Vendor Landscape: Mid-Market ERP

Transcription

1 Cloud ERP dominates this market., Inc. Is a global leader in providing IT research and advice. Info-Tech s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns Inc. 1

2 Introduction The mid-market is filled with innovative and vertical-focused ERP solutions. This Research Is Designed For: Enterprises seeking to select a solution for financial management and efficient planning of operations. Their ERP use case may include: Geographically distributed organizations with complex resourcing. Organizations that need to quickly gain control of their resourcing. Organizations with volatile resources (i.e. perishable, difficult to move). This Research Will Help You: Understand what s new in the ERP market. Evaluate ERP vendors and products for your enterprise needs. Determine which products are most appropriate for particular use cases and scenarios. 2

3 Executive summary Info-Tech evaluated ten products in the ERP market, including the following notable performers: Champions: Sage 300. Sage provides top-notch support on a product that s intuitive and well designed. NetSuite has a wide variety of additional tools for sharing and analyzing data. Sage 500 provides small IT shops with process controls that include an updated and clean UI. Infor. The ION and Infor Ming.le front-end add-ons provide unparalleled long-term flexibility and ease of use. Epicor offers a very good core offering that is highly extensible. Value Award: Epicor. The feature set and additional tools are above average for the price point. Trend Setter Award: Infor. The strategy to target micro-verticals with discrete products gives Infor the best user experience and focused resource planning suite. Info-Tech Insight 1. Focus on data management tools: ERP as a whole has stayed static in the midmarket. The real differentiator is how data can be analyzed and protected. 2. Long-term value will be in the analytics: ERP is moving beyond traditional recording of transactional data to include analytics and workflow automation. 3. Ease of use is becoming important: Role-based configuration is the fastest, most cost effective way to see real benefits from a new ERP system. Vendors are finally providing the tools to configure user views rather than customize processes. 3

4 How to use this Vendor Landscape There are multiple ways you can use this Info-Tech Vendor Landscape in your organization. Choose the option that best fits your needs: Vendor Landscape Do-It-Yourself Use this Vendor Landscape to help you complete your purchasing decision. The slides in this Vendor Landscape will walk you through our recommended evaluated vendors in this market space with supporting tools and deliverables ready for you to make your decision. Free Guided Implementation We recommend that you supplement the Vendor Landscape with a Guided Implementation. At no additional cost to you*, our expert analysts will provide telephone assistance to you and your team at key milestones in the decision to review your materials, answer your questions, and explain our methodologies. *Guided Implementations are included in most advisory membership seats. 4

5 Book a free guided implementation today! Info-Tech is just a phone call away and can assist you with your project. Our expert Analysts can guide you to successful project completion. For most members, this service is available at no additional cost.* Here s how it works: 1. Enroll in a Guided Implementation for your project Send an to GuidedImplementations@InfoTech.com or call and ask for the Guided Implementation Coordinator. 2. Book your analyst meetings Once you are enrolled in a Guided Implementation, our analysts will reach out to book a series of milestone-related telephone meetings with you and your team. 3. Get advice from a subject matter expert At each Guided Implementation point, our Consulting Analyst will review your completed deliverables with you, answer any of your questions, and work with you to plan out your next phase. This symbol signifies when you ve reached a Guided Implementation point in your project. *Guided Implementations are included in most advisory membership seats. 5

6 Guided Implementation points in the Mid-Market ERP Vendor Landscape Book a Guided Implementation Today: Info-Tech is just a phone call away and can assist you with your evaluation. Our expert Analysts can guide you to successful technology selection. Here are the suggested Guided Implementation points for the Mid-Market ERP Vendor Landscape: Section 1: Shortlist Assistance and Requirements Get off to a productive start: Discuss the market space and how vendors are evaluated. Decide on which deployment option suits you best and narrow down the options based on customized requirements. Section 2: RFP and Budget Review Interpret and act on RFP results: Review vendors RFPs and ensure the solution is meeting your needs. Discuss average pricing of solutions and what can fit into your budget. Section 3: Negotiation and Contract Review This symbol signifies when you ve reached a Guided Implementation point in your project. Purchase optimization: Review contracts and discuss best practices in negotiation tactics to get the best price for your solution. To enroll, send an to GuidedImplementations@InfoTech.com or call and ask for the Guided Implementation Coordinator. 6

7 Market overview How it got here ERP started in the sixties as mainframe tools to automate repetitive manufacturing schedules. The standardization of databases by Oracle and Microsoft allowed for greater integration of enterprise modules, such as CRM and industry-specific functionality. The key to success became the capabilities of the channel partners. Enterprises were presented with the challenge of managing and effectively using an ever-increasing volume of data. The advent of web-based software offerings (SaaS) decreased the initial cost of deploying an ERP system, furthering SME market adoption. Integration and industry specialization remain a challenge. Where it s going ERP has become the latest enterprise application to be available as a cloud SaaS. SaaS has eased the adoption of ERP and the extensibility of existing deployments. ERP is moving from merely a record of transactions to the main data repository for the organization. The incorporation of analytics and workflow management is becoming increasingly important. Large vendors are easing customization challenges with UI improvements and different deployment options. Their approach potentially diminishes the need for ISVs and VARs for large segments of the market. As the market evolves, capabilities that were once cutting edge become default and new functionality becomes differentiating. The ability to support multiple sites has become a Table Stakes capability and should no longer be used to differentiate solutions. Instead focus on usability and data visualization to get the best fit for your requirements. 7

8 ERP vendor selection / knock-out criteria: market share, mind share, and platform coverage The regulatory complexity and need to increase margins in a wide set of industries has fueled a renewed interest in ERP applications. The increased functionality and ease-of-deployment for SaaS products have made ERP a realistic option for the whole mid-market. For this Vendor Landscape, Info-Tech focused on those vendors that offer broad capabilities across multiple platforms and that have a strong market presence and/or reputational presence among mid and large-sized enterprises. Included in this Vendor Landscape: Sage. Provides two products for this space: 500 (formerly MAS 500) for the mid to large-sized segment, and 300 ERP (formerly ERP Accpac) for the small to mid-sized segment. SAP. The gold standard in ERP, particularly for large enterprises. Business One is SAP s mid-market offering. Oracle. Provides the database architecture for many of these vendors. JD Edwards EnterpriseOne is the elder statesman of the mid-market ERP market. Microsoft. The Dynamics line contains solutions that cover the whole of the mid-market space. Info-Tech reviewed GP and NAV for this Vendor Landscape. NetSuite. The most established SaaS offering has seen tremendous growth in the last five years. Epicor. An established vendor that primarily serves the manufacturing, distribution, and retail markets. UNIT4. An emerging vendor that is known for its post-implementation agility (i.e. the ability to respond to business change scenarios in an efficient way). Infor. Focuses on line-of-business applications with a product portfolio focused on micro-verticals. 8

