The cash registers will have to ring; there is no other option for the ERP vendors. As we argued before, the large business market is no longer the cash cow it once used to be. So, arguably the SMB (small-to-medium business) market is the only other option for these vendors. The question is how do they make it happen?
As we start discussing this in the next posts, we will also delve into what the newbie customers stand to gain from the "revolution".
-amit
Showing posts with label ERP Vendors. Show all posts
Showing posts with label ERP Vendors. Show all posts
Sunday, July 8, 2007
Monday, June 18, 2007
Drivers of Change...
Back to the basics...
The basic fundamentals which drive all businesses are also driving this change - the search for sustainable growth. The large ERP vendors that have traditionally served the large corporations are seeing a slow down in their revenue streams. It doesnt take much analysis to say that this market segment cannot ensure sustainable growth over the next decade. New markets must be found.
Arguably, two factors are enabling the ERP vendors to offer their products to the SMB sector and thereby helping them define the new markets:
The basic fundamentals which drive all businesses are also driving this change - the search for sustainable growth. The large ERP vendors that have traditionally served the large corporations are seeing a slow down in their revenue streams. It doesnt take much analysis to say that this market segment cannot ensure sustainable growth over the next decade. New markets must be found.
Arguably, two factors are enabling the ERP vendors to offer their products to the SMB sector and thereby helping them define the new markets:
- Service Oriented Architecture (lovingly called SOA), and
- an increasing acceptance of on-demand delivery models.
The together can potentially prove to be the holy grail for the customers and the ERP vendors alike.
The race for market share [of small and medium sized businesses] is on.
For now, the target is midmarket but is small business far behind?
-amit
Saturday, May 19, 2007
Vendor Dilema...
In the previous blog entry, I asserted that no single business (/application) software vendor dominates the SMB market. It goes without saying that the race for market share is on. Established and new vendors are trying hard to find the right business model to serve this market sector. So the interesting question at this point is:
What should a software vendor do in order to maximize their market share?
One way to approach to this will be to ask the SMB owners what they want from their business software. If any SMB owners are listenting pl pitch in. Otherwise,
In my estimation, one sure thing is that the requirements will differ across verticals and perhaps also across geographical regions (!). The other thing that is also sure is that there is functionality that is common across all SMBs.
Is this a good assumption to start? Any takers.
In the next few blog entries, I will focus on what I think is important for a SMB.
-amit
What should a software vendor do in order to maximize their market share?
One way to approach to this will be to ask the SMB owners what they want from their business software. If any SMB owners are listenting pl pitch in. Otherwise,
In my estimation, one sure thing is that the requirements will differ across verticals and perhaps also across geographical regions (!). The other thing that is also sure is that there is functionality that is common across all SMBs.
Is this a good assumption to start? Any takers.
In the next few blog entries, I will focus on what I think is important for a SMB.
-amit
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