Meritco服务emslanding策略报告30282

MeritcoServicesJan2016EMSChinaLandingStrategy(Finalreport)Executivesummary(1/2)Source:MeritcoServicesChinaEMMmarketandlandscapeoverviewEMMmarketinChinaisstillattheinitialstage,withtotalmarketsizeofRMB288millionin2015.Maincustomersareconcentratedonthefieldsthatattachimportancetoinformationsecurityandhavehigherpenetrationrateonmobility,suchasfinance,high-endretailing,healthcareandlargescaledmanufacturingbusinesses.Movingforward,EMMinChinamarketwillhavehugegrowthpotential,growingataverage120%everyyearandreachingRMB~3billionin2018.Thekeydriversareadoptionofmobilityapplications,needstomanagegrowingmobileworkersandsecurityEMMcompetitivelandscapeinChinaisfragmentedwithabout20variousplayers,whogenerallyhavenofocusonspecificindustryandnomonopolisticpoweronanydown-streamverticals.Benchmarkingeachplayer’soffering,localplayersmostlyleadinservicecapabilityoverMNCplayers,andsomecouldoffercustomerswithone-stopsolutionbycombiningEMMandtheirownmobilitysolutionsCustomers’mobilityscenariosIngeneral,mobilityscenariosinChinacanbedividedintothreecategories:managerialstaffmobileofficework,mobileprimarybusinessandbackofficemobility.ProductivityrelatedmobileApps(OA,Email,Office)ismostwidelyadoptedacrossscenarios,andMicrosoftleadsinproductivityAbout50%ofenterpriseshaveadoptedmobileproductivitytools,OAandEmailmarketsaremuchmorefragmentedcomparingwithOfficemarketOver70%mobileAppsaredeployedonpremise;Customized3rdpartydevelopmentandpurchasingexternalstandardsuitsarethemajorapproachesManagerialstaffmobileofficeandmobileprimarybusinessgeneratethemajorityofEMMneedsduetoinformationsecurityconcernsCustomers’KBFandEMSfeasibilityMNCbackground,cloud-basedandcustomizationare3keyfactorsdecidingEMSfeasibilityacrosseachsegmentBeingaMNCvendorwon’tbeabigissueforEMSwhomightonlyfaceresistanceinafewsegmentsduetotheirpoliticalconcernsoroutdatedmindsetOn-premiseisstillthemainstreamdeployment,about70%customerspreferitandafewsegmentssuchasgovernmentandSOEsreallyhesitatetoadoptpubliccloudforEMM.Howevercloudsolutionalsohasgoodgrowthpotentialas20%customersacknowledgetheadvantagesofcloudandeducationisprojectedtolessencustomers’resistancetocloudinabout10majorcustomersegmentsCustomization,whichreferstocustomizedfeatureportfolio,customizedmanagementpolicy,APIintegrationandcustomizedfeaturestrengthening,iswidelyemphasized.WhileEMSfacesbarriersinmeetingcustomers’verticalspecificneedsasaSaaSsolutionExecutivesummaryExecutivesummary(2/2)Source:MeritcoServicesApartfrommajorfactorsofEMSfeasibility,service,PCandmobileintegrationandsuccessfulcasesarealsovaluedaskeybuyingfactors:1)Serviceisseenasanecessarycapability;2)PCandmobileintegrationarehighlyneeded,especiallyforthosebigenterpriseswhoalreadyhavePCmanagementsuits;3)SuccessfulcasefrombothvendorandpartnersareimportanttopitchcustomersEMSvaluepropositionandproductofferingCurrently,customershavetwomajorpainpointswhileadoptingonpremiseEMMsolution:1)HighmaintenancecostduetolimitedITcapabilities;2)Usuallyonpremisesolutionwouldtakemonthstodeveloprelatedfeaturesandsystemtesting.AsaSaaSbasedEMMsolution,EMScoulddeliverthemajorvaluepropositionofbeing“costeffectiveness,security,widesupportandmaintenancefree”CustomersmainlyvalueEMMfeaturesforsecurityneeds,whicharemostlycoveredbyEMS.Howevertheydovaluecompetitivepricealot,whileEMSglobalpriceismuchhigherthanotherChinamarketsuppliersEMSfullpackage(includepremiumAAD,fullIntune,RMSandATA)isthemostpopularsuiteaccordingtocustomertest(conjointanalysis),wouldcover~46%(asprobability)customers