9 ERP criteria & weighting factors Product Evaluation Criteria Criteria Weighting Features The solution provides basic and advanced feature/functionality. Features 30% Usability The end-user and administrative interfaces are intuitive and offer streamlined workflow. 50% Usability Affordability Architecture Implementing and operating the solution is affordable given the technology. Multiple deployment options and extensive integration capabilities are available. Architecture 15% 5% Affordability Product 60% Vendor Evaluation Criteria Viability Vendor is profitable, knowledgeable, and will be around for the long term. 40% Strategy Reach Channel Vendor is committed to the space and has a future product and portfolio roadmap. Vendor offers global coverage and is able to sell and provide post-sales support. Vendor channel strategy is appropriate and the channels themselves are strong. Viability Channel 30% Vendor 10% 40% Strategy Reach 20% 9

10 The Info-Tech ERP Vendor Landscape The zones of the Landscape Champions receive high scores for most evaluation criteria and offer excellent value. They have a strong market presence and are usually the trend setters for the industry. Market Pillars are established players with very strong vendor credentials, but with more average product scores. Innovators have demonstrated innovative product strengths that act as their competitive advantage in appealing to niche segments of the market. The Info-Tech ERP Vendor Landscape Infor Epicor Sage 300 Sage 500 NetSuite Emerging Players are comparatively newer vendors who are starting to gain a foothold in the marketplace. They balance product and vendor attributes, though score lower relative to market Champions. Microsoft NAV Oracle UNIT4 Microsoft GP SAP For an explanation of how the Info-Tech Vendor Landscape is created, see Information Presentation Vendor Landscape in the Appendix. 10

11 Balance individual strengths to find the best fit for your enterprise Product Vendor 1234 Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Epicor Infor* Microsoft (GP) Microsoft (NAV) NetSuite Oracle* Sage (300) Sage (500) SAP* UNIT4* Legend =Exemplary =Good =Adequate =Inadequate =Poor *The vendor declined to provide pricing and publicly available pricing could not be found. For an explanation of how the Info-Tech Harvey Balls are calculated, see Information Presentation Criteria Scores (Harvey Balls) in the Appendix. 11

12 The Info-Tech ERP Value Index What is a Value Score? The Value Score indexes each vendor s product offering and business strength relative to its price point. It does not indicate vendor ranking. Champion On a relative basis, Epicor maintained the highest Info-Tech Value Score TM of the vendor group. Vendors were indexed against Epicor s performance to provide a complete, relative view of their product offerings. Vendors that score high offer more bang-for-the-buck (e.g. features, usability, stability, etc.) than the average vendor, while the inverse is true for those that score lower. Price-conscious enterprises may wish to give the Value Score more consideration than those who are more focused on specific vendor/product attributes Average Score: *The vendor declined to provide pricing and publicly available pricing could not be found. For an explanation of how Price is determined, see Information Presentation Price Evaluation in the Appendix. For an explanation of how the Info-Tech Value Index is calculated, see Information Presentation Value Index in the Appendix. 12

13 Table Stakes represent the minimum standard; without these, a product doesn t even get reviewed The Table Stakes Feature Reconcile-to-Report Order-to-Cash Procure-to-Pay Hire-to-Retire (HR) Technical Architecture Description Financial management (general ledger, PO reconciliation, tax rationalization). Basic CRM and order management. Basic asset management and accounts payable. Basic human resources information and management. A technical architecture that supports add-ons and integration with common reporting tools. What Does This Mean? The products assessed in this Vendor Landscape TM meet, at the very least, the requirements outlined as Table Stakes. Many of the vendors go above and beyond the outlined Table Stakes, some even do so in multiple categories. This section aims to highlight the products capabilities in excess of the criteria listed here. If Table Stakes are all you need from your ERP solution, the only true differentiator for the organization is price. Otherwise, extend your search to find the best price and value for your needs. 13

14 Advanced Features are the capabilities that allow for granular market differentiation Scoring Methodology Info-Tech scored each vendor s features offering as a summation of its individual scores across the listed advanced features. Vendors were given one point for each feature the product inherently provided. Some categories were scored on a more granular scale with vendors receiving half points. Advanced Features Feature Analytics and reporting Mobile applications What we looked for: In-application statistics and data visualization for reporting to internal and external stakeholders. Mobile-specific application that is functional on a tablet or HTML5/responsive design browser. Multi-site ERP functionality Rationalization of the financial statements and budgeting needs across multiple locations. Integration with end-user tools Connectors to support productivity in a regulated manner within the corporate environment. Exception management The mechanisms for managing exceptions to normal processes. For an explanation of how Advanced Features are determined, see Information Presentation Feature Ranks (Stoplights) in the Appendix. 14

15 Advanced Features are the capabilities that allow for granular market differentiation Scoring Methodology Info-Tech scored each vendor s features offering as a summation of its individual scores across the listed advanced features. Vendors were given one point for each feature the product inherently provided. Some categories were scored on a more granular scale with vendors receiving half points. Advanced Features Feature Industryspecific modules Horizontal support What we looked for: The number of industries out of these ten large categories: pharmaceuticals, insurance, healthcare, manufacturing, retail, distribution, communication, real estate, government, higher education, that have specific modules across all ERP uses. Support for typical ERP centric activities such as accounts payable, HR, supplier management, customer orders (SKUs, POS, etc.), and partner payments. BPM support Support for more expansive business processes that require additional application or information sources other than only the ERP system. Document management Application Dev. Platform Documents related to a ERP process are stored, accessed, and integrated into processes. Platform for customizing branding and business critical unique processes. For an explanation of how Advanced Features are determined, see Information Presentation Feature Ranks (Stoplights) in the Appendix. 15

16 Each vendor offers a different feature set; concentrate on what your organization needs Evaluated Features Analytics and reporting Mobile applications Multi-site ERP functionality Integration with enduser tools Exception mgmt. Industry specific modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Epicor Infor Microsoft (GP) Microsoft (NAV) NetSuite Oracle Sage (300) Sage (500) SAP UNIT4 Legend =Feature fully present =Feature partially present/pending =Feature absent For an explanation of how Advanced Features are determined, see Information Presentation Feature Ranks (Stoplights) in the Appendix. 16

17 Shortlist Assistance & Requirements Arrange a call now: GuidedImplementations@InfoTech.com or call and ask for the Guided Implementation Coordinator. Prior to the Guided Implementation 1. Have reasoning as to why a new solution is being discussed. 2. Compile list of incompetencies and gaps. During the Guided Implementation An Info-Tech Consulting Analyst will discuss with you: Reviewing the market and understanding the rationale behind the evaluation. Deciding on a deployment method. Feature analysis. Value & Outcome At the conclusion of the Guided Implementation call, you will have: An understanding of the market situation. A narrowed list of vendors with the customized evaluation tool. An RFP template to distribute to vendors. 17

