Technology ERP Value Matrix 2H 2015

With aging solutions driving investigation of new purchases and cloud applications increasingly adopted by large and small firms alike, the ERP market continues to be very competitive.

Most of the major vendors have made significant investments in user interface (UI) revamps, making a modern UI table stakes in competition for new customers. Further industry capabilities and investments in dynamic processes and embedded analytics are driving shifts in functionality positioning.

As the larger vendors’ cloud investments come to fruition and smaller cloud vendors expand their functionality, the ERP Value Matrix for the second half of 2015 reflects mostly incremental changes in functionality and usability but great potential for significant shifts in 2016. With significant investments and upgrades planned for a number of vendors in the next six to 12 months, purchasers have to consider both what is available today and potential upgrade opportunities in the near future.

Technology ERP Value Matrix 2H 2015

Although ERP spending is not projected to grow at the rate of the other application pillars, growth opportunities are coming from four main areas:

  • Organizations that are replacing maturing solutions that are beyond the currency curve, making any upgrade opportunity more like a redeployment – opening it up to competitive review.
  • Organizations that have effectively outgrown their existing applications’ capabilities and seek solutions that can deliver greater breadth of capabilities and scalability.
  • Organizations that are looking to deploy tier-two ERPs that are less costly than their core enterprise ERP to support subsidiaries or divisions that can benefit from greater structure and automation.
  • Organizations that are net new ERP customers, which are typically either emerging firms with rapid growth or new firms resulting from spinoffs or divestitures.

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