Accounting Information Systems: The Processes and Controls, 2nd Edition

ACCOUNTING SOFTWARE MARKET SEGMENTS (STUDY OBJECTIVE 5)

The accounting software market today is categorized into four market segments: small company systems, midmarket company systems, beginning ERP systems, and tier 1 ERP systems. Each segment is based on the size of the organization in terms of the amount of its revenue.

THE REAL WORLD

Hawaii Commercial Real Estate Company of Honolulu is a realty and property leasing organization specializing in the sales, leasing, and financing of office buildings, hotels, retail centers, industrial buildings, and investment properties. The success of the company depends on the relationships it builds and its ability to track both clients and properties and the different data associated with each. To improve the efficiency of its operations, Hawaii Commercial Real Estate has created several databases using ACT! Premium Solutions by Sage Software. ACT! provides a host of Web-based productivity tools such as scheduling, social media, e-mail, and database management. For Hawaii Commercial Real Estate, there are customized tabs and data fields to manage all aspects of its business, from sales reporting and sharing notes about current and prospective clients, to launching new advertising efforts. The ACT! system is integral to everyday business and is flexible enough to accommodate remote Web access for agents when they are away from their desks.

Exhibit 2-3 illustrates the four software market segments. Within this hierarchy of market segments, ...