Turning crisis into opportunity, Huawei MetaERP shocks market

Huawei recently announced its much-awaited business management system, MetaERP, and the company has already sent shock waves to the giant ERP players in the market.

Huawei MetaERP is a major breakthrough and the company will save a lot of investment from this point forward by cutting reliance on ERP firms in the field. This also helps Huawei to overcome crisis mode.

Huawei says, MetaERP currently handles 100% of Huawei’s business scenarios and 80% of its business volume. The system passed several tests for monthly, quarterly, and yearly settlements. Also, Huawei announced that has no faults, zero delays, and zero accounting adjustments.

The development has brought hope for the industry and people are speculating on different aspects of MetaERP. Some say, Huawei will open it for the market, while some believe that it will remain enclosed internally.

But there’s a lot more in the background that you should know.

ERP Market:

Enterprise resource planning or ERP term was first proposed by Gartner in 1990. After three decades, the ERP industry is seeing high growth.

Looking at the data, the global ERP market exceeded $80 billion dollars in 2020 and will surpass $112 billion dollars market by 2025. It will contribute to a five-year compound growth rate of 6.8%, which is higher than the average rate of the IT market.

Meng Wanzhou, Huawei’s Rotating Chairman shared two sets of data. The digital economy accounted for about 20.7% of the global economy in 2020 and is expected to increase to 24.3% by 2025 by 1.89 trillion dollars.

It will reach 3.4 trillion U.S. dollars in 2026. She believes that “this is a new blue ocean for the entire industry chain.”

Market dominance:

Data from a Chinese industry research institute shows that ERP giants such as SAP and Oracle leading in first and second positions in the high-end ERP market with over 50% combined market share. While IBM has 8%. On the flip side, two of the Chinese ERP leaders accounted for only 14% and 6% respectively.

Commercial MetaERP?

Following the launch of MetaERP, the stock of Chinese ERP companies fell. Afterward, Huawei announced that currently it has no plans to commercialize MetaERP and it will continue to work with domestic ERP players.

But industry analysts believe that the entry of Huawei MetaERP into the commercial market will stir up competition and it’ll bring good outcomes for the industry as well as the company. However, we’ll have to wait to see that happen.