ERP Buyer's Guide 2020-21

TECHNOLOGY IN BUSINESS

ERP Buyer’s Guide 2020-21 Your guide to the leading ERP and financial accounting solutions for medium to large enterprises in the A/NZ region. Copyright © 2020 iStart Ltd. All rights reserved. Ltd. iStart © 2020 Copyright Businesses have been given a lesson in the benefits of migrating off systems that do not support remote work and anywhere/anytime access for staff.

Market Commentary 2020-21 4 Best practise ERP selection & evaluation 7 ERP Solutions by Industry 10 Cloud ERP guide 11 ERP Features vs Price guide 12 ERP Market Share (A/NZ) 13 Product guides Abel 15 Epicor ERP 10.6 16 IFS Applications v10 17 Infor CloudSuite 18 Microsoft Dynamics 365 for Finance and Operations 19 MYOB Advanced 20 MYOB Exo 21 MYOB Greentree 22 N2 ERP 23 Oracle NetSuite 24 Priority v20.x 25 Pronto Xi 760 26 Sage 300cloud 27 Sage Business Cloud X3 28 Sage Intacct 29 SAP Business ByDesign 30 SAP Business One v10.0 31 SAP S/4HANA 32 SYSPRO ERP 33

ERP Partner Guide DXC Oxygen 34 EMDA 34 Medatech 35 Realtech 35 Velocity Global 36 Zag 36

Methodology: The data presented herein is based on structured survey responses either direct from the vendor or their partner. iStart invites all key midmarket and enterprise ERP vendors with an established presence in the A/NZ region to respond. Vendors pay a small administrative fee to cover compilation and publication of the guide. If you represent a vendor you think should be included please get in touch at: [email protected].

Welcome to the 2020-21 edition of iStart’s annual ERP Buyer’s Guide. This year has been like no other as Covid-19 continues its scourge. It has pervaded every human toil on the planet including the people behind the products presented in this guide. It is a year where IT has been a hero in maintaining business continuity. But perhaps you are here because the technology that underpins your business was less hero and more villain, and you’ve been tasked with doing something about it? The good news is that modern business management systems are incredibly good. Just make sure you buy the right one for your business.

ERP market gets cloudier Covid-19 has created a clash of market drivers. Which will out?...

BY HEATHER WRIGHT

Market predictions in any vertical are Technology buyers were already Feedback from the trenches does not tricky at the best of times, and the seeking the benefits of modern present a conclusive picture. While ERP market is no exception. cloud-based architecture to support there is no doubt that the sector has digital channels and provide access- been lucky to be cushioned in relation This year, Covid-19 brings an overdose from-anywhere tools. to others’ brutal realities, it is not all of risk and uncertainty as the beer and skittles out there. pandemic’s tumultuous impacts roll Covid has underlined that as an out across global markets and society. imperative and starkly highlighted It’s more like a barn dance, with Billy Will the ERP market be a winner the advantages of remote access for Bob Covid knocking a few casualties or loser in the fallout? system owners and users alike. off the floor.

Instinctively, the answer is that Buyers should be lining up to get Business from afar themselves some of that digital juice. for modern ERP systems, it will The first and most obvious driver is But are they? be a positive. the work-from-home phenomenon In short, no. where businesses and managers

It (Covid-19) forced business to step up on IT matters, which was something of a win for longer term relations between the two.

who could were suddenly forced to “Projects that were in progress Pulse of business operate remotely. For most in the continued and provided a welcome David Reece, head of go-to-market tech sector this was business as focus on productive work while for enterprise systems at MYOB, was usual, so customers getting more physical operations were closed in a unique position to understand comfortable and confident working or severely curtailed due to the impact of Covid lockdowns. via screen rather than in-person has lockdowns. They were an opportunity Telemetry from MYOB’s cloud-based benefitted both parties. This had, and to put to good use resources that SME accounting and mid-tier ERP will continue to have, far-reaching would otherwise have been idle,” systems provided a rich source of implications across business, and observed Mulcahy. empirical data. particularly the tech sector. From an IT perspective, WFH created It informed not only MYOB’s response Importantly, remote working provided a big challenge to get laptops for staff but was shared with the Australian a means to continue with projects who had previously operated using Government’s epidemic response desktop machines. With these being and in fact probably improved team to quickly reveal how sectors unsuitable for shifting to home office engagement and productivity. were being affected. The impact was environments, hardware procurement immediate on hospitality and tourism, Nick Mulcahy, CEO at A/NZ SAP became a high priority and with but pain was also felt across any partner Zag said the changes were by Covid-restricted supply chains, businesses unable to quickly substitute and large positive for work in progress. took time to put in place. open doors with open browsers. Mulcahy’s team had just signed off Another major challenge arose The information allowed MYOB to go-live on a major S/4HANA upgrade for IT managers in businesses that target an outreach programme to at Hydro Tasmania which was relied on internal networks to access phone customers and offer relief delivered almost entirely remotely, on-premise systems. There was through alternative licensing plans or bringing a degree of veracity to blowtorch intensity applied to deliver rescheduling of upcoming renewals. his comments. VPN access so that users could Customer outreach was also an “Interactions via online meetings maintain operations. important part of the response for tend to be much more efficient than While most of the IT impacts tended Gary Patterson, sales director A/NZ in-person. Design workshops do to be on day-to-day operations, they for Infor gold partner EMDA. “We sometimes break down into several created disruption for IT staff involved made a concentrated effort to check conversations at once, but when they with ERP and digital transformation in on clients and offer relief where are online people keep to the point projects. It forced business to step up we could. Often it wasn’t about any more, they don’t want to be seen as on IT matters, which was something specific financial discussion but being dominating the conversation and so of a win for longer term relations seen to be doing the right thing. tend to say what they need to and between the two. “The conversations were humbling, hand the floor over.” The overall sentiment was that the and the appreciation expressed by Zag’s experience was repeated immediate impact of lockdown was many made it a rewarding exercise,” across ERP vendors and partners. relatively minor and often positive. Patterson reflected.