18 Mid-sized organizations with multiple locations still require visibility into the processes and financials of each site All vendors can manage financial consolidation; organizations centrally managing resourcing need deeper tools. 1 Distributed 2 3 resourcing Best suited for professional services 300 GP Why Scenarios? In reviewing the products included in each Vendor Landscape TM, certain use cases come to the forefront. Whether those use cases are defined by applicability in certain locations, relevance for certain industries, or as strengths in delivering a specific capability, Info- Tech recognizes those use cases as Scenarios, and calls attention to them where they exist. Best suited for distributors NAV Best suited for manufacturers 500 ERP For an explanation of how Scenarios are determined, see Information Presentation Scenarios in the Appendix. 18

19 Enterprise-wide budgeting and revenue forecasting requires clear analytics and information presentation Move away from Excel for managing the long-term growth and planning exercises with an ERP system that provides clear data visualization tools. 1 2 Budgeting and forecasting 3 Best suited for professional services 300 Why Scenarios? In reviewing the products included in each Vendor Landscape TM, certain use cases come to the forefront. Whether those use cases are defined by applicability in certain locations, relevance for certain industries, or as strengths in delivering a specific capability, Info- Tech recognizes those use cases as Scenarios, and calls attention to them where they exist. Best suited for volatile industries NAV Best suited for HCM-focused organizations For an explanation of how Scenarios are determined, see Information Presentation Scenarios in the Appendix. 19

20 Large enterprise players in niche verticals need systems that understand their needs All products in this landscape can handle the financial and general resourcing planning. The differentiator will be in the add-on modules Complex niche markets Best suited for higher education Why Scenarios? In reviewing the products included in each Vendor Landscape TM, certain use cases come to the forefront. Whether those use cases are defined by applicability in certain locations, relevance for certain industries, or as strengths in delivering a specific capability, Info- Tech recognizes those use cases as Scenarios, and calls attention to them where they exist. Best suited for pharmaceutical Best suited for mining, oil, and gas 300 For an explanation of how Scenarios are determined, see Information Presentation Scenarios in the Appendix. 20

21 RFP & Budget Review Arrange a call now: GuidedImplementations@InfoTech.com or call and ask for the Guided Implementation Coordinator. Prior to the Guided Implementation 1. Collect RFPs from vendors based on the template provided. During the Guided Implementation An Info-Tech Consulting Analyst will discuss with you: Reviewing price benchmarking. Reviewing returned RFPs. Value & Outcome At the conclusion of the Guided Implementation call, you will have: A narrow list of vendors. A clear understanding of the capabilities of the solutions on the shortlist. A demo script to use during presentations with the final list of vendors. 21

22 Infor provides a strong platform built for longterm growth Champion Product: Employees: Headquarters: Website: Founded: Presence: Infor M3 12,700 New York, NY Infor.com 2002 Privately held The vendor declined to provide pricing, and publicly available pricing could not be found $1 $1M+ Overview Infor M3 is a comprehensive, centralized ERP solution with a focus on specific industries and has industry-specific suites for Food & Beverage, Fashion, Chemicals, Equipment Dealers & Service, and Distribution. Strengths The Infor Ming.le UI is very visually appealing. It can also provide a consolidated UI for managers taking advantage of the microvertical strategy that Infor is using for the ERP systems. Infor ION provides a workflow engine that can be used across Infor products. Infor s policy of yearly contract re-evaluation is a key aspect of ensuring that organizations only license software they are using. Innovation within Infor M3 includes Infor M3 Fresh Food Planner, Infor M3 Counter Sales for Distribution, and Infor CloudSuite. Challenges The narrow marketing of each of Infor s product lines can be confusing for organizations that do not fit within the target verticals. Infor ION more than replaces any deficits in the Infor M3 workflow. The latest innovations from Infor are some of the best pieces of the ERP: Infor ION, Infor HCM, Infor Ming.le, and Infor Fashion PLM. Unfortunately they require additional modules with the purchase of Infor M3. 22

23 The value of Infor M3 is based on your alignment with the micro-verticals that it is designed to serve Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Usability Better than average Not a defining feature Not a strength Administration Ease of administration Role-based controls End user Social tools (process follow, integrated messaging) Value Index N/A X X X Public Private Vendor Process management Ease of update Features User-configurable view Intuitive workflowbuilding GUI The vendor declined to provide pricing, and publicly available pricing could not be found. Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Evaluate Infor separately from M3. Most mid-sized organizations can find value in Infor s family of offerings, but very few will fit Infor M3 s narrow set of verticals. 23

24 Extensible, single interface for supporting worker needs that extend beyond just ERP Champion Product: Employees: Headquarters: Website: Founded: Presence: Epicor ERP version 10 4,800 Austin, TX Epicor.com 1972 Privately held 5 year TCO for this solution falls into pricing tier 6, between $50,000 and $100,000 $1 $1M+ Pricing provided by vendor Overview Epicor is a comprehensive upper mid-market ERP platform, primarily for manufacturing, distribution, and retail. Epicor is innovative in its adoption of social tools for real business scenarios. Strengths Flexible Service-Oriented Architecture (SOA) allows enterprises to model business rules and minimize customization. Strong and consistent UI for non-it users. Excellent integration for linking a wide range of content into the data warehouse. Embedded functionality reduces integration costs. Challenges Early adopters reported some challenges with core modules. Request references for your specific industry use. Epicor s channel of consultants and implementers is smaller than that of competitors. Epicor has limited industry modules, but many industry-specific customizations can be handled through the BPM and social modules. 24

25 Epicor provides a strong mobile platform for sales-focused organizations Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Administration End user Not a defining feature Not a strength Ease of administration Role-based controls Social tools (process follow, integrated messaging) Value Index X X Public Private Vendor Process management Ease of update User-configurable view Intuitive workflowbuilding GUI Features st out of 10 Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Distributed organizations looking for a single platform for sales, manufacturing, and business processes will find great value in Epicor. 25

26 Sage maintains strong partner relationships across all of its products Champion Product: Employees: Headquarters: Website: Founded: Presence: Sage ,600 Newcastle, UK Sage.com 1981 LSE: SGE Overview Sage 300 ERP is widely deployed across geographies and industries. Strengths Sage has focused on providing partners with better data to ensure that customers are maximizing their Sage investment. This initiative will also provide Sage with a one-of-a-kind best practices and KPI network to empower clients and partners. The UI of both the desktop and web client are intuitive and flexible enough for all potential users from C-suite to front-line users. 5 year TCO for this solution falls into pricing tier 7, between $100,000 and $250,000 $1 $1M+ Pricing provided by vendor Challenges Sage has introduced dashboarding and analytics capabilities more slowly than many competitors in this space. Expect a robust experience in the next round of updates. Many social and extended features are only available through Sage CRM and Microsoft. 26

