Page 1: Executive Summary

Introduction

Page 2: Enterprise Resource Planning (ERP) - Definition and Key Characteristics of ERP Systems

Page 3: Evolution of ERP

Page 4: Framework of ERP System

Market Overview

Page 5: Global ERP Market - Market Overview, Global ERP Sales and Growth, Global ERP Market (SaaS)

Page 6: Global ERP Software Revenues (2010) and Software Revenue Share (2010)

Page 7: Domestic ERP Market - Market Overview, ERP Market Size and Growth, Enterprise Software Market Growth

Page 8: Average Sales Revenue Per Enterprise

Page 9: Market Share of Major ERP Vendors in the High-End ERP Segment (2009)

ERP Selection Criteria

Page 10-11: Selection Criteria - Major Aspects

Page 12-13: Cost Components - ERP Installation

Benefits of ERP Implementation

Page 14-15: Benefits from ERP Implementation

Page 16: Direct Benefits from ERP Implementation

Page 17: Factors influencing Chinese Companies to Implement an ERP System

Page 18-19: Critical Success Factors (CSF) in ERP Implementation in China

Drivers & Challenges

Page 20: Summary

Page 21: Wage Inflation

Page 22: Increasing Demand from SMBs

Page 23-24: Penetration of ERP in New Industries

Page 25: Rising Need for Management Effectiveness

Page 26: Rising Automobile Production

Page 27: Opportunities from Cloud Computing

Page 28: High Cost of ERP Implementation

Page 29-30: Cultural Issues

Page 31-32: Lack of ERP Experience

Government Initiatives

Page 33: Beijing's 12th Five Year Plan (2011-2015) for Software Market

Page 34: Plan for Growth in Five Key Areas of Beijing's Software and Information Services Industry

Trends

Page 35: Summary

Page 36: Emergence of Chinese ERP Software Vendors as Dominant Players

Page 37: Software Localization

Page 38-39: Shift towards High-end, Large-scale Clients

Page 40: Shift to Business Processes Focus

Page 41: Increasing Mergers & Acquisitions

Mergers & Acquisitions

Page 42-44: Mergers & Acquisitions (M&A)

Competition

Page 45: Major Domestic Public Companies - Summary - Bubble Chart based on revenue, net income and market capitalization

Page 46: Major Domestic Public Companies - Summary -Ranking Chart based on revenue and net income

Page 47- 55: Profile of Major Domestic Public Players in the ERP Market

Inspur Group

Kingdee International Software Group Company Limited

UFIDA Software Co., Ltd.

Page 56-76: Profile of Major Foreign Public Players in the ERP Market

Digital China Holdings Limited

Hewlett-Packard Company

International Business Machines Corp.

Microsoft Corporation

Oracle Corporation

QAD Inc.

SAP AG

Page 77-78: Profile of Major Private Players in the ERP Market

Infor Global Solutions, Inc.

Key Takeaway

Page 79: Key Takeaways

Page 80-81: Appendix

The ERP Market in China is part of Netscribes' Information Technology Industry Series reports. The market will be boosted by increasing demand from small and medium businesses (SMBs), expansion of ERP in new industries together with the rising need for management effectiveness.

The report begins with the definition of ERP and its key characteristics followed by its historical evolution and framework. The market overview section provides global market size with growth potential for the period 2009-15. It also presents the revenue of global ERP vendors from ERP software in 2010 and their market shares. Domestic ERP market overview provides details on market size in terms of revenue and its growth for the period 2010-16. This section further illustrates the average sales revenue per enterprise during 2008-10. Further, the report exhibits the market share of major ERP vendors in the high-end ERP segment in 2009 and the four distinct groups of ERP vendors existing in the market.

The report discusses the major aspects of ERP selection criteria, followed by the various cost components of ERP installation.

The report covers the benefits of ERP implementation followed by the factors influencing Chinese companies while during their decision making. It also lists the Critical Success Factors (CSF) in ERP implementation in China.
Key factors driving the growth of ERP market in China include wage inflation, increasing demand from SMBs, penetration of ERP in new industries, rising need for management effectiveness, rising automobile production, and opportunity from cloud computing.

The report finds that wage inflation will be a catalyst for expanding ERP usage in China. ERP is increasingly gaining popularity among the SMBs that account for nearly 99% of the total Chinese enterprises. With the major enterprises entering into new industries, usage of ERP will increase to enhance their management systems. China's enterprise management software market witnesses rapid growth owing to rising need for cost-effectiveness. Growing automobile sector in China at 10% CAGR during 2007-20 will drive software demands for automakers. Additionally, Chinese government had invested over USD 100 mn in five cities for cloud computing advancement in 2011.

Players operating in the market also face challenges which are impeding their development and growth. Major challenges identified in the report include high cost of ERP implementation, cultural issues, lack of ERP experience, communication barrier and profitability concerns for ERP vendors.

The report finds that lack of ERP adoption in China is primarily due to high cost of implementation. ERP strategic benefits in China tend to get restricted due to difference in management culture coupled with cultural fragmentation in the market. Lack of industry experience, relationships and technology is a major shortcoming for domestic players. Language barrier coupled with profitability concerns for ERP vendors pose major challenges to the sector.
The report also provides the role of the government in the country's software sector influencing ERP. It mentions the measures to be taken in the Beijing's 12th Five Year Plan (2011-2015) furthering development in the software market.

Key trends in the software market include emergence of Chinese ERP software vendors as dominant players, software localization, shift towards high-end large-scale clients, shift in ERP focus to business processes and increasing mergers & acquisitions.

Key M&A deals taken place during 2010-12 in the domestic ERP industry is also included in the report.

The competition section outlays the competitive landscape of the ERP market in China briefing about the domestic and foreign players existing in the market. This section provides a three dimensional analysis of key players' revenues, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market with a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario.

Key takeaway section summarizes the entire market in terms of opportunities, trends and challenges persisting in the ERP market in China.

Some of the key statistics or factors impacting the ERP market in China covered in the report include global ERP sales and growth, global ERP market (SaaS), global ERP software revenues, global software revenue share, domestic ERP market size, domestic enterprise software market growth, average sales revenue per enterprise, market share of major ERP vendors in the high-end ERP segment, direct benefits from ERP implementation, share of factors influencing Chinese companies in ERP implementation, ratings for critical success factors (CSF) in ERP implementation in China, labour costs in Asian countries, growth in average monthly wage, share of SMEs in total Chinese enterprises, management software revenue growth, growth of automobile production, market share of major ERP vendors, China's ERP market client structure, etc.