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Latin America 2008 Enterprise
Applications Market Overview
Software Market Trends



IDC Latin America

                                                                                        Presentation prepared for:




Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Agenda




              Market Overview 2009-2010

              Market Analysis

              Competitor’s Analysis

              Follow The Money

              Conclusions For The Studies




 © 2009 IDC                                 2
Agenda




              Market Overview 2009-2010

              Market Analysis

              Competitor’s Analysis

              Follow The Money

              Conclusions For The Studies




 © 2009 IDC                                 3
Agenda




              Market Overview 2009-2010

              Market Analysis

              Competitor’s Analysis

              Follow The Money

              Conclusions For The Studies




 © 2009 IDC                                 4
Addressable Markets: ERM still remains as the
   biggest market
                                                                                                       Applications Addressable Market
                                                                                                              Latin America, 2008
                                          25%


                                                                                  CRM Applications
                                                                                   20.21% growth
SW Revenue (% of Growth) Year 2007-2008




                                          20%

                                                                                                                                         Enterprise Resource Management
                                                                                                                                                    Applications
                                                     Operations & Manufacturing                                                                    15.99% growth
                                          15%                Applications
                                                           12.21% growth


                                                                                       Supply Chain Management
                                                                                              Applications
                                          10%                                               10.69% growth




                                           5%




                                           0%
                                                0%                   10%                    20%                  30%             40%                50%               60%   70%

                                                                                                     Share as a % of Applications Market for 2008


                                          © 2009 IDC                                                                                                                              5
SCM

“The continued need to automate supply- and
demand-side business processes”




Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
SCM Forecast
Latin America SCM Applications Market Forecast (US$M) & Annual Growth 2007 – 2013
                 Assumptions
 The market for supply chain solutions has
     entered an era in which ERP vendors
     and smaller niche vendors rule.
     Today, customers want to integrate the
     operation of supply chains with                              US$ Million
                                                                                                                     Growth (%)
     everything else they do, which weakens                       $400
                                                                                                                     $344
                                                                                                                            20%
     the case for larger standalone                               $320
                                                                                                              $309
                                                                                                       $281                 15%
     implementations.                                                                    $245   $259
                                                                                  $237
                                                                                  11%                                 11%
                                                                  $240   $215
                                                                                                       8%     10%
 The economic uncertainly will depress                                                                                      10%
                                                                  $160                          6%
     spending on SCM applications.
     Companies would try to manage their                                                 3%                                 5%
                                                                   $80
     operations with the same resources
                                                                    $0                                                      0%
     they have right now.
                                                                         2007     2008   2009   2010   2011   2012   2013
 IDC expects that the current pressure on
                                                                                Market Size (US$ M)      Growth (%)
     most companies to reduce costs will
     lead to new initiatives to outsource tasks
     and processes and thereby increase
     supply chain complexity. This increased
     complexity will bolster the case of
     investments in packaged SCM
     applications.
  © 2009 IDC   Source: IDC Latin America Semiannual SCM Applications Tracker 2008                                            7
SCM applications are also perceived
as a way to reduce costs
                     IT Solutions Current Adoption in LA
                                 SCM Market

                                                    Internal
                                                  Development
                                                      28%
                                                                            100% Custom
             Don't have it
                                                                              External
                 48%
                                                                              Develop
                                                                                8%

                                                              Packaged
                             Outsourcing                      Software
                                 1%                           licenses/
                                                              upgrades
                                                                 15%


© 2009 IDC                   Source: IDC LA IT Investment Trends 2009 (N:647)             8
SCM Applications Market Share
Latin America Supply Chain Management Applications Market Share by Vendor
(% of Revenue) 2007 – 2008


          SAP AG             TOTVS             Oracle Corp.                          Competitive Highlights
          Infor              Neogrid           SAS Institute
          Others                                                              SAP focused on improving SCM
                                                                                integration with demand
                                                                                planning, enhancing also the
               20.5%                             19.7%
                                                                                support of supply chain
               2.89%                             3.05%                          communications and
               2.84%                             3.35%
               4.3%                               3.8%                          collaboration, and compliance with
               8.1%                               9.0%                          regulatory requirements.
                                                                              Oracle announced an upcoming
               20.9%                             19.7%
                                                                                product, Oracle Rapid Planning, one
                                                                                of the newest components of its
                                                                                Value Chain Planning offerings. The
                                                                                focus is to provide an holistic
               40.5%                             41.4%                          approach from demand planning to
                                                                                advanced SCM.


