Our continuous research and market-sizing reports follow a rigorous methodology under which we map the entire enterprise software market by functional area, vertical industry as well as deployment method. Additionally we break down discrete markets like Human Capital Management into more descriptive segments in order to help buyers explore the sum as well as its moving parts. What follows is the taxonomy that we keep updating on a regular basis by constantly factoring in innovative technologies and new business models.
Exhibit 1 – Worldwide Enterprise Software Market 2015-2020 Forecast, $B
Exhibit 2 – View of Cloud Applications Delivery Mode
Exhibit 3 – Enterprise Applications Components and Outlook By Delivery Mode
Exhibit 4 – Other Enterprise Software Components and Cloud Stack Equivalents, Market Outlook
Exhibit 5 – 2015 Market Shares of Top 10 Enterprise Software Market
Exhibit 6 – Definition of Enterprise Applications Components By Function, Vertical Industry
Exhibit 7 – Schematic View of Enterprise Resource Planning(ERP) Applications Market and Its Key Functions
Exhibit 8 – HCM Market Taxonomy
Exhibit 9 – Definition of Human Capital Management(HCM) Applications
Exhibit 1 – Worldwide Enterprise Software Market 2015-2020 Forecast, $B
| Worldwide Enterprise Software Market 2015-2020 Forecast, $B | |||
|---|---|---|---|
| Year | 2015 | 2020 | CAGR, % |
| Enterprise Applications | 193 | 208 | 1.5% |
| Other Enterprise Software | 127 | 109 | -3% |
| Total | 320 | 317 | -0.20% |
| Enterprise Applications cover 16 functional areas from analytics to treasury and risk management, in addition to those designed for 21 verticals from aerospace to utility. | |||
| Other Enterprise Software includes platform and infrastructure products such as databases and information management systems, middleware and development tools, storage and security software as well as system software and virtual machines. Operating systems are not included. | |||
| Source: Apps Run The World, April 2016 | |||
Exhibit 2 – View of Cloud Applications Delivery Mode
Exhibit 3 – Enterprise Applications Components and Outlook By Delivery Mode:
Exhibit 4 – Other Enterprise Software Components and Cloud Stack Equivalents, Market Outlook:
Exhibit 5 – 2015 Market Shares of Top 10 Enterprise Software Market
Exhibit 6 – Definition of Enterprise Applications Components By Function, Vertical Industry
Enterprise applications are derived from more than three dozen functional markets and vertical industries by automating specific and discrete business processes and functions generally used by a customer either within an enterprise or across multiple divisions of a vertical industry.
The associated product revenues(license, maintenance and subscription) form the basis of enterprise applications market sizing. Because of their ease of use and deployment via the Cloud, the enterprise applications market is expected to remain one of the fastest-growing segments of the enterprise software space(which includes infrastructure, systems management, integration, and other packaged products like databases).
