In 2000, many analysts had predicted that ERP has lost its status as a force to reckon with. But the dynamic strategies of ERP players have revived the market. The article discusses the recent trends in the ERP industry. It describes the emergence of Tier 2 companies, who have gained a significant market share, changing customer profile, outsourcing, consolidation and many other changes happening in the industry.
The concept of Enterprise Resource Planning (ERP) has been around since the 1960s. Until 1972, ERP was just a concept without a name or lassification. It led the companies to integrate their departments and functions leading to an increase in revenues and strengthening of business.
In 1972, five managers left their positions at IBM to start a company. The company they started came to be known as SAP (Systems, Applications and Products). SAP designed a software that facilitated resource planning activities in enterprises. The ERP market became the most sought after in the early 1990s when many leading MNCs started adopting ERP. But the late 1990s proved to be tough. Many ERP implementations met with failure. There was a skeptical mood prevailing in the market about the ERP software.
This dull demand conditions forced the ERP vendors and the service providers to modify their strategies. It saw the entry of small players into the market. Thus, the ERP market profile started changing since 2000. The following are the major trends that are being witnessed in the ERP market in the last three years.
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