ERP Users Demand More From Solution Providers

ERP Users Demand More From Solution Providers

Says New Report from Aberdeen and Capgemini

Low Adoption Rates of Extensions to ERP

Indicate Significant Growth Opportunities for Vendors

India, Mumbai, June 6, 2007 ? A new Aberdeen Group study entitled “Best Practices in Extending ERP” shows that Enterprise Resource Planning (ERP) users are demanding more from their ERP solution providers. The study, sponsored by Capgemini, indicates that while 63% to 90% of new licenses into such areas as supply chain management (SCM), CRM, SRM, and EDM/PDM/PLM are purchased from ERP vendors, the adoption rates for these programs are relatively low, from 6% to 35%, which could indicate growth opportunities for ERP vendors and opportunities for end users to drive ERP and surrounding applications deeper and broader across the enterprise.

“The three most important factors to consider in extending ERP are functionality, integration, and the ability to upgrade to new releases,” said Cindy Jutras, Vice President, Manufacturing and ERP Research. “While business functionality is of primary importance, companies must also evaluate technology architectures, integration capabilities, delivery models, partner status, support approaches, and ownership and maintenance of customized integration.”

But the relationship between functionality and ease of integration is not as simple as it once was. Over time, ERP has expanded, blurring the boundaries of core functionality. The number of modules and the extent of functionality offered in the ERP suite has steadily grown. At the same time, ERP companies like Infor, Oracle, Sage, and SAP have been gobbling up the pure play vendors that offered extensions to core ERP applications, profoundly affecting the vendor landscape and how ERP decisions are made.

“Organizations are facing a complicated set of questions regarding ERP implementation but correctly used the applications offer companies a way to extend their business processes and collaborate on a real-time basis with suppliers, retailers, consumers and other business partners”, says Jan Winters, Global Leader Manufacturing at Capgemini.

“More and more we see Service Oriented Architecture (SOA) Technology playing a critical role in easing the integration process. We see an increasing demand among many organizations for adapting SOA-enabled versions of their ERP applications,” continues Winters.

More than 1,200 companies participated in the original study, including Kraft Foods, Johnson Controls, Schlumberger, Tyco Electronics, Sonoco Products, Ford, and Lockheed Martin.

To obtain a complimentary copy of the report, visit: www.capgemini.com

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About Aberdeen Group, Inc.

AberdeenGroup, Inc. provides fact-based research and insights focused on the global, technology driven value chain. Aberdeen’s benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives and the solution providers who serve them.

For more information, visit www.aberdeen.com

About Capgemini

Capgemini, one of the world’s foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment to mutual success and the achievement of tangible value, Capgemini helps businesses implement growth strategies, leverage technology, and thrive through the power of collaboration. Capgemini employs approximately 65 000 people worldwide and reported 2005 global revenues of 6,954 million euros. More information about individual service lines, offices and research is available at www.capgemini.com