and organizations were turning
to Internet and Web-based technologies to accomplish this task. After the initial rush for
Web-based supply chain software, however, with vendors like Siebel, i2, Ariba, and Commerce
One, providers of best-of-breed point solutions that were powering SCM for e-Business, these
new applications lost their luster due to lack of comprehensiveness of the applications. As
e-Business firms started growing bigger with advanced needs in HR, accounting, and warehousing,
the non-ERP vendors were not able to support their requirements. At the same time, ERP
vendors were starting to expand their functionality to the Internet and e-Business. For example,
SAP introduced mySAP.com and PeopleSoft introduced a three-tier Web-enabled client for
accessing all their modules via the Internet. In addition, there were several third-party software
integrators like Extricity and Neon that linked the Internet to ERP applications.
Intense competition and fluctuating sales have forced the ERP vendors to expanding their
software functionality to add value and to support new organizational needs from compliance
management, customer support, global supply chain, and such emerging technology platforms as
open-source software (OSS) and service-oriented architectures (SOAs). Open source addresses a
key concern in this instance. ERP vendors often pitch packaged applications to smaller enterprises
that they can run as is, requiring little or no IT investment. It’s a logical pitch in environments with
scarce technological resources, but a substantial percentage of smaller companies want or need to
customize the applications to fit their specific business needs, much like larger enterprises.
Another trend among big vendors has been the expansion of their software market for
small to medium-size businesses. The saturation of the demand in big business and the lucrative
nature of the small and midsized business markets have led vendors like SAP and Oracle to enter
the small business market, which was originally the target of Microsoft and Epicor. For example,
Oracle Corp. and its development partner NetLedger Inc. are providing hosted software suites
for small and midsize businesses. NetLedger’s NetSuite provides portal views into a suite of
applications geared for smaller companies. SAP similarly launched its CRM on-demand solution
for its small business customers. A Gartner Group study found that attracting and retaining new
customers will be the No. 5 business priority for organizations. 8
Similarly, SOA implementation will continue to grow as a factor in ERP purchase decisions
because vendors are using creative marketing around product strategies versus buying what is
currently available. Vendors are making their pitches with a subliminal message: “If you want to

8 Peter Redshaw. (November 29, 2010). Case Study: First National Bank Boosts Customer Retention at SMBs Through
Financial Management and Accounting Tool. http://www.gartner.com/DisplayDocument?id=1479927