Applications that Resolve Edge Business Problems Will Drive Enterprise Software Market for Next 5 Years, Says Yankee Group.

BOSTON -- Business process automation at the edge of the enterprise will be the next technology battleground--XML will play pivotal role

Companies are buying software to remove barriers that inhibit the speedy and accurate exchange of information between themselves and their customers, suppliers and service providers. As the economy improves, this trend will accelerate, and an increasing share of IT budget will be directed toward externally facing supply and demand management solutions, according to the Yankee Group report, Build an Effective Business Case for B2B Integration: Assess TCO and Benefits.

Today's market leaders are defining their corporate success by technology strategies that are new and differentiated. Wal-Mart, Intel, Lucent, HP, and their peers are leaders in changing how companies interact with suppliers and customers. Now, others in their supply chains are following suit. As integration costs fall and new technologies mature, companies that make, move, or sell products need to consider alternative supply-chain integration approaches.

"Market leaders have an agenda to improve electronic relationships with supply-chain partners. Now, these partners face a daunting challenge in defining a concrete business case for XML and Internet technology investments," says Kosin Huang, Business Applications & Commerce senior analyst. "Companies that currently use or plan to use interoperability standards, software, or services say that their organization's reason for investment is directly because of a supplier or customer request. These companies require a more substantial business case for investing in interoperability. Beyond simply meeting influential partners' demands, many enterprises are uncertain about quantifying TCO and identifying business objectives."

Developing an effective supply-chain integration strategy for the long term requires that companies address these two areas before they can realistically justify or refute technology options.

PRESS CONTACT

For interviews, contact Kosin Huang, [e-mail]

THE YANKEE GROUP (http://www.yankeegroup.com)

The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.