’payingwillingnessatpriceofRMB22.8permonth,andisestimatedtoobtain5-6%shareintotalmarketwhentakingpricecompetitionintoconsideration(withoutothercompetitivefactorslikeservice,ecosystemetc.)Intuneinfluencesmostoncustomer’spayingwillingnessmendationonEMSChinamarketentrystrategyWesuggesttoprioritizeEMSmarketentrystrategyby3stepsStep1,obtaintheaccessiblemarket:focusonshorttermsegments,buildmarketpresencequicklythroughspeedingupproductlaunchanddevelopingeasytouchablecustomersStep2,fullscaledevelopment:targetmiddletermsegments,buildallaroundecosystemandstrengthenallservicecapabilities;launchmassivemarketingactivitiestoeducatethemarket,prioritizepartnershipwithISV,SI,OEManddevicemanufactureStep3,stayopportunistic:mainlyapplytolongtermbutfeasiblesegments,closelyobservethemarketandfollownewmarkettrendsExecutivesummary2018F2016F2017FRoadmapEMSChinamarketlandingstrategyroadmapProductlaunchingMarketingrequirementEstimatedsalesrevenueUSDMnStarteducatingcustomerswithconcernstowardcloudbasedsolutionEMScouldbuildthevaluepropositionofbeing“cost–effective,security,widelysupport,andmaintenancefree”Source:MeritcoServicesSpeedupproductlaunchwithoptimizedpriceandfeaturesCompletelackingfeaturestowidelycovercustomers’needsStrategicfocusObtaintheaccessiblemarketShorttermtarget:high-endretailing,MNChealthcare,MNCenergy,realestate,etc.Fullscaledevelopment&seizethemainmarketMiddletermtarget:3rdlevelhospital,locallargehealthcare,ITsoftware&service,etc.StayopportunisticLongtermtarget:localbanking&insurance,government,SOE,university,etc.GTMcapabilitybuildingProductsupport:startseekingcooperationwithpotentialpartnersforappanddevicesupportingApproachingmobileappdevelopersforAPIintegrationincodingstageStartapproachingOEMsfordevicesupportinfactorysettingSaleschannel/forcebuildingBuildinternalsalesandserviceteamLeverageonglobalresourceandexistingcustomerstoopenmarketSeekcooperationwithmajorOEMstoproviderbundlesolutionApproachingpotentialpartners,includingISV,SI,s,andrelevantsolutionprovidersServicecapabilitystrengtheningBuildinternaltechnicalandcustomerserviceteamApproachingpotentialpartners,includingISV,SI,s,andrelevantsolutionproviderstoprovidetrainingandothertechnicalsupportFollownewtrendofpopularapplicationsanddevicesandseekcooperationwithproviders1-25-815-20EMSChinamarketlandingstrategyessentialsChinaEMMmarketattractiveness1MarketoverviewCompetitionlandscapeMarketentrystrategyEMSopportunityidentificationEMSfeasibilityCustomerunderstandingUnderstandcompetitionlandscapeCompetitionlandscapeCapabilitiesbenchmark23ProductofferingProductpackagingoffeaturesettingProductpriceoffering4ValuepropositionSalespropositionforeachcustomergroup5StrategyprioritizationandcapabilitiesbuildingStrategyprioritizationEcosystembuildingCapabilitiesstrengtheningMarketing6ForecastingSalesrevenue7Risk8FinancialforecastingEMSChinamarketlandingstrategyEMSChinamarketlandingstrategyessentialsChinaEMMmarketattractiveness1MarketoverviewCompetitionlandscapeMarketentrystrategyEMSopportunityidentificationEMSfeasibilityCustomerunderstandingUnderstandcompetitionlandscapeCompetitionlandscapeCapabilitiesbenchmark23ProductofferingProductpackagingoffeaturesettingProductpriceoffering4ValuepropositionSalespropositionforeachcustomergroup5StrategyprioritizationandcapabilitiesbuildingStrategyprioritizationEcosystembuildingCapabilitiesstrengtheningMarketing6ForecastingSalesrevenue7Risk8FinancialforecastingEMSChinamarketlandingstrategyChinaEMMmarketisininitialstage,whileenjoyingafastgrowthof120%inthecoming3years

