Tier I and Tier II ERP Comparison 2008

Now, I would like to present a 2008 ERP Report of Panorama Consulting about ERP Software comparison between Tier I vendors, which are SAP, Oracle, Microsoft, with Tier 2 vendors which consist of Baan, Epicor, Exact, IFS, Infor, Lawson, NetSuite, Sage, Syspro and Others. There were 670 participants in this portion of our study and included data from organizations in the US, Europe, Australia and India.  Over 70% of respondents in our survey revealed their companies adopted Tier I ERP soft-ware vendors, SAP, Oracle and Microsoft, while 23% of respondents chose Tier II vendors as you can see in the following figure

 
Market Share

Market Share

SAP software, especially in my country, is known as the most expensive and complicated software. It costs more and takes longer to implement than Microsoft, Oracle and Tier 2 vendors but according to the report, its customers are the most satisfied, and their businesses see the most improvement.

I’ll show you two interesting comparison tables as you can see below (all scores are in average)

Comparison : Cost and Time to Implement

ERP Software ERP Software Cost (million) Time to Implement (months)
SAP $16.8 20
Microsoft Dynamic $2.6 18
Oracle E-Business Suite $12.6 18.6
Tier 2 $3.46 17.8
That said, Microsoft and Tier 2 software are offering benefits comparable to Oracle’s and SAP’s at millions lower in implementation costs but it should not be the only factor in selecting ERP software, said Eric Kimberling, president and founder Panorama Consulting Group.

Comparison : ERP Solution Satisfaction

SAP Oracle Microsoft Tier II
Benefits Factor 72.2% 58.0% 68.0% 68.6%
Executive Satisfaction 76.4% 75.9% 65.4% 67.7%
Employee Satisfaction 73.6% 60.3% 76.9% 76.5%
“It all starts with clearly defining what you need in a system and picking the right system,” he said. “For projects that fail or have low satisfaction levels, the first domino to fall is choosing the wrong software.”

When choosing ERP software, a company should call a vendor to demonstrate its software in the context of the company’s specific business processes and requirements.

Kimbeling, the founder and president of Panorama, also said that another key to ERP success is getting a real return on investment (ROI) and actually recouping money spent to implement the software by accomplishing specific business goals, such as reducing labor costs or inventory. Too many companies make the mistake of not monitoring the system for KPIs after go-live, he said.

“I think that’s where a lot of companies fall short,” he said. “Their finish line is the go-live, and there’s very little that gets done after the fact.”

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See next interesting post :
- Panorama Consulting

- Vendor Evaluation 2010
- ERP Report 2011
- ERP Market Share and Evaluation 2011

5 Responses to Tier I and Tier II ERP Comparison 2008
  1. Gras
    February 11, 2011 | 12:22 AM

    Hello,

    I have a question regarding the first comparison “Cost and time to implement”.
    The time (20 months for SAP), is calculated on what basis ? For how many users?

    Thank you in advance for your response.

    Sincerely,
    Maya

  2. jrliem
    February 11, 2011 | 8:36 AM

    Hi Maya,

    It’s a good question and unfortunately I can’t answer. I got this from panorama consulting as you can see in the bottom of the article.

    You may contact them to clarification.

    anyway, thanks for visiting my blog.

    God bless

  3. Kishan Joshi
    June 24, 2011 | 9:55 PM

    Hi,

    I was going through above & the same was too good!!!

    I also want small comparison on PRO / CONS on choosing SAP in INDIA!

    Hope I will get reply at the earliest with some better representation available above.

    Thanks in advance.

    Regards,

    KISHAN JOSHI

  4. Sameer
    September 22, 2011 | 11:57 AM

    Is SAP B1 job available in saudia, dubai. & aslo ms dynamic / oracle which one highest job in middle east.

  5. jrliem
    September 22, 2011 | 12:04 PM

    Hi Sameer,

    Unfortunately I don’t know. But I think if the country has many manufacturing then most likely many SAP software implemented there.

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