| Primary Market | Secondary Markets | Description |
|---|---|---|
| Enterprise applications | Analytics and BI | Analytics applications cover business intelligence functions sold as a standalone application package for decision support or embedded in an integrated solution for functions such as revenue performance or for specific verticals such as healthcare performance management. |
| Collaboration | Collaboration applications include Cloud tools for Web conferencing, team collaboration, social business platform, event management, eSignature, and sharing of online community resources. Collaboration applications also include conventional tools for email, group calendaring and scheduling and threaded discussion. | |
| Content Management | Content management applications include Web content management, document management, authoring tools, digital rights management, and search and portal functions that can be integrated into a business process via the Cloud. | |
| Customer Relationship Management | Customer Relationship Management includes applications for sales force automation, marketing automation, customer service and support management such as email automation. Social Media Management, Customer Experience Management, Activity and Participant Management are among some of the newly available CRM applications available via Cloud delivery. | |
| eCommerce | eCommerce applications include those designed for shopping cart automation, order management, inventory management, Web-based point of sale, multi-channel retailing, procurement, sourcing, and supplier relationship management. | |
| Enterprise Performance Management | Enterprise Performance Management applications are designed for a range of budgeting, forecasting and planning business processes that span multiple functional areas from finance to sales. Specific applications modules include budgeting, planning and forecasting, financial consolidation, capital expenditure planning, activity-based costing, zero-based budgeting as well as sales and revenue forecasting. EPM applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise. | |
| ERP Financial Management | ERP Financial Management software covers finance-specific business processes such as accounts payable, accounts receivable, general ledger, and fixed asset accounting, as well as online functions such as invoicing, factoring, electronic payments and financial reporting. FM applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise. | |
| ERP Services and Operations Management | ERP Services and Operations Management covers integrated applications suites designed to automate a range of business processes from back-office operations to financial management and from sales order capture to customer information management. Currently ERP also covers functions not being addressed by other functional markets. Examples include Environment and Health and Safety, Governance, Risk and Compliance, as well as industry-specific applicatons for 21 verticals. | |
| Human Capital Management | Human capital management includes such functions as eRecruiting (applicant tracking), Onboarding (employee profile), Performance Management (assessment, goal management, succession planning), Core HR (personnel administration, benefits, compensation management, payroll), Workforce Management (absence management, activity tracking, scheduling, time and attendance), and eLearning (learning management system). | |
| IT Service Management | ITSM applications are being used to make a growing number of employee self-service functions possible through enterprise service management for asset, incident and project management. ITSM applications are considered a derivative market with revenue contribution to functional areas such as Project and Portfolio Management and Enterprise Resource Planning. | |
| Product LifeCycle Management and Engineering | Product Lifecycle Management applications enable key stakeholders including designers, engineers and OEMs to gain and optimize visibility into the entire product life cycle from idea generation to collaboration and from product data management to iterative development efforts. PLM applications are considered a derivative market with revenue contribution to functional areas such as Project and Portfolio Management, Enterprise Resource Planning and Manufacturing. | |
| Project Portfolio Management | Project and portfolio management (PPM) applications include those that automate and optimize the initiating, planning/scheduling, allocation, monitoring, and measuring of activities and resources required to complete projects. PPM applications also cover certain aspects of IT service management especially those that involve project portfolio management within the IT domain. | |
| Procurement | Procurement covers applications designed for purchasing material (whether direct or indirect; raw, in process, or finished; as a result of or flowing into a product supply chain-specific business process; or in support of performing a service) and services (business or professional). Other functions include contract management, electronic network, punch-out, sourcing, and supplier rating to optimize the overall supplier relationship management business processes. Procurement applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise. | |
