Understanding Adoption of Enterprise Applications (Customer Focus)

Publication Date	March 2008
Publisher	Datamonitor
Product Type	Report
Pages	19
ISBN Number	not applicable
Product Code	DAT08415

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Summary

Introduction

Datamonitor's annual Technology Trends survey indicates that enterprise applications remain the principal area of IT investment. In this brief the results from the 2007 Technology Trends survey, covering 1,000 IT decision makers in the US, Australia and the EU, are discussed with respect to enterprise application penetration, vendor mindshare, investment opportunities and deployment preferences.

Scope

Gauges the market penetration and assesses the investment potential of seven enterprise applications. Evaluates enterprises' preferences for enterprise application procurement, deployment and outsourcing. Identifies fluctuating perceptions of leading vendors across four enterprise size bands. Explores regional variations in investment, decision-making, deployment and outsourcing patterns.

Highlights

Enterprise applications are very closely aligned with business priorities and for this reason enterprises continue to invest in them despite their high penetration. Ongoing programs of investment ensure that the enterprise application footprint will continue to expand, with CRM and ERP attracting particularly considerable volumes of investment. Due to the close alignment between enterprise applications and the enterprise goals, dominant macroeconomic and operating conditions in each of the market segments have a considerable impact on enterprise application decision-making, investment plans and deployment and outsourcing preferences. The enterprise applications market is highly consolidated and this is reflected in the distribution of mindshare. Mindshare is dominated by a trio of prominent vendors, although their relative success varies by enterprise size-bands.

Reasons to Purchase

Identify key enterprise applications driving market growth and investment. Align your marketing strategy with investment, purchasing and decision-making preferences in national markets and enterprise size-bands. Optimise go-to-market strategies through revealing enterprises' procurement and deployment preferences.

Content

CATALYST
SUMMARY
ANALYSIS
- The outlook for enterprise application investment is positive despite high penetration
- Enterprise applications take-up is continuing apace through the addition of solution areas
- CRM has overtaken HR as the second most ubiquitous solution area behind Financials
- Investment outlook is boosted by CRM and ERP amid the slower investment growth in other solution areas
- ERP penetration will catch up with that of CRM and HR but Financials will remain the most ubiquitous
- Macroeconomic trends account for regional variability in investment plans
- Enterprise application investment schedules are much more circumspect in Germany and the US
- Variations in investment scope are a result of macroeconomic conditions not market maturity
- Enterprise applications are still the primary choice for flagship IT project
- The size of a flagship enterprise application project is proportional to enterprise size
- CEOs are the most important decision makers, but CIOs wield considerable influence
- The relative importance of the CEO and CIO fluctuates in national markets
- Enterprise applications are still deployed predominantly as on-premise solutions
- The reseller channel is perceived as important, although this varies by deployment method
- Propensity to outsource depends on the market maturity and macroeconomic trends
- Microsoft dominates mindshare in an extremely concentrated market
- Mindshare fluctuations across the enterprise size-bands reveal vendors' market segment focus
- Summary: Enterprise applications are inextricably linked to core business processes
APPENDIX
- Definitions
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
List of Tables
- Table 1: Which of the following solution areas do you currently have or use?
- Table 2: Which of the following do you currently have or use, and which would you prioritize for investment in the next 6 months? 2 years?
- Table 3: Which of the following do you currently have or use, and which would you priorities for investment in the next 6 months? 2 years? - Enterprises investing within the next 2 years by country
- Table 4: How much investment are you making in your single biggest IT project in budget year 2007? Which technology area does this fall under? - respondents stating "Enterprise applications
- Table 5: Please rank the two most influential positions in your organization when making investment decisions regarding enterprise applications
- Table 6: Please rank the two most influential positions in your organization when making investment decisions regarding enterprise applications - by country
- Table 7: What is your preferred approach to buying enterprise applications? By country
- Table 8: What is your preferred approach to buying enterprise applications?
- Table 9: Which of the following technology areas do you outsource now, or are you considering outsourcing in the next 6 months? 12 months? - By country
- Table 10: Please pick two firms which you believe to be 'leaders' in the field of enterprise applications
- Table 11: Please pick two firms which you believe to be 'leaders' in the field of enterprise applications - by enterprise size
List of Figures
- Figure 1: Ongoing investment results in increased penetration in all enterprise application solution areas
- Figure 2: Despite a high penetration, the investment in CRM and ERP will continue to grow
- Figure 3: Enterprises in Germany are refraining from investment in more than three solution areas simultaneously
- Figure 4: Larger enterprises are ready to undertake enterprise application projects of a considerable size
- Figure 5: CEOs are the most influential primary decision makers, but CIOs can be very important
- Figure 6: In the US CIOs are more influential than CEOs
- Figure 7: Hosted solutions rival on-premise deployments only in Italy and Germany
- Figure 8: Resellers play an important role in sourcing strategies, particularly for hosted solutions
- Figure 9: Enterprises in the UK and Australia plan to step up enterprise application outsourcing in the next 12 months
- Figure 10: Top three vendors accounting for 94% of the mindshare indicating a very concentrated market
- Figure 11: Oracle and SAP encroach on Microsoft's mindshare higher up the market