Battle of the Buzz

According to AMR, ECM is taking the e-commerce spotlight

Scottsdale, AZ -- May 25, 2001  Tired of hearing all the buzz about CRM? Well, there's good news. Now you can begin to grow tired of another acronym.

According to new market forecasts from AMR Research, the Enterprise Commerce Management (ECM) market for applications and services is expected to reach $264 billion by 2005, up from $108 billion in 2001. More than a third of this revenue is expected to be driven by the applications segment.

"AMR Research has conducted extensive research to draw a number of conclusions about the evolution of the ECM market over the next four years, said Bob Parker, Vice President, Enterprise Commerce Management. Despite tough market conditions, and some hesitation in spending, AMR Research believes companies will continue to invest in core ECM-related applications that will enable them to maximize existing IT investments and experience immediate and long-term ROI.

AMR Research conducted a survey of more than 900 software vendors, measuring revenue and growth within the following application segments within the ECM market: 

Enterprise Resource Planning (ERP):  AMR Research predicts total ERP company revenues will grow at a 14 percent CAGR improving to $36 billion in 2005 from $21 billion in 2001. Leading vendors, including SAP AG, Oracle, Peoplesoft, J.D. Edwards, and Geac Computer Corporation, account for 67 percent of total market revenue in 2001. AMR Research also found that ERP vendors that support ECM are outperforming those that do not. Analytics are driving multiple enterprise application value propositions and profit optimization.

E-Procurement: AMR Research predicts the e-procurement market will reach $8 billion in 2005, up from $2 billion in 2001. Ariba, Commerce One, SAP AG, Peregrine and Oracle round out the top five vendors in this space. E-sourcing is emerging as the real growth engine in e-procurement with a five year CAGR of 43 percent.

Supply Chain Management (SCM) The SCM market leaders include i2 Technologies, SAP AG, International Business Systems, Manugistics, and J.D. Edwards. With an estimated CAGR of 32 percent, AMR Research predicts the SCM market will grow from $6.7 billion in 2001 to $21.1 billion in 2005. Extended supply chain functionality is driving the majority of new spending in areas including collaborative SCM, demand management, replenishment, and supply chain event management.

Product Lifecycle Management (PLM): The PLM market and growth rates are strong even in the current economy. Innovation management is beginning to take advantage of the Internet platform. AMR Research predicts the PLM market will climb to $8.1 billion in 2005 from $1.7 billion in 2001. The top five vendors of PLM software account for 48 percent of the market and include PTC, SDRC, MatrixOne, ENOVIA Corporation and Agile Software.

Customer Management: The economy will temporarily slow down CRM investment, but will rebound later this year based on business priorities. The customer management market consisting of sell side e-commerce applications, marketing and selling and support & service is expected to grow from $14.1 billion in 2001 to $37.8 billion in 2005. AMR Research predicts a 29 percent CAGR over the next five years with channel management, analytics, and content management driving growth. Siebel Systems, BroadVision, Nortel Networks, Vignette and Oracle lead the pack in this space.

B2B Commerce Platforms The B2B commerce platform market is rapidly growing and will remain ubiquitous as companies adopt the ECM model. AMR Research predicts the B2B commerce platform market will reach $8.3 billion by 2005 from $1.9 billion in 2001 with an estimated CAGR of 47 percent over the next five years. The leading vendors in this market include Commerce One, Ariba, Oracle, i2 Technologies and SAP AG.  


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