SCM, CRM, and data warehousing/data mining applications
can streamline processes and increase productivity.
That's why automation/customized software is still high
timely delivery of products and services is crucial
for succeeding in any business. Manual co-ordination
of the numerous processes and business functions is
a Herculean task and so there is increased dependence
on automation and software. That's why the requirement
for customized or automation software is increasing,
especially in the Manufacturing and Banking/Services
The average rate of increase in customized software
requirement is 51 percent (second only to converged
network). In fact 87 percent of the respondents affirm
their requirement for automation/customized software
Considering existing infrastructure, ERP seems to be
the most prevalent59 percent of the respondents
say they have some sort of ERP in place. This is followed
by data warehousing/data mining (27 percent) and CRM
In 2002-03, most enterprises are looking forward to
investing in ERP, data warehousing/data mining and CRM
applications. The research reveals that 46 percent of
the respondents are planning to implement ERP, 39 percent
need CRM, 36 percent need data mining/data warehousing,
20 percent require e-business applications and 11 percent
need SCM applications. Data warehousing/data mining
and CRM are the two segments where requirements have
grown significantly this year.
By improving the interaction between different entities,
processes can be streamlined, time is saved, inventory
cycles are reduced and costs/overheads are slashed.
That seems to be the mantra for managers in the manufacturing
For instance, an ERP solution can streamline manufacturing
processes and connect the company directly with stockists
to review stock details online. This helps reduce overhead
costs and increases efficiency levels within the company.
Also, due to increased competition and tighter markets,
companies are focusing on improved levels of customer
service. The objective is very clear, to retain existing
customers and acquire new ones. This, tied with the
emerging Call Center industry, is fuelling the demand
for CRM applications.
Statistics reveal that the need for CRM is the strongest
in the Banking/Services and IT/Telecom sectors.
Around 33 percent of respondents said automation/customized
software is one of the key areas of the current budget.
The average amount allocated last year for automation/customized
software was Rs 131 lakh and it has gone up to Rs 227
lakh for the current year.
The Manufacturing sector is expected to invest heavily
in this category. In fact 53 percent of the respondents
from this sector said automation/customized software
will be covered under the current budget.
Many companies in Banking/Service industries are also
expected to invest heavily in automation/customized
Among the various sub-categories, ERP is the most prominent
vertical in this space. There is an obvious trend here.
The various sub-categories are skewed for different
For 2002-03, many companies from the manufacturing sector
are expected to invest in ERP and SCM. The reason: to
backward integrate with suppliers and forward integrate
with distributors thus saving costs. Already many companies
in this sector have gone in for an ERP solution. About
63 percent of the manufacturing companies have a requirement
for ERP and 29 percent plan to go in for SCM.
CRM and data warehousing/data mining is expected to
garner stronger investment from the Banking/Service
sector. 50 percent of the respondents in the Banking/Service
sectors said they are going in for CRM and 40 percent
highlighted their interest in data warehousing/data
Investment in data warehousing/data mining solutions
will help Banking and Service industries to observe
specific trends in the data and provide a bouquet of
value-added services to its customers. For example,
a bank can analyze customer transaction data to identify
trends and offer customers value-adds like loans, credit
cards or demat accounts.
As a business expands it will seek ways to automate
processes. In the future, we can expect companies to
increase their spending on automation/customized software
applications like ERP, CRM and data warehousing.
After large enterprises, SMEs are likely to adopt ERP
in a big way. An area to watch for is ERP-II or second
generation ERP, which considerably improves on the shortcomings
of traditional ERP. Vendors are now incorporating ERP-II
features in their offerings.
The entry of MNCs particularly in Banking, Insurance,
and IT/Telecom industries has compelled local companies
in these industries to adopt CRM solutions, to improve
levels of customer support. Even SMEs are expected to
go for some sort of CRM solution that would help them
service customers better.
average amount allocated for automation/customized
software has gone up from Rs 131 lakh to Rs
227 lakh for the current year
In 2002-03, most enterprises are looking forward
to investing in ERP, data warehousing/data mining
and CRM applications
87 percent of the respondents state their requirement
for automation/customized software has increased
59 percent of the respondents say they have
some sort of ERP in place
For 2002-03, the manufacturing sector is expected
to invest heavily in ERP and SCM
Many companies in Banking/Service industries
are also expected to invest heavily in automation/customized
50 percent of the respondent in the Banking/Service
sectors said they are going in for CRM and 40
percent highlighted their interest in data warehousing/data
5 benefits CIOs SEEK
in operational efficiency
Better customer service
Faster business decision making
Meet core business demands