I’ve just downloaded 2011 ERP Report of Panorama Consulting. I have been posted 2008, 2010 ERP report (I missed 2009 report) and now I’m going to post 2011 report. The purpose of developing this report is to investigate the ongoing economic difficulties effect on the ERP market.
The ERP Report was conducted during June – December 2010. They opened a survey to 185 participants from 57 countries. Organizations represented vary in size, industry, locations, needs and goals but all have implemented an ERP system within the past year.
The industries that participated in the survey were manufacturing, service industries, transportation, communications, electric, gas, sanitary services, public administration, construction and wholesale trade organizations represent 90-percent of the industry distribution of respondents.
I am not going to show the complete but only few components that I am interested with. Now lets take a look the report below.
In 2010, almost one out of five (17%) respondents survey reported implementing SaaS for their ERP solutions (compared to the < 6% of companies who indicated they applied SaaS in 2009 polling conducted by Panorama).
Obviously, there are many of traditional ERP vendors have begun to develop SaaS models to supply to this new market demand and also offer the option to host ERP systems off-site.
Top Short-listed Vendors
Based on the data collected, it is obvious that no single ERP vendor dominates the market. The following table shows the possibility of each vendor being short-listed by the respondents. For instance, 38% of respondents put SAP on their short-list, 32% of respondents put Oracle (which includes JD Edwards, Peoplesoft and eBusiness Suite) on their short-list. The same as in 2009, SAP, Oracle and Microsoft are the 3 major vendors most often short-listed.
Top Selected Vendors
The following selection ranking is determined based on actual selection per total responses. Oracle (which includes JD Edwards, PeopleSoft and eBusiness Suite) was selected by 22% of respondents, 19% of respondents selected SAP, and 14% of respondents selected Microsoft. All three of these vendors were the top three selected vendors during 2009 as well.
To best manage the transition from the old system to new, companies chooses between two cutover options: hard (with no employee access to the old system after go-live) and soft (with some or total employee access to the old system). The following figure shows that two-thirds of respondent companies (66%) chose a hard cutover and one-third (34%) chose a soft (or parallel) cutover. Panorama consultants recommend parallel runs of both systems over the conversion system to ensure nothing unexpected occurs.
Deciding on the right level of customization for a company’s business processes is critical to the success of an ERP project. While customization is able to improve the value of out-of-the-box software and allow the company to maximize its cutting-edge advantages, it also can result in high implementation costs without the realization of expected benefits. The question of how a company should balance schedule and budget goals against the benefits of customizing its ERP system has always been a source of great debate during selection and implementation.
Those are components of the report which I am interested with. For other components, such as Implementation Strategies,Project Benefit Realization, ERP Project Payback Period Distribution, Implementation Rollout Approach, can be downloaded from Panorama Consulting site.