27 Sage 300 will require strong relationships with the implementer to assure long-term value Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Not a defining feature Not a strength Administration Ease of administration Role-based controls End user Social tools (process follow, integrated messaging) Value Index X X Public Private Vendor Process management Ease of update User-configurable view Intuitive workflowbuilding GUI 62 Features 4 th out of 10 Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Sage 300 provides a robust, customizable product for the mid-market. 27

28 NetSuite provides a data-driven platform to manage business decisions Champion Product: Employees: Headquarters: Website: Founded: Presence: NetSuite ERP 2,400 San Mateo, CA NetSuite.com 1998 NYSE: N 5 year TCO for this solution falls into pricing tier 7, between $100,000 and $250,000 $1 $1M+ Pricing solicited from public sources Overview NetSuite is the pioneer of SaaS and cloud ERP software applications. Grew out of NetLedger with the financial backing of Larry Ellison to fill the ERP need of small and mid-sized businesses. Strengths Has highly configurable views. There is simple navigation through any ERP defined item or the global search function. Has clear simple data visualizations and reporting elements that can be expanded as use case and role demands change. Is the only vendor in this space to provide an expandable KPI library across all processes and data points. Challenges Although the data visualizations are clear, the linkage to the custom KPIs and analytics can require many steps to set up. Excellent product for small to mid-market, but limited to service and retail verticals for high growth mid-market organizations. While NetSuite has a mobile app, the lack of support for non-ios platforms is disappointing given the cloud and web-based platform. 28

29 NetSuite has the largest library of KPIs to ensure clear reporting Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Administration End user Not a defining feature Not a strength Ease of administration Role-based controls Social tools (process follow, integrated messaging) Value Index X Public Private Vendor Process management Ease of update User-configurable view Intuitive workflowbuilding GUI Features 10 6 th out of 10 Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Customer service and distributors will find top value in NetSuite s platform. 29

30 Strong solution for organizations that need to automate complex processes Champion Product: Employees: Headquarters: Website: Founded: Presence: 500 ERP 13,600 Newcastle, UK Sage.com 1981 LSE: SGE 5 year TCO for this solution falls into pricing tier 7, between $100,000 and $250,000 $1 $1M+ Pricing provided by vendor Overview Sage 500 ERP is an open platform focused on the mid-large market for the service and manufacturing verticals. Strengths The visual process UI is easy, clear, and directive. Organizations with high turnover in front-line process workers will find significant value in Sage 500 ERP. Very intelligent mobile app can be directly linked into mapping functions for ios (Android is coming) allowing for both routing information and sales analytics for mid-market organizations. The use of hover text and logical icons provide a very easy user experience for both administrators and end users. Challenges Very step heavy. Most processes will require a high level of user intervention. The Office connector will ease some of the process issues. The speed at which Sage has updated 500 is slow compared to many of its competitors when it comes to mobile and cloud. 30

31 Easy, straightforward process mapping will ease Sage 500 implementation and maintence Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Administration End user Not a defining feature Not a strength Ease of administration Role-based controls Social tools (process follow, integrated messaging) Value Index X X Public Private Vendor Process management Ease of update User-configurable view Intuitive workflowbuilding GUI Features 69 3 rd out of 10 Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Service and manufacturing organizations should look at Sage 500 as a key ERP system. 31

32 UNIT4 Agresso provides strong reporting and analytics for planning activities Market Pillar Product: Employees: Headquarters: Website: Founded: Presence: UNIT4 Agresso 4,230 Sliedrecht, Netherlands UNIT4.com 1980 NYSE Euronext Amst: U4AGR Overview UNIT4 Agresso was designed for dynamic, service-centric organizations. UNIT4 Business Software merged with Agresso in 2000 to build an integrated ERP platform. Strengths Changes to reporting and analytics, as well as workflow, can be enabled by business users without IT assistance. The role-based features provide a simplified and highly customizable view to users while maintaining audit ability. Excellent control for budget monitoring and portioning across departments and physical units of the enterprise. The vendor declined to provide pricing, and publicly available pricing could not be found Challenges There is a limited number of VARs and ISVs in many regions of North America and Asia. UNIT4 Business Software Intelligence is relatively new in North America. Support is limited outside of the EU. $1 $1M+ 32

33 UNIT4 provides an analytical platform for organizations to standardize their resourcing processes Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Administration End user Not a defining feature Not a strength Ease of administration Role-based controls Social tools (process follow, integrated messaging) Value Index N/A X Public Private Vendor Process management Ease of update Features User-configurable view Intuitive workflowbuilding GUI The vendor declined to provide pricing, and publicly available pricing could not be found. Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: UNIT4 Agresso is a strong platform for higher education and service-orientated organizations. 33

34 Business One is primarily a second tier solution for multi-site organizations Market Pillar Product: Employees: Headquarters: Website: Founded: Presence: SAP Business One 66,000 Walldorf, DEU SAP.com 1972 NYSE: SAP Overview Business One was developed out of SAP s TopManage acquisition, and is a distinct product from SAP s enterprise offerings. Strengths Business One offers strong mobile support with an iphone app that helps sales teams stay connected and informed. Supports global operations with multi-language and multicurrency capabilities, country-specific allocation, and reporting requirements. Business One s highly capable CRM is integral to its solution. The vendor declined to provide pricing, and publicly available pricing could not be found $1 $1M+ Challenges Business One is built on client/server architecture and is not browser-based, limiting the extensibility of the solution for fast growing enterprises. Business One relies on add-on modules to manage and consolidate financial data, limiting its use for mid-market multinationals. 34

35 Take advantage of Business One on HANA to get full value of the platform Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Not a defining feature Not a strength Administration Ease of administration Role-based controls End user Social tools (process follow, integrated messaging) Value Index N/A X X Public Private Vendor Process management Ease of update Features User-configurable view Intuitive workflowbuilding GUI The vendor declined to provide pricing, and publicly available pricing could not be found. Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Strong platform for mid-sized businesses that are partnered with SAP shops or need the HANA analytics platform. 35

36 Highly customizable system with a huge share of several small niches Emerging Player Product: Employees: Headquarters: Website: Founded: Presence: Dynamics NAV 89,000 Redmond, WA Microsoft.com 1975 NASDAQ: MSFT 5 year TCO for this solution falls into pricing tier 6, between $50,000 and $100,000 $1 $1M+ Pricing solicited from public sources Overview Dynamics NAV (formerly Navision) serves more than 82,000 midsized enterprises in 150 countries, and is available in a licensed or hosted deployment. Strengths Dynamics NAV has high flexibility to serve a broad array of enterprises. It is very popular with VARs that serve niche markets such as food distribution or fisheries. Dynamics NAV provides an Office-like environment and allows for integration with other parts of the Microsoft stack. The licensing model provides customers with a very price conscious ERP system. Challenges Dynamics NAV customization and development is difficult without highly skilled ISVs. This customization makes NAV painful to maintain and upgrade. The value of the NAV platform comes from the VAR and SI community not the product itself. 36

