Enterprise Application Market Overview
Enterprise Application Market is expected to garner $ 213.43 billion by 2020, registering a CAGR of 7.4% during the forecast period 2014-2020. Enterprise application is a software designed to meet the unique needs and objectives of different sized organizations. Customer relationship management (CRM), enterprise resource planning (ERP), supply chain management (SCM), business intelligence (BI), business process management (BPM), content management system (CMS) and enterprise asset management (EAM) are the major ERP applications available in the enterprise application market.
Enterprise application is designed specifically for back office transactional activities such as accounting, production, and inventory control and order management among other. However, today role of enterprise application is transitioning from back-office activities to business process enhancement. Companies are focusing on enhancing their internal processes and systems by addressing varied challenges; in turn increasing the demand for enterprise application among small and mid-sized enterprises. According to Enterprises, it is necessary for the companies to integrate their business function, resources and critical business processes to increase efficiency and productivity. Organizations are implementing enterprise applications to ensure higher profitability and increase their working capital. Adoption of enterprise application allows the companies to integrate their operations with suppliers, channel partners and customers. However, selection of appropriate enterprise application differs in accordance to business outfits and process. Cloud enabled enterprise application (SaaS model) is gaining high acceptance over the conventional on-premise enterprise application.
An enterprise application is useful for enterprises to integrate their business functionalities to achieve high efficiency and productivity. The report encompasses study of different enterprise application by solutions such as CRM, ERP, SCM, BI, BPM, CMS, EAM, Web conferencing and others. Other enterprise applications include HCM, ERM, MIS and database. Enterprise application market includes a major delivery model used to deliver enterprise application including on-premise and cloud model. Emergence of cloud-based technology would help the companies to reduce their overall IT expenditure. Revenue generated by selling enterprise application and related services are factors considered for enterprise application market size during the analysis period.
Customer Relation Management, Enterprise Resource Planning, Supply Chain Management, Business Intelligence, Business Process Management, Content Management System, Enterprise Asset Management, Web Conferencing, and others are commonly used enterprise applications available in the global enterprise application industry. ERP application accounted for largest market share in the global enterprise application market, in 2013 at a CAGR of 7.2%. ERP is suitable for every organization, although require minute customization as per the requirements of companies. ERP has emerged from back office work to synchronization of business processes. In 2014, IBM Corp. and Microsoft Corp. entered into strategic partnership to develop ERP application for retail industry for both on-premise and cloud based platform. In 2014, Aptean launched updated version of ERP solution, Axis 6.2 ERP solution for metal industry including metal producer, cable & wire manufactures and metal service providers.
Based on delivery model, the enterprise application industry is bifurcated into on-premise and cloud enabled enterprise application. On-premise segment accounts for largest market share in 2013. The report also analyses the enterprise application market from the perspective of different verticals adopting enterprise application, which include business organization, BFSI, healthcare, retail, government, aerospace, defence and others. Currently, retail sector drives the adoption of enterprise application among different organizations.
Based on geography the enterprise application market is segmented into North America, Europe, Asia-Pacific and LAMEA. North America was the highest revenue-generating region in 2013. Companies in North America have adopted customer-centric approach to gain larger enterprise application market share and thereby acting as a major driving factor for the global ERP application market. Adoption of enterprise application reduces overall operating cost, in turn increases the profitability of the company.
Top Factors Impacting Global Enterprise Application Market
Customer Centric Approach:
Companies are adopting customer centric approach in order to facilitate smooth interaction with their customers. Further, user friendly feature of the enterprise application helps the companies to enhance consumer experience. Adoption of enterprise application by various industries such as BFSI, Retail, Telecom and Manufacturing would increase by 2020.
Implementation of enterprise application enables businesses with easy flow of internal and external business information. Furthermore, integration of different business function is possible is done through the implementation of effective enterprise application. Customer’s activity on various social media such as Facebook and LinkedIn can be monitored by implementing through use of enterprise applications in an organization. This helps business companies to resolve the feedback of customers in order to take necessary steps to handle the issues raised by customer for particular products or services. In such scenario, implementation of enterprise application facilitates businesses to remain e proactive. Additionally, enterprise application offers varied advantages over open source application that would collectively drive their adoption.
Small and mid-sized companies are price sensitive as they are not that capable to invest huge amount on enterprise application. High price of enterprise application can influence consumer’s buying decisions. Global software vendors such as Microsoft, SAP and Oracle charges more for enterprise application offered by them compared to local software vendors. In addition, high investment in R&D is another factor determining high cost of enterprise application. New companies entering the enterprise application market with cost effective enterprise application might increase adoption of enterprise application in near future.
Open Source Application:
Enterprise prefer open source application as it is cost effective. There are several support providers in the market for open source applications. These vendors offer their services and support function at a reasonable price. However, enterprises anticipated the risk associated with open source application such as viability and related legal issues. Therefore, the impact of this risk mitigating factor is expected to reduce in near future.
- Key developmental strategies adopted by top market players engaged in this business so that companies involved in development of enterprise application can get competitive intelligence of their competitors
- Porter’s five forces model and SWOT analysis of the key market players are provided to illustrate the effectiveness of the enterprise application market buyers and suppliers
- Value chain analysis in this report provides a clear understanding of the roles of stakeholders involved in the value chain
- In depth analysis of key market drivers, restraints and opportunities of enterprise application market with impact analysis is provided in the report
- Quantitative analysis of the current market and estimations through 2013-2020 are provided to highlight the ongoing and future trends of the market
Enterprise Application Market Key Segment
The global enterprise application industry is segmented as:
- Web conferencing
- Competitive Intelligence
- Customer Relationship management
- Predictive Analytics
- Fraud detection
- Brand Reputation
By End User
- Fast Moving Consumer Goods (FMCG)
- Banking Financial Services and Insurance (BFSI)
- Healthcare and Pharmaceuticals
- North America
- Asia Pacific