NetFinder Insight Series - Business Applications Part 1

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1 NetFinder Insight Series - Business Applications Part 1 Market Snapshot Report July 2013 Version: 1.0

2 Table of contents 1. INTRODUCTION RESEARCH METHODOLOGY PROFILE OF END-USER ESTABLISHMENTS Profile by Geographic Region Profile by Vertical Market Profile by Employee Numbers Profile by IT Staff Numbers BUSINESS INTELLIGENCE APPLICATIONS Sites using Business Intelligence Applications Business Intelligence Users by Market Sector Business Intelligence Applications Supplier Market Share Business Intelligence Applications Products in Use CRM APPLICATIONS Sites using CRM Applications CRM Users by Market Sector CRM Applications Supplier Market Share CRM Applications Products in use DATABASE APPLICATIONS Sites using Database Applications Database Users by Market Sector Database Applications Supplier Market Share Database Applications Products in use ERP/ERM APPLICATIONS Sites using ERP/ERM Applications ERM/ERP Users by Market Sector ERP/ERM Applications Supplier Market Share ERP/ERM Applications Products in use ABOUT RHETORIK SOLUTIONS NETFINDER INSIGHT SERIES MARKET SNAPSHOT REPORTS WHAT SHOULD I DO NEXT? Table of Figures Figure 1 - Regional Breakdown... 2 Figure 2 - Vertical Market Sectors... 3 Figure 3 - Employees on Site... 4 Figure 4 - Number of IT Staff on Site... 5 Figure 5 - Business Intelligence Applications Users... 6 Figure 6 - Business Intelligence Applications Users by Market Sector... 7 Figure 7 - Business Intelligence Software - Supplier Market Share... 8 Figure 8 - CRM Applications Users... 9 Figure 9 - CRM Users by Market Sector Figure 10 - CRM Applications Supplier Market Share Figure 11 - Database Software Users Figure 12 - Database Applications Users by Market Sector Figure 13 - Database Applications Supplier Market Share Figure 14 - ERP/ERM Applications Users Figure 15 - ERP/ERM Applications Users by Market Sector Figure 16 - CRM Applications Supplier Market Share Date: July 2013 MDMS Version: 1.0 Page I

3 1. Introduction Welcome to the second of Rhetorik Solution s new series of Snapshot reports based on analysis of a sample of research data collected through the on-going NetFinder continuous research programme. This report Business Applications Part 1 provides a summary analysis of a range of key software categories used within these organisations, and the sample was drawn from a base of more than 25,000 end-user establishments. The analysis for each category is drawn from a subset of the available data. An outline of the research methodology applied in the NetFinder research programme is given in the next section of this report, followed by a profile of the end-user establishments covered in the research. The subsequent sections of this report contain summary analysis of research covering Business Intelligence, Customer Relationship Management, Database and Enterprise Resource Planning/Management applications, to provide insights into the current user-base of these key business application offerings in the UK and Ireland. Part two of this report will cover Human Resources, Finance and Groupware applications. 2. Research Methodology Rhetorik Solution s dedicated team of NetFinder telephone researchers continuously monitor the products and services used by more than 25,000 ICT end-user sites in the UK and Ireland. The research focuses primarily on ICT decision-making establishments with more than 20 PCs on site. The inclusion of all vertical market sectors ensures coverage of all major ICT investment. The team collects and regularly updates information on the use of a broad range of products, services, brands and suppliers at each site, as well as maintaining information on the core details such as site name, address and key contact details. This is probably the most comprehensive and up-to-date continuous tracking survey of the ICT end-user base in these countries today. Every effort is made to call each site at least every 6 months to ensure that core information is up-to-date, and the team is tasked with gathering and updating full technical profile details on an annual basis The information is gathered by our researchers through primary research, mainly by application of a structured questionnaire using computer-aided telephone interview (CATI) techniques. An online survey is used when specifically requested by a respondent. Technical details are gathered from key ICT decisionmakers at each site, typically IT and Telecoms managers and other senior staff directly responsible for purchasing and implementing the actual products and services in use. The research data is held in a comprehensive database that can be used by Rhetorik Solutions analysts for ad-hoc analysis of products, services and suppliers in use as well as for tracking of the uptake of these same products, services, suppliers and brands over time. The data in this report is from sites profiled within the last three years. Date: July 2013 MDMS Version: 1.0 Page 1 / 18

