Oracle, SAP and Microsoft Dynamics have once again gone head-to head in the Clash of the Titans report, which compares each vendor’s strengths and weaknesses.
Panorama Consulting surveyed more than 2,000 respondents from 61 countries who have selected or implemented any of the three solutions between February 2006 to May 2012.
According to the report, SAP held the overall market share distribution during that time period with 22%, followed by Oracle (15%) and Microsoft Dynamics (10%). Tier II solutions such as Infor and Epicor took 16% whilst tier III solutions and others took 37% of the market.
The findings showed that SAP is the most commonly short-listed ERP system by 35% of those surveyed followed by Oracle (24%) and Microsoft Dynamics (17%). However, Oracle (34%) and Microsoft Dynamics (32%) are more frequently selected than SAP (28%).
SAP’s lower selection rate than the other two vendors suggests that after assessing the available information, organisations are not easily convinced that SAP is the best option, whilst Oracle and Microsoft Dynamics offer products that are simply a better fit for the needs of the organisations, said Panorama.
In terms of average time to implement, the survey showed actual times of implementation rarely matched planned times. Oracle displayed the biggest discrepancy time with an average of 18 months – four months longer than expected.
Additionally, nearly two thirds of respondents claimed their implementations went over schedule, whilst 28% completed the project on-schedule and 11% completed implementation earlier than scheduled.
The report showed the reasons behind extended durations were due to extension of the initial project scope (29%), organisational issues (20%), data issues (17%) and resource constraints (17%).
Additionally, the study showed that the average payback – a period of time when the organisation recoups its initial investment on the project – is 2.4 years.
The report concluded: “It’s clear to anyone in the ERP market that SAP, Oracle and Microsoft Dynamics have built strong reputations as the powerhouses of Tier I enterprise software. But the market is shifting; enterprise solutions are being commoditised, Cloud and SaaS ERP vendors are gaining traction, and companies are looking for more than a marquee name on their ERP software. They are looking for true ROI.
“While SAP, Oracle and Microsoft Dynamics continue to enjoy enviable market share and selection rates, the extended durations, long payback periods and lack of true benefits realisation points to trouble on the horizon. Although the ‘blame’ for these issues likely lies more in the implementing organisations than in the software itself, perception is the name of the game. If the market begins to perceive that this (or any) software simply isn’t bringing the returns necessary to justify its price, a significant drop in market share will soon follow.”