07/06-04   -   Pressemeddelelse

Enterprise Applications Find Growth Among Swedish SMBs, Despite Growth in Overall IT Investment, Says IDC

The Swedish market for solutions in finance management, HR management, supply chain management (SCM), and customer relationship management (CRM) grew 2% in 2003 despite a decline in the total IT market of 5%. This is one of the conclusions of a new analysis published by IDC, which also found that the finance management area in particular has developed positively.

"The need to keep detailed track of the economic realities increases in tough times and Swedish companies have invested in solutions and enhancements that integrate data from all sources to provide fast overviews in order to react quickly to changing conditions," said Mette Ahorlu, Nordic consulting manager, IDC. "Although there is nothing fancy about finance management, these solutions are key cost saving tools."

SCM is also developing positively. Large Swedish companies invested early and there are many legacy solutions still working well in SCM. IDC believes that the next few years will see rapid growth in migration to standard packages and more integration with back-office solutions. CRM, in contrast, is more of a business enhancement tool, and many early adopters have been disappointed, so fewer invested in CRM in 2003. IDC believes it will be some time before this market takes off.

There is strong competition for enterprise solutions in Sweden. As well as business suites competing heavily to gain share at the expense of solutions dedicated for specific functions, system integrators must also compete vigorously.

Services accounts for more than two-thirds of the total solution. Services such as consulting, implementation, and adaptation are typically provided by a systems integrator. IDC found the Swedish market to be highly fragmented because the large system integrators have a strong focus on SAP, and therefore compete mostly with each other.

Nevertheless, there is a large market for other solutions as well. Some of the largest system integrators had very difficult times in 2003 and are only slowly recovering, so their interest in the enterprise solution market is strong. "With no real market leaders in a growing market there are lots of opportunities, but the vendors will need to differentiate," said Ahorlu. "Integration capabilities and business competence will be critical. Although there is a lack of SAP consultants, technical skills are no longer enough to win customers. Technical expertise is taken for granted today; it is much more about being a convincing partner. The vendor´s ability to approach business processes and eventually business process outsourcing that go straight into the finance and HR management area will be important."

The IDC study Sweden Enterprise Solutions 2003 Vendor Shares and 2004–2008 Forecast (IDC #SE560441L, May 2004) analyzes finance and HR management, SCM, and CRM, providing market shares and 5-year forecasts. It analyzes the maturity of the market segments and potential in the SMB sector and includes an analysis of the leading suppliers´ potential for gaining market share in the future.

To purchase this document, contact your local IDC office or visit www.idc.com.

About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world´s leading technology media, research, and events company. Additional information can be found at www.idc.com
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For more information, contact:
Mette Ahorlu
+45 39162222
mahorlu@idc.com