Digital Deification

Aug 27, 2026 · Industry Insights

Why China's ERP Industry Couldn't Build a SAP: Market Structure Over Technology

The article analyzes three decades of China's ERP market, arguing that domestic vendors failed to produce a SAP rival not due to technical gaps but because incremental market dividends, information asymmetry, and high migration costs made product excellence economically irrational — a dynamic now shifting as those structural advantages erode.