duetothedevelopmentofmobilityandhigherrequirementsofinformationsecurity1:ThismarketsizeonlyincludeEMMpotentialcustomersfrom14majorverticals.ThoseenterpriseswithlimitedpotentialtoadoptEMMareexcluded.Marketsizefrom2016-2018includebothnewaccountandrenewaccountineachyear2:Weassumeaslongasacompanyhaveanymobilescenariosrelevanttoworking,itismobilized.EMMpenetrationratereferstothepercentageofthosecustomerswhoclearlywouldadoptEMMinfuturethreeyearsoutoftotalcustomersSource:CCWresearch,Analysys,MeritcoServicesMarketoverview+120%2018E+39%20132017E2015E2016E2014EMMChinaEMMmarketsize1IncreasingadoptionofmobilityEnterprisemobilityapplicationmarketachieved14billionRMBin2014withCAGRof60%and,ingeneral,companiesspentaround1%-2%oftotalmobilitycostonEMMapplicationHigherrequirementsofinformationsecurityofcompaniesDrivenbyincreasinginformationrisks,moreandmorecompaniesaredeployinghigh-standardinformationsecuritysystem/softwaretoprotecttheirdatafromexternalinvasionandinternalunexpected/maliciousleakageCompaniestendtoadoptnotonlyPCmanagementsoftwarebutalsomobilemanagementsoftwareDriversMnUSD,2013-2018ChinaEMMmarketscopeChinaEMMmarketcoverstheEMMsoftware/servicewhichispurchasedbyChinacompaniesandMNCsChinabranch,excludingVDIandothersubstitutesofEMMMobilityrate2EMMpenetrationrate22%51%0.4%3%Nodominantplayerisobserved,thereisstillchancefornewentrantsFinanceManufactureGovernmentEnergyEducationHealthcareOthersTotalRev.Techown√√√√30MI√√√√√√√25AirWatch√√√√√√√20China√√√10NationSky√√√√√√√1044%Starrysky9%11%13%ZTEChinamobileChinaNationSky3%China4%4%3%Huawei1%3%Others4%AirWatchMobileIronTechown100%TotalTop10playersaccountfor56%oftotalmarketMostplayerstrytoseekopportunitiesinvariousindustries,withhardlyanyfocusSource:MeritcoServices,customersurvey,expertinterviewMarketoverviewRMB,Mn1501101401308022020023070100906050204010210120030190180780170160LocallargehealthcareLocalSMEhealthcareLogisticMNCbanking&insuranceLargeprivateenergyIThardwareMNCenergyCatering&hospitalityOtherretailingMNChealthcareSMEManufacturerITsoftware&serviceGovernmentSOEManufacturerLargeMNCmanufacturerAutoretailingLocalbanking&InsuranceEMS