4 3. Profile of End-user Establishments This chapter provides a summary profile by geographical region, key vertical market sector and staffing levels for sites extracted from the NetFinder continuous research programme and used as the basis for top level analysis in this report. 3.1 Profile by Geographic Region 93% of the IT and Telecoms end-user sites analysed are based in the UK, with the remaining 7% in the Republic of Ireland. The regional profile of these user establishments is given in Figure 1. Figure 1 - Regional Breakdown Republic of Ireland 7% South West 4% Scotland East 4% Wales 3% Regions Northern Ireland 2% Channel Islands 0% London 18% Midlands 14% South 9% North East 10% Question: Location of Site (Single response) Base Responses: 25,782 Home Counties 11% North West 12% The chart illustrates a broad sample distribution across all regions of the UK. The user-base for these technologies is clearly well-distributed throughout the country. The 7% of sites based in the Republic of Ireland are mainly concentrated around Dublin and in the South- West of the country. Date: July 2013 MDMS Version: 1.0 Page 2 / 18

5 3.2 Profile by Vertical Market By vertical market sector, the ICT end-user base is distributed across all sectors of the economy, as shown in Figure 2. Figure 2 - Vertical Market Sectors Vertical Market Sectors Transport 4% Electronics 4% Banking, Finance & Insurance Food & Bevarages 3% Retail 4% Wholesale 3% Publishing 2% Telecommunications 2% Services 23% Construction Healthcare Education 14% Metal & Minerals IT Question: Vertical Market Group (Single response) Base Responses: 25,784 Government Other 11% Services and Education have the largest market share with 23% and 14% respectively. These are followed by a broad distribution of different market sectors such as Government, IT, Healthcare and Construction. Significant industries in the Others sector include Transport, Chemical & Pharmaceuticals and Utilities. Date: July 2013 MDMS Version: 1.0 Page 3 / 18

6 Percentage 3.3 Profile by Employee Numbers The IT and Telecoms end-user base is made up of companies of various sizes. Figure 3 shows a breakdown by number of employees. Figure 3 - Employees on Site Employees On Site 2 19% 22% 21% 20% 1 11% 12% 10% 4% 2% 2% 0% Number of Employees Question: How many people work at your site? (Single response) Base Responses: 25,320 The majority of the sites profiled have between 61 and 120 employees; however 58% of the sites with 60 or less employees were branches of a larger company or group. Date: July 2013 MDMS Version: 1.0 Page 4 / 18

7 Percentage 3.4 Profile by IT Staff Numbers The technical data gathered by our researchers is usually supplied by IT staff working on site; Figure 4 shows a breakdown of the sites by IT staff numbers. Figure 4 - Number of IT Staff on Site % 20% Number of IT Staff on Site 1 12% 14% 10% 8% 4% 3% 8% 0% Unknown IT Staff on Site Question: How many IT staff work at your site? (Single response) Base Responses: 25,783 Just over two thirds of the sites profiled had at least one member of IT staff based at their location, the unknown column refers to sites that have IT staff at their location but the respondent did not know the number. 28% of the sites with no IT staff had their IT support based at a different location belonging to their company and 20% outsource their IT support to an external service provider. Date: July 2013 MDMS Version: 1.0 Page 5 / 18

8 4. Business Intelligence Applications In this chapter we explore the use of business intelligence software across the sample. 4.1 Sites using Business Intelligence Applications Sites were first asked if they used any business intelligence applications. The answers are shown in Figure 5. Figure 5 - Business Intelligence Applications Users Business Intelligence Software Users Did Not Know 14% Users 20% Non Users 6 Question:Do you use business intelligence software on site? (Single response) Base Responses: 10,288 20% of those questioned confirmed that they use business intelligence applications at their site. Date: July 2013 MDMS Version: 1.0 Page 6 / 18

