ERP market prospers again in economic difficulties
-   +   A-   A+     20/07/2011
Economists once warned that the economic difficulties and the policies to cut down public expenditure would make the ERP (enterprise resource planning) solution market fall. However, contrary to all predictions, the market has been prospering.

Economists once warned that the economic difficulties and the policies to cut down public expenditure would make the ERP (enterprise resource planning) solution market fall. However, contrary to all predictions, the market has been prospering.       

More and more contracts inked

FPT IS, Tinhvan Consulting and SS4U are the three big names which reportedly obtained many ESP contracts in the first six months of the year.       

FPT IS, for example, has provided ERP solution to Tan Dai Thanh Group and Ficombank. Especially, the contract with Ficombank is really a big contract, where FPT IS helps the bank build up the information technology infrastructure from the beginning, from the switching system, database, software system, banking solutions and core banking, data backup systems, VoIP, virtualization and resource management.

Ficombank hopes that the solutions would effectively help step by step, renovate its operation and help it turn into a professional retail bank.       

Tinhvan Consulting has also obtained the contract to provide HiStaff, the software solution for the human resource management, to Sabeco, a brewery producer and Habubank. Meanwhile, SS4U has provided ERP solutions to pharmaceutical enterprise Agimexpharm and seafood company Anvifish.

Nguyen Tuan Hung, Deputy General Director of FPT IS, keeps optimistic about the market’s demand, saying that enterprises still keep following the ERP plan, despite the current big difficulties, because they well understand that these are the solutions which help them gradually improve their business efficiency.

The ERP market has also welcomed new faces, including the ones which have just joined the market and the ones which have returned to the market, namely Gimasys, Vietsourcing, WorldSoft, HPT, CMC and Tectura Vietnam.           

Especially, the firms which have been specialized in software outsourcing, such as Fujinet and Global CyberSoft, have also jumped on the bandwagon.        

Solution providers target SMEs  

Fujinet has joined the market since late last year, when it launched ERP FujiCocktail, a product targeting small and medium enterprises SMEs in Vietnam.    

Nguyen Dang Phong, General Director of Fujinet, said Vietnam’s ERP market is relatively small in comparison with other markets in the world, while ERP in Vietnam mostly focuses on big companies. Meanwhile, ERP proves to be very useful for SMEs.   

Sharing the same view, Nguyen Van Khuong, General Director of Effect, a software company, said that some SMEs have the demand for modules in ERP, once they still have not got ready for comprehensive ERP contracts.   

Analysts have pointed out that the market segment for SMEs has been left open, while solution providers have not paid appropriate attention to the market segment. The problem is that clients always demand low cost ERP solutions, which can be implemented quickly and conveniently.   

However, solution providers have realized that SMEs should be considered potential clients, because SMEs account for 90 percent of the total enterprises in Vietnam.          

Khuong from Effect said that besides comprehensive customized ERP solutions, his firm will also standardized the 11 existing modules to make them into specific products, which can serve different demands from SMEs in terms of human resource management, or equipment and machine management.

As for Fujinet, Fuji Cocktail ERP has been designed for the clients who have the annual income of less than 100 million dollars. In order to help enterprises save money, Fujinet applies the way of calculating royalties in accordance with current users instead of named users.   

Meanwhile, Oracle has also been eyeing SMEs. On his visit to Vietnam in April 2011, John Hansen, a senior executive of Oracle, said that the firm has brought ERP to Vietnam and localized the product. To date, over 100 enterprises have applied it, mostly financially capable enterprises such as Vinamilk, Dong Tam and Thep Viet.           

In order to help SMEs apply ERP with reasonable expenses, Oracle has launched OBA Oracle Business Accelerate that fits the production and consumer trading sectors.       



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