SAP and Oracle are undoubtedly the two powerhouses of ERP. Panorama’s 2016 ERP Report shows them as the most frequently shortlisted vendors. But how do you know which is the better choice for YOUR organization in not only the SAP vs Oracle debate, but across all vendors? Also, even if a Tier I solution is a good fit for your enterprise, what deployment method fits your needs?
The answer is: it depends. Finding what type of software best aligns with your company for cost, functionality, unique requirements and its management of IT infrastructure. This can be narrowed down to two variables: complexity and control.
Tier I On Premise
Tier I works best for large, multinational corporations that view technology as one of their competitive advantages. Organizations needing to have tight control over their IT infrastructure will have better luck using Tier I on-premise solutions because they are much more customizable and offer companies greater control over their data.
Tier I Hosted in the Cloud
Tier I solutions hosted in the cloud are less customizable than on premise solutions and their data security is controlled by the vendor. However, the lack of customization allows for easier upgrades and can provide large corporations greater overall stability.
Download our white paper, Clash of the Titans 2016 for a research analysis of the four titans of the Tier I ERP Market!
Tier II, III and Best of Breed
Smaller and less complex organizations are more likely to look at niche solutions from Tier II, III or best-of-breed vendors. This can be the best fit for companies that don’t necessarily need software with huge levels of scale or broad and sophisticated functionality; therefore, they don’t need to consider a Tier I solution.
Software as a Service (SaaS)
SaaS is a viable option for many small to mid-sized businesses (SMB’s). It is a much smaller initial investment than its on premise counterparts, yet it offers little customization, data security that is in the hands of the vendor and its integration with other systems is limited. Though, for a SMB with low organization complexity and little need for control over IT infrastructure, this can be a great fit.
Every company is different and has different business needs. Because of this, it is important to understand which types of ERP systems will work best in your specific situation. Just because you are a SMB doesn’t necessarily mean you may fit into a Tier II, SaaS or best of breed solution. For example, a smaller organization that produces nuclear material may need a Tier I solution because of their extremely complex processes revolving around the shelf life of their product. The chart above can help determine how to best address your ERP needs, but working with a partner to identify your unique requirements and the software meets them will steer you toward ERP success.
If you’re going through the process of trying to figure out what system is right for you, first of all, you’re not alone. Second of all, feel free to check out our vendor database. Otherwise we would love to talk with you. Call us at (720) 515-1377 or send us an email to [email protected].
Written by Kiersten Williams, Business Analyst at Panorama Consulting Solutions.