Selecting the right ERP for a business is a task that takes time, resources and a gut check for a company about “what makes them unique.”
Enterprise resource planning (ERP) are systems and software used by organizations to run their operations. It can do everything from accounting to project management — the things a business needs to do in order to keep the lights on.
It’s big business, too. The ERP software market is expected to generate $47 billion in revenue between 2017 and 2022, according to Market Research Future’s ERP Software Market Research Report.
While ERP only started picking up speed in 1995, its importance is growing. Selecting the right ERP for a business is a task that takes time, resources and a gut check for a company about “what makes them unique,” Chris Devault, manager of software selection at Panorama Consulting Solutions, told CIO Dive in an interview.
ERP’s current rock stars
In a recent report, Panorama Consulting Solutions identified 12 Top Manufacturing ERP vendors from a field of more than 200 vendors. They sorted the companies into three tiers:
Panorama Consulting Solutions 3 ERP vendor tiers
|Tier I||Tier II||Tier III|
Devault was quick to point out these are not rankings of vendors, but more sorting Panorama’s picks into groupings because each tier is a better fit for different types of companies.
Those who chose Tier I vendors, for example, typically have dedicated teams that will enhance and develop the software. Tier II companies tend to outsource more work and have fewer dedicated IT resources, and Tier III companies have “fairly limited budgets and are taking care of more basic needs,” he said.
Not every company needs a Tier I vendor or even necessarily a vendor from the list.
“An ideal ERP is one that was selected for the right reasons, designed with purpose and implemented on time and on budget, and then also allowed for quick benefits realization,” Devault said. “That would be the first stages of an ideal ERP and then also one that could scale and adapt with an organization’s changing needs.”