CRM and e-commerce are set to be the fastest growing enterprise applications claims Ovum, which says customer engagement systems will be the fastest growing enterprise application between 2013 and 2018.
According to the analyst's newly launched software forecasts , e-commerce and CRM solutions will see compound annual growth rates (CAGRs) of approximately 10% for the 2013-2018 period, followed closely (8%) by enterprise applications that support innovation, such as product lifecycle management (PLM) and innovation management platforms.
It has been a tough time for CRM and ERP systems, as the problem of engaging with business processes has proved daunting with users and channels.
Ovum's Enterprise Application Software Market Forecasts*, illustrate businesses' interest in strengthening customer engagement capabilities while reducing costs. This trend is corroborated by Ovum's ICT Enterprise Insights, where growth was the top priority, followed by greater customer focus, compliance, cost reduction, and innovation, across a global population of 6,698 enterprises.
The forecasts show that manufacturing and healthcare verticals will be the biggest spenders by 2018, driven largely by the need to innovate. Healthcare investment will nearly double between 2012 and 2018 from $12.2bn to $22.9bn, while manufacturing investment will grow from $14.6bn to $23.9bn over the same period. By region, the rapidly evolving economies of China, India, Brazil and the Middle-East & Africa show the highest CAGRs (between 13% and 16%).
Predictably, Europe and the US show the lowest (between 7% and 8%), albeit from a much higher base. "Globalisation and disruptive technologies - particularly social networks, cloud computing, and mobile - have had a massive impact, raising customer, consumer, and citizen expectations and giving them greater power. This, plus a strong focus on cost reduction through IT modernisation and fierce competition for customers, is leading organisations to invest in their ability to adapt quickly enough to remain relevant to consumers," said Jeremy Cox, principal analyst, customer engagement, Ovum.