feasibilityHighendretailingOtherSMEhospital&clinicHospital(3rdlevel)Marketsize1

15-18,RMBMnK12RealestateSOEenergyAirlineTaxiProfessionalserviceAutomanufacturingUniversityLocallargemanufacturerWehaveidentified3groupsoftargetcustomersforEMSfuturedevelopment,consideringmarketsizeandfeasibilityOpportunityidentificationLongtermtargetMiddletermtargetShorttermtargetGainanimmediatefootholdConductintensivemarketeducationandbuildcapabilitiesStayopportunistic,closelyfollow1:Referringtotheincreasevaluefrom2015to2018Source:MeritcoServicesFeasibilitymainlyinclude3keyfactorsWhethercustomersacceptpubliccloudsolutionornotWhethercustomerscareEMMvendor’sMNCbackgroundornotWhethercustomershavestrongdemandoncustomizedsolutionornotConsolidatedviewofEMSopportunitiesSource:MeritcoServicesOpportunityidentificationPreviouslyidentifiedopportunitiesHighendretailingShorttermtargetSegmentDefinitionMNChealthcareMNCenergyCatering&hospitalityLargeMNCmanufactureRealestateAutoretailingLuxuryretailingwithrevenue>100MnRMB(jewelry,watch,etc.)Revenue>1BnRMB,includebothpharmaceuticalandmedicaldeviceIncludeShell,Mobil,Castrol,etc.Revenue>100MnRMBStaff>1000,includechemical,machinofacture,etc.Chinatop100companiesRevenue>300MnRMB,e.g.leading4ScompaniesMiddletermtarget3rdlevelhospitalIncludebothprivateandpublichospitalsLocallargehealthcareMiddletermtargetSegmentDefinitionITsoftware&serviceLocallargemanufacturerIThardwaremanufacturerLogisticAutomanufacturingAirlineMNCbanking&insuranceOtherSMEhospital&clinicLocalSMEhealthcareLongtermtargetLocalbanking&insuranceGovernmentK12SOEmanufacturerSOEenergyUniversitySMEmanufacturerProfessionalserviceTaxiLargeprivateenergyOtherretailingE.g.,communityhospital,gynecologicalhospital,orthopedichospitalRevenue>1BnRMB,includebothpharmaceuticalandmedicaldeviceRevenue>10MnRMB,includebothpharmaceuticalandmedicaldeviceStaff>1000,includechemical,machinofacture,etc.Staff>100Hardwaredevice/electroniccomponentBothlocalandMNCRevenue>100MnRMBAllcompanies,bothlocalandMNCAllMNCcompaniesAlllocalcompaniesAllgovernmentsectorsIncludebothprivateandpublic,coveringtier1,2and3citiesStaff>100KRevenue>100MnRMBState-ownedenterprisesIncludetier1and2universitiesConsulting,accounting,law,etc.AllcompaniesStaff>300Hypermarket,supermarket,chainstore,etc.Productivityrelatedmobileappismostwidelyadoptedacrossscenarios…CustomerunderstandingScenarioManagerialstaffofficework(Managersandabovelevel)Mobileprimarybusiness(e.g.sales,purchasing,productionlineworker)Backoffice(e.g.admin)EMMadoptionrate20152018Avg.deviceunderEMMpercompany2015201817%

17%

17%

43%

40%

38%

MobileadoptionrateineachscenarioSource:customerinterview,survey,MeritcoServices18.6%

18.6%

18.8%

36.6%

35.1%

34.6%

120

198

95

393

606

342

Samplesize=325,%,unit100%=325VideoconferenceIMOAOfficeandemailBIPurchasingSupplychainOACRMBIOfficeandemailIMHRMProductionOfficeandemailOAIMBIVideoconferenceKeytakeawayManagerialstaffmobileofficeworkandmobileprimarybusinessgeneratethemajorityofEMMneedsScenariosofmanagerialstaffandmobileprimarybusinessholdhigherEMMadoptionrateEMMadoptioninprimaryactivitiescontributesthemostintermsofmobiledevicenumberAbout50%ofenterpriseshaveadoptedmobileproductivitytoolsProductivityrelatedapplications,representedbymobileOAandoffice&mail,arewidelyusedacrossscenariosMobileBI,IMandCRMareprojectedtobecommonpracticeamongenterprises…andMSleadsinproductivity.OnpremiseiscurrentlythemaindeploymentmethodacrossapplicationsCustomerunderstandingKingdeeTongda13%YonyouCNPower11%24%11%Starrysky7%Weaver8%19%YozosoftKingsoftMS75%7%TencentIBMWanWangNetEase20%1%11%17%MS26322%29%30%36%4%15%OracleSAPIBMKingdee12%MSOn-premiseapplicationspurchasedvia…OAOfficeE-mailBIIMAdoptionrateofmajormobileappplayers28%TencentMS41%11%CiscoHuaWeiIBM12%4%Source:customerinterview,survey,MeritcoServices24%14%51%11%17%25%48%9%Customizeddevelopmentby3rdparty3%10%Externalstandardproduct77%AsapackagefromSI11%In-houseITdept.100%=194100%=196100%=212100%=194100%=145100%=102100%=190100%=146100%=9453%7%22%18%Appdeploymentway100%=32581%19%PubliccloudOn-premise17%83%54%46%93%7%37%63%OAOfficeE-mailBIIMKeytakeawayMSleadsinmultiproductivityapplicationsOAandemailmarketsaremuchmorefragmentedcomparingwithotherproductivitytoolmarketAstheaceproducts,officeandexchangecouldbeleveragedforEMS

