Magic Quadrant for Cloud ERP Services for Service-Centric Enterprises
Gartner defines cloud ERP services for service-centric enterprises as services provided by third-party systems integrators to assess needs, implement solutions and evolve platforms that are transforming their back-office systems via the implementation of cloud-based ERP solutions. Service-centric enterprises are organizations that typically focus on service (nonproduct) industries. A service-centric cloud ERP solution is a suite that is sold/marketed as integrated products to support service-centric industries. These integrated products include financial management system (FMS) functionality, order-to-cash (O2C), procure-to-pay (P2P), human capital management (HCM) and other administrative ERP.
Vendors must, among other requirements:
A: This research covers cloud ERP services provided by third-party systems integrators to service-centric enterprises. It evaluates 16 service providers on their ability to assess needs, implement solutions, and evolve cloud-based ERP platforms. The research focuses on services across five major cloud ERP technologies: Oracle Fusion Cloud ERP, SAP cloud products, Microsoft Dynamics 365, Workday, and NetSuite. Service-centric enterprises are organizations in service (non-product) industries requiring strong financial management, order-to-cash, procure-to-pay, and human capital management capabilities.
A: IT leaders in service-centric enterprises should use this research when evaluating service providers for cloud ERP implementations as part of a composable ERP strategy. The research is particularly valuable for organizations modernizing their back-office systems through cloud ERP solutions. Business leaders such as CFOs (who represent 32% of buyers) should also use this research since cloud ERP transformations are business-driven, not just technical upgrades. Organizations should not simply select providers in the Leaders quadrant, as providers in other quadrants may be more appropriate for specific requirements. The companion Critical Capabilities research provides use-case-specific scoring to aid in selection.
A: Vendors must have the ability to provide services across all phases of cloud ERP transformation including assessment, implementation and ongoing managed services. They must provide business consultancy, data transformation capabilities and change management expertise. They must have domain expertise on business requirements delivered by cloud ERP components and industry expertise for service-centric industries. Additionally, they must support at least two of the major ERP technologies (Oracle, SAP, Microsoft, Workday, NetSuite) with minimum 50 certified FTEs per technology platform.
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A: Ability to Execute evaluates providers on the quality and efficacy of current processes, systems, methods and procedures that enable competitive, efficient and effective performance, positively impacting revenue, retention and reputation. It focuses on current service capabilities, delivery quality, financial viability, sales effectiveness, customer experience, and operational excellence. Completeness of Vision evaluates providers on their ability to articulate logical statements about current and future market direction, innovation, customer needs, and competitive forces. It focuses on market understanding, strategic planning, innovation capabilities, and future-oriented thinking rather than current execution.