Gartner has released the latest version of its Magic Quadrant for Cloud ERP focused on product-centric enterprises.
According to the analyst, product-centric organisations are rapidly investing in innovative cloud-based applications for Enterprise Resource Planning (ERP). Running parrael to this is an increased desire for multi-vendor technologies, capable of combining best-of-breed solutions.
Indeed, Gartner believes by 2024, more than 60 percent of companies will have deployed cloud ERP tools which align platforms from different vendors. Additionally, the analyst suggests 50 percent of existing ERP "megavendor" customers will begin assessing solutions from multiple vendors.
As such, there is possibly no better time for a Cloud ERP Gartner Magic Quadrant to help application leaders evaluate the available vendors.
For this year’s report, Gartner has included insights into ten vendors, isolating four market leaders.
Defining Cloud ERP Tools for Product-Centric Enterprises
Gartner’s definition for Cloud ERP solutions for product-centric enterprises emphasizes a separation from the marketplace for Cloud ERP tools aimed at service-centric enterprises.
According to the analyst, tools for product-centric companies focus on the automation of financial and operational activities, related to the manufacturing, delivery, distribution, and servicing of goods.
Alternatively, the tools created for service-centric enterprises do not include functionality focused on the physical manufacture and sale of products.
According to Gartner, ERP tools are a foundational technology for operating enterprises, characterized by highly configurable processes, frequent technical and functional updates, and substantial reliance on vendor management.
The central capabilities of a Cloud ERP solution cover order management, inventory management, and demand management. Financial management capabilities for accounting, reporting, and consolidation are also mission-critical.
Optional additions that also add value to Cloud ERP solution include: HCM features, procurement capabilities, and industry-specific applications.
Based on this definition, Gartner has divided its list of ten notable vendors into four segments: Leaders, Challengers, Visionaries, and Niche Players. Here, we’ll review them all.
Leaders
Leaders in the Cloud ERP Magic Quadrant for product-centric enterprises demonstrate a clear understanding how the cloud can enhance ERP processes. These leaders can execute their vision using intelligent strategies, product, and service portfolios. They also benefit from a wide-scale market presence, consistent growth, and excellent features across all elements of administrative and operational ERP. This year’s leaders are:
- Oracle (Fusion Cloud ERP)
- Microsoft
- SAP
- Infor
Oracle (Fusion Cloud ERP)
Fusion Cloud ERP is a highly-configurable solution that effectively services upper-midsize and larger companies with global clients, offering an integrated suite of operational and administrative ERP capabilities. Gartner notes Oracle’s technology is suitable for enterprises in search of a comprehensive set of capabilities to manage a complex supply chain. The analyst also lauds the platform’s embedded AI and machine learning analytics, alongside Oracle’s extensive geographical footprint.
Microsoft
The Microsoft Dynamics 365 Supply Chain Management system aligns with Microsoft Dynamics 365 Finance for end-to-end ERP. The solution is suited to mid-size, large, and global companies with a demand for specific industry and regional capabilities. Microsoft is particularly powerful in the ERP world thanks to it’s extensibility and strong partner network. The company is also working towards a host of innovations leveraging AI-enabled collaborative demand planning and new tools for embedding sustainability into supply chains. The cloud platform also integrates seamlessly with a host of other attractive Microsoft tools and services.
SAP
SAP offers several deployment models for its SAP S/4HANA solution. However, for the purpose of this 2022 Magic Quadrant, Gartner focused exclusively on the Cloud variation. The cloud solution is suitable for companies in search of comprehensive capabilities to managing a complex supply chain, as well as finance, manufacturing, and other business processes. According to Gartner, SAP’s enterprise and industry experience makes it an excellent choice for growing companies, as do the integrated analytics capabilities within the ERP solution. Going forward, SAP plans to make improvements to its supply chain and production capabilities, as well as offering companies opportunities to embed sustainability systems into their operations.