Today, I am going to show you another interesting report from Panorama Consulting regarding ERP market share and vendor evaluation. Information of the report is based on surveys of more than 1,600 participants which have either selected or implemented ERP solutions during the last 5 years, with a heavier weighting on ERP projects accomplished in 2010.
Reporting On ERP Market Share
I am sure you will get some benefits by reading this report, especially if you are starting to choose which ERP system you will implement. The information within shows the ERP vendor market share, selection trends, satisfaction and benefit realization and some findings on detailed project factors like cost of implementation, duration as well as payback period. Such information can help you in creating a short list of ERP vendors and what things should be prepared. But I will show only few of the findings which I found interesting. You may get the longer, complete report on Panorama site through a link I supply in the end of this article.
The report focuses on data collected on ERP implementations of Tier I, Tier II and Tier III solutions, as you can see in the following table :
Let start exploring the report.
Analysis of Overall ERP Market Share
Just like previous years, Tier I and Tier II vendors still dominate the market share of ERP implementation. The merge of Tier I and Tier II make up 64% of the implementations while Tier III and others only have 36% of the market.
Refer to the chart above, the market share of Tier I implementation remains the highest with 53% in total. However, all the vendors showed a drop in market share compared with 2010 Vendor Analysis report. The share of SAP decreases from 31% to 24%. Oracle is at 18% whereas it was 25% in 2010 report and Microsoft Dynamics decreases from 15% to 11%. It means the implementation of either Tier II or Tier III and Others increased around 18%.
Vendors’ Market Share by Client Revenue
The chart below shows the selection rate of major vendors of Tier I, Tier II and Tier III grouped by companies’ revenue size they implemented their ERP. According to the chart, both SAP and Oracle are active in all segments, but SAP obviously is the most selected software for companies with annual revenues $25 – $500 million while Microsoft Dynamics is least selected for companies with revenues from $50 million – $1+ billion. This ERP has the most success with companies < $50 million and between $100 – $500 million. Tier III vendors have great share in the market that less than $100 million and also continue increase their reach into big companies with more than $500 million annual revenue.
Vendor Sales by Industry
The tables below show the portion of each Tier I vendor’s sales focused within 4 major industry segments that represent the highest proportions of solutions for each major vendor within those industries :
- Manufacturing and Distribution
- Transportation, Communications, Electric, Gas and Sanitary Services
Note: The sales in the tables above represent industry shares within each company’s own sales, not shares of the total market
Total Market Shares by Industry
The 4 charts below represent Tier I, Tier II, Tier III and Other vendor’s share in each of the 4 major industries (similar with industry segments above) represented in the survey. SAP, Oracle and Microsoft play a significant part in all industries where SAP is the top vendor.
ERP Satisfaction by Major Vendor
By reviewing particular metrics, there are few indications that dissatisfaction of customers frequently comes from unrealistic expectations which it can be flamed by ERP vendors who promise the moon so that they can close a sale and also companies that do not sufficiently specify their business needs before starting on implementations.
Note : 13.5% of respondents overall cannot figure out benefits because they had no business case to work from.
That’s all the findings I can share with you. You may find other interesting findings, such as Average Cost and Budgets, Reason for budget overruns, Payback Period and so forth in the complete report link below.