               2007                              2008
  © 2009 IDC    Source: IDC Latin America Semiannual SCM Applications Tracker 2008                                    9
SCM Applications Market by Segment and
Vertical Industry
Latin America Supply Chain Management Applications Market Share by Company Size &
Vertical Industry (% of Revenue) 2007 – 2008
US$ Million                 2007      2008       Growth 2008-2007                       Growth %
                                                                                                               Both, large and medium
$140                                                                                           25%
                                                       20.7%
$120
           13.2%
                                                                                               20%             sized companies think that
$100                       11.8%                                                               15%
                                                                                                               closer collaboration with
 $80                                                                                           10%
 $60                                                                                           5%              suppliers is seen as an
                                                                               -2.6%
 $40                                    -4.7%                                                  0%              important route to improving
 $20                                                                                           -5%
 $0                                                                                            -10%
                                                                                                               supply chain responsiveness
       Large Business   Medium     Small Business Government               Education                           and decision-making times.
           (500+)    Business (100-  (10-99)
                          499)


                                                      US$ Million
                                                                                             2007            2008           Growth 2008-2007                      Growth %
                                                    $120                                              59.4%                                                           70%
      Manufacturing and                              $90
                                                                                                                                                                      60%
                                                                                                                                                                      50%
                                                                   1.9%                                           24.0%                                               40%
  Commerce are expected to                           $60                                                                    16.6%       20.7%
                                                                                                                                                   12.6%              30%
                                                                               14.5% 3.9%                                                                             20%
   keep the SCM market up                            $30                                                                                                      -2.7%   10%
                                                                                                                                                                      0%
                                                       $0                                                                                                             -10%
                                                                           ce




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   © 2009 IDC      Source: IDC Latin America Semiannual SCM Applications Tracker 2008                                                                                   10
Essential Guidance – SCM Market

                Highlight                            Recommendation
Many companies are pointing out the       Offer accelerated implementation tools,
need to reduce long-term projects.        and greater/better usage and adoption of
                                          installed solutions, while recruiting
                                          specialist partners with local and
                                          industry-specific knowledge to ensure
                                          successful implementations.
SCM applications are also perceived as    Strengthen the cost-saving element of
a way to reduce costs related to          Oracle's value proposition. The existing
inventory levels, personnel, and waste.   ROI framework should be extended to
                                          show concrete savings.

Certain supply chain issues remain,       Highlight the importance of
despite the current economic crisis.      enhancements in the supply chain
                                          processes. These are necessary
                                          measures to gain competitiveness to
                                          stand out.


 © 2009 IDC                                                                          1111
Contact Information


                      Please send your comments to:

                      Mariana Zamoszczyk (Applications)
                                mzamoszczyk@idc.com

                         Alejandro Florean (SW Director)
                                      aflorean@idc.com




