Market Overview Bill Hill Director of Marketing Sage - Enterprise Solutions Division.
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Transcript of Market Overview Bill Hill Director of Marketing Sage - Enterprise Solutions Division.
Market Overview
Bill Hill
Director of Marketing
Sage - Enterprise Solutions Division
Market Overview
ERP applications expected 11% CAGR 2002-2006• Integrated software to help manage in tough
economic times will return better than average growth
ERP applications with solid industry strategies succeed as the market matures
• ERP suppliers not in the leader board have to choose their industry sectors or find a different business model
(Source IDC) *(PMP Consultant)
Market Overview
While ERP solutions were designed to consolidate data management - ‘one version of the truth’. Businesses seem as badly ‘integrated’ as ever before
Many companies still take up to 9 days each month to close the accounts and report
Tough market conditions have refocused efforts on integration and getting more from their current systems
Reporting, stock optimisation,CRM The main challenge/opportunity for organisations ‘getting their
house in order’ is to make use of new technologies and standards - enabling integration beyond organisational boundaries
Collaboration
(Source IDC) *(PMP Consultant)
Market Overview
Linux fastest growing operating system on planet Massive hardware consolidation taking place as networks become
cheaper Is it .net or .not ? Integrated eBusiness related services that are industry specific shows
strong demand CRM is on the agenda of 39% of all mid market companies While the market for ERP solutions and services in the large enterprise
segment is maturing demand for ERP solutions and services in the small and medium enterprise (SME) market is expected to rise. There are signs that SMEs are finally adopting ERP systems
(Source IDC) *(PMP Consultant)
Market Overview
57% Mid Market Businesses expect to increase purchases via the internet next year
69% of all UK Medium Businesses purchase goods and services over the internet up from 46% in 2001– Most popular products
• Printers &Peripherals 60%• PC Networking Software 57%• Computing/electronic products 55%• Publications (Books) 50%
E Commerce 48%-75% will use secure on line transactions. B2b will become dominant 57% by 2006
By this time next year 8 out of 10 mid market companies will be focussed on improvements in electronically integrating both supply and customer transactions.
Source ( Supply Chain Management White Paper 2003)
Sage – Market Evolution
Automation Integration
Phase 1 Phase 2
Back Office
Invoicing
Purchasing
Credit
Reporting
ERP
Sales
HR
Stock
Production
Services
Sage – Market Evolution
Automation Integration
Phase 1 Phase 2 Phase 3
Connection
Govt eFiling Govt eProcurement Supply Chain Management
Accountants BanksPayroll 18m Forms Per annum
VAT 3.3m Forms Per annum
SA TAX 4.5m Forms Per annum
Accounts 825k Forms Per annum
So why can Sage succeed ?• 1.37 m UK registered companies• Sage has 500,000 UK customers• 60,000 new customers every year• Vertical Market Examples ……….Manufacturing
Construction
UK Universe 165,000139,000
% of UK Business 11% 9%
Accounts s/w Users 101,000 85,000
Sage Users 68,00038,000
Penetration 67% 45%……plus distribution, retail, services, accountants
Local Authority
Supply Side Integration
14,000 SMEs
2004 Deadline
389 LAs
800,000 SMEs
Buy Side Integration
Supplier Hub
160,000 SMEs
Electronic Trading Documents
Customer Supplier
Acknowledgement
Quotation
Delivery Note
Invoice
Order
Enquiry
Payment
CustomerRelationshipManagement
Web Site andWeb Shop
Sage FrontOffice Software
FinancialsCommercialsDistributionPayroll & HR
ManufacturingConstruction
ServiceRetail
Sage BackOffice Software
Your Customers
30%Are Sage Users
Your Suppliers
30%Are Sage Users
Your BankOnline Banking
GovernmentVAT
Inland RevenueCompanies House
Your AccountantFinal Accounts
TaxationAudit
Time & Fees
The Sage Connected WorldThe Sage Connected World
Thank You
Graham Cardwell