Magic Quadrant for ERP

Group

Agenda

About Gartner Magic Quadrant Methodology

Evaluation Criteria
Case 1: Product centric ERP companies Extension: Single instance ERP providers

Case 2: Service providers

Limitations

Gartner Magic quadrant

Gartner are an analyst firm of good repute and they analyse the IT market for buyers and vendors Research method - designed to monitor and evaluate the progress and positions of companies in a specific, technology-based market Magic Quadrant a basic 2*2 matrix with vendors and solutions placed into a quadrant There are two axes: Completeness of Vision where the vendors and Gartner discuss the future development plans Ability to Execute Gartners view of where the vendor is today versus its vision, and its ability to deliver to that vision The display divides competing businesses into four distinct sections, based on both completeness of vision and ability to execute it

All vendors want to be in the top right hand quadrant called the Leaders Quadrant

Methodology
Generally large vendors Have ability to execute, but may lack strong vision Have the ability to become leaders if their vision evolves Score high on both completeness of vision and ability to execute Large companies with large customer base Ability to effect the markets overall direction

CHALLENGERS LEADERS The overall positioning of vendors in a Magic Quadrant offers a highlevel view of the market

Results of a vendors rating will differ in Highly mature market Emerging market NICHE PLAYERS VISIONARIES
Focus on a small segment Score low in both completeness of vision and ability to execute
Have awareness of how the market will evolve and can potentially be innovative In more mature markets, they are usually either smaller businesses trying to compete

Evaluation Criteria
Qualitative Market Analysis - a comprehensive process to defines the boundaries of the market
Identify the Market Select the Vendors Define the Rating Criteria Research the Market Evaluate the Vendors Publish the Research Market Understanding Marketing Strategy Sales Strategy Offering (Product) Strategy Innovation: Vendor briefings Product/Service Surveys Overall Viability Vendor-provided references Sales Execution/Pricing Industry contacts Market Responsiveness and Track Record Client interviews Customer Experience Public sources, articles and published papers Operations Input from Gartner analysts

Magic Quadrants is designed to help narrow down a vendor search, not tell a customer what vendor they should choose

Why use magic quadrant for ERP

Key Changes in the current market customer driven

Customers need for easy user interfaces The interest in SaaS -based ERP is growing Better report extraction and formatting output Model-driven packaged applications - Service-oriented architecture (SOA) and BPM Shortages in skilled and experienced resources - improving the quality of their resources Competitive prices different ERP suites

CASE 1 Market condition

Market is large and mature

Product Centric Companies

Gartners latest projection flat or slight growth Acquisitions activity has picked up - for analytical capabilities Markets looked at Manufacturing companies Distribution companies Administrative business requirements

The Magic quadrant evaluates products that have global presents and specifically tailored for product-centric mid-market companies

Evaluation Criteria Inclusion and Exclusion

Product Centric Companies

Geography : Must serve at least two global regions Installation base : Should have at least 1000 customers in products installation base New License Sales : The three geographies must contribute at least 20% of new license
sales each

Viability : The offering must be a viable and supported

Installed base size Application Functionality Architecture

EXAMPLES
SAP Business All-in-One

Product Centric Companies

Is a comprehensive and scalable solution Can support thousands of users in one instance - Gartner considers it best-suited for fastgrowing companies SAP's partner strategy, including the PartnerEdge program - very complete and consistent Has a Web-based Solution Configuration for Business All-in-One Improve successful on-time, on-budget deployments

Oracle JD Edwards EnterpriseOne A wide range of industry functionality is supported in the core system Multiple deployment options (IBM, Oracle middleware and Windows) allow companies to align with their platform of choice The new releases - steps toward embedded analytics Oracle's Accelerate program delivers partner-built, industry-specific versions JD Edwards has a presence in many countries, either directly or through partners

Further Extension Evaluation Criteria

Single instance ERP

Multi-entity company ---- characterized by following criteria

ERP systems -- composed of varying functional depth and Consists of multiple organizational units, such as multiple business breadth to meet the needs of these different-size companies units with different offerings
The company is present in multiple countries with differing legal, This Magic Quadrant, we concentrate on ERP systems that are tax and statutory requirements per country

used primarily by multi-entity companies seeking a singleThe entities can encompass multiple manufacturing, sales or instance ERP system
delivery locations These companies have cross-entity functions and structures

