The new ERP database provides information on the enterprise software industry and lists over 140 software vendors with groupings for the various tier I, II, and III segments. Each ERP vendor has a detailed profile that includes a list of their product offering, an overview of their target market and industry experience, contact information, and recent news or press releases. In addition to the basic profile information, the vendor listings provide an opportunity for website visitors and ERP users to rate their existing software supplier based on a variety of criteria such as presales activity, technical support, functionality, and obtainment of ROI. We feel the vendor profiles and their respective scorecards are imperative for providing an unbiased and unaltered view of the ERP vendors direct from within their user community.

As we move forward into phase two of this launch, we are encouraging the ERP vendors to review their profiles and provide updates, as well as information on their social media communities, literature, white papers, and any images or supplemental content that will help provide the most informative profile possible.

What differentiates this information from other ERP vendor listings is that it is provided for free, without need to register, and without restrictions. While ERP selection and ERP implementation is at the center of our core service offering, website visitors should be informed and educated even if they chose not to engage with Panorama as their chosen independent consultant. This philosophy is aligned with Panorama’s mission statement and the original reason I founded the company years ago.

While the ERP database is quickly becoming one of the most content rich areas of our website, our ERP database is only a part of the upcoming changes. We have more enhancements planned for the 2010 calendar year. I applaud my team for performing due diligence in their research and I look forward to the next phase of functionality that is coming to the ERP vendor profiles.

All of us at Panorama hope the new ERP database helps you and your ERP selection teams become acquainted with the ERP market, as well gives you a baseline for understanding the various offerings and a baseline for choosing the best ERP vendor for your organization’s unique requirements. As always, if my team can be of assistance, I welcome you to contact us so that we can help you make your ERP project a success.

You can visit the ERP database at: http://panorama-consulting.com/resource-center/erp-database/

Lao-Tzu, the great ancient Chinese philosopher and also a central figure in Taoism, said, “Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime.” ERP software, in this metaphor, is like fishing gear. Only when it aligns with an organization’s business strategies and business processes will it improve the enterprise’s actual performance.

Different companies can buy the same ERP system but have dramatically different results because of the various ways of utilizing the ERP software application. Panorama’s 2010 survey results indicate that companies use different strategies to accommodate their business processes for their ERP implementation (see table).

Results show that 22.3% of companies “had very little or no focus on business processes,” which means that their ERP projects were treated more like IT project. This is the worst strategy a company could adopt. Companies like these lack clear business objectives, and the efforts on ERP selection and implementations usually go waste.

Nearly 41.9% of companies “changed business processes to accommodate ERP functionality.” Consultants usually suggest reengineering business processes prior to or concurrent with the ERP implementation and allowing a change agent to manage the numerous changes and ease the transition to the new processes.

A small percentage of companies (8.8%) “changed their business processes independent of ERP, then selected or configured software to align with new processes.” To utilize this strategy, companies usually rely on the assistance of ERP consultants, as they need to select the best software fit, as well as define the most favorable business processes for the organization.

About 27.0% of companies “changed or customized their ERP functionality to accommodate current business processes,” which to most consultants is a surprising figure. It is not typical for a company to totally change or customize ERP software to fit their current processes, as it requires a tremendous amount of work to customize the ERP system while also accurately defining current processes. This relatively high percentage is most likely due to responses from companies which had not yet started their ERP implementation and expected to maintain the lowest level of change to their current business processes. However, what they really should do is not to be afraid of change but to take advantage of the ERP systems’ inherent best practices to improve their business processes.

In a nutshell, an ERP system is just a tool. Learning how to use the tool to effectively leverage operational success within the organization is the key to a successful ERP project.

You can find more interesting content in Panorama’s recently published 2010 Organizational Change Management Report.

Blog entry written by Haoyan Sun, Research Analyst at Panorama Consulting Group.

However, despite a fair share of pessimism in business, among consumers, and certainly in the media, 2009 was a year with some noteworthy highlights.  Below is a list of the top ten highlights in the ERP software industry for the year.