Implementing new ERP solutions or upgrades are major strategic projects and in times of uncertainty conservative boards avoid committing to such projects in favour of the status quo.

Of course, vendors and partners “The move to more subscription- work and anywhere/anytime access themselves were in uncharted based licensing models has created for staff. territory and many scrambled to get a mind shift in how software licenses With that mode of operation now contingency plans in place. EMDA’s are perceived. entrenched, it is confidence that senior team modelled from a baseline “Subscription fees are now budgeted needs to return before the rates of ‘lose no staff’ to map scenarios as as part of core expenses and not seen of conversion from opportunity to to how the business would respond as discretionary, which has not always implementation will be back to their should business conditions collapse. been the case when support and ‘new normal’. The same sentiments were common maintenance fees fell due.” The consensus is that pent-up across many discussions reflecting a While delivering a new ERP system demand will drive a strong recovery sense of community around ‘we’re all itself may not have been classified as once confidence returns to the wider in this together’ that has been created essential, supporting the systems of consumer and business markets. and may indeed prove to be another essential businesses was, and kept long-term benefit of the pandemic. The big question is when? many ERP support teams busy. Essential work, essential The crux systems Gartner’s strategic It might be concluded that ERP Jane Mattsen, executive director at assumptions on ERP: providers, cushioned from the brutal Abel Software, highlighted ERP’s impacts in some sectors, have • By 2022, 30% of large essentiality as another aspect that continued their happy dance enterprises will have moved cushioned the ERP market from the with sales prospects. to a platform- and product- immediate effects of lockdown. centric approach with Not so. “Companies that are serious users of standardised ERP capabilities ERP tend to be skewed toward the Why? Because implementing new at the platform core. essential industries as they in particular ERP solutions or upgrades are major • By 2025, the top four need the robust transactional integrity strategic projects and in times of ERP vendors will rebrand that ERP provides.” uncertainty conservative boards avoid themselves as business committing to such projects in favour When lockdown exceptions were platform providers. of the status quo. made for providers of essential • Through 2025, 40% of services such as food and beverage Whilst projects in progress and minor ERP implementations will and suppliers into the FMCG sector, support initiatives have continued underachieve as a result ERP support partners were but one successfully, sales pipelines have of underinvestment in of the many downstream businesses thinned and conversions to sale integration. handed an ‘essential’ exemption to have slowed. keep operating. Source: Gartner Magic Quadrant Businesses have been given a lesson for Cloud ERP for Product- Patterson added another factor that in the benefits of migrating off Centric Enterprises, June 2020. cushioned partners from immediate systems that do not support remote impacts.

BY HAYDEN MCCALL

Buying the wrong software is an Best for project That’s like getting your plumber expensive and painful decision. So what is best practise when it to design your next house. Splashing out on a new application comes to the process of ERP Now, depending on your needs and to run your business is a major selection and evaluation? the experience of your plumber, strategic decision, but it can that might lead to a great result. As Of course Google throws up plenty easily start off down the wrong long as ‘simple’ applies only to your of good advice, but a lot of it is high track creating problems that will be business process, then there’s every level, generic and repetitive – like with you for many years chance their answer will be on the getting executive buy-in (check), after the project is completed. right track. appointing a senior project champion Every business, and the culture (check), being open-minded with But if you’re in the ERP game then within it, is different (and we’ve your ‘to-be’ requirements (check) you’ve probably left simple behind. seen more than a few), but most and resolving to do a ‘vanilla’ ERP is about handling layers of are poorly equipped when it comes implementation (check) – although complexity and yours is likely to to buying business software. I never really understood what was be a unique blend of industry, wrong with chocolate. The reality is that it just doesn’t culture and markets that needs happen very often. The first issue to avoid? a more robust solution that can accommodate your particular To be clear, we’re not talking The decision on what to buy and who nuances. here about buying small business from is too frequently left to chance. accounting (Xero, MYOB, There’s a natural instinct to ask the So, here’s some tips that will reduce Quickbooks/Reckon etc). This is nearest person that seems to know the risk of a cock-up and save about proper ERP (SAP, Oracle, anything about IT and see what plenty of cash along the way. Infor and their ilk). Whereas small they reckon. businesses tend to rely on what your accountant recommends (and is set up to handle), ERP selection and evaluation is a much more specialised skillset mapping requirements to functionality and industry credentials.

