IC System Development©2010

Source Data

• The world’s leading information technology research and advisory company

• Use The Magic Quadrant , a proprietary research tool developed by Gartner Inc, designed to provide a qualitative analysis into a market and its direction, maturity and participants, identifying which company is a stronger competitor for that market.

• www.gartner.com

Gartner, Inc.

• An independent technology and market research company in the US, that provides its clients with advice about technology's impact on business and consumers

• www.forrester.com

Forrester Research

• A niche, independent of Affiliation consulting firm specializing in the enterprise resource planning (ERP) market for mid-sized companies throughout the globe.

• www.panorama-consulting.com

Panorama Consulting Group

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Magic Quadrant

Source : http://www.gartner.com/DisplayDocument?doc_cd=131166

I. Ability to Execute Evaluation Criteria

Evaluation Criteria Weighting

Product/Service high

Overall Viability (Business Unit, Financial, Strategy,

Organization)

high

Sales Execution/Pricing standard

Market Responsiveness and Track Record high

Marketing Execution low

Customer Experience high

Operations high

II. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding high

Marketing Strategy low

Sales Strategy standard

Offering (Product) Strategy high

Business Model standard

Vertical/Industry Strategy low

Innovation high

Geographic Strategy high

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Magic Quadrant

Magic Quadrant for Business Intelligent Platform

Oracle and SAP in the same position (Leader)

Magic Quadrant for Warehouse Management System

Oracle and SAP in the same position (Visionaries)

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Magic Quadrant

Magic Quadrant for Sales Force Automation

Oracle stands out above SAP

Magic Quadrant for Transportation Management System

Oracle stands out above SAP

Siebel, is best-of-breed CRM which was acquired by Oracle in 2006, integrated with Oracle EBS using Siebel Integration5

Data Warehouse Comparison

The Forrester Wave™ Enterprise Data Warehousing

Platform, Q1’09

Magic Quadrant for Data Warehouse Database

Management System

Oracle provides one of Enterprise Data Warehousing market’s best-of-breed

solutions portfolio6

Magic Quadrant for Large and Midmarket ERP

Vendors

SAP Business All-in-One

Stands out above Oracle

EBS, especially in terms of

market share.

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Definition

Business intelligence (BI) refers to computer-based techniques used in spotting, digging-out, and analyzing business data, such as sales revenue by products and/or departments or associated costs and incomes.. Business Intelligence often aims to support better business decision-making.Thus a BI system can be called a decision support system (DSS).

Warehouse Management System (WMS), is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, putaway and picking. The systems also direct and optimize stock putaway based on real-time information about the status of bin utilization.

Sales Force Automation System (SFA), typically a part of a company’s customer relationship management system, is a system that automatically records all the stages in a sales process. Additional add-on capabilities focus on improving the sales effectiveness of salespeople, such as sales configuration, sales coaching, guided selling, proposal generation and content management; and sales performance management support, including incentive compensation, quota and territory management.

Transportation Management System (TMS), usually "sits" between an ERP or legacy order processing and warehouse/distribution module. TMS include suggesting various routing solutions, select the best mode and least cost provider, generate electronic load, support freight audit and settlement process

A Data warehouse is a repository (collection of resources that can be accessed to retrieve information, data storage) of an organization's electronically stored data, designed to facilitate reporting and analysis

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Vertical Specialization Intensifies Among SMB ERP

Vendors

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2010 ERP Vendor Reports by Panorama Consulting Group

Gheographic Locations Major Vendor Market Share in 2009

These data is Based on survey results from 1.600 organizations that have selected or

implemented ERP within the last 4 (four) years.

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TIER I

TIER II

TIER IIIABAS, Compiere, Exact, NetSuite, CGS

Activant Solution, Consona, Syspro

2010 ERP Vendor Reports

Source : http://panorama-consulting.com/resource-center/2010-erp-vendor-analysis/

Sample Vendors Reviewed in the 2010 ERP Vendor Reports

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2010 ERP Reports

Sourcce : http://panorama-consulting.com/from-magic-quadrant-to-top-10-erp-vendors/

Top 7 Selected ERP Vendors

Vendor Frequency

SAP 20.4%

Microsoft Dynamics 14.9%

Oracle EBS 9.8%

Epicor 7.9%

Infor 4.1%

Oracle JDE 3.1%

Oracle PeopleSoft 2.6%

IFS 2.2%

Sage 1.9%

Activant Solutions, Inc 1.4%

Vendor Frequency

Oracle PeopleSoft 66.7%

Oracle EBS 54.2%

SAP 54.1%

Infor 38.5%

Oracle JDE 37.5%

Epicor 33.3%

Microsoft Dynamics 22.9%

Top 10 Short-listed ERP Vendors

Participating Companies were asked to identify four short-listed vendors under consideration for Software

selection. Tier I vendors were listed most frequently as they have strong brand awareness and reputation as well

as the variety of products offered by these vendors.