| Sales Performance Management | Sales Performance Management tracks and automates different incentive compensation programs for salespeople as well as other functions specific to inside, outbound and channel sales activities including territory and quota management, account segmentation and scoring, and deal and quote management. SPM applications revenues represent a major contributor to the Human Capital Management market as part of our market sizing exercise. | |
| Supply Chain Management | Supply chain management covers Inventory Optimization (Warehouse Management, Replenishment), Transportation and Logistics (Routing, Scheduling, Carrier/Fleet/Fuel Management), Planning (Advanced Planning and Scheduling, Forecasting, Supply Chain Planning through Execution), Distribution Management (Order Orchestration, Management, Global Trade Management), E-Commerce (POS, Store Inventory & Fulfillment, EDI). | |
| Treasury and Risk Management | Treasury and Risk Management applications covers standalone and/or integrated products that automate business processes to support corporate treasury operations (including the treasuries of financial services enterprises) with the corresponding financial institution functionality and optimize related cash management, deal management, and risk management functions. | |
| * | Cash management automation includes both discrete and interlocking treasury processes involving electronic payment authorization, bank relationship management, cash forecasting, and others. | |
| * | Deal management automation includes processes for the implementation of trading controls, the creation of new instruments and asset classes, market data interface from manual or third-party sources, and others. | |
| * | Risk management automation includes performance analysis, various metrics calculations used in fixed-income portfolio analysis, market-to-market valuations, energy trading and risk management, and compliance with regulations and standards such as European Market Infrastructure Regulation, Financial Accounting Standard, International Financial Reporting Standards, Single European Payments Area, and others. |
Definition of Enterprise Applications Components In 21 Vertical Industries
| Primary Market | Secondary Markets | Description |
|---|---|---|
| Verticals | Aerospace & Defense | Aerospace & Defense (Aircraft and parts, defense contractors) – Aviation Maintenance Management, Air Traffic Management applications, Flight operations software, Quality management system, Financials, HR, Procurement |
| Automotive | Automotive (Automotive production, equipment, repair, services) – PLM, CAD, CAM, Dealer Management System, Parts Management, Financials, HR, Procurement | |
| Banking and Financial Services | Banking and Financial Services (Credit, lending, securities institutions) – Hedge fund administration, Core Banking, Cash, treasury, payment, risk management and supply chain finance solutions, Investment management system, Securities transaction and online trading technology, Mortgage, Loan origination and processing solutions, Teller transaction and loan processing, automated loan decisioning, analytical science analysis, workflow management, and sales and service solutions, Financials, HR, Procurement | |
| Communication | Communications (Telecom services providing point-to-point contact) – Converged billing, Multi-party settlement, OSS, BSS, Financials, HR, Procurement | |
| Construction and Real Estate | Construction and Real Estate (Contracting and building of commercial, public, and residential structures, real estate management) – Bidding, cost estimates, Time Tracking, Homebuilder Software, Quantity Takeoff Software, Property Management, Financials, HR, Procurement | |
| Consumer Packaged Goods | Consumer & Packaged Goods (Consumer goods including non-durables, apparel, food and beverage and packaged goods) – Product lifecycle management, Supply Chain Management. eCommerce, Pricing Optimization, Financials, HR, Procurement | |
| Distribution | Distribution (Wholesale and distribution of goods to other enterprises) – Supply Chain Management, Transportation Management, Financials, HR, Procurement | |
| Education | Education (K-12 schools, colleges and universities, technical and vocational, distance learning) – Student Information System, Learning Management, Fund Accounting System, Higher Education Administration, Financials, HR, Procurement | |
| Government | Government (Federal, state and local government agencies, nonprofit) – Public Safety Software, Grants and performance management, Computer Assisted Dispatch, Jail Management, Courts Management, Tax Collections, Records Management, Financials, HR, Procurement | |
| Healthcare | Healthcare (Healthcare providers, hospitals, physicians, clinics, hospices) – Electronic Health Record, Practice Management, Revenue cycle management, Financials, HR, Procurement | |
| Insurance | Insurance (Entities that offer noncompulsory insurance of any kind) – Agency management system, Policy administration solutions, Pensions administration software, Billing and Claims software, Underwriting, Property & Casualty Management, Insurance Broker and Financial Planning Software, Financials, HR, Procurement | |
| Leisure & Hospitality | Leisure and Lodging (Gaming, amusement, recreation services, hotels, cruises, lodging facilities) – Property Management, Cash Journaling & Gratuity Automation, Revenue Optimization, Hotel distribution, CRS, Channel management, Inventory Management, Financials, HR, Procurement | |
