ERP Software Industry has changed its focus after the recent market recession. The ERP software companies are trying to design new products to meet the requirement of changed market. Recession has forced companies to be less tolerant to the delays caused by software solution providing companies during the initial implementation processes. The companies are seeking low cost products facilitated with many features. Many companies wish to get an enterprise resource planning solution, which take less time in implementation and has a low maintenance feature.
Small business solutions are again in high demand: Companies are interested in buying small business software, which can be bought at a low cost and are easy to maintain. Some small business solutions also help companies to come out of recession by giving apt business solutions.
ERP Software-as-a-Service (SaaS) is increasing its market share: Recession has hit major enterprise resource planning players of the world because high cost products are no more in demand. Companies are not searching for brand names and expensive software. Oracle and SAP are facing market pressures because the clients are demanding reduction in implementation and maintenance cost. In the changed market, enterprise resource planning Software-as-a-Service is getting more and more accepted.
The market share of Software-as-a-Service has increased in the last two years because the cost of implementation and maintenance of ERP Software-as-a-Service, is very low and the initial cost of buying is also very less. The companies can buy enterprise resource planning SaaS by just paying for the subscription and if the company is not interested in continuing the service, it may discontinue agreement with the company. The companies are not forced to depend on the ERP solution, provided by SaaS.
ERP designed to give high ROI (return on investment) will survive: After recession, companies want to buy ERP software to get high returns. The CEOs of big companies are no more ready to buy this software for just automating systems. Companies are interested in buying software because they want to show increase in sales and have a better market. Companies will not make expenses on enterprise resource planning modules, which could not give good return on investment.
Flexible ERPs more in demand: Companies are interested in buying software, which comes with reduced investments and the gives high efficiency. ERP software should have the flexibility to survive changing software and hardware platforms. The enterprise resource planning software industry is focusing on developing software, which can stay intact on changing technology. Clients are no more interested in spending heavily on short term benefits.
ERP software having integrated risk management feature has increased demand: Risk management has become important in the last few year. Companies are focusing on making business plans considering the risk factor. Enterprise resource planning software which provides complete features of risk management will have high demand in future.
ERP sellers will continue to consolidate after recession. Many ERP companies couldn't survive recession and many are unable to spend money on research and development activities. The software companies, which are highly competitive, will only survive in the current scenario.
