A BUYER'S GUIDE TO THE MARKET-LEADING ERP
Embarking on an ERP project is undoubtedly one of the most significant investments an organisation can make. On one hand, the potential benefits are enormous. On the other hand, the amount of risk and uncertainty is overwhelming. The first step towards a successful ERP project is gaining insight into the ERP software market. There are literally hundreds of ERP vendors and products. What are the top choices in the ERP marketplace today?
A QUICK INTRODUCTION TO ERP
An ERP (enterprise resource planning) is a system of integrated enterprise applications that helps connect and streamline information and business processes across various functions within an organisation.
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ERP software used to be manufacturing-oriented, but it has evolved into full-fledged enterprise-wide software to encompass all functional departments. ERP systems are now widely used in various industries, even in the public sector and not-for-profit organisations.
You can purchase ERP software as a comprehensive suite, i.e., a fully featured solution that encompasses all or most of your business’s functions. Typical examples of full-fledged solutions include Infor SyteLine, SAP ERP, Oracle E-Business Suite, etc.
However, it is not uncommon for companies to purchase a few core modules of an ERP package, like finance and production. Companies choose this approach due to either business requirements or financial constraints. If you are in the latter group, you should pay extra attention to the ERP software’s ability to scale and upgrade.
AN OVERVIEW OF THE ERP MARKET
A large number of ERP vendors in the market can be categorised using the tiers system.
Tier 1: SAP, Oracle, Infor, and Microsoft
These vendors offer top-of-the-line ERP solutions and often target large global enterprises. Their products are extensive in terms of functionality and cover many different industries. These solutions are also ranked highly in both organic usability and functionality.
Tier 1 vendors understandably have the highest total cost of ownership (TCO). Recently, all four Tier 1 vendors have made drastic changes to move to the cloud and focus more on small and mid-sized businesses (SMBs).
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SAP, Oracle, Infor, and Microsoft have been the market leaders for many years.
However, according to the most recent Nucleus research, which is shown below, SAP has moved out of the Leader quadrant and into the Expert area.
Tier 2 – Epicor, QAD, Sage, Deltek, SYSPRO, NetSuite, Acumatica, etc.
These vendors often target mid-sized companies and offer products that are less complex and costly than those from Tier 1 vendors. Many Tier 2 vendors are also investing heavily in cloud ERP.
Tier 3 – abas, Expandable, Flexi, JDA, MANEX, xTuple, etc.
Tier 3 vendors often target smaller companies in niche verticals. Their products are usually reserved for single-site installations.
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A GUIDE TO THE TOP MARKET-LEADING ERP
In this section, we will elaborate on the strengths and weaknesses of some of the world’s best ERP systems.
Nucleus Research, one of the market-leading technology research and analysis firms, periodically issues a special report—Technology Value Matrix—to evaluate and rate ERP vendors and products. As the name suggests, the Value Matrix assesses ERP systems in two capability dimensions.
The vertical dimension is Usability, and the horizontal dimension is Functionality. Accordingly, ERP products are put into four quadrants: Core Provider, Expert, Facilitator, and Leader.
The following figure shows the latest Value Matrix updated for 2022. It presents not only the positions of ERP products but also their directions in the matrix relative to other competitors.
Check out another in-depth evaluation of Tier ERP software vendors done by Gartner, a market-leading firm in research, via our summarised article: https://bit.ly/3Yk5cRF
领英推荐
Infor
Infor ERP systems leverage Infor’s deep expertise in manufacturing software and can be delivered on AWS, the world’s largest cloud computing infrastructure provider. These offerings include "capabilities for production management; customer relationship management; quality management; supply chain visibility; product development; planning, scheduling, and inventory controls; and reporting and analytics."
Infor SyteLine (also known as Infor CloudSuite Industrial) is tailored for small and mid-sized businesses in discrete and process manufacturing across all industries.
Infor SyteLine, as well as other Infor CloudSuite ERP software, comes with the latest advancements in ERP technology, like consumer-grade UX (user experience), in-memory analytics, and mobility.
The economies of the cloud, prebuilt industry capabilities, and usability are three prominent benefits of adopting CloudSuite solutions.
Microsoft
Hosted on Azure, Microsoft’s cloud infrastructure service, Dynamics 365 is the latest SaaS ERP offering from Microsoft.
Dynamics 365’s mainstay is Microsoft Dynamics 365 for Finance and Operations (previously known as Dynamics AX), Microsoft’s flagship ERP system, geared towards midmarket and lower-end global enterprises. Its customers come from the manufacturing, services, retail, financial services, and public sectors. It was also positioned in the Leader quadrant in the last Value Matrix report due to continuous improvement these past years.
A strong point of Microsoft Dynamics 365 for Finance and Operations is the smooth integration with Microsoft’s vast ecosystem, such as Office, Dynamics CRM, Power BI, and SharePoint. It is also an excellent offer for the retail industry.
Compared with SAP and Oracle, Microsoft is more customisable and less rigid, often requiring less time to implement. It is a good choice for global enterprises that wish to deploy a two-tier ERP strategy, in which an SAP or Oracle solution is deployed at the corporate level while Dynamics 365 is implemented at the subsidiary level.
On the downside, Microsoft Dynamics 365 lacks the functionality, breadth, and depth of similar Tier 1 solutions. Its business intelligence capability is severely limited. Its reporting still heavily depends on Excel spreadsheets, and creating custom reports requires significant technical skills.
Oracle
Oracle is one of the largest ERP vendors and the longest-standing on the market. Oracle Fusion Cloud ERP is positioned in the Leader quadrant partly due to its deep and extensive functionality as well as a wide range of applications. Oracle is well suited for large global enterprises operating in product-centric industries, such as automotive, aerospace and defence, construction, mining, consumer goods, communication, and high-tech products. Oracle is also moving to the cloud, hoping all of its customers will make the transition from on-premises to cloud-based systems.
Oracle Fusion Cloud ERP offers a wide range of functional models that are seamlessly integrated. It is highly scalable and strongly supports companies with complex, multisite operations.
Mid-sized enterprises, however, may find Oracle Fusion Cloud ERP’s complexity too costly to implement and maintain. Oracle's push for cloud applications through its SaaS service means that customers who choose on-premises deployment may not be able to use the new major features.
SELECT THE RIGHT IMPLEMENTATION PARTNER
Once you have decided to embark on an ERP project, the difference between success and failure begins with selecting the right package for your business from a host of ERP vendors, products, configurations, and feature sets.
A dedicated implementation partner is responsible for ensuring the success of the ERP project by strictly following implementation best practices and ensuring that the new ERP system works as expected.
They take care of report building and customisation to meet specific business needs. As such, a reliable partner needs to have in-depth knowledge of the ERP system's reporting tools and the data stored in the system.
At TRG International, our team is dedicated to materialising your expectations of how ERP software can empower your business.
We work alongside you, our client, from the beginning. The initial consultation would typically involve a package of solutions that align with business goals and provide the functionality and ease of use that companies need.
As an implementation partner, we also act as the project manager and take care of the challenging technical work in system customisation and installation.
We make sure the key objectives and deliverables are clear right at the Project Initiating and Planning phase while also outlining your ERP system requirements, establishing key milestones, determining how to support specific business processes, and testing new software before going live.
We execute, monitor, and control the project by dividing the process into five phases: Inception, Elaboration, Construction, Transition, and Optimisation.
Along with our in-depth knowledge and years of experience, our team offers resourcefulness and fresh approaches to solutions to help elevate your concerns.
To discuss your concerns regarding any aspect of ERP software and implementation, request a demo today! Allow us to make your business shine.