Most frequently selected vendors come from short-listed ERP Vendors. The selection rate was based on the

frequency of each vendor being selected over the frequency of each being considered in the selection phase

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5 Reasons why SAP is a market leader in ERP

Although most of the companies select Oracle product for their ERP Application, but SAP still lead ERP Market Shares (31% vs 25%). 5 Reasons why SAP win the market are :

1. The fact that SAP is a market leader after three decades. Customers both new and old find comfort in a long historical track record

2. The primary focus of SAP has been on enterprise applications for the last 30 years, the area where they hold the market leader spot today across the globe

3. SAP continues to focus its ERP applications on maximizing resources and reducing costs that are customized for businesses and industries

4. SAP architecture is incredibly strong with a process-centric focus and a foundation that operates in real time communication with enterprise wide business processes that is highly flexible.

5. SAP’s strong customer base and partnership base over the last 30 years has afforded their enterprise applications to be extremely industry and business specific as they have already built and refined these industry specific solutions with real customers and real implementation carrying the knowledge base and improving their technology and application offerings each year for the last three decades.

Sourcce : http://www.erp.com/section-layout/3-general/4072-7-reasons-why-sap-is-a-market-leader-in-enterprise-resource-planning-erp-systems-.html13

2010 ERP Reports - Customization Level by Vendor

Sourcce : http://panorama-consulting.com/resource-center/2010-erp-vendor-analysis/

ERP Software from Tier I vendors is less customized (mostly vanilla)compared

with ERP Software from Tier II and III

SAP vs Oracle : SAP is more customized (80%) than Oracle (75%)

“Companies tend to customize their ERP Software”

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2010 ERP Reports - Top Tier I ERP Comparison

Parameters SAP Oracle Microsoft

Duration (Months) 20.0 18.6 18.0

Cost of

Implementation

$16.8 M $12.6 M $2.6 M

Overall Satisfaction 73.0% 62.0% 69.0%

Business Risk Factor 50.0% 56.9% 57.7%

Sourcce : 2008 ERP Report Part II, Comparing Leader Tier I and Tier II ERP Solution, http://panorama-consulting.com/

SAP needs longer time of implementation (20months) than Oracle (18.6months)

SAP is more expensive ($16.8 M) than Oracle ($12.6 M)

SAP give the most satisfaction for customer than other ERP Software

SAP give lowest business risk factor than other ERP Software

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SAP vs Oracle - ComparisonNo Category SAP Oracle

1 “Best-of-breed” * functionality vs.

more tightly integrated modules

Built a solution primarily from ground up

/ scretch, into an All in One ERP

Solutions

Built a solution through acquisition of “best-of-

breed” point solutions. For example, Oracle has

acquired Demantra for advanced sales and

operations planning, Hyperion for financial

reporting, and Siebel for CRM

2 Product Roadmap SAP Continues to build upon and

enhance its core product offering

Moving toward Fusion, by using oracle fusion

middleware, using standard industry for the next

generation ERP.

3 Flexibility SAP can be more rigid, complex and

difficult to change as a core processes

and requirement.

Oracle allow for more flexibility and extensibily to

accommodate changing business needs,

4 Implementation cost, duration, and

risk

SAP has the lowest business risk,

measured via the probability of a

material operational disruption at the

time of go-live.

Oracle has a slight advantage in average

implementation duration and an even larger

advantage in average implementation cost, at 20%

less than SAP

5 Business benefits and satisfaction. SAP leads the pack in actual business

benefits realized. SAP as a solid solution

for many companies.

Due to the flexibility for customization to meet

specific business needs, somestimes users feel less

satisfaction with oracle functionality.

6 Web-based user interface SAP’s web-based client (SAP-GUI for

HTML) has serious performance and

usability issues.

Oracle is completely web based with very intuitive

screens designed for the casual end user.