2009 Top Ten for ERP Software Industry

1. Evolution of ERP in the new economy. Given the turbulent economy in 2009, executives were forced to do more with less, be more deliberate with IT budgets, and demand a higher return on investment from their enterprise software initiatives.  To our surprise, while many large companies were cutting ERP budgets, companies in the small and mid-size (SMB/SME), energy, and government sectors were examples of organization types that continued to invest heavily in enterprise software.  These trends were outlined in a recent ERP presentation from Panorama Consulting.
2. Comprehensive study of ERP implementation results. In January, Panorama Consulting published a comprehensive study of over 1,300 enterprise software implementations across the globe, a first of its kind.  The ERP industry report and corresponding summary research briefings revealed useful benchmark information regarding ERP metrics, such as implementation duration, cost, and business benefits realized.
3. Shane Company’s enterprise software failure. The year began with some bad news about Shane Company, which filed for bankruptcy and heavily blamed its financial woes on its botched ERP implementation.  In order to make the best of a negative situation, Panorama hosted a webinar outlining some of the lessons learned from this ERP failure (Shane Co. was not a  Panorama client).
4. Comparison of SAP, Oracle, Microsoft Dynamics, and Tier II ERP solutions. As part of its series of summary briefings on its ERP benchmark study, Panorama Consulting published one of the most comprehensive quantitative comparisons of leading enterprise software solutions in the marketplace.  The findings revealed significant differences and tradeoffs between leading software providers.  This software vendor comparison was also outlined in a YouTube video presentation available on our ERP video page.
5. Continuing duel between on-premise ERP and Software as a Service (SaaS). The hype surrounding SaaS and cloud computing continued to intensify throughout the year, as did the corresponding myths and misconceptions.  Panorama hosted multiple ERP webinars to help clients and colleagues understand the tradeoffs between SaaS and on-premise ERP.
6. Manufacturing and Distribution ERP Software Report. Panorama’s series of reports of it’s ERP benchmark study continued with an overview of enterprise software benchmarks in the manufacturing and distribution space, which outlines some of the challenges unique to this industry vertical.
7. Debut of “ERP Strategies and Solutions” podcast. Panorama continued to extend its communication vehicles to the ERP industry by debuting its bi-monthly podcast series, which featured interviews with clients, Panorama ERP experts, and other industry leaders.  Topics focused on ERP issues related to ERP software selection, implementation, and organizational change management in the manufacturing and distribution, life sciences, chemicals, non-profits, and other key industries.
8. Organizational change management steals the spotlight. Given tough economic conditions, increased pressure to provide accountability to board members, and the need to mitigate risk, an increasing number of CIOs invested more time and money in organizational change management and benefits realization than in years past.  This is partially demonstrated by the fact that Panorama’s organizational change consulting practice saw a huge increase in business in 2009.
9. ERP consulting services skyrocket. Although official 2009 company results won’t be published until January, Panorama is well on the path toward record revenue and profits.  At the time of this post, our year to date revenue was up over 80% compared to last year.  Several new clients turned to Panorama to help them with their enterprise software selection and implementation initiatives in 2009, including Champion Window, Maxon Lift, Focus on the Family, dpiX, Bioness, Alliance Laundry Systems, and Robert’s American Gourmet, the makers of Pirate’s Booty snacks.
10. Launch of new ERP resource site. In November, Panorama launched a new and improved web-site for its clients, employees, prospects, recruits, and industry peers.  The site highlights the company’s extensive enterprise software expertise and thought leadership, including a 360 ERP Blog and our resource center which features ERP videos and podcasts, ERP software vendor comparison tables, a mock ERP selection process, and other useful resources.

These are just a few of many highlights in the ERP space in 2009.  Many of these trends will continue or evolve into 2010, which will make for another exciting year of opportunity.  From all of us at Panorama Consulting, we wish you a happy holidays.