Panorama Consulting Group Issues 2011 Guide to ERP Systems and Vendors

Top Quote With research culled from more than 1,600 responses over five years, the 2011 Guide to ERP Systems and Vendors offers independent research about ERP implementation durations, costs, payback periods and benefits across all tiers of vendors and presents metrics regarding vendor market share and sales by industry. End Quote
  • (1888PressRelease) April 15, 2011 - DENVER, COLO - Small to mid-sized businesses seeking an affordable and effective enterprise resource planning (ERP) solution are wise to consider offerings from Tier III vendors, according to the 2011 Guide to ERP Systems and Vendors issued today by Panorama Consulting Group, an independent ERP consulting firm in Denver. In addition to having the shortest average implementation duration (12 months) and the lowest average project cost ($1.1 million), Tier III vendors also had the shortest payback time, with 76-percent of their paybacks clocking in at less than three years. And customers have taken notice: not only did Tier III vendors capture the lion's share of the market in the under $25 million category (26.6-percent) and the $25 to $50 million category (28.4-percent), but they beat out Oracle, Microsoft and Tier II vendors (combined) to rank as the second choice (behind SAP) in the $50 to $100 million market (23.1-percent).

    "While the duration, payback and cost results of Tier III vendors are clearly affected by the fact that their smaller business clients have less complex operations and processes than the large organizations typically served by Tier I vendors, it is evident that they are steadily making major inroads into the sacred calf of big business," said Eric Kimberling, president and founder of Panorama Consulting Group. "SAP and Oracle may not be threatened yet, but it is important to note that Tier III holds 36-percent of the overall market while Tier II holds just 11-percent - the same amount as Microsoft Dynamics. They're coming . . . and they're coming fast."

    Though the survey found that Tier III vendors are gaining ground in terms of market share, their satisfaction rankings are low when compared to their Tier I and Tier II counterparts. Respondents who had implemented Tier III solutions rated themselves as "satisfied" or "very satisfied" only 31.3-percent of the time. In contrast, 42.3-percent of Tier I clients and a full 50-percent of Tier II clients reached similar levels of satisfaction.

    "Given that Tier II had the largest average percentage of duration overruns (62.2-percent) by a clear margin, it's interesting to see that their clients are so happy with their solutions," said Kimberling. "The seeming disparity is likely due to the fact that most Tier II vendors incorporate third-party modules, which takes a long time but often creates a better, more customized solution in the end. Consultants like Panorama can achieve similar high-levels of satisfaction - regardless of tier - by ensuring the chosen software fits the specific needs and expectations of a business and delivers the full benefits promised by its vendors."

    To offer further analysis of the study results, Kimberling will present a free webcast on Thursday, April 14 at 10 a.m. MST. Register for the seminar at http://panorama-consulting.com/resource-center/erp-webinars/.

    About Panorama Consulting Group 2011 Guide to ERP Systems and Vendors

    The 2011 Guide to ERP Systems and Vendors was conducted by Panorama Consulting Group via online polling on its website. The over 1,600 participants represent organizations from 57 countries that have recently implemented ERP solutions. The full report (and additional industry research) can be accessed at: http://Panorama-Consulting.com/resource-center/erp-industry-reports/.

    About Panorama Consulting Group
    Founded in 2005, Panorama Consulting Group is a niche consulting firm specializing in the enterprise resource planning (ERP) market for mid-sized companies across the world. Independent of affiliation, Panorama helps firms evaluate and select ERP software, manages the implementation of the software, and facilitates all related organizational changes to ensure that each of its clients realize the full business benefits of their ERP implementation. More information can be found on its website, www.Panorama-Consulting.com.

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