Top 4 ERP Trends

The ERP field can be slow to change, but the last couple of years have unleashed forces which
are fundamentally shifting the entire area. The following new and continuing trends affect
enterprise ERP software:

Mobile ERP

Executives and employees want real-time access to information, regardless of where they are. It
is expected that businesses will embrace mobile ERP for the reports, dashboards and to conduct
key business processes.

Cloud ERP

The cloud has been advancing steadily into the enterprise for some time, but many ERP users
have been reluctant to place data cloud. Those reservations have gradually been evaporating,
however, as the advantages of the cloud become apparent.

Social ERP

There has been much hype around social media and how important – or not -- it is to add to ERP
systems. Certainly, vendors have been quick to seize the initiative, adding social media packages
to their ERP systems with much fanfare. But some wonder if there is really much gain to be had
by integrating social media with ERP.

Two-tier ERP

Enterprises once attempted to build an all-encompassing ERP system to take care of every aspect
of organizational systems. But some expensive failures have gradually brought about a change in
strategy – adopting two tiers of ERP.

ERP Vendors

Depending on your organization's size and needs there are a number of enterprise resource
planning software vendors to choose from in the large enterprise, mid-market and the small
business ERP market.

 Large Enterprise ERP (ERP Tier I): The ERP market for large enterprises is
dominated by three companies: SAP, Oracle and Microsoft. (Source:
EnterpriseAppsToday; Enterprise ERP Buyer's Guide: SAP, Oracle and Microsoft;
Drew Robb)
 Mid Market ERP (ERP Tier II): For the midmarket vendors include Infor, QAD,
Lawson, Epicor, Sage and IFS. (Source: EnterpriseAppsToday; Midmarket ERP
Buyer's Guide; Drew Robb)
 Small Business ERP (ERP Tier III): Exact Globe, Syspro, NetSuite, Visibility,
Consona, CDC Software and Activant Solutions round out the ERP vendors for small
businesses. (Source: EnterpriseAppsToday; ERP Buyer's Guide for Small Businesses;
Drew Robb)

Our small business ERP buying guide includes names like NetSuite, Exact Max, Epicor and Syspro.

ERP systems were once used almost exclusively by large companies. In recent years, though, an increasing number
of ERP solutions for smaller businesses (SMBs) have entered the market. Some are sold by vendors that primarily
serve SMBs, although software giants like Oracle and SAP are steadily moving their products down the food chain.

These ERP vendors fit into what Panorama Consulting Solutions calls Tier III ERP. According to Eric Kimberling of
Panorama, this tier constitutes 26 percent of the total ERP market. Five years ago, their slice comprised 36 percent.

Part of the reason for the drop is that vendors serving the enterprise market have been more successful in tailoring
their products for smaller firms. Further, some of the big boys have acquired a few of the companies we covered half
a decade ago. That said, Tier III remains popular – and for good reason.

"Tier III ERP vendors typically obtain a payback period of less than three years 76 percent of the time," said
Kimberling. "Average cost per project for Tier III is $1.1 million."

The Challenges of Cloud Integration

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Here we offer an overview of seven ERP software solutions for small business:

Exact Max

Exact Max is tailored to small to medium-sized discrete manufacturing companies that need flexible ERP software
that can grow with their business. One of its key selling points is its ability to integrate with Intuit QuickBooks.

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Some SMBs have years of financial records on QuickBooks and are loathe to give it up. This can present a big
stumbling block for ERP adoption, as many ERP systems want to take over all the financials. But Exact Max allows
SMBs to keep using QuickBooks while integrating it with further manufacturing systems.

Similarly, Exact Max provides a manufacturing integration with the Microsoft Dynamics GP accounting package for
companies already using that financial software.

Syspro ERP

Gartner included Syspro as a niche player in a recent ERP Magic Quadrant. Headquartered in South Africa, Syspro
offers a Microsoft .NET-based integrated supply chain suite encompassing ERP, analytics, e-commerce, CRM, and
planning and scheduling.

Specific to the ERP portion, it includes financials, distribution and manufacturing. A reporting tool known as Syspro
Reporting Services (SRS) incorporates an embedded version of Crystal Reports.

NetSuite ERP

With more than 24,000 customers globally, NetSuite offers a unified, cloud-based platform of financials/ERP and
omnichannel commerce software suites. Its offerings span financials, CRM, ecommerce, order management,
inventory management and real-time business intelligence. NetSuite also provides a robust development platform for
easy customization and integration.

"Other software vendors are struggling to move software architected before the Internet existed to the cloud," said
Craig Sullivan, senior vice president of Enterprise and International Products for NetSuite. "Whether it's big
businesses trying to act small or small businesses looking to grow big, NetSuite enables its customers to operate at
the speed of modern business."

Visibility ERP

According to Panorama Consulting, Visibility has a 1 percent ERP market share in manufacturing and distribution, as
well as in communication, energy and transport. Known as Visibility.net, it is squarely aimed at the ERP needs of
complex product manufacturers. It includes modules for management, CRM, quotes, projects, costs, material and
resource planning, product engineering and manufacturing, business performance, finance and supply chain
collaboration.

The company claims it is the only Internet-based ERP software developed for manufacturers of complex products. It
is browser-based and built on Microsoft .NET technology. It can be deployed either via a traditional on-site installation
or over the Web. It also supports the Oracle and Microsoft SQL Server databases

Epicor

Epicor Software, a provider of business software for manufacturing, distribution, retail and services organizations for
over 40 years, increased its focus on SMB ERP when private equity firm Apax Partners merged Epicor with SMB
ERP specialist Activant Solutions in 2011. Epicor serves the small, midmarket and enterprise sectors, and has more
than 20,000 customers in over 150 countries.

Cloud Deployed Epicor ERP, a solution geared toward SMBs, provides broad functionality, is
priced affordably and delivered in a manner that minimizes complexity. Epicor uses a multi-tenant software-as-a-
service (SaaS) model and provides tools to manage opportunities, orders and operations in one integrated solution.

Epicor Eagle N Series is a retail business management system that includes on-screen analytics, communication
tools and streamlined workflows. It is used by retailers in over 8,000 locations.

"With functionality that scales to serve small to medium sized businesses and supports growth as they expand,
Epicor solutions reduce complexity, get up and running quickly and decrease ongoing operational costs," said Celia
Fleischaker, senior vice president, worldwide marketing, Epicor Software