College of business administration-graduate school
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ImpactofAccountingInformationSystemasaManagementToolinOrganisation
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- CHAPTER 2 MARKET INFORMATION Industry Background
| G.4. Financial Aspect
The initial investment of EXCELENS is P4,000,000 which will come from the incorporators’ contribution to establish this business. Aside from this, there are no other sources of capital. The return of asset will be 0.31 at the first year of operations and the payback period will be 1.03. Therefore, the business is feasible in terms of the financial aspect. CHAPTER 2 MARKET INFORMATION Industry Background Enterprises are changing the way they deliver services and transforming their IT infrastructure to meet the changing business requirements. The advent of mobiles along with the consumerization of IT has put immense pressure on business applications. Traditionally, they deployed enterprise software in-house to ensure smooth business operations. As enterprises are seeking out new ways to use their resources more efficiently, the demand for enterprise application software increases. The global enterprise application market size was pegged at USD 164.46 billion in 2016 and is expected to develop at a CAGR of 7.8% over the forecast period. Enterprise application solutions such as business process management (BPM) and software configuration management (SCM) assist enterprises in tracking production from procurement to delivery to the end consumer and help in managing inventory. Implementation of these solutions enables accurate and real-time business information flow among departments in any enterprise. An enterprise application is designed specifically to offer advantages such as efficient utilization of available industry insights and resources, customer engagement, and quality management. Thus, these solutions lead to fulfilling varied necessities of customers. In addition, the emergence of mobile device penetration and rising preference for remote access is anticipated to boost industry growth over the coming years. Start-ups and small and medium-sized enterprises (SMEs) have adopted enterprise applications and solutions to control and monitor business processes, which are anticipated to contribute to revenue generation. Start-ups and SMEs have limited funding, as a result of which, investments on major infrastructure requirements and latest technologies are restricted. Hence, most SMEs opt for cloud-based services. Easy availability and rising accessibility of open-source solutions is anticipated to restrain industry growth over the projected period. Some of the commercially available open-source solutions are CitrusDB, Magnolia, ProcessMaker, and FriFinans. High maintenance costs also threaten to hinder industry growth.
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