Downsized earnings?UNLIKE IN THE UNITED STATES United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , SOFTWARE companies specializing in Enterprise Resource Planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) are still hot in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . But those in the know say programs that allow companies to automate everything from billing to human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. management are headed toward smaller customers and slimmer margins. Program sales jumped 47% to US$535 million in the region last year, according to the International Data Corp. (IDC). The research group is predicting that firms such as SAP, Datasul and Baan will continue to grow, but only 12% to $600 million this year due to Brazil's economic problems, before bouncing back in 2000. "There is still lots of room for growth," says JDC JDC Joint Distribution Committee JDC Java Developer Connection (Sun Microsystems) JDC John Deere Credit JDC Jubilee Debt Campaign (UK) JDC Juvenile Detention Center JDC Judicial District Court analyst Luis Correa. "Areas like business intelligence and customer relations management are still in their infancy." A look behind the figures, however, reveals a less rosy picture. With many large companies already switched to ERP, the software makers are pushing product into smaller companies. That has forced them to shave margins in order to bring their price tags within reach of new buyers. Many suppliers also lack distribution to reach smaller clients, forcing them to rely further on middlemen like the Big Five accountants, says consultant Enrique Carrier, "and in this business the company that installs the system often earns more than the [software] designer." So, while ERP sales are still roaring, the programmers themselves may see diminishing returns.
ERP MARKET SHARE FOR 1998
SAP 41.9%
Datasul 7.6%
Baan 5.5%
JD Edwards 4.8%
SSA 4.4%
Peoplesof 3.4%
Oracle 3%
Others 29.4%
SOURCE: IDC
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