Packaged Distributed Order Management Solutions is a $6.7 Million Market Today, Says Yankee Group

Business Wire, May 6, 2004

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--May 6, 2004

Few packaged solutions exist in fragmented market dominated by proprietary strategies

In a newly released Yankee Group report, 2004 Survey of IT Investment Drivers For Distributed Order Management Reveals Customer Service and Revenue Generation Is The Target, enhancing customer service and generating revenues are the primary motivations for enterprises deploying distributed order management (DOM) solutions.

In the report, 52 percent of 300 IT decision-makers surveyed put the desire to improve customer service at the top of their lists. In addition, 47 percent of respondents said an increase in revenues is the key measure of the success of their investment in DOM.

The dominant approach to solving DOM has been a custom development strategy that includes building homegrown solutions or leveraging application development tools.

"The DOM market is large but extremely fragmented with many companies building custom solutions," says Kosin Huang, Yankee Group Business Applications & Commerce senior analyst. "Although 40 percent of enterprises want to address DOM by standardizing on one ERP, most companies pursue expensive and risky proprietary strategies because of ERP's functional limitations and lack of DOM capabilities."

Interestingly, a survey of enterprise perceptions regarding DOM capabilities indicated little variance when comparing specialist vendors such as Comergent and Excalate with suite vendors such as Oracle, Siebel, and Microsoft. This perception belies the fact that actual capabilities often vary greatly among vendor products.

The Yankee Group predicts the DOM market will shift over the next 5 years to packaged solutions that have vertically specific functionality, flexible business process management, comprehensive DOM lifecycle functionality, unified data models and flexible integration frameworks gaining ground.

NOTE TO EDITORS

For interviews contact Kosin Huang, khuang@yankeegroup.com.

CORPORATE CONTACT

Kim Vranas, director of marketing, press liaison, 617-880-0214, kvranas@yankeegroup.com.

THE YANKEE GROUP (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.