MORE THAN A QUARTER OF THE CRM SOLUTIONS ARE FROM SAP
SAP is still the biggest party in CRM solutions for businesses with 50 or more employees. More than a quarter of the CRM installations are from SAP. Microsoft is in second place, and is now good for 21 percent of the CRM solutions. Salesforce completes the top 3 with just under 14 percent.Exact and customised solutions are among the top 5. What is striking is the large diversity of solutions in use in the field of CRM. 200 different applications are mentioned all together. This emerges from an analysis by Smart Profile of more than 7,000 interviews that were held about CRM software usage at Dutch commercial and public business locations with at least 50 employees.
Market shares of CRM
There are clear differences in shares to be seen within the various market segments. With the multinationals, SAP is the clear market leader with 41 percent in this segment. Salesforce also performs best within this segment, with 25 percent. At National Enterprises (250 – 2,500 employees) and Medium Sized Businesses (50-2,500 employees), Microsoft Dynamics CRM is the most prevalent solution. In the public sector, we encounter a relatively limited number of CRM solutions. Around 19 percent of the public institutions indicate the use of a CRM solution. Microsoft, SAP and Exact are very close to each other in this segment.
Development penetration CRM
The growth in the number of locations with CRM software now seems to be flattening out. The previous five years showed a growth from 30 to around 35 percent. Last year, that percentage seems to have remained the same. Branches where the CRM penetration is highest: ICT & Utilities sector (51%), Services segment (47%), Industry (40%) and Trade also with 40%. A breakdown according to size shows an ascending penetration of 33 percent for 50-100 employees to 47 percent at 1,000+ locations. The penetration figures stated are at location level and not at organisation level. Because sales and marketing activities within larger organisations are often centralised in one or just a few locations, the penetration figures in the commercial sector are also currently at a maximum of 50%.
Location of CRM
Less than a quarter of the CRM solutions are still run at a location itself. A similar share runs remotely, that means in a different location within the organisation itself. A third of the locations which use CRM indicate that the solution runs in a data-center of an external service provider. This includes, in the breakdown used by Smart Profile, all private cloud solutions. Just under 21 percent of the locations with CRM state that this is a public cloud solution. These include, for example, Salesforce.com and Microsoft CRM online. The trend of the last five years shows a clear shift from running CRM within the organisation itself to an externally hosted CRM solution.
SAP is the biggest party in ERP solutions for businesses with 50 or more employees. Nearly 30 percent of the ERP installations are from SAP. Microsoft is in second place, and is now good for 18 percent of the ERP solutions. Exact completes the top 3 with just under 14 percent of the CRM solutions.
ERP to market segments
Within the multinationals segment, SAP is by far the largest shareholder in the ERP market. Around 65 percent of the locations that are part of a Multinational indicate the use of a SAP ERP solution. At National Enterprises, locations of companies with 250 to 2,500 employees, Microsoft Dynamics seems to be creating a gap with SAP. Almost one quarter of the solutions encountered are a Microsoft application. In the segment under this, 50 to 250 employees, the pole position is shared by Microsoft and Exact. A battle is taking place in the public sector. SAP, Exact and Oracle are extremely close together. SAP at the moment still enjoys the the upper hand with a lead of several percentage points.
Development penetration ERP
The percentage of locations that make use of an ERP system has remained virtually unchanged in recent years and is on or around 70 percent. We identify no significant growth or decline. For the various branches, ERP use is highest in locations in the industry, where 87 percent use an ERP system, the construction sector where 85 percent use ERP and the trade sector where 83 percent has an ERP solution in use. The ERP usage is lowest in education. Around 42 percent of education locations use it. It should be stated that the cut-off point of the analysed locations is 50 employees. For education this means that the primary education sector is virtually excluded from the target group studied.
The ‘company size’ factor has little impact on the penetration of ERP systems. This is around 68 percent across the board. Among companies with more than 1,000 employees, the penetration is higher than average, with 75%.
Location of ERP
Almost 6 in 10 of the locations that use ERP indicate that the ERP solution still runs within the organisation itself. Around 29 percent of all ERP systems used are on premises solutions (local), around 30 percent are a remote solution. That means that it runs within the organisation but at a different location, possibly abroad. Hosted applications have the largest share Around 36 percent of the solutions are a hosted ERP solution. Hosted solutions run in a data-center of an external provider and include private cloud solutions. During the last 2 years, we have seen for the first time a significant use of ERP from the cloud. Afas is the leader in this, followed at some distance by Exact, and followed in turn by SAP.