india total e-business
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India Total e-Business India Total e-Business Applications MarketApplications Market
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AgendaAgenda
Scope of the ResearchScope of the Research
Project DeliverablesProject Deliverables
Revenue ForecastRevenue Forecast
Trends by ApplicationsTrends by Applications
Strategic RecommendationsStrategic Recommendations
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Scope Of The StudyScope Of The Study
VerticalsVerticals AutomotiveAutomotive Banking, Finance & InsuranceBanking, Finance & Insurance FMCG & RetailFMCG & Retail Government & Public SectorGovernment & Public Sector Healthcare & PharmaceuticalsHealthcare & Pharmaceuticals ITES & IT companiesITES & IT companiesTelecom & MediaTelecom & Media
Transport & Logistics Transport & Logistics ManufacturingManufacturing
Applications Applications ERPERP SCMSCM Business Business Intelligence Intelligence Enterprise Portals Enterprise Portals E-CommerceE-Commerce CRM CRM Collaborative Collaborative Commerce Commerce
Most comprehensive study conducted in India on eBusiness
350 interviews; over 100 tables, figures and 200 charts
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e-Business Taxonomye-Business Taxonomy
Supply Chain ManagementApplications
ERP Backbone
Customer RelationshipApplications Management
Data Mining, Knowledge
Mgmt. Apps.
EnterpriseApplicationIntegration
Customers, Resellers
Material Supplier
E-procurement
Applications
MRO
Suppliers
E-bu
sine
ss I
nfra
stru
ctur
e
E-business Taxonomy
Supply Chain ManagementApplications
ERP Backbone
Customer RelationshipApplications Management
Data Mining, Knowledge
Mgmt. Apps.
EnterpriseApplicationIntegration
Customers, Resellers
Material Supplier
E-procurement
Applications
MRO
Suppliers
E-bu
sine
ss I
nfra
stru
ctur
e
E-business Taxonomy
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Research Framework: Contextual Research Framework: Contextual MarketingMarketing
NowNow•WhoWho•WhichWhich•WhereWhere•HowHow•WhyWhy
FutureFuture•WhoWho•WhichWhich•WhereWhere•HowHow•WhyWhy
TimeTime
Ap
plicati
on
Ap
plicati
on
Pen
etr
ati
on
P
en
etr
ati
on
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Report StructureReport Structure
Market Forecasts: 2001 - 2008 Market Forecasts: 2001 - 2008
Revenue by verticals, by applications Revenue by verticals, by applications
Market Drivers, Restraints & Challenges Market Drivers, Restraints & Challenges
Trends by Verticals, Applications, PricingTrends by Verticals, Applications, Pricing
Competitive AnalysisCompetitive Analysis
Market Share AnalysisMarket Share Analysis
End User AnalysisEnd User Analysis
Purchase decision criteria, Top of mind Purchase decision criteria, Top of mind recall, implementation issues, … recall, implementation issues, …
Strategic RecommendationsStrategic Recommendations
Refer to TOC for more details…
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Major Findings: Major Findings: Internet usage across hierarchiesInternet usage across hierarchies
Total E-business Application Software Market: Internet Connection by Type of Employee (India), 2001
Who are connected to the net?
