ERP/Business Application in Japan: Key Research Findings 2014
Research Outline
- Research period: July to October, 2014
- Research target: 617 domestic companies and local governments
- Research methodologies: In-mail questionnaire
<What is an ERP (Enterprise Resource Planning)?>
It is an enterprise software package for building an integrated system for corporate mission-critical tasks, such as accounting, HR, sales administration, production management, etc. that used to have been operated separately within the company.
Summary of Research Findings
- Migration of Systems in Progress from In-House to Packaged Software
According to questionnaire conducted to local governments and private companies in Japan, the ratio of in-house systems used for sales management is 51.1%, for assembly & production/SCM 56.0%, and for process manufacturing 56.3%. It means that more than 50% of the surveyed private companies and local governments are still using their own in-house systems for the above-mentioned business tasks.
However, as for the companies and local governments scheduled for system update, the utilization ratio of in-house systems after the system update decreases to 28.7% for sales management, and to 22.6% for assembly & production/SCM, down by 20 to 30 points from the current utilization ratio. It indicates that the companies and local governments facing system update are planning to replace their in-house systems with packaged software. This tendency is likely to increase as functions of packaged software become diverse and applicable to various industries and business tasks.
- Transforming of Business Using Cloud Shows Little Progress, Except for CRM/SFA Where SaaS Has Been Preferably Used
Today, companies most use SaaS for CRM/SFA, with utilization rate of SaaS for CRM/SFA accounts for 12.9%. The research shows that utilization ratio of SaaS for CRM/SFA among the companies and local governments scheduled for system updates is likely to grow further after the system update to 29.0%, up by 16.1%. On the other hand, the utilization ratio of SaaS to financial affairs/accounting after the system update only accounted for 5.1%, a slight growth from the current 2.4%. It is because some large foreign vendors lead SaaS service market in the category of CRM/SFA, so that user companies tend to select SaaS rather than packaged software for CRM/SFA. However, use of SaaS for other business tasks is not likely to increase in a rapid manner, for companies have no strong intention of using it.
- Figure & Table 1: Utilization Ratio of In-House Systems and Ratio of Introducing In-House Systems Planned at Next Occasion of System Updates
- Figure 2: Utilization Ratio of SaaS (including ASP) and SaaS (including ASP) introduction Ratio Planned at Next System Update
