The ERM (enterprise resource management) software market will grow 20 percent in the Asia-Pacific region next year, according to Selinna Chin, country manager in Malaysia for research company International Data Corp. (IDC).
But the terms ERM and ERP (enterprise resource planning) will fade from view, in favor of more Internet and electronic commerce-oriented descriptions, Chin said at an IDC briefing here Wednesday.
"The need to have strong back-office solutions will not go away," she said. "But vendors will integrate and extend ERM to cover e-business solutions."
The total ERM market in 2000 will reach $US769 million in Asia-Pacific (excluding Japan), up 20 percent from 1999's figure of $640 million, according to IDC figures.
Australia and New Zealand together represented easily the biggest ERM market in 1999, accounting for 41.4 percent of the Asia-Pacific market. However, those two markets, with revenue of $265 million will be among the slowest-growing this year, Chin said.
"The Australian ERM market is mature, and growth there will be flat or even negative this year as prices for ERM products fall," she said.
Instead, vendors should look at the three hot Asia-Pacific ERM markets of Korea, China and Taiwan, which will all grow at above 30 percent, according to Chin.
In 1999, Korea recorded ERM revenue of around $44.4 million, China $38 million, and Taiwan $29 million, according to IDC figures.
Growth of between 20 percent and 30 percent is expected for Singapore and Malaysia, the two biggest Southeast Asia ERM markets. Southeast Asia recorded total ERM revenues of $176.3 million in 1999, of which Singapore accounted for 41 percent and Malaysia 29 percent, according to IDC figures.
One notable trend is the success of small local ERM vendors against the multinational players, especially in China, where several local vendors are in the top ten of ERM revenue earners. One reason for their success is their ability to introduce small and medium-sized companies to ERM applications, Chin said.
Another trend that will continue is the number of partnerships between ERM vendors, according to Chin.
"There will be an explosion in the number of partnerships this year and beyond," she said. "Single vendors have a lot of difficulty in providing all the solutions, in Internet time, to all their customers."
Over the next five years, the ERM market will grow at a compound annual growth rate of 15 percent to be worth about $1.4 billion by the year 2004, according to IDC estimates.