37 NAV requires a strong industry partner to implement the system Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Not a defining feature Not a strength Administration Ease of administration Role-based controls End user Social tools (process follow, integrated messaging) Value Index X Public Private Vendor Process management Ease of update User-configurable view Intuitive workflowbuilding GUI 74 Features 2 nd out of 10 Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Choose NAV based on the implementer skill in your industry, not for overall features. 37

38 Solid, flexible ERP system for any industry Emerging Player Product: Employees: Headquarters: Website: Founded: Presence: JDE EnterpriseOne 108,000 Redwood Shores, CA Oracle.com 1977 NASDAQ: ORCL Overview JDE came into Oracle s possession in 2005 as a part of the PeopleSoft acquisition. JDE EnterpriseOne is a solution best fit for upper mid-market enterprises. Strengths JDE EnterpriseOne has the depth to serve the needs of even the most complex mid-market enterprises. JDE EnterpriseOne has configurations including the choice of database, operating system, and hardware to provide extensive flexibility and scalability. The vendor declined to provide pricing, and publicly available pricing could not be found Challenges The UI and reporting features are lagging behind competitors, leading to end-user uncertainty. JDE EnterpriseOne is a mature product and has not seen its advanced features upgraded to compete with other vendors. $1 $1M+ 38

39 JD Edwards still has few rivals at the core ERP processes Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Not a defining feature Not a strength Administration Ease of administration Role-based controls End user Social tools (process follow, integrated messaging) Value Index N/A X X Public Private Vendor Process management Ease of update Features User-configurable view Intuitive workflowbuilding GUI The vendor declined to provide pricing, and publicly available pricing could not be found. Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: The slow move of Oracle to clarify the marketing surrounding the ERP products and the cloud roadmap is an ongoing concern for those choosing JD Edwards. 39

40 Basic product that provides financials at a low cost Emerging Player Product: Employees: Headquarters: Website: Founded: Presence: Dynamics GP 89,000 Redmond, WA Microsoft.com 1975 NASDAQ: MSFT 5 year TCO for this solution falls into pricing tier 6, between $50,000 and $100,000 $1 $1M+ Pricing solicited from public sources Overview Dynamics GP (formerly Great Plains) is widely used as the financial add-on for many specialty products. Dynamics GP came from Microsoft s 2001 acquisition of Great Plains Software. Strengths The core ERP financial modules provide excellent functionality for the small to mid-market enterprises. Dynamics GP provides an Office-like UI and integrates with Microsoft Office to enhance the efficiency of users. Microsoft has greatly enhanced the product in 2013 with a cleaner UI and better use of CSS to customize the UI. Challenges Dynamics GP lacks many features available in competitive offerings. Microsoft s overall message on the Dynamics platform has lead to confusion on GP s long-term future. Currently the roadmap notes GP 14 will be delivered in However, there is no indication if Microsoft will directly offer GP as a cloud subscription. 40

41 Mature product that provides basic process and financial control for Microsoft shops Vendor Landscape Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Testing Capabilities Usability Better than average Not a defining feature Not a strength Administration Ease of administration Role-based controls End user Social tools (process follow, integrated messaging) Value Index X Public Private Vendor Process management Ease of update User-configurable view Intuitive workflowbuilding GUI 56 Features 5 th out of 10 Analytics and Reporting Mobile Applications Multi-site ERP functionality Integration with end-user tools Industry specific Exception mgmt. modules Horizontal support BPM support Doc. mgmt. App. Dev. platform Info-Tech Recommends: Non-profits and small enterprises should look at GP as a good starting point for ERP. 41

42 Contract Review and Negotiation Tactics Arrange a call now: GuidedImplementations@InfoTech.com or call and ask for the Guided Implementation Coordinator. Prior to the Guided Implementation 1. Bring final contracts received from vendors on shortlist. During the Guided Implementation An Info-Tech Consulting Analyst will discuss with you: Reviewing your contracts to ensure the contract is fair and in line with industry standards. The best negotiation tactics to get the best value for your purchase. Value & Outcome At the conclusion of the Guided Implementation call, you will have: Tactics on how to get a better price on your solution. Confidence in the solution you are purchasing. 42

43 Identify leading candidates with the Mid-Market ERP Vendor Shortlist & Detailed Feature Analysis Tool The Info-Tech Mid-Market ERP Vendor Shortlist & Detailed Feature Analysis Tool is designed to generate a customized shortlist of vendors based on your key priorities. This tool offers the ability to modify: Overall Vendor vs. Product Weightings Individual product criteria weightings: Features Usability Affordability Architecture Individual vendor criteria weightings: Viability Strategy Reach Channel 43

44 Issue an RFP to ensure that the vendor fits your needs, not the other way around Use Info-Tech s ERP Solution Specification Template to conduct this critical step in your vendor selection process. Info-Tech s ERP Solution Specification Template is populated with critical elements including: Prioritization Grid Relevant Assessment Approach Project Concerns Operating Unit Specific Requirements Horizontal Requirements Operating Characteristics Desired Metrics Technical Environment 44

45 Take charge of vendor finalist demos with a Vendor Demonstration Script A product demo, using Info-Tech s ERP Vendor Demonstration Script, helps enterprise decision makers better understand the capabilities and constraints of various solutions. The ERP Vendor Demonstration Script will: Provide vendors with a consistent set of instructions for key scenarios from the perspective of IT and departmental managers. Outline solution capabilities and processes around your organizational needs. Establish common rules of engagement for conducting vendor demonstrations. 45

46 Appendix 1. Description of Usability Graphic 2. Vendor Landscape Methodology: Overview 3. Vendor Landscape Methodology: Product Selection & Information Gathering 4. Vendor Landscape Methodology: Scoring 5. Vendor Landscape Methodology: Information Presentation 6. Vendor Landscape Methodology: Fact Check & Publication 7. Product Pricing Scenario 46

