The hardest part of doing any task is getting started. We also know that the first step to finding the right enterprise technologies for your organization begins with defining a long list of potential vendors. While people may have differing opinions whether this is a difficult task or if it seems fairly simple, you will soon learn that with over 250 systems to choose from, evaluating and selecting new ERP systems can be daunting.
With that said, we have both good news and bad news. The good news is that there are a lot of options to choose from. The bad news is that this plethora of options can lead to an overwhelming sense of analysis paralysis, the risk of choosing the wrong solution and difficulty separating vendor sales fact from fiction.
To make it easier on you, we have compiled a top 10 list of ERP vendors in the market, which we will release next week (register here to receive the report the minute it is released). This top 10 list is based on market share, average implementation cost, average implementation time, average functionality ratings from clients and average payback / return on investment. These metrics were gathered through our independent research and reflect actual results from hundreds of organizations that have recently implemented those solutions.
There are a few weighted criteria that will separate these systems from one another:
ERP System Market Share
We evaluate how many companies in our sample of 200+ participants selected and purchased each of the systems. We assign a market share percentage based on the frequency of one system being selected over another. This has the lowest influence in our study in terms of how systems compare to one another, although it is the most important factor in determining which vendors make the top 10 list in the first place.
Average Implementation Cost
We assess the total cost of ownership for each system in the top 10. We normalize these costs to account for the fact that larger organizations are more likely to implement certain systems, resulting in a higher average implementation cost for those systems. For example, larger companies implementing Oracle Cloud won’t skew the data to make that system less appealing compared to smaller companies implementing NetSuite.
Average Time to Implement
We also look at how long the average organization takes to implement each of the above systems. Since some systems are more commonly used by larger organizations compared to smaller organizations, we weighted these scores to normalize for company size. For example, SAP HANA is not penalized simply because its Fortune 1000 companies take longer to implement than the smaller organizations implementing a Sage product.
Average Panorama Client Functional Scores
Each year, we conduct dozens of software evaluations for dozens of ERP systems for dozens of clients throughout the world. We capture functional ratings of each of those systems in our ERP vendor database and use these functional scores to compare each system to one another.
Average Benefits Realized and Return on Investment
Finally, we quantify the average business benefits that vendor customers say they realize. We look at how long the average company realizes the benefits they expected.