| Life Sciences | Life Sciences (Pharmaceuticals, medical devices and life technologies) – Clinical trial management, Enterprise Risk, Compliance and Quality Management, Incentive compensation, sales performance management, Financials, HR, Procurement | |
| Manufacturing | Manufacturing (Discrete, high-tech, process manufacturing) – Production Planning, Maintenance Management, Quality Management, CAD/CAM software, Manufacturing ERP, Manufacturing Execution System, Product lifecycle management, Financials, HR, Procurement | |
| Media | Media & Entertainment (Content distribution, broadcasting, publishing, motion pictures) – Distribution resource management for publishing, content distribution; warehouse management system, supply chain management for publishing and content distribution, Media asset management (MAM); digital media infrastructure; digital asset management (DAM); Dynamic ticket pricing for live events, Broadcast resource management; equipment asset management; broadcast engineering and operations (E&O), FInancials, HR, Procurement | |
| Non Profit | Non Profit organizations are not-for-profit entities that direct their funding and revenues to achieve their stated mission. Applications designed for these organizations include donor and grant management, fund raising and accounting, constituent relationship management, as well as a range of back-office, association and event management, and community-building functions | |
| Oil and Gas | Oil and Gas, Chemicals (Fuel extraction, petroleum refining, primary derivatives from oil, chemicals and allied products) – Oil and Gas Operations Management, Reserves Management, Capital Planning, and Budgeting, Well Production Software, FInancials, HR, Procurement | |
| Professional Services | Professional services (Business, engineering, IT, legal services) – Timesheet and billing, Legal Practice Management, Project Management, Project Portfolio Management, Field Service Management Software, Professional Services Automation, FInancials, HR, Procurement | |
| Retail | Retail (Enterprises involved in the sale of goods, services, general and convenience stores, restaurants) – Multi-channel retail software, Point of Sale system, Store management system, Trade Promotions Management, Fresh food software, Price Optimizaton, Health and Safety Software, Workplace Risk Management solutions, Retail Execution Management solutions, Financials, HR, Procurement | |
| Transportation | Transportation (Operation of means of moving freight and passengers) – Cargo Management, Airport Managment System, Scheduling, Intelligent Transportation, Fare Collection, Ferry reservation systems, Fleet management, Financials, HR, Procurement | |
| Utility | Utilities (Electricity, water and gas utilities) – Customer care, billing, Smart meter infrastructure, Energy Trading Risk Management, SCADA, Financials, HR, Procurement |
Exhibit 7 – Schematic View of Enterprise Resource Planning(ERP) Applications Market and Its Key Functions
Exhibit 8 – HCM Market Taxonomy
Exhibit 9 – Definition of Human Capital Management (HCM) Applications
Core HR and Performance Management
| Core HR and Performance Management | Description |
|---|---|
| Personnel & Organization Management | Core human resource management system, personnel records, HR master file, accruals, organizational development, org chart visualization |
| Payroll | Payroll processing, tax filing, language support, country-level updates, payslip calculations, automatic deductions and other government requirements for proper disbursement of employee compensation. |
| Benefits Administration | Benefits and health administration. Plan and design benefits lifecycle, billing and payment. Carrier solutions are also included for integration purposes. |
| Pension Administration | Pension and retirement fund(401K) administration as well as software that helps manage profit sharing plan, defined benefit plan, or cash balance plan. |
| Compliance | Compliance, regulatory updates and reporting including such laws as Affordable Care Act, Overtime Regulations, Fair Labor Standards Act |
| Performance & Goal Management | HR performance management applications are designed to automate the aggregation and delivery of information pertinent to the linking of job roles and the mission and goals of the organization. More specifically, the system allows users to automate the performance review process by using mechanisms such as training and key performance indicators to continuously track and monitor the progress of an individual employee, work team, and division. Some of the key features include: Assessment of individual career objectives and organizational skills gaps that impede performance and job advancement. Continuous reviews and establishing milestones. 360-degree evaluation and real-time feedback. Performance appraisal automation. Goal setting and tracking. Employee surveys. Alignment of human assets to corporate objectives. Fast tracks for top performers. |
| Learning & Development | Learning management systems refer to applications that automate the administration, tracking, and reporting of training events. Other tools may include courseware and other delivery, management, tracking, or integrated solutions whose focus is on the learning environment, including learning content management systems. Career development tools include apps for coaching, mentoring, employee development planning, and diagnosing of development needs. |
