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China ERP SMB Market Development 2005
Analysys International, March 2005, Pages: 98


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SMB businesses involved in this study are high-level small and medium-sized businesses. Among the four types of SMB businesses defined, the starting ones, the entry-level ones, the mid-level ones and the high-level ones. The other three types have not been covered in this study because they have not applied management software, stand-alone version management software or network version individual services management software and ERP.

ERP studied in this report refers to software products integrating multiple management software modules and covering multiple areas of business management and the network version individual services management software that can be used as an effective module for ERP (the report has discussed the market volume for management software in two cases, including or excluding individual services management software). Of all management software, the stand-alone version software is not covered by this report.

Any market performance of a management software vendor involved in this report, when not noted specifically, refers to the ERP market performance of the management software vendor on the market for high-level small and medium-sized businesses, including individual services management software that can be used as ERP modules.

The report mainly reveals to readers the following key study results:
- Key factors for SMB ERP market vendors to be successful and analysis of the standard for SMB businesses to choose ERP vendors.
- Analysis of development and growth conditions for China's SMB ERP market in 2004 and assessment of key vendors' market performance.
- Development trend analysis of China's SMB ERP market and prediction of 2005-2006 market capacity growth.
- Overall competitiveness assessment of China's key SMB ERP vendors in 2004.
- Prediction of competition conditions on China's SMB ERP market in 2005.

Key Study Methodology
This report comes to relevant conclusions mainly through in-depth interviews with major management software vendors on the SMB market and part of small and medium-sized businesses, combining 550 macro-sample surveys for small and medium-sized businesses, analysis of financial statements released by listed management software companies and other second-hand information, our analysts' years of industrial experience and long-term tracking and studying for small and medium-sized businesses' IT applications and SMB management software market.
First-hand information mainly comes from:
- In-depth interviews with major SMB market management software vendors' chief marketing officers, deputy executive general managers or directors of strategic marketing divisions, marketing divisions, sales divisions, etc.
- In-depth interviews with part of small and medium-sized businesses.
- Macro-sample surveys for 550 small and medium-sized businesses in Beijing, Shanghai, Guangzhou, Chengdu and other areas.
10 management software vendors participated in the in-depth interviews: SAP, ORACLE, QAD, ESG, Yongyou software, Kingdee software, Digital China, Newgrand, Hejia software and Riamb software.
5 small and medium-sized businesses from each of Beijing, Shanghai, Guangzhou, Chengdu and other areas participated in the in-depth interviews.
Macro-sample surveys: 550 small and medium-sized businesses in Beijing, Shanghai, Guangzhou, Chengdu and other areas.
- The second-hand information is mainly public information that comes from the following sources:
- Information in the public domain of the industry
- Opinions vended by senior industry experts
- Data and information provided by relevant government departments
- Related economic data
- Annual and quarterly reports of enterprises
- Interviews with product users
- Financial analysis and reports by financial analysts
- Information from the Internet
- Database

Due to the fact that we depend on the information obtained through interviews with manufacturers/channels to reach its conclusion on the scale of market, the data provided by manufacturers on the types of products they offer, their operating revenues and marketing activities shall have a considerable impact on the final analysis of the reports.
The data reported is the result obtained after repeated crosschecks. We are confident that the reported data is accurate and meaningful.



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