36%
44%
9%
11%
Almost all Top management IT staff Middle management
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Businesses are offering internet connections to almost all Businesses are offering internet connections to almost all employees and partnersemployees and partnersTraditional businesses still restricted of internet connectionTraditional businesses still restricted of internet connection
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End user involvement in IT Purchase End user involvement in IT Purchase decisionsdecisions
Total E-business Application Software Market: End user involvement in IT purchase decision across verticals (India), 2001
End User Involvement in IT Purchase Decision by Verticals
0%
20%
40%
60%
80%
100%
Aut
omot
ive
Bank
ing
and
Fina
nce
Che
mic
als
FMCG a
ndRet
ail
Gov
ernm
ent
Hea
lthca
re
ITES
Insu
ranc
e
Increasing Steady Decreasing
People Issues bound to reduce with higher end user People Issues bound to reduce with higher end user involvement of IT purchase decisionsinvolvement of IT purchase decisionsIncreasing involvement shows higher awareness Increasing involvement shows higher awareness
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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Total Revenues (e-Business Total Revenues (e-Business Applications)Applications)
Need for streamlining Need for streamlining business processes business processes Maturing information Maturing information
systemssystems
Subjective nature of ROISubjective nature of ROI Low end user awarenessLow end user awareness Slower business process Slower business process
automationautomation
MARKET RESTRAINTSMARKET RESTRAINTS MARKET DRIVERS MARKET DRIVERS
2001 : US$2001 : US$73.173.1 millionmillion
2008 : US$2008 : US$407.9407.9 millionmillionTotal E-business Applications Market: Revenue Forecast (India), 2001-2008
Total E-business Application software revenues
0.0
75.0
150.0
225.0
300.0
375.0
450.0
2001 2002 2003 2004 2005 2006 2007 2008
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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eBusiness revenue contribution by eBusiness revenue contribution by Applications: 2001Applications: 2001
•Total E-business Applications Market: Percentage Contribution by Each Application, India (2001-2008)
Percentage contribution to eBusiness application revenues by each application
0%
20%
40%
60%
80%
100%
2001 2002 2003 2004 2005 2006 2007 2008
ERP SCM BI EP E-com CRM Collab-com
•ERP: Enterprise Resource Planning, SCM: Supply Chain Management, BI: Business Intelligence, EP: Enterprise Portal,
• E-com: E-Commerce, CRM: Customer Relationship Management, Collab-com: Collaborative Commerce
ERP maturing, would contribute less in futureERP maturing, would contribute less in futureBI, SCM and CRM to gain higher foot holdBI, SCM and CRM to gain higher foot hold
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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ERP : Application Software MarketERP : Application Software MarketWhich solution do they preferWhich solution do they prefer??
Total ERP Application Software Market: ERP Application preference by type of solution across verticals (India), 2001
Finance includes Accounts / Banking / Finance, Sales includes Sales / Marketing /Advertising
Note: All figures are rounded; the base year is 2001.
ERP Application preference by type of Solution
0%
20%
40%
60%
80%
100%
Aut
omot
ive
Bank
ing
&Fi
nanc
e
Che
mic
als
FMCG &
Ret
ail
Gov
ernm
ent
Hea
lthca
re
Insu
ranc
e
I.T.E
.S
Solution Suite Best of breed solution
Solution suite shows higher preferenceSolution suite shows higher preferenceSpecific business activities demands best-of-breed solutionSpecific business activities demands best-of-breed solution
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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SCM: Future OpportunitiesSCM: Future Opportunities
Future Roadmap of enterprises without SCM
Applications
8%
45%
47%
Yes, whithin 18 months Yes, cannot say when No
Total SCM Application Software Market: Future Road map of enterprises without SCM application (India), 2001
SCM shows moderate demandSCM shows moderate demandMost businesses adopting wait and watch strategyMost businesses adopting wait and watch strategy
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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Enterprise Portals: Impact on Enterprise Portals: Impact on Competitive StrategyCompetitive Strategy
Total EP Application Software Market: Impact on Competitive Strategy from EP Implementation across Automotive, Banking & Finance, Chemicals, FMCG, Government, Healthcare, and ITES Verticals (India), 2001
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Banking and Chemical business find EP application Banking and Chemical business find EP application competitive edge competitive edge
Enterprise Portal Application Competitive Strategy Impact by Verticals
0%
20%
40%
60%
80%
100%
Aut
omot
ive
Bank
ing
&Fi
nanc
e
Che
mic
als
FMCG
Gov
ernm
ent
Hea
lthca
re
ITES
High Medium Low
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Snapshot: CRM Return on Snapshot: CRM Return on Investment Investment
Total CRM Application Software Market: Return on Investment from CRM Implementation by Automotive, Banking & Finance, FMCG, Government, Healthcare, and I.T.E.S Verticals (India), 2001
CRM Application ROI by verticals
0%
20%
40%
60%
80%
100%
Automotive Banking &Finance
FMCG Government Healthcare I.T.E.S
High Medium Low
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Service industry gains the maximumService industry gains the maximumBanking and Healthcare have raised expectation barsBanking and Healthcare have raised expectation bars
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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Snapshot: eCommerce Application Snapshot: eCommerce Application Satisfaction across verticalsSatisfaction across verticals
Total E-commerce Application Software Market: Satisfaction level for E-com application across Verticals (India), 2001
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Satisfaction level for E-com Application by verticals
0%
20%
40%
60%
80%
100%
Aut
omot
ive
Bank
ing
&Fi
nanc
e
Che
mic
als
FMCG
I.T.E
.S
Sof
twar
eDev
elop
ers
Tel
ecom
Oth
ers
High Medium Low
FMCG and ITES companies show highest satisfactionFMCG and ITES companies show highest satisfactioneCommerce deployment despite dot com burst has shown eCommerce deployment despite dot com burst has shown high satisfactionhigh satisfaction
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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Snapshot: Collaborative CommerceSnapshot: Collaborative Commerce
Total C-commerce Application Software Market: Penetration by Modules across Automotive, Banking and Finance, Chemicals, FMCG, Government, as well as Healthcare Verticals (India), 2001
C-commerce Application penetration by Modules across Verticals
0.0
20.0
40.0
60.0
80.0
100.0
Automotive Banking &Finance
Chemicals FMCG Government Healthcare
Enterprise application integration Lifecycle/Workflow
Product development management Relationship Management
Supplier relationship managementNote: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Modular penetration has strong correlation with maturity Modular penetration has strong correlation with maturity and utilityand utility
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
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Collaborative Commerce- Who is Collaborative Commerce- Who is occupying the top mind space?occupying the top mind space?