9 Percent of sites using business intelligence 4.2 Business Intelligence Users by Market Sector Figure 6 shows the percentage of sites in each market sector that confirmed their use of business intelligence software. Figure 6 - Business Intelligence Applications Users by Market Sector Business Intelligence Users by Market Sector % 30% 29% 28% 30% 2 20% % 21% 20% 20% 17% % 10% 0% Market sector Question: Do you use business intelligence software on site? (Single response) Vertical Market Group (Single response) Base Responses: 2,017 The food and beverage, wholesale and retail sectors are most likely to use business intelligence software. These types of companies, along with those in the banking, finance and insurance sectors, tend to deal with a lot of data and so business intelligence software is particularly useful. The least likely sector to use business intelligence software is education, which is to be expected. However, it is perhaps more surprising that as many as 11% of respondents reported using business intelligence, as education is not a traditional business intelligence user. The business intelligence software used by the education sector may be tied up with other software packages in use. Date: July 2013 MDMS Version: 1.0 Page 7 / 18

10 4.3 Business Intelligence Applications Supplier Market Share Those using business intelligence applications were further questioned regarding the supplier in use. An analysis of these suppliers and their share (in terms of mentions of use) is given in Figure 7. Figure 7 - Business Intelligence Software - Supplier Market Share Business Intelligence Software - Supplier Market Share SAP Bespoke Cognos Oracle Capita Centrally Managed SAS Microsoft Sage Qliktech Other 1% 2% 4% 10% 13% 12% 21% 21% 0% 10% 1 20% 2 Question: Who supplies the Business Intelligence Software you use on site? (Multiple Response) Base Responses: 2,066 The most popular supplier is SAP, which is used across various different industries. A lot of companies have their own bespoke business intelligence application; bespoke software and Oracle have fairly even coverage amongst most market sectors. Capita SIMS (School Information Management System) is exclusively used by educational establishments and Cognos is most popular within the healthcare and food and beverage industries. 4.4 Business Intelligence Applications Products in Use Organisations were also asked about the specific software products they use; however the respondents were more likely to remember the name of the supplier than the name of the product. The two most remembered products were Capita s SIMS and Oracle s E-Business Suite. Date: July 2013 MDMS Version: 1.0 Page 8 / 18

11 5. CRM Applications In this chapter we explore the use of customer relationship management software across the sample. 5.1 Sites using CRM Applications Sites were first asked if they used any customer relationship management applications, the answers are shown in Figure 8. Figure 8 - CRM Applications Users CRM Software Users Did Not Know 4% Users 27% Non Users 69% Question: Do you use CRM software on site? (Single response) Base Responses: 10,100 27% of respondents confirmed that they use customer relationship management applications. Date: July 2013 MDMS Version: 1.0 Page 9 / 18

12 Percent of sites using CRM 5.2 CRM Users by Market Sector Figure 9 shows the percentage of sites in each market sector that confirmed their use of CRM applications. Figure 9 - CRM Users by Market Sector CRM Users by Market Sector 60% 53% 50% 40% 30% 39% 39% % 32% 32% 30% 29% 28% 27% 27% 20% 10% 0% 14% 10% Market Sector Question: Do you use CRM software on site? (Single response) Vertical Market Group (Single response) Base Responses: 2,731 CRM software is most popular in the IT sector, with 53% of respondents confirming that they use it at their site; CRM software is also popular with the telecommunications and electronics sectors, with 39% of sites in these sectors confirming that they use it. 3 of government makes sites confirmed they use CRM applications; this looks odd on the surface as government organisations don t have customers in the traditional sense. However the government category includes local government, social services and council housing departments who all need to keep track of communications and information between and about their users. The healthcare and education sectors are the least likely to use CRM software and again this still seems quite high, but it seems that they are using CRM applications to keep track of patient or student histories and communications. Date: July 2013 MDMS Version: 1.0 Page 10 / 18

