ERP Implementation:
SAP, Oracle and MS Dynamics
Whenever we think about the ERP the most common names flash in our mind are SAP, Oracle and some time Microsoft also.
A survey done by Panorama Consulting Solutions put a light on the important aspects of an ERP implementation projects success and failure of SAP, Oracle and Microsoft Dynamics.
The survey had been done from “February 2006 to May 2012. The data set includes more than
2000 respondents from 61 countries who have selected or implemented SAP, Oracle or Microsoft Dynamics ERP solutions.”
As a brand SAP and Oracle are major players in ERP market but MS Dynamics also has good presence.
Out of three SAP is clear leader in market by holding a share of 22% and ahead of its nearest rival oracle by 7%.
Selection Comparisons:
From the above data it is clear that SAP is the top for short listing of ERP Companies in the survey by 35%, but the selection rate of Oracle and MS Dynamics is better than SAP.
As survey says “study suggests that after assessing the available information, organizations are
not easily convinced that SAP is the best option”. Implementation Duration:
It is stated in survey “The duration of an implementation project is related directly to the scope
of a company’s implementation, the resources provided, the fit and functionality of the software chosen, and the type of solution purchased”.
It is found that Oracle ERP Implementation had more discrepancy in planned and actual months of Implementation as shown on graph.
Most of the ERP implementation projects go over schedule and the figure is 61% but on other side around 11% projects were completed before schedule and around 28% were completed on time.
It is easily found that major delay is not due to technical snags but projects are late because of organizational, business, and project management challenges.
By analyzing the above figures we can say that delay variance increased to 7 out of 8 categories which means implementing ERP is getting difficult.
Payback Periods:
It is discovered that majority of SAP client find the payback time is greater than 3 years but SAP is also the frontrunner in 1 year payback section.
Benefits Realization:
SAP is a clear leader in terms of Benefit Realization from an ERP implementation. In the survey it is stated as “Nearly half of respondents (44-percent) realized 50-percent or less of anticipated
benefits from their SAP systems”
Around 60% of the participants feel that information availability is quite easy after ERP implementation
Highlights:
Major points highlighted in the survey are as under:
SAP:
Largest share of the market
Highest short-listing rate
Lowest selection rate when short-listed
Longest payback period
Strong product development functionality Ease in supporting Make-To-Order processing Integrated retail module
Clear visibility to goods-in-transit orders
Good quality control and quality assurance functionality Good compliance with SOX and tax regulations
Oracle:
Highest selection rate when short-listed
Longest implementation duration
Largest delta between planned and actual implementation duration
Lowest percent of users who realized between 81- and 100-percent of Benefits
Strong finance and accounting functionality
Advanced pricing module supports complex pricing scenarios E-portal provides for easy interaction with customers and suppliers Well-built IT architecture
Better product configurator
Good functionality for production operations
MS Dynamics:
Shortest implementation duration
Highest percentage of users who realized between 81- and 100-percent of
benefits
Smallest share of the market Lowest short-listing rate
Ease of customization High flexibility Ease of integration
Familiarity of user interface
Strong inter- and multi-company support
Strong multicurrency and localization capabilities
Data dimension-enabled tracking of physical moves (inventory, etc.) and financial transactions
Strong MRP and trade capabilities
Conclusion
After analyzing the survey we can say that MS Dynamics despite its low market share is more successful with projects that tend to be smaller than those from SAP or Oracle, which explains the shorter project and higher success rates.
Oracle is the worst among the three, based on the lowest benefits realization and longest gap between planned and actual project duration.
SAP has the longest payback period, suggesting these projects may involve greater business process complexity than is typical from the other vendors.
Be careful while deciding anything based on this study as survey is totally silent about the organization size, project complexity, and geographic location of project. If that information have been included in the survey then it would have been useful.
About Author:
Sachin Gautam
Sachin is a Master of Computer Application and having CAPM Certification from PMI USA, He has around 12 plus years of IT experience, 9 plus years of SAP experience and around 8 plus years as a Project Lead his experience varies from blueprint, realization, testing, go-live and post go-live phases.
Currently he is working with IBM India as a Project Lead SAP – Technical before joining IBM he was associated with Capgemini India.
More details of Sachin Gautam is available at http://sachin.sgautam.net.