Vendors' ERP systems that cannot support multiple entities in one single instance not included

EXAMPLES
Microsoft Dynamics AX

Single instance ERP

Flexibility and extensibility of Microsoft Dynamics AX makes it a strong solution Best use - satisfying divergent business unit needs, such as multimode manufacturing Leverages the Microsoft application platform and productivity suite New architecture of Microsoft Dynamics AX 2012 - supports the parallel deployment of extensions Provides premier support Role-based UI personalization is seen by customers as being very flexible Epicor ERP Architecture supports a multitenant SaaS deployment A Microsoft-centric solution in terms of technology components used, and is fully built using .NET Microsoft-centric technology strategy - makes it easier and faster to train end users and internal IT support staff Offers more than 100 predefined, role-specific dashboards and KPIs Provides a shared benefits program

CASE 2

Service Providers

Market condition
Globalization Demand for global rollouts of SAP software Demand from new verticals like public sector, life sciences and banking, emerging markets Some challenges Implement faster and less expensively, with less risk and more predictability Ensure the implementation brings about the business benefits promised Leading ESPs differentiate on capabilities New Products New delivery and consumption Models

EVALUATION CRITERIA
Ability to execute
Product/Service Overall Viability (Business Unit, Financial, Strategy, Organization) Sales Execution/Pricing Market Responsiveness and Track Record Customer Experience Operations Standard

Service Providers
how well the provider performs a spectrum of services compared with its peers and how well it is positioned for the future

current service offerings

Assessment of service provider's practice area profile Analysis of strategy and organization Pricing strategy and alternative pricing models Customer feedback on value for money Vendor's capabilities to deliver against business-outcome-based objectives and metrics Clients feedback on working with provider Key metrics that drive customer experience vehicles that enable the organization to operate effectively and efficiently on an ongoing basis- training programs, global delivery centers, centers of excellence

EXAMPLES
Deloitte- Leader

Service Providers

Multiple competencies provide a holistic solution Experienced in very large multiyear programs to harmonize clients businesses and standardize their processes Global delivery leverage global talent at competitive rates Deloitte continues to be strong in finance transformation, enterprise performance management (EPM), business planning and consolidation (BPC), and governance, risk and compliance (GRC). It has also invested heavily in Hana as well as in mobility. Clients find Deloitte's industry-based approach and Enterprise Value Delivery methodology, a project methodology designed to unlock maximum value while managing risks in projects, highly beneficial in their SAP-enabled business transformation journey

EXAMPLES
TCS-Challenger

Service Providers

Full set of SAP life cycle services, from consulting to implementation, managed services, BPO and hostingend-to-end menu of SAP services A development partner with SAP early product access and in-depth technical understanding of these (Ex. MII, product life cycle management, mobility applications in CPG and an SAP Expert Finder application, and testing) Preconfigured solution investments SWIFT MRO (a solution for the airline industry), tax intelligence (a solution developed with KPMG for effective tax planning and management), dealer management and legal management Centers of excellence for Hana and mobility where it develops use cases with SAP and clients Technical expertise, flexibility, excellent work ethics, attractive price points and desire to go the extra mile are cited by clients as key strengths

EXAMPLES
Infosys-Challenger

Service Providers

Largest offshore-centric player in the SAP implementation space Vertical expertise and vertical solutions for retail and CPG; manufacturing; life sciences; energy, utilities, oil and gas; professional services; high tech; and banking Major investments in newer areas (mobility, Hana, analytics and cloud), as well as new modules, such as trade promotion management (TPM) It has co-development agreements with SAP on several initiatives, such as mobility (SAP Retail Execution), and it collaborates with SAP on client proofs of concept (POCs) in TPM and Hana Value realization model throughout the implementation life cyclealigns SAP programs with desired business outcomes Outcome-based pricing based on value realization resonates with Clients Strong delivery capabilities and mature processes, as well as on- and offshore capabilities to support their SAP programs.

Limitations

Mainly to do with niche and small vendors Innovative local companies often do not appear on a Quadrant - small revenues Rate only vendors which are associated Add more points

Thank You