SUMMARY
Lehigh University has developed an algorithm capable of forecasting demand for high tech products with short life cycles. The algorithm can be included as part of a commercial capacity planning system, working as integral part of enterprise resource planning (ERP) system by SAP, ORACLE, or PeopleSoft. It can also be implemented as an internal tool for high-tech companies with specialty products that need customized demand forecasting which generic software systems can not provide. The technology has been successfully validated and used by a large microprocessor manufacturer leading to significant cost savings.
Lehigh TechID# 091406-01
THE MARKET
The market for enterprise resource planning (ERP) software is estimated to be around $47 billion growing at a rate of about 14% annually. Growth is fostered by globalization and companies looking to go to market with a broad portfolio of products targeted to specific buyers. End users in the market now have new expectations of ERP software that is focused on innovation-on-demand and personalization. [1] Systems that incorporate these characteristics are expected to see higher market adoption as the world becomes more dynamic in its product offerings. [2]
[1] Jacobson, Simon. “The ERP Market Sizing Report: 2006-2011.” SAP web site. http://www.gtm.sap.com/uk/solutions/business-suite/erp/pdf/AMR_ERP_Market_Sizing_2006-2011.pdf (accessed January 17, 2012).
[2] Denecken, Sven. “Market Trends and Expectations of ERP Systems.” SAP Community Network web site. http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/10065 (accessed January 17, 2012).
THE OPPORTUNITY
Lehigh University is looking to out-license this technology.