*Best of breed (BOB) means using a specific software program or package for each specific application or requirement. To share information between the

applications, the information is either printed out from one package and manually input to the next or the packages are linked either by the vendor or using a third party

"middleware" package, sometimes called Enterprise Integration Technology (EIT), to provide varying degrees of integration

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Companies using SAP

SAPPT. ELNUSA PT. Ecco Indonesia PT.Telekomunikasi Indonesia

Jakarta Stock Exchange PT. Indofood PT. Pramindo Ikat Nusantara

PT. Exspan Nusantara PT. Semen Cibinong Telekomunikasi Indonesia (DIVRE 1)

PT Medco E&P Indonesia PT. Sinar Niaga Sejahtera PT. Satelit Palapa Indonesia (Satelindo)

PT Pertamina PT. Supra Boga Lestari (Ranch Market) PT. Indosat

PT Timah PT Easton Kaleris Indonesia PT Exelcomindo Pratama

PT. Bank Central Asia PT.Tripolyta PT Smart Telkom

PT. Bank Danamon Indonesia PT Frisian Flag Indonesia PT Natrindo Telepon Selular (AXIS)

Bank Permata PT.Astra Nissan Diesel (Nissan) PT Bakrie Telekom (BTEL)

99 Ranch Market PT. Gaya Motor SNS Group

PT Coca Cola Bottling Indonesia PT. Pulogadung Pawitra Lestari PT Swadaya Harapan Nusantara

Tempo Group PT.Astra International (head office) Asia Pulp & Paper

Fuchs Indonesia United Tractor Asahi Chemical

Krakatau Steel Garuda Indonesia Rajawali Corporation

PT Karunia Alam Segar (Wings Food) Panen Lestari (SOGO) Bentoel Prima

PT Lion Wings KAO Indonesia PT Belfoods Indonesia

PT Sayap Mas Utama PT Tigaraksa Satria, Tbk PT Dynaplast,Tbk

Asian Agri (RGMI Group) Charoen Pokphand Group PT Matahari Putra Prima

PT. Combiphar American Standard PT Anugrah Pharmindo Lestari (APL)

Johnson & Johnson PT Wiraswasta Gemilang Indonesia PT Jakarana Tama - Wicaksana Group

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Companies using Oracle

OracleUSAID Fujitsu Services Ltd Jamsostek

Sony EMC Corporation Palyja

Quantum Honeywell ACS SSEK

Xerox Electronic Data Systems PT Tigaraksa Satria, Tbk (Oracle DataGuard)

Cisco Systems Inc Mc Donalds PT Pertamina (Oracle Real App. Cluster)

SilTerra HeinzPT Telekomunikasi Selular (Telkomsel)

(Oracle EBS)

Nokia Corporation Herbalife PT Metro Batavia

MYOB Limited Philip Morris PT Matahari Putra Prima

Hewlett Packard Albertsons PT Federal International Finance

Motorola Bayer Bank BRI Syariah

Siemens Business Services Phillips Sonicare PT Jasa Marga,Tbk

LG Electronics CopAgra Foods PT Gudang Garam (Siebel dan Demantra)

Trend Micro Inc, Coca Cola (Agile CRM) PT Kalbe Farma (Oracle EBS)

Network Appliance, Inc. PlaytexPT Telekomunikasi Indonesia (Oracle

Service Delivery Platform)

HuaweiTechnology Co. Abbot, Diabetes Care PT Perusahaan Percetakan Uang RI

Symantec Corporation Johnson-johnson (Agile CRM) PT Indosat,Tbk (Oracle Identity Manager)

Intel Corporation Sun Microsystem

Xilinx

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Summary

Is SAP better than Oracle ?

• Both vendors offer great ERP packages but choosing the right package among both is not an easy job. For SAP, being a leader on the market, does not always mean that SAP can offer the right software that customers want to have; and Oracle can appear as a good alternative for this case. If the company is limited in resources and restrained in time the best solution would be to go for SAP products. However the company with distinguished values which creates a competitive advantage would prefer to choose the Oracle to build a “best-of-breed” unique system that will fit well to their businesses

Is Oracle more flexible than SAP ?

• Yes, Oracle is easier and more flexible to customize (functional and technical) for future enhancement compared with SAP. Oracle also has recent technology (via Oracle Fusion Middleware) that enable it to integrate and develop using standard industry language with many other “best-of-breed” applications

Is Oracle cheaper than SAP ?

• Yes, on average, Oracle is implemented in less time and at a lower cost than SAP

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