13 5.3 CRM Applications Supplier Market Share Those using customer relationship management applications were further questioned regarding the supplier in use. An analysis of these suppliers and their share (in terms of mentions of use) is given in Figure 10. Figure 10 - CRM Applications Supplier Market Share CRM Software - Supplier Market Share Bespoke Microsoft SAP Oracle Sage FrontRange Solutions Centrally Managed Salesforce.com Capita Siebel Lagan Northgate Maximizer Other 2% 2% 2% % 12% 1 0% 10% 1 20% 2 30% 3 40% 39% Question : Who supplies the CRM Software you use on site? (Multiple Response) Base Responses: 2,785 More companies prefer to have their own customer relationship management application than any one single provider. This is true across all market sectors except for education who tend to favour Capita and the food and beverage industry which uses SAP more than any other supplier. 5.4 CRM Applications Products in use Organisations were also asked about the specific products they use; however the respondents were more likely to remember the name of the supplier than the name of the product. Some CRM suppliers such as Salesforce.com only offer one product; many Oracle CRM users have this software as part of the wider Oracle E-Business Suite. Date: July 2013 MDMS Version: 1.0 Page 11 / 18

14 6. Database Applications In this chapter we explore the use of relational database management software across the sample. 6.1 Sites using Database Applications Sites were first asked if they used any database applications, the answers are shown in Figure 11. Figure 11 - Database Software Users Database Software Users Did Not Know 2% Non Users 14% Users 84% Question: Do you use database software on site? (Single response) Base Responses: 9,820 Database software is more popular than business intelligence or customer relationship management software, with 84% of respondents confirming they use it at their site. Date: July 2013 MDMS Version: 1.0 Page 12 / 18

15 Percent of sites using Databases 6.2 Database Users by Market Sector Figure 12 shows the percentage of sites in each market sector that confirmed their use of database applications. Figure 12 - Database Applications Users by Market Sector Database Users by Market Sector 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 92% 91% 89% 88% 88% 8 84% 84% 84% 84% 83% 82% 80% 79% 79% 73% Market sector Question: Do you use Database software on site? (Single response) Vertical Market Group (Single response) Base Responses: 8,336 Database software is used at the majority of sites questioned across all market sectors. The sectors most likely to use database applications are those that tend to have to deal with the most data such as government (92%) and banking, finance and insurance (91%). The wholesale (73%), construction (79%) and metal and minerals (79%) sectors were less likely to use database software, probably because big data is less of a focus in these areas. Date: July 2013 MDMS Version: 1.0 Page 13 / 18

16 6.3 Database Applications Supplier Market Share Those using customer database applications were further questioned regarding the supplier in use. An analysis of these suppliers and their share (in terms of mentions of use) is given in Figure 13. Figure 13 - Database Applications Supplier Market Share Database Software - Supplier Market Share Microsoft Oracle MySQL Bespoke IBM Centrally Managed SAP Other 3% 1% 1% 1% 1% 20% 67% 0% 10% 20% 30% 40% 50% 60% 70% Question: Who Supplies the Database software you use on site? (Multiple response) Base Responses: 12,250 Microsoft is by far the most popular database software supplier with 67% of the sites that use databases use a Microsoft product; Oracle was the second most popular database product provider, with 20%. The open source software provider MySQL is the third most popular, supplying of the products in use. 6.4 Database Applications Products in use Organisations were also asked about the specific products they use; however the respondents were more likely to remember the name of the supplier than the name of the product. The most popular Microsoft database product in use was Microsoft SQL Server. Date: July 2013 MDMS Version: 1.0 Page 14 / 18

17 7. ERP/ERM Applications In this chapter we explore the use of enterprise resource planning/management software across the sample. 7.1 Sites using ERP/ERM Applications Sites were first asked if they used any enterprise resource planning/management applications, the answers are shown in Figure 14. Figure 14 - ERP/ERM Applications Users ERP/ERM Software Users Did Not Know 3% Users 28% Non Users 69% Question: Do you use ERP or ERM software on site? (Single response) Base Responses: 10,529 28% of respondents confirmed that they use enterprise resource planning/management applications. Date: July 2013 MDMS Version: 1.0 Page 15 / 18