| Succession & Leadership Planning | Identify and address current and potential talent gaps to create succession management reporting. Develop and maintain a continuous supply of internal talent to fill critical job roles. Improve employee engagement through digital tools to advance career path development opportunities. |
| Compensation Management | Compensation management applications are designed to automate the process of providing cash, noncash, variable and nonvariable compensation to employees through advanced modeling, reporting, and built-in interfacing to payroll processing systems. Other key features include seamlessly manage compensation budgets and allocation in a single, shared tool. Streamline pay recommendation workflows and approvals. Support multiple pay and incentive practices. Ensure budget compliance and adherence to compensation guidelines. Quota and territory management. Calculation and distribution of commissions, spiffs, royalties, incentives to employees, and channel and business partners. Compensation analysis using internal and external data for retention risk analysis. Linking salary, commission and incentives — cash and noncash — to business objectives. Payroll and payment engine interfaces. Account payables integration. |
Talent Acquisition
| Talent Acquisition | Description |
|---|---|
| Applicant Tracking | Applicant tracking software automates such functions as management of resumes, applicant information, scoring, workflow, matching, search, interview scheduling, job descriptions, EEOC reporting, job postings and notifications |
| Recruiting | Recruiting applications are designed to automate the recruitment process of salaried and hourly employees through screening and skills assessment, as well as automated selection processes to improve hiring pipeline by identifying talent inside or outside the organization. Other key features include: Manage skills inventories. Create and manage job requisitions. Coordinate team collaboration within hiring processes. Video Interviewing, team building and digital coaching. |
| Marketing | Applications designed to attract and engage candidates and employees. Other tasks automate functions such as candidate relationship management apps, career site technology, social recruiting, employee referrals, branding, video engagement, campus recruiting and internal hiring |
| Contingent Labor Management | Processing of hiring of contingent labor, search, skills matching, assessment, interview scheduling, negotiation of rates, approvals, project milestone payments, project completion tracking, performance ratings |
| Sourcing | Facilitate resource planning for staffing firms as well as vendor managed system, allowing for front office integration for employment agencies as well as talent acquisition apps designed for staffing firms. |
| Onboarding | Applications designed to deploy workers to appropriate jobs, projects, or teams for accelerated on-boarding. |
Workforce Management
| Workforce Management | Description |
|---|---|
| Absence and Leave Management | Absence management applications offer automated features to support employee leave management, employer authorized leave, Short-Term-Disability/Workers’ Comp coordination, federal and state compliance, customized leave correspondence, medical certification processing, insurance premium payment tracking as well as employee self-service capabilities. Leave Management supports compliance activities related to government regulations such as the Family and Medical Leave Act in the United States and other local leave laws in different countries. |
| Workforce analytics | Workforce analytics are used to analyze compensation, benefits, and other employee variables. These applications can also be used to analyze and optimize labor allocation for particular projects. |
| Fatigue Management | Fatigue Management apps help automate key facets of fatigue risk mitigation, enforcing employee work-hour limits and aligning with fitness for duty best practices. Similar apps may act as electronic work diaries for real-time reporting and compliance with transportation laws. |
| Hardware (Time Clock) | Time capture is the hardware platform that provides authentication features for clock-in and clock-out times, meal and rest breaks, as well as timesheet and payroll reporting and compliance. |
| Workforce Scheduling | Products are designed to Increase forecasting accuracy by factoring in a variety of methods and historical patterns. Create optimal schedules to meet customer demands, while reducing costs and maximizing resources |
| Task Management | Task Management offers labor management capabilities such as task-based and project-based activity tracking as well as measurement and reporting functions against performance standards like engineered labor standards, team standards and reflective standards. |
| Time & Attendance | Time and Attendance applications are designed to automate employee time tracking in different locations, help reduce overtime expenses, improve payroll accuracy, eliminate pay errors and adjustments, along with the need to simplify and optimize administrative tasks and complex rate calculations by making available accurate and current labor data and full audit trail of payroll data. |
Apps Run The World Taxonomy and all exhibits and definitions are copyrighted, 2010-2016