Yankee Group forecasts investments in order management process automation and integration will accelerate in 2004
Boston September 22, 2003 Distributed order management (DOM) has been the key focus of IT initiatives and a significant expense for many companies as they continue to automate and integrate various pieces of the order-to-cash cycle, from order capture to customer fulfillment and settlement, according to a new report from analyst firm Yankee Group.
Kosin Huang, Yankee Group Business Applications & Commerce senior analyst, said, "We believe today's IT investment in DOM business problems reveals a $4.9 billion opportunity that will grow to $13.3 billion by 2007." She explained that end-user companies will continue to resolve DOM problems by building systems on application tools and customizing packaged applications. However, software vendors will begin to capture more product revenue as they increasingly offer out-of-the-box functionality to complete DOM strategies.
Custom development strategies are the norm, bringing significant revenue to system integrators, enterprise application integration providers, application server vendors and portal providers.
The report examines the total IT investment companies dedicated to DOM business problems by product category and vertical market segments (including high-tech, telecom, retail, consumer packaged goods, chemicals, and wholesale trade and distribution industries).
The Yankee Group said it believes that by 2007, custom development strategies no longer will dominate DOM, as vendors strive to meet customer needs. The critical success indicator will be vendor technology developments in DOM architecture and whether they can provide an integrated DOM offering that lowers total custom development and integration expense.