18 Percent of sites using ERP/ERM 7.2 ERM/ERP Users by Market Sector Figure 15 shows the percentage of sites in each market sector that confirmed their use of sites that confirmed that they used ERM/ERP applications. Figure 15 - ERP/ERM Applications Users by Market Sector ERP/ERM Users by Market Sector 70% 61% 60% 60% % 50% 40% 39% 3 30% 20% 10% 30% 28% 28% 28% 2 20% 19% 10% 9% 0% Market sector Question: Do you use ERP/ERM software on site? (Single response) Vertical Market Group (Single response) Base Responses: 2,973 Users of ERP/ERM software users are the most polarised by market sector; this is probably due to the fact that this software is most useful in manufacturing. The sectors most heavily involved in manufacturing such as electronics (61%), metal and minerals (5) and food and beverages (5) are more likely to use ERP/ERM. The other sector includes a large proportion of manufacturing firms. The education sector is least likely to use ERP/ERM, it is possible that where the sites do have this software it is used to help with timetabling. Date: July 2013 MDMS Version: 1.0 Page 16 / 18

19 7.3 ERP/ERM Applications Supplier Market Share Those using customer ERP/ERM applications were further questioned regarding the supplier in use. An analysis of these suppliers and their share (in terms of mentions of use) is given in Figure 16. Figure 16 - CRM Applications Supplier Market Share ERP & ERM Software - Supplier Market Share SAP Bespoke Oracle Capita Microsoft Sage Centrally Managed Infor SSA Global QAD Epicor IFS Exel Computer Systems Other 3% 3% 2% 2% 1% 8% 13% % 0% 10% 20% 30% 40% 50% 60% 70% Question: Who supplies the ERP or ERM software you use on site? (Multiple Response) Base Responses: 3,057 SAP is the most widely used provider of ERP/ERM software, 62% of respondents confirmed they used SAP applications. Bespoke software is also popular, with a quarter of sites using their own ERP/ERM applications; Oracle also supplied a quarter of the ERP/ERM software in use. 7.4 ERP/ERM Applications Products in use Organisations were also asked about the specific products they use; however the respondents were more likely to remember the name of the supplier than the name of the product. The two most remembered products were PeopleSoft and Capita SIMS, which is used in education. Date: July 2013 MDMS Version: 1.0 Page 17 / 18

20 8. About Rhetorik Solutions Rhetorik Solutions delivers market intelligence and market research services focused exclusively on the IT and Telecoms industries. To meet the challenges of these fast-moving and highly competitive markets our clients need a consultancy that truly understands the issues and concerns that drive them. With an in-house team of highly trained researchers working exclusively in these markets, we have a particular focus on end user research and employ a range of quantitative and qualitative research techniques including: Face-to-face Interviews Focus Groups Telephone Interviews Web-based Surveys Research Panels to provide a unique portfolio of research services. Rhetorik Solutions is part of Matrix Solutions and are also a founder member of the EMIG (European Market Intelligence Group) 9. NetFinder Insight Series Market Snapshot Reports Rhetorik will be releasing a new series of these snapshot reports over the coming months that will include analysis and insight within the following ICT segments: Network Security Key Business Applications (Part One and Part Two) PCs & LAN Servers & Operating Systems WAN & Telecoms providing you with powerful insights to help market your company s solutions more effectively. 10. What should I do next? For more details about our NetFinder ICT Marketing Database or Business Intelligence & Research Solutions, please visit or contact Rick Paskins, Group Research Director on +44 (0) or at Rhetorik Solutions Telephone: +44 (0) Ascot House Fax: +44 (0) Finchampstead Road Wokingham Berkshire RG40 2NW United Kingdom Date: July 2013 MDMS Version: 1.0 Page 18 / 18

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