ERP Strategy and Sourcing Decisions Impact BI, Analytics, and EPM
Enterprise resource planning (ERP) software provides an integrated financial, administrative, and operational transaction processing environment. ERP systems represent the primary system of record for business transactions in organizations that utilize them. Our most recent survey data indicate 59 percent of organizations use ERP systems.
Understanding different approaches to ERP strategy can help those supporting BI, analytics, and enterprise performance management (EPM) initiatives develop plans for working most effectively with these key systems. Also, because most ERP vendors offer their own BI, analytics, and EPM solutions that complement and extend the transaction-processing capabilities of ERP software, those who support and manage BI, analytics, and EPM initiatives need to understand what role, if any, these technologies could (and should) play in their BI and analytics strategies.
- A strong majority of respondents prefer a single-vendor ERP strategy. A tiered ERP strategy shows smaller but significant use in large organizations (1,001-10,000 employees) and very large organizations (more than 10,000 employees).
- ERP strategy preferences are broadly consistent across geographies.
- Respondents cite ease of integration with underlying transactions as the most important reason for implementing BI and analytics solutions from an ERP vendor.
- Most organizations prefer to source EPM systems from specialist EPM vendors, rather than ERP vendors. However, large organizations report the highest preference for obtaining EPM solutions from their ERP vendors.
- Microsoft, Oracle, and SAP remain the three most frequently preferred ERP vendors. However, Workday and Sage show improved levels of recognition and use among respondents.