HOME » About IBS » IBS in brief

IBS market

In 2007, IBS was one of the top ten international suppliers of supply chain management solutions in a stable market. New technological developments in such applications as SOA and SaaS achieved major breakthroughs and will generate increased market opportunities for IBS.

IBS Market - Cirkle 

Market outlook

IBS targets the market for mid-sized and large distribution and manufacturing companies, with a focus on selected industries, including the automotive, electronics, paper, pharmaceuticals, food and publishing industries. At the local level, IBS conducts operations within a number of additional industries and selected niches, such as HR and fi nancial solutions and other specialized areas. These operations primarily take place in the Nordic region, the Benelux countries and Iberia (Portugal and Spain).

According to Gartner analyst group, the global market for supply chain management systems (SCM) is expected to continue the stable growth trends reported during the past few years. The market is expected to grow by approximately 7 percent in 2008. SCM sales are expected to total about USD 6 b this year. However, we anticipate that the effects of a general economic downturn will lower the growth rate in comparison with 2007.

The market outlook for hardware appears more cautious, with an expected decrease in the inclination to invest in IT infrastructure. This is due to increased use of hosting and rented software solutions, known as Software as a Service (SaaS), combined with a weaker economic climate, particularly in North America. IBS is well-positioned to adapt to a weaker market for IT infrastructure by offering hosting solutions and concepts for renting business systems, particularly to smaller customers. The IBS growth forecast in terms of software sales will benefi t from the introduction of business systems for Windows planned for the second half of 2008.

IBS Market - Diagram

Adapting to new requirements and globalization

Software based on Service-Oriented Architecture (SOA) will also be in demand within SCM because this type of solution is flexible and cost-effective. All companies seek ways to reduce their costs for IT and, at the same time, to benefi t from the support provided by their business systems. As a result, serviceoriented and outsourced IT solutions are attractive to companies that strive for the lowest total cost for IT support, which is in line with our portfolio of solutions.

Globalization and consolidation have driven companies to install business systems that provide them with competitive advantages in relation to their competitors. Powerful business systems enable companies to adapt quickly to changing market conditions. Business systems, such as IBS Enterprise, must empower client companies to cooperate with customers and suppliers globally. In adition, the systems must integrate information from internal and external sources, communicate quickly, optimize clients business processes and adapt the business system to new requirements and conditions.

Intense competition requires continued specialization

IBS competes with a number of different suppliers of supply chain management solutions, both locally and globally. Its competitors include SAP, Microsoft, Oracle, Infor and Lawson. At the local level, IBS also faces competition from companies that specialize in certain industries, regions or application areas. Although continued consolidation has transformed the industry during the past few years, the market for SCM solutions remains fragmented. According to Gartner, the top ten SCM suppliers account for approximately 55 percent of the market.

The IBS competitive edge derives from our capacity to provide specialized expertise within various process areas, industries and technologies, delivered with a high service level and with a strong local presence. This is combined with an ability to offer development, installation and support at the global level through our total offering. Our long-term competitiveness will be strengthened through a continuing focus on selected industries and the gradual introduction of IBS Enterprise for additional IT platforms.