marketentry,relyingonthenaturalintegrationTencentobviouslyleadsinIMsegmentOver80%mobileapplicationsaredeployedonpremiseWithinthoseapplicationsdeployedonpremise,customizeddevelopmentandpurchasingexternalstandardproductarethemajorwaysOpportunityidentificationMNCbackground,cloud-basedandcustomizationare3keyfactorsdecidingEMSfeasibilityacrosseachsegmentTotalFeasibilityofEMSHighendretailingUniversityGovernmentProfessionalserviceHospital(3rdlevel)LocallargehealthcareK12AirlineLargeprivateenergySOEManufacturerLocalbanking&InsuranceLocallargemanufacturerSOEenergyAutomanufacturingOtherSMEhospital&clinicLocalSMEhealthcareLargeMNCmanufacturerMNChealthcareCatering&hospitalityIThardwareMNCbanking&insuranceMNCenergyITsoftware&serviceRealestateAutoretailingSMEManufacturerLogisticOtherretailingTaxi35%50%15%Weight*EMSfeasibilityineachsegmentLowMidHighMuchhigherNormalMuchlessSource:MeritcoServices,customersurvey,expertinterviewESS=325MNCCloudCustomizationMNC:referringtotheMNCbackgroundasEMMsupplier.DuetosomepoliticalconcernsinChina,somecustomersareinclinedtodomesticvendorsCloud:referringtoprovidingcloudbasedEMMsolution.CustomershavedifferentlevelofpreferencetocloudacrosssegmentsCustomization:

EMShasnaturallimitationofcustomizationserviceasaSaasbasedsolution1EMSfeasibilityreferstothegapbetweenthepresentconditionofEMSandcustomers’demandrespectively.HigherfeasibilityimplieshigheropportunityforEMSinthesegment.23*ManualweightingaccordingtoIDIsBeingaMNCvendorwon’tbeabigissueforEMSwhomightonlyfacesomeresistanceinafewsegmentsduetotheirpolitical/securityconcernsoroutdatedmindsetMNChealthcareK12University5.135.33IThardware5.35SOEenergySMEManufacturerLocalbanking&Insurance5.305.11SOEManufacturer5.32OtherSMEhospital&clinic3.80MNCbanking&insuranceLocallargehealthcareLogistic4.004.224.21Automanufacturing3.333.56AirlineProfessionalservice4.33Hospital(3rdlevel)4.404.67LocallargemanufacturerLocalSMEhealthcare4.254.314.75Taxi5.435.60GovernmentLargeMNCmanufacturer4.75Largeprivateenergy5.08Catering&hospitalityOtherretailing2.883.33HighendretailingAutoretailingRealestate3.00MNCenergy3.122.563.00ITsoftware&service4.06Customers’scoringofpreferencetolocalEMMvendorsAnalysisLocalprotectionismandconcernsofinformationsecurityarethemainreasonsgovernmentsandpublicinstitutionsresisttoMNCproviders“…Weusuallyselectdomesticvendors,bothSIandsoftwareproviders,becauseweconcernaboutMNCs’aftersalesservice,andlocalprovidersofferin-residenttechnicalsupportservicewhichMNCscannot…” --Mr.Xie,ChinaSouthernPowerGridCompanyMNCbackgroundwouldn’tbeahugehinderforEMSIngeneralcustomersdon’tcaremuchaboutproviders’backgroundcomparedwithotherfactors“…AsaMNC,weusuallyapplycentralizedprocurementmodelatagloballeveltomaintaintransregionalconsistencyinIT,whichmeanswebarelypurchaseITsolutionorsoftwarefromlocalvendor…” --Mr.Zhang,AccorHotel“…Thecontinuityoftheproductionisthemostimportant,andthelostcausedbyITcrashisincludedinCTO’sKPI,soitiscertainthatwechooseexperiencedvendors,andMNCsusuallyhaveadvantagesonit…” --Mr.Xue,HuaTaiMotorSource:MeritcoServices,customersurvey,expertinterviewAfewsegmentswithoutgovernmentalbackgroundpreferlocalEMMprovidersbecausetheyhavedeepstereotypeimagethatMNC’sserviceisexpensiveandcannotprovidetimelypost-salessupportorin-residenttechnicalsupportESS=325,1-6scoreMajorityofcustomersdonotreallycareaboutthebackgroundofEMMproviders,comparingwithotherservice/productrelatedfactors1OpportunityidentificationLow-feasibilityMid-feasibilityHigh-feasibilityOn-premiseisstillthemainstreamdeployment,whilecloudbasedsolutionstillhasgoodgrowthpotentialCustomerunderstandingPotentialtobeeducatedRatingofon-premisedeploymentpreferencePreferenceforthedeploymentofEMM9%PubliccloudAlloftheseareacceptable20%IDChosting17%On-premise51%KeytakeawayOn-premisesolutionisstillmainstreamoptionforcustomersAbout70%customersstillpreferon-premisesolutionthancloud.Obviously-low-feasibilitycustomersstronglyrequireonpremisedeployment5segments,representedbygovernmentandSOEs,resisttocloudCloudsolutionalsohasgoodgrowthpotential20%customersacknowledgetheadvantagesofcloudandcountitasfirstchoiceEducationisprojectedtolessencustomers’resistancetocloudinover10segmentsSource:MeritcoServices,customersurvey,expertinterviewHardtobeeducatedIndustrialregulationConservativeviewsinIT4.19Otherretailing4.244.22MNChealthcareMNCenergyTaxi4.204.17LocalSMEhealthcareAutoretailing4.17Catering&hospitality4.20SMEManufacturer4.00Realestate4.504.55LargeMNCmanufacturerIThardwareLogistic4.88OtherSMEhospital&clinic4.75Locallargemanufacturer4.88MNCbanking&insurance4.25ITsoftware&serviceHospital(3rdlevel)4.69Locallargehealthcare4.60Airline4.805.585.80GovernmentProfessionalserviceLargeprivateenergyK125.115.115.175.004.895.005.08SOEManufacturerSOEenergy5.47Localbanking&InsuranceAutomanufacturingUniversity4.003.83HighendretailingPossibletobeeducatedPartofapplicationsarealreadyrunningoncloudUnwillingtoruntheircoresystemonpubliccloudOpentocloudPubliccloudisawidelyacceptableoptionforthesecustomersSomeindustriesarewillingtocutITcostandenhancetheperformanceviago-cloudESS=325,1-6scoreESS=325,%,singlechoice2High-feasibilityMid-feasibilityLow-feasibilityCustomizationiswidelyemphasized,whileEMSmayfacechallengesinmeetingcustomers’needs(1/2)CustomerunderstandingRatingofcustomizationamongkeybuyingfactorsMicrosoftofficeapplicationssupportLocalsupplier,notMNCsupplier4.474.23PublicstandardapplicationssupportFeaturecompletenessEasytouse4.52Deployedonpremise4.48ProactivecommunicationwiththecustomerbeforesalesSuccessfulpreviouscase4.554.554.484.724.77CapabilityinenterpriseITsolution(software,mobility)CustomizationofEMMpolicysetting4.574.57ExistingapplicationsupportDirectaccesstoaTechnicalAccountManager4.644.69CustomizationinfeaturesettingCompetitivepriceDirectaccesstoaTechnicalengineer4.65Customerservice24x7x365Onsiteservices

