The report I am going to share with you is developed by Panorama Consulting. I get a lot of interesting information from it and also some key vendor findings report surprising me. If you are in process of ERP vendor selection or just want to know which the best ERP is, you should read this report. I bet you will love it.
I will not copy and paste the report in my blog but only part of the report which I was interested with. I gonna show you ERP market share in 2009 and some key vendor findings. You can download the full report through a link at the bottom of this article.
Okay, let’s moves on to explore the report. I found some interesting key vendor findings: Top 10 short-listed and selected ERP vendor, most are at least fairly satisfied with their selected software vendor and overall realized benefit are low. Why am I interested to those key vendor findings? Well, it opens my eyes that
- Popularity of ERP software does not guarantee to get high level of satisfaction
- Realized benefits implementation are independent from selection satisfaction.
Wait, maybe you wonder how reliable the report is? Unfortunately I don’t know. Don’t you trust to Panorama Consulting that has a lot of experience in implementing various ERP software at various clients? ..…. I’m joking. That is not the cause that report is reliable. Okay, they said that this report is based on survey result from 1600 organizations that have selected or implemented ERP within the last four years. With a lot of organizations involved in the survey, and their ERP experience, I think the report is reliable and also valuable.
They group ERP vendors into 3 : Tier I, Tier II and Tier III as you can see in a table below:
|Tier I||Tier II||Tier III|
Oracle eBusiness Suite
Oracle JD Edwards
Activant Solutions Inc.
Bowen and Groves
Here is the ERP market share at 2009 between Tier II and top 3 Tier I vendors.
According to the chart above, SAP is still top leader with 31% market share. However, in 2005-2006, based on AMR Research, SAP market share was 47%, Oracle 25% and Microsoft was only 3%. Microsoft’s market share increase from 3% to 15% while SAP’s market share decrease from 47% to 31%.
Key Vendor Findings
1.Top 10 short-listed and top selected ERP Vendor
As you guess, Tier I vendors were listed most frequently. SAP, Microsoft and Oracle are the top 3 of the list. How about the top selected ERP Vendor? The top result is still from Tier I: Oracle and SAP. The selection rate was based on the frequency of each vendor being selected over the frequency of each being considered in the selection phase. As I noted earlier that the top short-list or top selected does not guarantee the implementation success. You will be surprised how low realized benefit gets from Tier I implementation in next key vendor findings.
2. Most Are At Least Fairly Satisfied With Their Selected Software Vendors.
I was surprised with the chart below since more than 50% Tier I clients are neither satisfied nor very satisfied with their ERP. Unfortunately we don’t know satisfied level for each vendor of Tier I. But satisfaction level can be misleading. Satisfaction level for executives could be different from users. Some executives are just happy to complete project, protect the organization from risk and so on while users achieve high level satisfaction levels through advanced operational processes and robust functionality.Anyway, here is chart of satisfaction level in overall
And this is Satisfaction Level by Vendor Tier
3. Overall Realized Benefits Are Low
It’s also surprised me. As you see the chart below, nearly 70% of Tier I clients fail to realize at least 50% of business benefits. It’s a big number for me although the report said that it likely caused by over-estimated since around 15% of companies don’t have proper models to quantify how much more they could achieve. Did they select wrong ERP software? It could be. But the report said that realized benefits are independent from selection satisfaction. So, selection satisfaction is important but is not enough, best-in-class enterprise software initiatives also include effective organizational change management activities to ensure employees are comfortable, efficient, and productive with new system.
Actually, there is one key vendor findings I’m interested, that is : 51% of implementations are at risk of going over budget. But since I don’t want to make this article too long, you can read it by downloading the report at the link below.