47 Description of Usability Graphic Better than average Not a defining feature Not a strength Testing Capabilities Usability Usability of the system is a key criteria in the decision of purchase a ERP. The features described below are the basis for the Usability Harvey Ball. The rapid expansion of cloud infrastructure and mobile workers has increased the need for cloud deployment options. Public refers to the customer s ability to provision their on-cloud services. Private refers to the closed systems, including data centers and virtualized infrastructure. Vendor refers to the ability to provision ERP from the vendor as a cloud SaaS. Public Private Vendor Administration Ease of administration Role-based controls Process management Ease of update The ease with which the system can be administered is key to the longterm value of an ERP system to the enterprise. ERP administration is not just updates and patches, but is also putting the right information at end users fingertips when they need it. End user Social tools (process follow, integrated messaging) User-configurable view Intuitive workflow-building GUI The consumerization of IT has set user expectations for what tools and functionality should be available in their work life. The greater the ability to push configuration to end users, the more usable the system will be for end users. 47

48 Vendor Landscape Methodology: Overview Info-Tech s Vendor Landscapes are research materials that review a particular IT market space, evaluating the strengths and abilities of both the products available in that space, as well as the vendors of those products. These materials are created by a team of dedicated analysts operating under the direction of a senior subject matter expert over a period of six weeks. Evaluations weigh selected vendors and their products (collectively solutions ) on the following eight criteria to determine overall standing: Features: The presence of advanced and market-differentiating capabilities. Usability: The intuitiveness, power, and integrated nature of administrative consoles and client software components. Affordability: The three-year total cost of ownership of the solution. Architecture: The degree of integration with the vendor s other tools, flexibility of deployment, and breadth of platform applicability. Viability: The stability of the company as measured by its history in the market, the size of its client base, and its financial performance. Strategy: The commitment to both the market-space, as well as to the various sized clients (small, mid-sized, and enterprise clients). Reach: The ability of the vendor to support its products on a global scale. Channel: The measure of the size of the vendor s channel partner program, as well as any channel strengthening strategies. Evaluated solutions are plotted on a standard two by two matrix: Champions: Both the product and the vendor receive scores that are above the average score for the evaluated group. Innovators: The product receives a score that is above the average score for the evaluated group, but the vendor receives a score that is below the average score for the evaluated group. Market Pillars: The product receives a score that is below the average score for the evaluated group, but the vendor receives a score that is above the average score for the evaluated group. Emerging Players: Both the product and the vendor receive scores that are below the average score for the evaluated group. Info-Tech s Vendor Landscapes are researched and produced according to a strictly adhered to process that includes the following steps: Vendor/product selection Information gathering Vendor/product scoring Information presentation Fact checking Publication This document outlines how each of these steps is conducted. 48

49 Vendor Landscape Methodology: Vendor/Product Selection & Information Gathering Info-Tech works closely with its client base to solicit guidance in terms of understanding the vendors with whom clients wish to work and the products that they wish evaluated; this demand pool forms the basis of the vendor selection process for Vendor Landscapes. Balancing this demand, Info-Tech also relies upon the deep subject matter expertise and market awareness of its Senior, Lead, and Principle Research Analysts to ensure that appropriate solutions are included in the evaluation. As an aspect of that expertise and awareness, Info-Tech s analysts may, at their discretion, determine the specific capabilities that are required of the products under evaluation, and include in the Vendor Landscape only those solutions that meet all specified requirements. Information on vendors and products is gathered in a number of ways via a number of channels. Initially, a request package is submitted to vendors to solicit information on a broad range of topics. The request package includes: A detailed survey. A pricing scenario (see Vendor Landscape Methodology: Price Evaluation and Pricing Scenario, below). A request for reference clients. A request for a briefing and, where applicable, guided product demonstration. These request packages are distributed approximately twelve weeks prior to the initiation of the actual research project to allow vendors ample time to consolidate the required information and schedule appropriate resources. During the course of the research project, briefings and demonstrations are scheduled (generally for one hour each session, though more time is scheduled as required) to allow the analyst team to discuss the information provided in the survey, validate vendor claims, and gain direct exposure to the evaluated products. Additionally, an end-user survey is circulated to Info-Tech s client base and vendor-supplied reference accounts are interviewed to solicit their feedback on their experiences with the evaluated solutions and with the vendors of those solutions. These materials are supplemented by a thorough review of all product briefs, technical manuals, and publicly available marketing materials about the product, as well as about the vendor itself. Refusal by a vendor to supply completed surveys or submit to participation in briefings and demonstrations does not eliminate a vendor from inclusion in the evaluation. Where analyst and client input has determined that a vendor belongs in a particular evaluation, it will be evaluated as best as possible based on publicly available materials only. As these materials are not as comprehensive as a survey, briefing, and demonstration, the possibility exists that the evaluation may not be as thorough or accurate. Since Info-Tech includes vendors regardless of vendor participation, it is always in the vendor s best interest to participate fully. All information is recorded and catalogued, as required, to facilitate scoring and for future reference. 49

50 Vendor Landscape Methodology: Scoring Once all information has been gathered and evaluated for all vendors and products, the analyst team moves to scoring. All scoring is performed at the same time so as to ensure as much consistency as possible. Each criterion is scored on a ten point scale, though the manner of scoring for criteria differs slightly: Features is scored via Cumulative Scoring Affordability is scored via Scalar Scoring All other criteria are scored via Base5 Scoring In Cumulative Scoring, a single point is assigned to each evaluated feature that is regarded as being fully present, partial points to each feature that is partially present, and zero points to features that are deemed to be absent or unsatisfactory. The assigned points are summed and normalized to a value out of ten. For example, if a particular Vendor Landscape evaluates eight specific features in the Feature Criteria, the summed score out of eight for each evaluated product would be multiplied by 1.25 to yield a value out of ten. In Scalar Scoring, a score of ten is assigned to the lowest cost solution, and a score of one is assigned to the highest cost solution. All other solutions are assigned a mathematically determined score based on their proximity to / distance from these two endpoints. For example, in an evaluation of three solutions, where the middle cost solution is closer to the low end of the pricing scale it will receive a higher score, and where it is closer to the high end of the pricing scale it will receive a lower score; depending on proximity to the high or low price it is entirely possible that it could receive either ten points (if it is very close to the lowest price) or one point (if it is very close to the highest price). Where pricing cannot be determined (vendor does not supply price and public sources do not exist), a score of 0 is automatically assigned. In Base5 scoring a number of sub-criteria are specified for each criterion (for example, Longevity, Market Presence, and Financials are subcriteria of the Viability criterion), and each one is scored on the following scale: 5 - The product/vendor is exemplary in this area (nothing could be done to improve the status). 4 - The product/vendor is good in this area (small changes could be made that would move things to the next level). 3 - The product/vendor is adequate in this area (small changes would make it good, more significant changes required to be exemplary). 2 - The product/vendor is poor in this area (this is a notable weakness and significant work is required). 1 - The product/vendor is terrible/fails in this area (this is a glaring oversight and a serious impediment to adoption). The assigned points are summed and normalized to a value out of ten as explained in Cumulative Scoring above. Scores out of ten, known as Raw scores, are transposed as-is into Info-Tech s Vendor Landscape Shortlist Tool, which automatically determines Vendor Landscape positioning (see Vendor Landscape Methodology: Information Presentation - Vendor Landscape, below), Criteria Score (see Vendor Landscape Methodology: Information Presentation - Criteria Score, below), and Value Index (see Vendor Landscape Methodology: Information Presentation - Value Index, below). 50