4.594.614.614.634.644.64After-salesrespondtimeDeploymentserviceTheintegrationofPCandmobilemanagement4.93MaintenancecostSource:MeritcoServices,customersurvey,expertinterviewCustomizedfeaturedevelopmentCustomizedfeaturesetconfigurationCustomizedmanagementpolicysettingAPI/applicationintegrationDefinitionSpecificneedsESS=325,1-6scoreFlexibletosetmanagementpolicyaccordingtodifferentsituationsFlexiblepolicysettingABBhascomplexorganizationstructure,andneedaflexibleEMMplatformtosetappropriaterightsandpoliciesontheirstaffsindifferentlevelsFlexibletochoose(addordelete)featureportfoliobasedontheirownEMMneedsFlexibletostrengthenparticularfeaturesaccordingtotheirownneedsCostcuttingItoYokadoisveryprice-sensitiveandwanttoselectonlyfeaturesitneedtocutcostDevelopmentofadvancedfeaturesXian-Janssenneeds80%ofbasicfeaturesand20%ofadvancedfeatures,whileVeevacloudonlymeetthe80%basicneedsFlexibletosupportdifferentvolumeortypeofapplications,thecapabilityandusabilityofSDKandappwrapperIntegrationofEMMandcurrentapplicationsCareFusiontendtointegratetheircurrentmobileCRM,Officeande-mailintoEMMplatforms3EMScompetenceLowHighCustomizationiswidelyemphasized,whileEMSmayfacechallengesinmeetingcustomers’needs(2/2)CustomerunderstandingSource:MeritcoServices,customersurvey,expertinterview3RatingofcustomizationoffeaturesettingRatingofexistingapplicationintegrationRatingofcustomizationofEMMpolicysettingESS=325,1-6scoreESS=325,1-6scoreESS=325,1-6score4.63MNCenergy4.67OtherretailingUniversity4.77Locallargehealthcare4.934.724.93Professionalservice4.94OtherSMEhospital&clinic4.934.334.38SOEenergy4.50K12GovernmentSMEManufacturerMNCbanking&insurance4.47Localbanking&InsuranceRealestate4.584.97LocallargemanufacturerLargeMNCmanufacturer4.97SOEManufacturer5.505.11IThardware5.255.22AutomanufacturingITsoftware&serviceLargeprivateenergy5.05Hospital(3rdlevel)Catering&hospitality4.204.004.004.06Airline3.47LogisticTaxi4.31MNChealthcareLocalSMEhealthcare4.24Autoretailing4.334.47Ø4.62HighendretailingCatering&hospitalityAutoretailingØ4.534.164.004.184.20OtherSMEhospital&clinicAirlineAutomanufacturing4.00SOEManufacturer4.704.614.55SOEenergy4.724.85ProfessionalserviceTaxiOtherretailingLocalbanking&Insurance5.50Government4.25LargeMNCmanufacturerLogisticHighendretailing4.00Hospital(3rdlevel)4.00MNCenergy3.89IThardware4.50MNChealthcareK12LocallargehealthcareLocalSMEhealthcare5.16LocallargemanufacturerITsoftware&service4.434.434.224.254.934.994.434.97University4.50MNCbanking&insurance4.555.504.94SMEManufacturerRealestateLargeprivateenergy5.115.31LocalSMEhealthcare5.50UniversityK124.75Automanufacturing4.754.78Professionalservice4.83ITsoftware&service4.88Locallargemanufacturer4.584.67Localbanking&Insurance4.67RealestateLocallargehealthcare4.69IThardware4.69LargeprivateenergyAutoretailing3.594.38TaxiSOEManufacturer4.27Catering&hospitality4.47MNCbanking&insurance3.854.054.50Ø4.60Logistic4.83MNChealthcareHospital(3rdlevel)5.00LargeMNCmanufacturer4.454.504.27MNCenergy3.92OtherretailingAirlineSMEManufacturer5.23GovernmentSOEenergy5.00Highendretailing3.85OtherSMEhospital&clinicHigh-feasibilityMid-feasibilityLow-feasibilityServiceisseenasanecessarycapability,andthosehigher-feasibilitycustomerscaremoreaboutitCustomerunderstandingFeaturecompletenessDeployedonpremiseDirectaccesstoaTechnicalAccountManagerMicrosoftofficeapplicationssupportDirectaccesstoaTechnicalengineerProactivecommunicationwiththecustomerbeforesalesMaintenancecost4.61PublicstandardapplicationssupportExistingapplicationsupport4.474.484.234.484.524.554.554.57Localsupplier,notMNCsupplier4.574.59Easytouse4.64DeploymentserviceSuccessfulpreviouscaseCapabilityinenterpriseITsolution(software,mobility)4.64Competitivepri