Total C-commerce Application Software Market: C-commerce Application Software Vendor Top-of-mind Recall (India), 2001
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Top of the mind vendor recall for Collaborative Commerce Application
0 20 40 60 80 100
PTC
MatrixOne
EDS
i2 Technologies
SAP
Oracle
IBM
Others
Percentage recall in top 3 vendor overall Percentage recall as top of mind vendor
PTC, MatrixOne and EDS enjoy higher recall in C-commerce PTC, MatrixOne and EDS enjoy higher recall in C-commerce spacespace
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Market Share AnalysisMarket Share Analysis
Total CRM Application Software Market: Company Market Share by Revenues (India), 2001
Company 2001 (% )
Oracle 22.1
Interact Commerce (Saleslogix) 19.4
Siebel 13.8
Amdocs (Clarify) 12.5
SAP 8.3
Talisma 4.1
Others 19.8
TOTAL 100.0
Others include SAS, Global Groupware. TriVium, PeopleSoft, ibhar, Baan, Cincom, etc.
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Oracle and Interact Commerce (Saleslogix) were clear leaders Oracle and Interact Commerce (Saleslogix) were clear leaders for 2001 CRM software marketfor 2001 CRM software market
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Product Purchase Criteria Product Purchase Criteria
Total E-business Application Software Market: Product Purchase Criteria (India), 2001
Product Purchase Criteria for eBusiness Applications
0%
20%
40%
60%
80%
100%
ProductFunctionalityand feature
Strategicimportanceto business
VendorBrand Name
Price ROI Compatibilitywith other
applications
Future ITroad map
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 or below
Note: All figures are rounded; the base year is 2001. Source: Frost & Sullivan
Indian businesses rate product functionality as the most Indian businesses rate product functionality as the most important criteria followed by strategic importance to businessimportant criteria followed by strategic importance to business
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Winning Strategies for Vendors…Winning Strategies for Vendors…
• Benchmark processes Benchmark processes and showcase and showcase quantifiable ROI quantifiable ROI
• Experience and domain knowledge of Experience and domain knowledge of systems integrators and consultants are key systems integrators and consultants are key considerations for end users.considerations for end users.
• Provide attractive pricing optionsProvide attractive pricing options• Depict successful and relevant case-studies Depict successful and relevant case-studies
in similar or related industryin similar or related industry• Speed of deployment is cited as another key Speed of deployment is cited as another key
evaluation criteria by end users evaluation criteria by end users
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Take Home Points…Take Home Points…
• The entry of MNCs particularly in sectors The entry of MNCs particularly in sectors such as Insurance, Banking, and High-tech such as Insurance, Banking, and High-tech has compelled local companies to deploy has compelled local companies to deploy eBusiness applications.eBusiness applications.
• During the period 2002-05, SMEs would During the period 2002-05, SMEs would increasingly drive the growth of business increasingly drive the growth of business applications such as ERP, CRM, and SCM. applications such as ERP, CRM, and SCM.
• Banking/finance and high-tech sector have Banking/finance and high-tech sector have made the best use of eBusiness made the best use of eBusiness applications in rolling out the e-strategies. applications in rolling out the e-strategies.
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THANK YOUTHANK YOU
Research Queries: Alok Shende Research Queries: Alok Shende [email protected] Queries: Javin BhindeSales Queries: Javin Bhinde [email protected]
Nidhi Oberoi Nidhi Oberoi [email protected]: +91-98442 54368 Tel: 91-11-627 9774/627 7243