51 Vendor Landscape Methodology: Information Presentation Vendor Landscape Info-Tech s Vendor Landscape is a two-by-two matrix that plots solutions based on the combination of Product score and Vendor score. Placement is not determined by absolute score, but instead by relative score. Relative scores are used to ensure a consistent view of information and to minimize dispersion in nascent markets, while enhancing dispersion in commodity markets to allow for quick visual analysis by clients. Relative scores are calculated as follows: 1. Raw scores are transposed into the Info-Tech Vendor Landscape Shortlist Tool (for information on how Raw scores are determined, see Vendor Landscape Methodology: Scoring, above). 2. Each individual criterion Raw score is multiplied by the pre-assigned weighting factor for the Vendor Landscape in question. Weighting factors are determined prior to the evaluation process to eliminate any possibility of bias. Weighting factors are expressed as a percentage such that the sum of the weighting factors for the Vendor criteria (Viability, Strategy, Reach, Channel) is 100% and the sum of the Product criteria (Features, Usability, Affordability, Architecture) is 100%. 3. A sum-product of the weighted Vendor criteria scores and of the weighted Product criteria scores is calculated to yield an overall Vendor score and an overall Product score. 4. Overall Vendor scores are then normalized to a 20-point scale by calculating the arithmetic mean and standard deviation of the pool of Vendor scores. Vendors for whom their overall Vendor score is higher than the arithmetic mean will receive a normalized Vendor score of (exact value determined by how much higher than the arithmetic mean their overall Vendor score is), while vendors for whom their overall Vendor score is lower than the arithmetic mean will receive a normalized Vendor score of between one and ten (exact value determined by how much lower than the arithmetic mean their overall Vendor score is). 5. Overall Product score is normalized to a 20-point scale according to the same process. 6. Normalized scores are plotted on the matrix, with Vendor score being used as the x-axis, and Product score being used as the y-axis. Innovators: solutions with below average Vendor scores and above average Product scores. Emerging Players: solutions with below average Vendor scores and below average Product scores. Vendor Landscape Champions: solutions with above average Vendor scores and above average Product scores. Market Pillars: solutions with above average Vendor scores and below average Product scores. 51

52 Vendor Landscape Methodology: Information Presentation Criteria Scores (Harvey Balls) Info-Tech s criteria scores are visual representations of the absolute score assigned to each individual criterion, as well as of the calculated overall vendor and product scores. The visual representation used is Harvey Balls. Harvey Balls are calculated as follows: 1. Raw scores are transposed into the Info-Tech Vendor Landscape Shortlist Tool (for information on how raw scores are determined, see Vendor Landscape Methodology: Scoring, above). 2. Each individual criterion raw score is multiplied by a pre-assigned weighting factor for the Vendor Landscape in question. Weighting factors are determined prior to the evaluation process, based on the expertise of the Senior or Lead Research Analyst, to eliminate any possibility of bias. Weighting factors are expressed as a percentage, such that the sum of the weighting factors for the vendor criteria (Viability, Strategy, Reach, Channel) is 100%, and the sum of the product criteria (Features, Usability, Affordability, Architecture) is 100%. 3. A sum-product of the weighted vendor criteria scores and of the weighted product criteria scores is calculated to yield an overall vendor score and an overall product score. 4. Both overall vendor score / overall product score, as well as individual criterion raw scores are converted from a scale of one to ten to Harvey Ball scores on a scale of zero to four, where exceptional performance results in a score of four and poor performance results in a score of zero. 5. Harvey Ball scores are converted to Harvey Balls as follows: A score of four becomes a full Harvey Ball. A score of three becomes a three-quarter full Harvey Ball. A score of two becomes a half-full Harvey Ball. A score of one becomes a one-quarter full Harvey Ball. A score of zero becomes an empty Harvey Ball. 6. Harvey Balls are plotted by solution in a chart where rows represent individual solutions and columns represent overall vendor / overall product, as well as individual criteria. Solutions are ordered in the chart alphabetically by vendor name. Overall Harvey Balls represent weighted aggregates. Harvey Balls Product Vendor Overall Features Usability Afford. Arch. Overall Viability Strategy Reach Channel Criteria Harvey Balls represent individual raw scores. 52

53 Vendor Landscape Methodology: Information Presentation Feature Ranks (Stoplights) Info-Tech s Feature Ranks are visual representations of the presence/availability of individual features that collectively comprise the Features criteria. The visual representation used is stoplights. Stoplights are determined as follows: 1. A single point is assigned to each evaluated feature that is regarded as being fully present, partial points to each feature that is partially present, and zero points to features that are deemed to be fully absent or unsatisfactory. Fully present means all aspects and capabilities of the feature as described are in evidence. Fully absent means all aspects and capabilities of the feature as described are missing or lacking. Partially present means some, but not all, aspects and capabilities of the feature as described are in evidence, OR all aspects and capabilities of the feature as described are in evidence, but only for some models in a line. 2. Feature scores are converted to stoplights as follows: Full points become a green light. Partial points become a yellow light. Zero points become a red light. 3. Stoplights are plotted by solution in a chart where rows represent individual solutions and columns represent individual features. Solutions are ordered in the chart alphabetically by vendor name. For example, a set of applications is being reviewed and a feature of Integration with Mobile Devices that is defined as availability of dedicated mobile device applications for ios, Android, and BlackBerry devices is specified. Solution A provides such apps for all listed platforms and scores green, solution B provides apps for ios and Android only and scores yellow, while solution C provides mobile device functionality through browser extensions, has no dedicated apps, and so scores red. Stoplights Green means a feature is fully present; red, fully absent. Features Feature 1 Feature 2 Feature 3 Feature 4 Feature 5 Feature 6 Feature 7 Feature 8 Yellow shows partial availability (such as in some models in a line). 53

