2002/03 META Trend: During 2002/03, ERP vendors will increase their application footprint by delivering major extensions (e.g., supply chain planning, CRM), while differentiable component applications (e.g., business planning) continue to add value. Through 2003/04, smaller organizations and divisions of large companies will complete wholesale ERP replacements, with few best-in-class extensions. By 2005/06, ERP vendors will move beyond inbound SOAP calls and embedded links to third-party services by offering commercial Web services.

New business applications must deliver horizontal excellence (e.g., business planning, warehouse management) and support the process requirements of specific verticals (e.g., banking, oil and gas). Aside from the core requirements of transaction execution and advanced planning algorithms, selection criteria for application packages must include the vendor's ability to support sophisticated reporting and query capabilities.

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Through 2003, application package vendors will continue to rely on homegrown report writers. During the same time frame, these vendors will deliver more sophisticated analytical applications in areas such as supplier relationship management and customer/product profitability. By 2004/05, most vendors will embed sophisticated report writers (e.g., Crystal Decisions, Actuate) as well as industry query tools (e.g., Cognos, Business Objects). We note that all business intelligence tools offer varying degrees of both query and reporting. By 2006/07, most vendors will "understand" that the data belongs to the customer, and will deliver extraction/transformation middleware with changed data management (in addition to enticing clients to continue to import data).

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