Framework for a sustainable ERP license model in an increasingly competitive software market
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Date
2016-03-17
Authors
Botha, Petrus (Fanie) S. G.
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Abstract
Enterprise Resource Planning (ERP) systems have notoriously complex license models.
Whilst the ERP market has been dominated since the 1980‟s by SAP AG and Oracle Corp., this
picture is changing with these software giants slowly losing market share to the more than 100
proprietary ERP systems available today. Many of these new entrants wield simpler, more transparent
licensing models.
This research aims to understand how the current ERP license models behave under varying market
conditions with the goal of developing a “framework for a sustainable ERP license model in an
increasingly competitive software market”.
The research issues are addressed by modelling an actual economic firm with the aid of a software
simulation. The aim of this simulation is to model how closely ERP license models link the benefit of
the ERP to the cost of the license model.
Simpler license models (employed by the new ERP entrants) demonstrated a comparable level of
cost/benefit.
The research concludes with a proposed framework for a sustainable ERP license model.
Potential future research includes investigating the use of gain-share or profit-share models for future
software license models.
Description
A research report submitted to the Faculty of Engineering and the Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Master of Science in Engineering, under the supervision of Prof. I. Botef.
Johannesburg, July 2015