The major business applications software firms, such as Oracle, SAP and PeopleSoft, have little brand loyalty attached to them, according to a new research from Yankee Group.
Apart from the blow to the corporate ego, the bad news for vendors is that according to a study of executives involved in purchasing enterprise resource planning software, an unusually low percentage of decision-makers willing to recommend any of the market-leading brands.
Yankee said that in studie of other markets, the leading brands typically get recommendations from 50 per cent of buyers, whereas the highest recommendation in this study was from 32 per cent of buyers and was for Oracle. PeopleSoft came in second with 29 per cent, and SAP third with 26 per cent. Microsoft was recommended by only 14 per cent while SSA Global Technologies came last with one per cent.
"The results were quite surprising," says Jon Derome, program manager for the Yankee Group's Business Applications & Commerce advisory service. "No ERP company stands out as a brand of choice. The share of respondents inclined to recommend a particular supplier was starkly lower than scores for similarly complex business products.”
One reason is a disconnect between what the customer wants and what the vendor is pitching. "Vendors promote speeds, feeds, and technology prowess, but, according to our respondents, these traits are not meaningful or relevant to the basic challenges ERP customers face today," said Derome. "Decision-makers tell us that they want service, flexibility and practicality. Unfortunately, none of the major brands differentiates itself along these lines, leaving the door wide open for any one of the category providers to address these unmet needs.