© 2009 IDC                                                 12

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IDC e o SCM para 2009

  • 1. Latin America 2008 Enterprise Applications Market Overview Software Market Trends IDC Latin America Presentation prepared for: Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 2. Agenda Market Overview 2009-2010 Market Analysis Competitor’s Analysis Follow The Money Conclusions For The Studies © 2009 IDC 2
  • 3. Agenda Market Overview 2009-2010 Market Analysis Competitor’s Analysis Follow The Money Conclusions For The Studies © 2009 IDC 3
  • 4. Agenda Market Overview 2009-2010 Market Analysis Competitor’s Analysis Follow The Money Conclusions For The Studies © 2009 IDC 4
  • 5. Addressable Markets: ERM still remains as the biggest market Applications Addressable Market Latin America, 2008 25% CRM Applications 20.21% growth SW Revenue (% of Growth) Year 2007-2008 20% Enterprise Resource Management Applications Operations & Manufacturing 15.99% growth 15% Applications 12.21% growth Supply Chain Management Applications 10% 10.69% growth 5% 0% 0% 10% 20% 30% 40% 50% 60% 70% Share as a % of Applications Market for 2008 © 2009 IDC 5
  • 6. SCM “The continued need to automate supply- and demand-side business processes” Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 7. SCM Forecast Latin America SCM Applications Market Forecast (US$M) & Annual Growth 2007 – 2013 Assumptions The market for supply chain solutions has entered an era in which ERP vendors and smaller niche vendors rule. Today, customers want to integrate the operation of supply chains with US$ Million Growth (%) everything else they do, which weakens $400 $344 20% the case for larger standalone $320 $309 $281 15% implementations. $245 $259 $237 11% 11% $240 $215 8% 10% The economic uncertainly will depress 10% $160 6% spending on SCM applications. Companies would try to manage their 3% 5% $80 operations with the same resources $0 0% they have right now. 2007 2008 2009 2010 2011 2012 2013 IDC expects that the current pressure on Market Size (US$ M) Growth (%) most companies to reduce costs will lead to new initiatives to outsource tasks and processes and thereby increase supply chain complexity. This increased complexity will bolster the case of investments in packaged SCM applications. © 2009 IDC Source: IDC Latin America Semiannual SCM Applications Tracker 2008 7
  • 8. SCM applications are also perceived as a way to reduce costs IT Solutions Current Adoption in LA SCM Market Internal Development 28% 100% Custom Don't have it External 48% Develop 8% Packaged Outsourcing Software 1% licenses/ upgrades 15% © 2009 IDC Source: IDC LA IT Investment Trends 2009 (N:647) 8
  • 9. SCM Applications Market Share Latin America Supply Chain Management Applications Market Share by Vendor (% of Revenue) 2007 – 2008 SAP AG TOTVS Oracle Corp. Competitive Highlights Infor Neogrid SAS Institute Others SAP focused on improving SCM integration with demand planning, enhancing also the 20.5% 19.7% support of supply chain 2.89% 3.05% communications and 2.84% 3.35% 4.3% 3.8% collaboration, and compliance with 8.1% 9.0% regulatory requirements. Oracle announced an upcoming 20.9% 19.7% product, Oracle Rapid Planning, one of the newest components of its Value Chain Planning offerings. The focus is to provide an holistic 40.5% 41.4% approach from demand planning to advanced SCM. 2007 2008 © 2009 IDC Source: IDC Latin America Semiannual SCM Applications Tracker 2008 9
  • 10. SCM Applications Market by Segment and Vertical Industry Latin America Supply Chain Management Applications Market Share by Company Size & Vertical Industry (% of Revenue) 2007 – 2008 US$ Million 2007 2008 Growth 2008-2007 Growth % Both, large and medium $140 25% 20.7% $120 13.2% 20% sized companies think that $100 11.8% 15% closer collaboration with $80 10% $60 5% suppliers is seen as an -2.6% $40 -4.7% 0% important route to improving $20 -5% $0 -10% supply chain responsiveness Large Business Medium Small Business Government Education and decision-making times. (500+) Business (100- (10-99) 499) US$ Million 2007 2008 Growth 2008-2007 Growth % $120 59.4% 70% Manufacturing and $90 60% 50% 1.9% 24.0% 40% Commerce are expected to $60 16.6% 20.7% 12.6% 30% 14.5% 3.9% 20% keep the SCM market up $30 -2.7% 10% 0% $0 -10% ce t s ns s g e n g en ie ice nc in io in er io t nm at r in tili na tu rv at m /M uc U ac Se ic om er Fi Ed as un uf ov C G an m G il/ m M O co le Te © 2009 IDC Source: IDC Latin America Semiannual SCM Applications Tracker 2008 10
  • 11. Essential Guidance – SCM Market Highlight Recommendation Many companies are pointing out the Offer accelerated implementation tools, need to reduce long-term projects. and greater/better usage and adoption of installed solutions, while recruiting specialist partners with local and industry-specific knowledge to ensure successful implementations. SCM applications are also perceived as Strengthen the cost-saving element of a way to reduce costs related to Oracle's value proposition. The existing inventory levels, personnel, and waste. ROI framework should be extended to show concrete savings. Certain supply chain issues remain, Highlight the importance of despite the current economic crisis. enhancements in the supply chain processes. These are necessary measures to gain competitiveness to stand out. © 2009 IDC 1111
  • 12. Contact Information Please send your comments to: Mariana Zamoszczyk (Applications) mzamoszczyk@idc.com Alejandro Florean (SW Director) aflorean@idc.com © 2009 IDC 12