SaaS is the feng shui. Since its birth, SaaS has its own symbol of “eliminating traditional ERP management softwareâ€. News exposure and financing news are endless. The data shows that the penetration rate of China's SaaS market in 2017 has reached more than 90%. In the past year, NetSuite, Marketo, Fleetmatics, and LogMeln have been acquired or merged in succession, with a total value of more than $50 billion. Capital and giant companies also clearly smell the business opportunities behind SaaS and the business value hidden in them.
In contrast, the voice of traditional ERP management software vendors is much worse. But obviously, veteran software vendors are not willing to sit still. As early as around 2012, the veteran management software vendors represented by SAP and Oracle began to silently transform the cloud through their respective efforts.
Xie Peng, general manager of Oracle Enterprise Application Consultant, mentioned that "ERP will be the main battlefield for SaaS battle. As enterprise software, if you can't take the ERP market, you can't say that you are the dominant player in the enterprise SaaS market."
To this end, as the old ERP management software vendor emerging in the PC era, the cloud era will not be able to give up this opportunity to turn over. In the era of "the rapid elimination of the traditional manufacturers will be advanced" has become a politically correct moment, the major domestic manufacturers have begun a high-profile strategic transformation, coupled with the power, e-commerce, real estate, catering and other sub-sectors to expand the volume Suppliers are also looking for opportunities to seek breakthroughs. How will they turn lightly, build barriers, and avoid being overtaken by new forces?
According to the monitoring report of the ERP market jointly released by T-Shuhui and Yunge Enterprise Headline Monitoring Center in the past six months, from the Baidu search index, WeChat search index, brand volume, media volume, netizen volume and other major dimensions, there are ten ERP brands at home and abroad. For comparison, it shows:
The foreign management software giants represented by Oracle and SAP have always been the main role models for users to “click†(learn). Domestic manufacturers represented by Kingdee and UFIDA maintain a staggered relationship in media volume; The market voices of manufacturers in the sub-segments such as Yuanguang seem to be far less frequent than the fall of Huang Meiyu.
If you think of SaaS as subverting everything and even subverting traditional PC software, then you are wrong. The real situation is that the domestic ERP market will continue to enter a battle for veteran manufacturers to fight against each other, new SaaS backed by big squad, and foreign giants trying to re-divide the pattern.
First, the problem is heavy, the cloud ERP project is in vain
Gartner predicted in March 2016 that almost all cloud ERP projects will be burned in 2018.
Because SaaS will also suffer from the same problems as traditional ERP: too complex, costly, and integrable.
1. Too complicated. This combined and loosely coupled system is no longer provided by a single monopoly vendor such as SAP or Oracle.
2, high cost. This new environment will make business security more agile only when complexity is increased to a certain extent. Previously, 25 years or more after the ERP solution entered the application market, many ERP projects still had problems in time and cost, and jeopardized the user's own business production. SaaS will face the same problem.
3, can not be integrated. If users want to bring their business to the cloud, but they lack the ability to integrate applications, they can only rely on cloud providers for management. For suppliers, the investment of upfront funds is a big problem in itself. If there is no practical experience and professional consulting team, it will be difficult to ensure the success of cloud ERP project implementation.
Second, the advantages and disadvantages coexist, the survival of pure SaaS manufacturers is difficult
In the view of many ERP vendors, choosing to cloud the technology architecture and relying on free gimmicks to obtain users is basically unrealistic. They are interested in how to open up internal business processes and provide comprehensive consulting services in conjunction with big data.
For example, the catering ERP manufacturer, such as the cloud, uses the SaaS method to open up the store efficiency tools such as booking, ordering, and cashier with the back-end systems such as inventory, purchasing, and kitchen through a set of software. Next, the virtual credit platform generated by the data precipitation as the core will bring more financial consumption scenarios to financial service institutions.
The same difference for Tianrong Shanglong, the ERP management software vendor in the catering industry, is the transformation of SaaS. Most of the food and beverage outlets still use offline software on the PC side. The internal management system is informatized and intelligent, and cannot be effectively interconnected with consumers, other businesses, and Internet platforms. It has long been in a state of closed islands. As a result, pure SaaS vendors like Keru will be difficult to reach. Currently, according to industry sources, most SaaS vendors have less than 10% penetration in the entire food and beverage market.
In the traditional software field, some established manufacturers still have an absolute advantage, as long as the business can contribute a lot of revenue to the company and encircle a large number of fixed customers, especially when there are still large customers in the market that need to be highly customized and have high security requirements. . From a technical point of view, today's SaaS is not very mature, and it is difficult to meet the needs of customers who have high requirements for customized ERP systems.
In fact, the traditional ERP vendors have a clear advantage in transforming SaaS services, and they are more accurate in grasping the details of product landing. However, pure SaaS vendors are developing rapidly, but they are faced with a crisis that cannot win the "people's heart".
Third, products, markets, financing - witness the new life and death of ERP competition
Coupled with the catalysis of the capital market in the past two years, the new entry into SaaS has long lost the ease of perfecting products and then vying for the market. However, in a few years, this market has directly started the multi-dimensional comprehensive competition stage of products, markets, and financing capabilities.
The reshuffle of the cloud ERP market segment will gradually accelerate. If the traditional ERP vendors' own funds cannot fill the black holes generated by the cloud on the business, they will be eliminated first.
Even a well-funded general-purpose ERP vendor will face a surge in talent costs and mergers and acquisitions costs when transforming SaaS, and the pressure on internal and external environments such as shareholders and investors is still not small. At present, in the ERP market involved in SaaS, there should be no supplier to turn around. Although the SaaS market began to mature, SaaS's profit margin began to expand, and SaaS vendors began to learn to use channels to open up markets in second and third tier cities. In the future, ERP vendors will inevitably have a fierce fight against newcomers who started from SaaS.
Fourth, several features that cloud ERP products need to have
1, complete. Cloud ERP should be combined with the best business practices standardized in the enterprise. Provides financial, procurement, and project management applications that run in both cloud and local deployments.
2. Globalization. The global market needs to operate flexibly and also needs the ability to quickly capture new markets. Meet local regulations, data residency requirements, localize business, payables, accounts receivable and general ledger, cash management, collections and fixed assets, seamlessly span, operations, business units and headquarters.
3. Insight drives. The corporate finance department needs to ensure that data is captured in real time. Cloud ERP systems provide multi-dimensional analysis and data visualization for a single source such as roles, reports, and analytics. Frontline managers can provide real-time accurate KPIs, and the way that relied heavily on manual reconciliation or data warehousing to extract information has been largely simplified.
4. Digital. Access via a user-selected device (including smartphones and tablets), localized collaborative social integration of scenes, and optical character recognition for invoice imaging.
5. Security. The main function of the finance staff is to fight risk, but with cloud ERP can also provide enterprise-level security and compliance, such as monitoring response frequency, providing continuous backup, providing redundancy, and multiple security certifications, and even guarantee cloud servers. The physical location, which far exceeds the capabilities that the enterprise itself can provide.
6, personalized. Customized solutions to meet business needs without IT intervention, otherwise over-customization will make it difficult to guarantee product iteration or scalability. PaaS-based delivery methods can be used to further extend the application while maintaining an upgrade security.
7, can be connected. In a standard cloud ERP system, all modules are tightly integrated and easily connected to other cloud and local systems with automated processes and standardized development tools.
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