Who are the top ERP Vendors in 2011?

A report on the top ERP Vendors in 2011 shows some interesting trends that began last year and continue into this year. For example, the accelerating adoption of SaaS and the increased focus on business case and benefits realization are both trends that aren’t too surprising in this economic environment.

Panorama Consulting conducted a survey via their website at www.panoramaconsulting.com. Organizations represented vary in industry, location, size, goals and needs but all have implemented an ERP system within the past year. In order to conduct a deeper data analysis of responses, they limited the sample size to 185 participants from 57 countries. Thirty-percent of respondents were from North America and 70% were international. 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.

However, two trends in particular stand out in the recently published report on the top ERP Vendors. First, ERP implementation durations and costs both decreased fairly dramatically in the last year. This year’s report, which was based on data collected in 2010, shows that implementation durations fell from 18 to 14 months over the last year, while the average total cost of ownership fell from 6.9% to 4.1% of implementing companies’ annual revenue.

These numbers may seem surprising on the surface, but the detail behind them helps provide some clarification. While it is partially good news that companies are not spending as much on ERP implementations as they have in years past, the bad news is that many companies are cutting corners in their attempts to do more with less. This is partially reflected in the fact that the percentage of companies that took more time and money than expected compared to years past. For example, the percentage that took longer to implement than expected jumped from 35% to 61%, while the percentage of budget overruns escalated from 51% to 74%. These numbers suggest that even though implementation costs and durations decreased, more companies beginning their projects with unrealistic expectations and are blowing their budgeted time and resources at an alarming rate.

A second surprising metric from this year’s report is that Oracle was selected at a higher rate than all other ERP vendors since Panorama Consulting began tracking this data in 2006. Although SAP is still short-listed at the highest rate (38% vs. 32% for Oracle), Oracle is selected 22% of the time (including eBusiness Suite, Peoplesoft, and JD Edwards), followed by SAP (19%), and Microsoft Dynamics (14%). While SAP is still considered the leading ERP vendor in terms of market share, might this data be a leading indicator for Oracle beginning to take market share from SAP?

Eric Kimberling of Panorama Consulting provides this summary of the top ERP Vendors report at it.toolbox.com. The full report is available for download at www.panoramaconsulting.com.

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