ERP consulting firm Panorama Consulting just released its 2015 Manufacturing ERP Report which includes a listing of “Top ERP Vendors” by market share. While earlier reports showed SAP, Oracle, and Microsoft Dynamics leading the pack among ERP vendors in all industries, the new report shows Microsoft Dynamics holds the largest share in the manufacturing space. The recent rankings are:
- Microsoft Dynamics: 38% share of ERP manufacturing space
- Epicor: 25% of that space
- Oracle: 13%
- SAP: 11%
The report also divulges that “unpredictability is more rampant among manufacturing ERP implementations,” and… “that manufacturers are just as likely to take longer to implement than expected, but when they do, they are more likely to extend their timelines by a greater amount than in other industries.”
The report also noted that “manufacturers implement at a lower total cost of ownership than those in other industries.” They add that “when normalized to account for variation in company size by looking at total costs expressed as a percentage of annual revenue, manufacturers come out ahead with costs of 7.5% of annual revenue compared to 8.4% in all other industries.”
Manufacturers are also more likely to customize their ERP software than those in other industries. Still, it’s interesting to note the report indicates that virtually every company, manufacturers or not, does some level of customization to their software. Some 75% (of manufacturers) and 90% (overall) report “minor, some, or significant” modification.
And finally, one interesting note, which we’ll quote directly from Panorama’s report verbatim:
“Adoption of manufacturing-specific functionality is relatively weak. While most manufacturers adopt core modules such as sales and distribution, materials management and MRP, relatively few are actually implementing more advanced functionality in areas such as product lifecycle management, advanced planning or CRM. Many of these same companies actually paid to acquire the software, but didn’t acquire those modules for whatever reason. It is important to be cognizant of the propensity for manufacturers to invest significant money in shelfware and to make sure they are getting a good ROI from some of this advanced functionality offered by ERP vendors.”
Benchmarks, the report concludes, are key. Everyone needs them to ensure goals are met during implementation and beyond. You can view the Panorama report here.