54 Vendor Landscape Methodology: Information Presentation Value Index Info-Tech s Value Index is an indexed ranking of solution value per dollar as determined by the raw scores assigned to each criteria (for information on how raw scores are determined, see Vendor Landscape Methodology: Scoring, above). Value scores are calculated as follows: 1. The Affordability criterion is removed from the overall product score and the remaining product score criteria (Features, Usability, Architecture) are reweighted so as to retain the same weightings relative to one another, while still summing to 100%. For example, if all four product criteria were assigned base weightings of 25%, for the determination of the Value Score, Features, Usability, and Architecture would be reweighted to 33.3% each to retain the same relative weightings while still summing to 100%. 2. A sum-product of the weighted vendor criteria scores and of the reweighted product criteria scores is calculated to yield an overall vendor score and a reweighted overall Product score. 3. The overall vendor score and the reweighted overall product score are then summed, and this sum is multiplied by the Affordability raw score to yield an interim Value Score for each solution. 4. All interim Value Scores are then indexed to the highest performing solution by dividing each interim Value Score by the highest interim Value Score. This results in a Value Score of 100 for the top solution and an indexed Value Score relative to the 100 for each alternate solution. 5. Solutions are plotted according to Value Score, with the highest score plotted first, and all remaining scores plotted in descending numerical order. Where pricing is not provided by the vendor and public sources of information cannot be found, an Affordability raw score of zero is assigned. Since multiplication by zero results in a product of zero, those solutions for which pricing cannot be determined receive a Value Score of zero. Since Info-Tech assigns a score of zero where pricing is not available, it is always in the vendor s best interest to provide accurate and up to date pricing. In the event that insufficient pricing is available to accurately calculate a Value Index, Info-Tech will omit it from the Vendor Landscape. Value Index Vendors are arranged in order of Value Score. The Value Score each solution achieved is displayed, and so is the average score. 100 A 80 B 40 C Average Score: Those solutions that are ranked as Champions are differentiated for point of reference. D 10 E 54

55 Vendor Landscape Methodology: Information Presentation Price Evaluation: Mid-Market Info-Tech s Price Evaluation is a tiered representation of the three-year Total Cost of Ownership (TCO) of a proposed solution. Info-Tech uses this method of communicating pricing information to provide high-level budgetary guidance to its end-user clients while respecting the privacy of the vendors with whom it works. The solution TCO is calculated and then represented as belonging to one of ten pricing tiers. Pricing tiers are as follows: 1. Between $1 and $2, Between $2,500 and $10, Between $10,000 and $25, Between $25,000 and $50, Between $50,000 and $100, Between $100,000 and $250, Between $250,000 and $500, Between $500,000 and $1,000, Between $1,000,000 and $2,500, Greater than $2,500,000 Where pricing is not provided, Info-Tech makes use of publicly available sources of information to determine a price. As these sources are not official price lists, the possibility exists that they may be inaccurate or outdated, and so the source of the pricing information is provided. Since Info-Tech publishes pricing information regardless of vendor participation, it is always in the vendor s best interest to supply accurate and up to date information. Info-Tech s Price Evaluations are based on pre-defined pricing scenarios (see Product Pricing Scenario, below) to ensure a comparison that is as close as possible between evaluated solutions. Pricing scenarios describe a sample business and solicit guidance as to the appropriate product/service mix required to deliver the specified functionality, the list price for those tools/services, as well as three full years of maintenance and support. Price Evaluation Call-out bubble indicates within which price tier the three-year TCO for the solution falls, provides the brackets of that price tier, and links to the graphical representation. 3 year TCO for this solution falls into pricing tier 6, between $100,000 and $250,000 $1 $2.5M+ Pricing solicited from public sources Scale along the bottom indicates that the graphic as a whole represents a price scale with a range of $1 to $2.5M+, while the notation indicates whether the pricing was supplied by the vendor or derived from public sources. 55

56 Vendor Landscape Methodology: Information Presentation Scenarios Info-Tech s Scenarios highlight specific use cases for the evaluated solution to provide as complete (when taken in conjunction with the individual written review, Vendor Landscape, Criteria Scores, Feature Ranks, and Value Index) a basis for comparison by end-user clients as possible. Scenarios are designed to reflect tiered capability in a particular set of circumstances. Determination of the Scenarios in question is at the discretion of the analyst team assigned to the research project. Where possible, Scenarios are designed to be mutually exclusive and collectively exhaustive, or at the very least, hierarchical such that the tiers within the Scenario represent a progressively greater or broader capability. Scenario ranking is determined as follows: 1. The analyst team determines an appropriate use case. For example: Clients that have multinational presence and require vendors to provide four-hour onsite support. 2. The analyst team establishes the various tiers of capability. For example: Presence in Americas Presence in EMEA Presence in APAC 3. The analyst team reviews all evaluated solutions and determines which ones meet which tiers of capability. For example: Presence in Americas Presence in EMEA Presence in APAC Vendor A, Vendor C, Vendor E Vendor A, Vendor B, Vendor C Vendor B, Vendor D, Vendor E 4. Solutions are plotted on a grid alphabetically by vendor by tier. Where one vendor is deemed to be stronger in a tier than other vendors in the same tier, they may be plotted non-alphabetically. For example: Vendor C is able to provide four-hour onsite support to 12 countries in EMEA while Vendors A and B are only able to provide four-hour onsite support to eight countries in EMEA; Vendor C would be plotted first, followed by Vendor A, then Vendor B. Analysts may also elect to list only the most Exemplary Performers for a given use case. One to three vendors will appear for each of these purchasing scenarios with a brief explanation as to why we selected them as top-of-class. 56

57 Vendor Landscape Methodology: Information Presentation Vendor Awards At the conclusion of all analyses, Info-Tech presents awards to exceptional solutions in three distinct categories. Award presentation is discretionary; not all awards are extended subsequent to each Vendor Landscape and it is entirely possible, though unlikely, that no awards may be presented. Awards categories are as follows: Champion Awards are presented to those solutions, and only those solutions, that land in the Champion zone of the Info-Tech Vendor Landscape (see Vendor Landscape Methodology: Information Presentation - Vendor Landscape, above). If no solutions land in the Champion zone, no Champion Awards are presented. Similarly, if multiple solutions land in the Champion zone, multiple Champion Awards are presented. Trend Setter Awards are presented to those solutions, and only those solutions, that are deemed to include the most original/inventive product/service, or the most original/inventive feature/capability of a product/service. If no solution is deemed to be markedly or sufficiently original/inventive, either as a product/service on the whole or by feature/capability specifically, no Trend Setter Award is presented. Only one Trend Setter Award is available for each Vendor Landscape. Best Overall Value Awards are presented to those solutions, and only those solutions, that are ranked highest on the Info-Tech Value Index (see Vendor Landscape Methodology: Information Presentation Value Index, above). If insufficient pricing information is made available for the evaluated solutions, such that a Value Index cannot be calculated, no Best Overall Value Award will be presented. Only one Best Overall Value Award is available for each Vendor Landscape. Vendor Awards Info-Tech s Champion Award is presented to solutions in the Champion zone of the Vendor Landscape. Info-Tech s Trend Setter Award is presented to the most original/inventive solution evaluated. Info-Tech s Best Overall Value Award is presented to the solution with the highest Value Index score. 57