That you are here reading this, dear buyer, is a good indication you are starting in the right place – putting the groundwork in to educate yourself on the products available in iStart’s ERP Buyer’s Guide, shortlist your options and put in place the steps needed to ensure you make a decision that is right for you.

iStart ERP Buyer’s Guide 2020-21 | istart.com.au | 1800 462 388 | istart.co.nz | 0800 928 268 | 7 UPDATE_10.20 TIP #1 TIP #2 TIP #3 Treat selection and Define scenarios, Build a pros/cons evaluation as a mini-project not requirements shortlist Decisions made early in project If yours is like most projects, reaching Using a structured approach to establishment are vitally important this stage is not where things have identify possible candidates and and so need proper resourcing. started. document the decision process will pay dividends when the Chairman That means a plan, clear scope and The business has probably been says you should go with the specific deliverables. These should working steadfastly gathering the solution his fishing buddy sells. include an updated and approved requirements for a system that will business case, appointment of address long-running pain points. That means pros, cons, local vendor a preferred vendor and budget contacts and reference site checks But that vital exercise can become estimates nailed down for licensing to back up every yes/no decision. a selection overhead that muddies and implementation. clarity on the key areas that offer This is not an exercise in collecting To create momentum, appoint the most promise. all the contact details for vendors a trusted project manager and so you can blast a 50-page RFP out We recommend that requirements a busines analyst (type) with an to all and await the genius in the are kept at a high level and only understanding of how your business responses. be developed for areas that will runs at a process/systems level. differentiate one system from It is the due diligence needed to At this stage, representation from another. If you are searching online concentrate your efforts on genuine finance, IT and operational SMEs (of for the comprehensive list of ERP contenders and avoids you getting the subject matter expert variety) requirements you are off-track. inundated with vendor enquiries may not be necessary within and complex responses that all 90 percent of these requirements will the project team, but guidance need consideration. be delivered perfectly adequately by and engagement with these key 90 percent of the systems you might And while this point may not be top stakeholders will be. be considering. among your concerns, it also means If you’re lucky, the team will have you don’t waste vendor resources It’s the 10 percent that really counts some experience in software responding to opportunities that and that is where your focus should selection, but chances are they are unlikely to convert because be concentrated. will need some help. Give them they are fundamentally a mis-match budget and autonomy to appoint a Identify these and express them in from the outset. There’s probably specialist independent advisor daily shop-floor terms (OK maybe a study somewhere tallying up the in ERP selection and evaluation. de-coloured) that explain clearly the total cost to businesses responding scenarios where you expect your ERP to hopeless RFPs, but let’s just An external consultant is not solution to inform decision making. agree – it’s a substantial waste. there as a hygiene factor so you can say yes to the ‘independently There may only be 10-20 that actually Aim for a maximum shortlist of reviewed?’ question. Hire them matter in a vote for one system vs the five for your RFI and narrow that early so they can contribute their other, and these are the ones that go down to just two to invite into experience to project establishment into your RFI document. It is up to the the detailed discovery of an RFP and ensure early work delivers shortlisted vendors to explain back to process. Everyone will thank you. value later. you in similar terms how their system will address the scenario. Resist the temptation to engage with vendors at this stage. Their Your RFI document shouldn’t implementation methodology consist of a checklist of hundreds of will be very important, but not function points that you expect the until later. vendor to self-assess fit/gap. What does 198 versus 212 ticks out of 223 The establishment phase is requirements tell you? Probably more important as it lays down the about the respondents’ interpretation groundwork that will ensure the of the context in which the question implementation project gets off is asked than any measure of system the ground smoothly. capability.

iStart ERP Buyer’s Guide 2020-21 | istart.com.au | 1800 462 388 | istart.co.nz | 0800 928 268 | 8 UPDATE_10.20 TIP #4 TIP #5: Rank the responses Discovering proof (and then ignore) So you’re down to a two horse race. There has been plenty of debate over It’s time to get down to the knitting. whether software procurement should You’re going to be recommending use the age-old RFI/RFP process. a partnership that you hope your Surely there’s something way cooler business will not hate, so time these days? invested in getting to know the Yeah, nah. Call them what you will, software and people is well spent. but the fundamentals remain. At the same time, vendors will be So let’s not try and get fancy. The RFI eager to drill down into your detailed invites vendors into the process, the operations and uncover the process RFP produces the basis from which an steps that make you unique, and also agreement can be drafted to confirm protect themselves from an expensive your chosen ERP partner. mis-match.

So how to pick a winner? And you both really ought to make sure you get along with one another. Don’t let vendors respond in freeform, be prescriptive. Direct them to respond All that comes together in your specifically and succinctly to the demo/discovery workshop(s). questions posed inside your template. These workshops signal to the That means sending out a Word business that your project is about document (no, not a PDF numpty) to get serious, so don’t approach that contains all relevant background this phase lightly. but is primarily structured around your You’re asking senior execs and SMEs 10-20 real world scenarios (ref Tip #2) to assemble in a room (virtual or that the solution must address. Under not) and explain to strang