BEIJING, May 14 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, recently released the latest analysis report on China's Management Software Market in 2007Q1, which shows that the market reached a total size of 1.403 billion Yuan in 2007Q1, up by 20.4% year-on-year.
Mou Shuhui, general manager of the Software Industry Research Center of CCID Consulting, said the main driving forces for the growth of China's Management Software Market include the following aspects: first, medium- and large-sized businesses' growing demand for HRM software shows that HRM will become a key area of investment for users in 2007. In Q1, HRM software grew by 26.0% year-on-year, the fastest-growing product segment. In addition, BI has received wide attention. Though there are big differences in the level of BI applications in the market, current applications mainly include data mining, report form and simple financial analysis. However, the growing demand for BI among users who have established ERP systems in the past few years have to a certain extent driven up the growth of investment in CRM and SCM software.
In 2007Q1, the management software market showed the following growth characteristics:
1. SOA brought the pattern of management software brand competitions to a stage of adjustment.
Currently, SOA is mainly reflected as a concept. It is a methodology of architecture service systems. It achieves better interconnection between IT systems and better interaction between IT and services. Currently, Webservice is a much used means of realization. But technically, SOA is not yet a revolutionary method. In particular, slow unification of standards has brought the genuine implementation of SOA in to a state of chaos. It is precisely this state of chaos that has provided vendors with an opportunity to consolidate or change their positions. SAP's Netweaver and Oracle's Fusion are both leading SOA-based business infrastructure platforms in the industry. For local vendors, Kingdee's BOS, Langchao's GSP and Golden Abacus' VP are representatives. From the practical side, such platforms are designed to help vendors to improve development efficiency and product reusability. Second, they also support users' flexible business workflows. The market convergence towards SOA indicates vendors' leadership in technology R&D, product upgrading and business understanding. For SAP and Oracle, SOA is needed to consolidate their market position and fiercely compete with each other. For Infor, Langchao, Kingdee and Golden Abacus, SOA provides a good opportunity to overtake their competitors.
2. Industrialization took management software into a new development stage.
After the stage of its customization and general use, management software has now entered a stage of industrialization on the basis of general use. Good software is invariably industrialized software. There are big variations in business characteristics and IT infrastructure between the logistics, manufacturing, banking and transportation industries. Even in the manufacturing industry, workflow manufacturing and discrete manufacturing also have different system function demands. In addition, “small variety but big batch volume,” “big variety but small batch volume” and “customized production” management models are different from one another. This therefore requires management software vendors to gain a profound understanding of the features of business models and systems demand in the industry segments, and provide industrialized solutions on the basis of general-purpose products. Ufida and Kingdee are typical management software vendors which have developed from standardized financial software. They have certain advantages in general-purpose software and rely on large-scale product sales to win in the market. But, after users have established general-purpose infrastructure, their industrialized demand will become more notable. In particular, high-end industry customers need industrialized solutions more. If Ufida and Kingdee cannot well adjust their business strategies, their future development will face a grave challenge. For example, Langchao has had in-depth experiences in ERP in the energy, military, tobacco and pharmaceutical sectors, while QAD focuses on auto making. Digital China has management system advantages in the manufacturing industry, while Baosight Software concentrates on the iron and steel manufacturing industry. Last year, Kingdee acquired Godline in a move to strengthen its experiences in the manufacturing industry. In addition, a large number of professional vendors are active in certain industry segments such as foreign trade, pharmaceuticals, wholesale and retailing and textile. It is easy to change from industrialized software to general-purpose software, while it is difficult to change the other way around. The trend of industrialization will allow vendors with industry experience advantages to get a more favorable market position.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global. Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com .
For more information, please contact:
Grace Gao
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9020
Email: gaojie@ccidconsulting.com
