Read: 1572
Yonyou, the Chinese pioneer in enterprise resource planning ERP, stands out as China’s answer to global ERP titan SAP. Established in 1988 alongside another Chinese tech giant Kingsoft, Yonyou spearheaded the digitalization process for financial and accounting tasks with its software solutions since the early days of personal computers.
The launch of Microsoft Windows 95 in 1995 marked a pivotal moment that accelerated China's digital transformation. This period demanded more advanced enterprise IT systems, stimulating growth within the ERP sector. SAP was quick to capitalize on this shift by establishing its Chinese arm in 1995 and founding an RD team in 1997, positioning itself at the forefront of local market development.
As internet usage surged and digitalization sped up, companies increasingly emphasized internal coordination and productivity gns. This transformation propelled ERP adoption across industries. SAP led with a significant presence in China, but it was Yonyou that emerged as the most dominant force within the Chinese market by leveraging its late-entry advantage.
Yonyou is known for its standardized ERP products which cater to businesses of varying sizes through their T Series for micro- and small-scale enterprises, U Series small-to-medium enterprises, and NC series large corporations. As cloud-based services gned momentum, Yonyou transformed its product line-up into the cloud era by offering T+ Cloud, U+ Cloud, and NC Cloud to better serve customers in the digital age.
From 2014 to 2019, revenue from Yonyou's cloud services mnly ERP SaaS expanded exponentially from CNY85 million to CNY1.97 billion with an annual growth rate of 119.7. This development led to the cloud segment contributing a substantial portion of total sales23 in 2019, which was ten times its share just five years prior. The traditional software services are now being overshadowed as cloud services become dominant.
In the competitive landscape dominated by global giants like SAP and local rivals such as Kingdee, Yonyou has not only stood firm but also collaborated with leading Chinese fir strengthen its offerings. In essence, it joined hands with Huawei Cloud to build a comprehensive information and communication technology ICT development environment called Kunpeng ecosystem.
The rapid growth of China's cloud market, estimated at ten times the size in 2015 by 2021, provides an exciting backdrop agnst which Chinese ERP SaaS firms are flourishing. The forecast predicts that the value of this sector will reach CNY133.6 billion by 2023.
Standardized ERP SaaS introduces a lower conversion cost for businesses and reduced marginal costs for developers compared to traditional software. This subscription-based approach ensures a steady stream of revenue for service providers, enhancing liquidity. Yet, in China's evolving market landscape, customer retention remns a key focus, while acquiring new clients continues to be the primary strategy.
Contact us through these platforms:
Telegram: https:t.meequaloceanhttps:t.meequalocean
WeChat: Shangh EqualOcean Technology Co., Ltd.
WhatsApp: +1 212 649-8308
Please join our community for more insights into China from within.
? Shangh EqualOcean Technology Co., Ltd. andor its affiliates and licensors. All rights reserved.
This article is reproduced from: https://equalocean.com/analysis/2020081414534
Please indicate when reprinting from: https://www.xe84.com/Financial_UFIDA/China_ERP_Technology_Growth.html
Chinese ERP Industry SAP Competition Yonyou Cloud Services Dominance Standardized SaaS Growth Dynamics Huawei Yonyou Strategic Alliance Chinas Cloud Market Expansion ERP Adoption Acceleration in China