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Chapter 7 Processes, Organizations, and Information Systems
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Industry-Specific Solutions
As you can tell, considerable work needs to be done to customize an ERP application to a
particular customer. To reduce that work, ERP vendors provide starter kits for specific indus-
tries called industry-specific solutions. These solutions contain program and database
configuration files as well as process blueprints that apply to ERP implementations in specific
industries. Over time, SAP, which first provided such solutions, and other ERP vendors created
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 prod-
ucts 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. Infor is owned by private
equity investors and does not publish financial data. Its ranking is 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. Sage revenue is an amalgam of ERP, CRM, and financial-oriented func-
tional solutions.

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Microsoft 5 Four products acquired: Products not well integrated with Office.
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. Conflict with Azure hosting
of Microsoft ERP products.
Sage 4 Offers ERP, CRM, and financial- Sage adapted many of its legacy applications
oriented functional system and solutions for the cloud and for mobile
solutions. computing. Offers inexpensive, cloud-based
solutions for startups and small businesses.
Broad product suite.

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. Evolving with
than 20 others. revolution in 3D printing practices.

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
Figure 7-16 strong technology base into innovative and
SAP Characteristics effective cloud-based solutions. Strong
challenge to SAP market leadership. Claims
of Top ERP Vendors number 1 in CRM.
Source: Based on Louis
Columbus. “Gartner’s ERP SAP 1 Led ERP success with Technology older, but SAP is adapting to
Market Share Update Shows client-server hardware. Largest mobility and cloud trends. Expensive and
The Future Of Cloud ERP Is
Now,” Forbes, May 12, 2014. vendor, most comprehensive seriously challenged by less expensive
http://www.forbes.com/sites/ solution. Largest customers. alternatives. Huge customer base. Future
louiscolumbus/2014/05/12/ Expensive. depends on effectively migrating traditional
gartners-erp-market-share- customers to the cloud. Claims number 1
update-shows-the-future-of-
cloud-erp-is-now/, accessed in CRM.
April 9, 2015.