Transcript
7/29/2019 Dynamics in IT Industry Pitch
1/18
Magic Quadrant for ERP
Group
7/29/2019 Dynamics in IT Industry Pitch
2/18
Agenda
About Gartner Magic Quadrant
Methodology
Evaluation Criteria
Case 1: Product centric ERP companies
Extension: Single instance ERP providers
Case 2: Service providers
Limitations
7/29/2019 Dynamics in IT Industry Pitch
3/18
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
The display divides competing businesses into four distinct sections, based on both completeness
of vision and ability to execute it
Gartner Magic quadrant
All vendors want to be in the top right hand quadrant called the Leaders
Quadrant
There are two axes:
Completeness of Vision where the vendors and Gartner discuss the future development plans
Ability to ExecuteGartners view of where the vendor is today versus its vision, and its ability
to deliver to that vision
7/29/2019 Dynamics in IT Industry Pitch
4/18
CHALLENGERS
NICHE PLAYERS
LEADERS
VISIONARIES
Generally large vendors
Have ability to execute, but may lack strong visionHave the ability to become leaders if their vision
evolves
Score high on both completeness of vision and
ability to executeLarge companies with large customer base
Ability to effect the markets overall direction
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
Methodology
The overall positioning of vendors in a Magic Quadrant offers a high-
level view of the market
Results of a vendors rating will differ in
Highly mature market
Emerging market
7/29/2019 Dynamics in IT Industry Pitch
5/18
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:
Product/Service
Overall Viability
Sales Execution/Pricing
Market Responsiveness and Track Record
Customer Experience
Operations
Vendor briefings
Surveys
Vendor-provided references
Industry contacts
Client interviews
Public sources, articles and published papers
Input from Gartner analysts
Magic Quadrants is designed to help narrow down a vendor
search, not tell a customer what vendor they should choose
7/29/2019 Dynamics in IT Industry Pitch
6/18
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
7/29/2019 Dynamics in IT Industry Pitch
7/18
Product Centric CompaniesCASE 1
The Magic quadrant evaluates products that have global presents and specifically tailored
for product-centric mid-market companies
Market condition
Market is large and mature
Gartners latest projection flat or slight growth
Acquisitions activity has picked up - for analyticalcapabilities
Markets looked at
Manufacturing companies
Distribution companies
Administrative business requirements
http://www.erp-guidebooks.com/wp-content/uploads/2010/12/Gartner-Quarant.pnghttp://www.erp-guidebooks.com/wp-content/uploads/2010/12/Gartner-Quarant.png7/29/2019 Dynamics in IT Industry Pitch
8/18
Inclusion and Exclusion
Product Centric CompaniesEvaluation
Criteria
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
7/29/2019 Dynamics in IT Industry Pitch
9/18
Product Centric CompaniesEXAMPLES
Is a comprehensive and scalable solution
Can support thousands of users in one instance - Gartner considers it best-suited for fast-
growing 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
SAP Business All-in-One
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
Oracle JD Edwards EnterpriseOne
7/29/2019 Dynamics in IT Industry Pitch
10/18
Multi-entity company ---- characterized by following criteria
Consists of multiple organizational units, such as multiple business
units with different offerings
The company is present in multiple countries with differing legal,
tax and statutory requirements per country
The entities can encompass multiple manufacturing, sales or
delivery locations
These companies have cross-entity functions and structures
Vendors' ERP systems that cannot support multiple entities in one
single instance not included
Single instance ERPFurther
Extension
Evaluation Criteria
ERP systems -- composed of varying functional depth and
breadth to meet the needs of these different-size companies
This Magic Quadrant, we concentrate on ERP systems that are
used primarily by multi-entity companies seeking a single-instance ERP system
7/29/2019 Dynamics in IT Industry Pitch
11/18
Single instance ERPEXAMPLES
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
Epicor 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 supportRole-based UI personalization is seen by customers as being very flexible
Microsoft Dynamics AX
7/29/2019 Dynamics in IT Industry Pitch
12/18
Service ProvidersCASE 2
Market condition
Globalization Demand for global rollouts of SAP
software
Demand from new verticals like public sector, life
sciences and banking, emerging markets
Some challengesImplement 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 ProductsNew delivery and consumption Models
7/29/2019 Dynamics in IT Industry Pitch
13/18
Service ProvidersEVALUATION
CRITERIA
how well the provider performs a spectrum of services compared withits peers and how well it is positioned for the future
Ability to execute
current service offeringsProduct/Service
Assessment of service provider's practice area profile
Analysis of strategy and organization
Overall Viability (Business Unit,Financial, Strategy, Organization)
Pricing strategy and alternative pricing models
Customer feedback on value for moneySales Execution/Pricing
Vendor's capabilities to deliver against business-outcome-basedobjectives and metrics
Market Responsiveness andTrack Record
Clients feedback on working with provider
Key metrics that drive customer experienceCustomer Experience
vehicles that enable the organization to operate effectively andefficiently on an ongoing basis- training programs, global deliverycenters, centers of excellence
Operations Standard
7/29/2019 Dynamics in IT Industry Pitch
14/18
Service ProvidersEXAMPLES
Deloitte- Leader
Multiple competenciesprovide 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 performancemanagement (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
7/29/2019 Dynamics in IT Industry Pitch
15/18
Service ProvidersEXAMPLES
TCS-Challenger
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 desireto go the extra mile are cited by clients as key strengths
7/29/2019 Dynamics in IT Industry Pitch
16/18
Service ProvidersEXAMPLES
Infosys-Challenger
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 ClientsStrong delivery capabilities and mature processes, as well as on- and offshore
capabilities to support their SAP programs.
7/29/2019 Dynamics in IT Industry Pitch
17/18
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
Limitations
7/29/2019 Dynamics in IT Industry Pitch
18/18
Thank You
top related