zara technology: go to market strategy - University at Buffalo School ...

More documents

Recommendations

Info

Software for SMEs With the success of ERP at large businesses and wide availability of inexpensive, PCs, SMEs also started integrating computers to better manage their enterprises. A wide variety of business application software is available for use by SMEs. They differ in terms of functionality, required user expertise, hardware requirement, comprehensiveness, integration with internet, connectivity with other software, and cost. Besides, numerous industry specific software (e.g., Parking Lot Management for managing parking lots) are available which focus on the needs of a specific industry. At the lowest level, a small business may elect to use the standard Microsoft’s Office Suite (or the free OpenOffice from the open-source project) to manage their books using the spread sheet, writing, drawing, presentation, and data storage features. Except for preparation of very simple, basic documents, presentation, and spread-sheet, prospective users require significant expertise in computing to develop specialized modules for performing managerially critical repetitive tasks. A popular option among SMEs has been the use of accounting software to computerize accounting related functions. These functions include identification of accounts receivable/payable, maintenance of general ledger, billing, keeping record of inventory, and management of purchase/sale orders. Such software serves as an accounting information system which can be used to perform accounting audit and prepare tax returns. Developed internally or acquired externally, most offer optional addons which can perform functions such as payroll, debt collection, response to inquiries, maintenance of employee timesheet, etc. Most are bought off the shelf with the buyer responsible for implementation. Many, such as Quicken, have “certified” experts who can assist the buyer in implementing the software. Often, this task is performed by the CCA (equivalent to a CPA in the US) as an add-on service or gratis in anticipation of future revenue. According to Wikipedia, users can normally expect on paying roughly 50-200% of the price of the software in implementation and consulting fees. Table 1 provides a comparison of the top 10 accounting software developed by TopTenReviews (A more exhaustive comparison is provided by Wikipedia.) A third option is primary function plus, where a prominent software developer invites smaller, lesser-known software developers to develop missing functionality in their software. Thus, for example, SalesForce, software developed for managing customer relationship (CRM), invited independent software developers to design software for functionalities missing in SalesForce, e.g., finance and accounting, project management, inventory control, etc. Towards this, a platform is created (e.g., Appexchane for SalesForce) where such add-ons are listed. Thus, instead of the software company investing their own resources to develop full-fledged ERP software, others are asked to supplement the missing features. It is accomplished by creating an Application Programming Interface (API), and providing developers with a free Software Developer Kit (SDK). The specific functionality and its implementation are left to the developer while integration with the parent software becomes the responsibility of the user. Thus, an SME with little or no IT background and resources is left with the task of 4
selecting from among hundreds of independent software to perform critical business functions and integrating it with the parent software. The three leading single function SME oriented software are : SalesForce, PeachTree, and QuickBook . A fourth option is to buy an ERP type of software dedicated to SMEs. The leading software is NetSuite. Although it was initially launched under the name of Oracle Small Business Suite to benefit from the brand equity of Oracle, it has no technical relationship with Oracle with the exception that Oracle’s CEO, Larry Ellison, is a major investor in the company. NetSuite can be accessed over a Web browser which permits users to log on the system from anywhere internet is available. Furthermore, it permits all employees to access business data in real-time. The data is backed up every night at a central site. There are no upgrades to buy, and thus need for maintenance on the part of the customer is eliminated. Smelling the aroma of opportunity, Oracle launched E-Business Suite Special Edition (EBSE) at a price tag of about $100,000. It is a watered down version of their E-Business Suite which allows small companies to manage financials, inventories, purchasing, and sales orders. The target market for EBSE is a company with 100 to 500 employees and sales revenue not exceeding USD $250 million. Meanwhile, Microsoft has packaged their family of Microsoft Business Solutions as Dynamics to cater to SMEs. Not to be left out, SAP purchased TopManage Financial Systems, an Israel -based developer of business applications and branded it as SAP Business One. Borrowing from the strategy of single function software, these ERP packages are also offered in unbundled versions (i.e., user can get single function software) and permit third party add-ons to their software. For example, a business may adopt NetSuite as the main platform but could elect to use Onsite developed by Another9 LLC to automate their point of sale activities. A comparison of the leading software offering single functionality and ERP is provided in Table 2. Over the years, NetSuite has been bundled and re-bundled in six different versions/platforms: NetSuite, NetSuite Small Business, NetSuite CRM, NetSuite CRM+, NetERP, NetCommerce, and NetSuite Limited. The various incarnations of NetSuite differ primarily in terms of the functionality offered and the usage fee. User Experiences Discussions in the US and Singapore with SMEs, System integrators (SI), government officials, and content analysis of User Forums offers valuable insights into SME concerns and evaluation of current options in the market place. In general, first, there is significant concern regarding the cost of acquiring and using the software. SMEs find the usage cost of ERPs to be high. Comments such as: “NetSuite came back with $20,000 for 3 years of license. In all, these companies who are pitching their solutions for small and medium companies are not realistic”, “$60,000 is not an enterprise-wide deal for a fortune 1000, but, at the same time, it's not a solution you are going to get many 10-persons, 2-year-old companies to bite on”, “While I did like the iCode software, they just lost me with pricing”, “They just don't seem to understand that a 2-year-old business with 7 employees cannot invest $40-50K in software and then 5
Page 1 and 2: ZARA TECHNOLOGY: GO TO MARKET STRAT
Page 3: usiness value, you have to talk abo
Page 7 and 8: unning more than two months after o
Page 9 and 10: SMEs frequently advance these as ra
Page 11 and 12: Figure 1 SUN Ray I Source: Sun Micr
Page 13 and 14: SUN Ray II won the prestigious 2007
Page 15 and 16: Figure 5 Work Stations for SUN Ray
Page 17 and 18: world today. However, the technolog
Page 19 and 20: Figure 7 Data Center Building Figur
Page 21 and 22: Electronic equipments in a confined
Page 23 and 24: SMEs in Singapore While MNCs have c
Page 25 and 26: Economic Surveys of Singapore Depar
Page 27 and 28: Figure 14 Proportion of Employees W
Page 29 and 30: Technological complexity is cited a
Page 31 and 32: Figure 18 Confidence Level in Singa
Page 33 and 34: Management Style of SMEs in Singapo
Page 35 and 36: Industrial Research (SISIR).At the
Page 37 and 38: As the telecom market was deregulat
Page 39 and 40: Figure 20 How PacNet Network Guard
Page 41 and 42: Figure 21 A Schematic Representatio
Page 43 and 44: • Document Management The SteelCl
Page 45 and 46: 2. Server, Data and SC located on C
Page 47 and 48: The Trojan Horse Opportunity With t
Page 49 and 50: Research has predicted that the Saa
Page 51 and 52: DECISIONS Francis and Chris sat dow
Page 53 and 54: Table 1 A Comparison of 2008 Accoun
Page 55 and 56:
Table 1 A Comparison of 2008 Accoun
Page 57 and 58:
Table : 2A A Comparison of ERP Soft
Page 59 and 60:
Table 2B A Comparison of ERP Softwa
Page 61 and 62:
Table 2D A Comparison of ERP Softwa
Page 63 and 64:
Table 2F A Comparison of ERP Softwa
Page 65 and 66:
Whole-Sale Trade EMPLOYMENT SIZE Ta
Page 67 and 68:
EMPLOYMENT SIZE Accommodation Table
Page 69 and 70:
SIZE OF OPERATING RECEIPTS Informat
show all

zara technology: go to market strategy - University at Buffalo School ...

Create successful ePaper yourself

Delete template?

Save as template?