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Taiwanese Large Enterprises' Demand for IT Applications and Software, 2005-2007

February 08, 2007 / Meg Lin

34 Page, Topical Report

US$2,380 (Single User License)

Abstract

Large enterprises have extensive resources, a wide business scope, and well-established management systems, thus are more receptive than small and medium enterprises to the adoption of new information and communications technology. To better understand Taiwanese large enterprises' demand for IT systems over the next two years, during the period from December 2005 to January 2006 MIC investigated 5,000 largest enterprises in Taiwan in terms of their revenue. These companies were categorized by their revenue and the industries to which the enterprises belonged; the survey examined their network applications and their adoption of IT systems. 600 completed questionnaires were returned. This report will examine the results obtained in the survey.

List of Topics
Analyzes the results of a survey on Taiwanese SEMs' IT system adoption, which was conducted between December 2005 and January 2006 by MIC (Market Intelligence Center). Survey covers network applications, such as website, EIP, WLAN, VPN, VoIP, and EIM, as well as IT software, including ERP, CRM, SCM, BI, e-learning, and BPM, adopted by Taiwanese SMEs for the period 2005-2007, with breakdowns by company size and industry sector.

List of Figures
Figure 1 Taiwanese Large Enterprises' Website Establishment, 2005

Figure 2 Taiwanese Large Enterprises' Website Establishment by Industry, 2005

Figure 3 Taiwanese Large Enterprise Websites with e-Commerce Functions by Industry, 2005

Figure 4 Taiwanese Large Enterprises' EIP Establishment, 2005

Figure 5 Taiwanese Large Enterprises' EIP Establishment by Industry, 2005

Figure 6 Taiwanese Large Enterprises' WLAN Establishment, 2005

Figure 7 Taiwanese Large Enterprises' WLAN Establishment by Industry, 2005

Figure 8 Taiwanese Large Enterprises' VPN Establishment, 2005

Figure 9 Taiwanese Large Enterprises' VPN Establishment by Industry, 2005

Figure 10 Taiwanese Large Enterprises' VoIP Adoption, 2005

Figure 11 Taiwanese Large Enterprises' VoIP Adoption by Industry, 2005

Figure 12 Taiwanese Large Enterprises' EIM Adoption, 2005

Figure 13 Taiwanese Large Enterprises' EIM Adoption by Industry, 2005

Figure 14 Taiwanese Large Enterprises' IT System Adoption by System Type, 2005

Figure 15 Taiwanese Large Enterprises' Demand for IT Software by System Type, 2006 -2007

Figure 16 The Taiwanese IT and Electronics Industry's IT Software Adoption by Software Type, 2005

Figure 17 The Taiwanese IT and Electronics Industry's Demand for IT Software by Software Type, 2006 -2007

Figure 18 The Taiwanese General Manufacturing Industry's IT Software Adoption by System Type, 2005

Figure 19 The Taiwanese General Manufacturing Industry's Demand for IT Software by Software Type, 2006 - 2007

Figure 20 The Taiwanese Wholesaling and Retailing Industry's IT Software Adoption by Software Type, 2005

Figure 21 The Taiwanese Wholesaling and Retailing Industry's Demand for IT Software by Software Type, 2006 - 2007

Figure 22 The Taiwanese Transportation and Warehousing Industry's IT Software Adoption by Software Type, 2005

Figure 23 The Taiwanese Transportation and Warehousing Industry's Demanf for IT Software by Software Type, 2006 - 2007

Figure 24 The Taiwanese Financial Services Industry's IT Software Adoption by Software Type, 2005

Figure 25 The Taiwanese Financial Services Industry's Demand for IT Software by Software Type, 2006 - 2007

Figure 26 Other Taiwanese Industries' IT Software Adoption by Software Type, 2005

Figure 27 Other Taiwanese Industries' Demand for IT Software by Software Type, 2006 - 2007

List of Tables
Table 1 Sample Structure by Enterprise Revenue

Table 2 Sample Structure by Industry

The survey results show that large enterprises in Taiwan have already achieved a relatively high level of e-enablement. As regards network applications, over 85% of large enterprises have their own website, nearly 60% use WLAN, and 50% - 60% have adopted VPN and VoIP. By contrast, only 24.8% of large enterprises with their own website have established a B2B or B2C e-commerce capability. The adoption rates for EIP and EIM are 40.0% and 26.0% respectively, indicating that there is still considerable room for growth in these market segments. ERP is the most widely used business application system among large enterprises in Taiwan; 67.7% of enterprises have established an ERP system. The adoption rates for CRM, SCM, BI, e-learning, and BPM are all much lower, at around 10% to 20%. The main focus of demand for new business application system establishment in the next few years will be on CRM and BI; 14.4% of large enterprises are planning to establish a CRM system within the next two years, and 12.3% are planning to adopt BI. Companies in different industries have different needs in terms of networking applications and business application systems. By and large, the IT and electronics industry still has the highest adoption rates for both network applications and business application systems. However, as competition grows more intense and the pace of overseas expansion quickens, the general manufacturing industry has also started to display higher demand for IT applications; this is the industry in which the next wave of e-enablement will be concentrated. In the service sector, the financial services industry has been most aggressive in the pursuit of e-enablement, and has posted the highest levels of expenditure on IT. The development of new business areas and the imposition of new regulatory requirements in the last few years has stimulated an increase in demand for IT applications among financial services providers, making this industry another focus of attention.

Appendix

Glossary of Terms

BI		Business Intelligence
BPM		Business Process Management
CRM		Customer Relationship Management
EIM		Enterprise Instant Messaging
EIP		Enterprise Information Portal
ERP		Enterprise Resource Planning
SCM		Supply Chain Management
VoIP		Voice over IP
VPN		Virtual Private Network
WLAN		Wireless Local Area Network

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