Dynamics in IT Industry Pitch

7/29/2019 Dynamics in IT Industry Pitch

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Magic Quadrant for ERP

Group


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Agenda

About Gartner Magic Quadrant

Methodology

Evaluation Criteria

Case 1: Product centric ERP companies

Extension: Single instance ERP providers

Case 2: Service providers

Limitations


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Gartner are an analyst firm of good repute and they analyse the IT market for buyers and vendors

Research method - designed to monitor and evaluate the progress and positions of companies in

a specific, technology-based market

Magic Quadrant a basic 2*2 matrix with vendors and solutions placed into a quadrant

The display divides competing businesses into four distinct sections, based on both completeness

of vision and ability to execute it

Gartner Magic quadrant

All vendors want to be in the top right hand quadrant called the Leaders

Quadrant

There are two axes:

Completeness of Vision where the vendors and Gartner discuss the future development plans

Ability to ExecuteGartners view of where the vendor is today versus its vision, and its ability

to deliver to that vision


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CHALLENGERS

NICHE PLAYERS

LEADERS

VISIONARIES

Generally large vendors

Have ability to execute, but may lack strong visionHave the ability to become leaders if their vision

evolves

Score high on both completeness of vision and

ability to executeLarge companies with large customer base

Ability to effect the markets overall direction

Focus on a small segment

Score low in both completeness of

vision and ability to execute

Have awareness of how the market will evolve and

can potentially be innovative

In more mature markets, they are usually either

smaller businesses trying to compete

Methodology

The overall positioning of vendors in a Magic Quadrant offers a high-

level view of the market

Results of a vendors rating will differ in

Highly mature market

Emerging market


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Evaluation Criteria

Qualitative Market Analysis - a comprehensive process to defines the boundaries of the market

Identify the Market

Select the Vendors

Define the Rating Criteria

Research the Market

Evaluate the Vendors

Publish the Research

Market Understanding

Marketing Strategy

Sales Strategy

Offering (Product) Strategy

Innovation:

Product/Service

Overall Viability

Sales Execution/Pricing

Market Responsiveness and Track Record

Customer Experience

Operations

Vendor briefings

Surveys

Vendor-provided references

Industry contacts

Client interviews

Public sources, articles and published papers

Input from Gartner analysts

Magic Quadrants is designed to help narrow down a vendor

search, not tell a customer what vendor they should choose


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Why use magic quadrant for ERP

Key Changes in the current market customer driven

Customers need for easy user interfaces

The interest in SaaS -based ERP is growing

Better report extraction and formatting output

Model-driven packaged applications - Service-oriented architecture

(SOA) and BPM

Shortages in skilled and experienced resources - improving the

quality of their resources

Competitive prices different ERP suites


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Product Centric CompaniesCASE 1

The Magic quadrant evaluates products that have global presents and specifically tailored

for product-centric mid-market companies

Market condition

Market is large and mature

Gartners latest projection flat or slight growth

Acquisitions activity has picked up - for analyticalcapabilities

Markets looked at

Manufacturing companies

Distribution companies

Administrative business requirements
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Inclusion and Exclusion

Product Centric CompaniesEvaluation

Criteria

Geography : Must serve at least two global regions

Installation base : Should have at least 1000 customers in products installation base

New License Sales : The three geographies must contribute at least 20% of new license

sales each

Viability : The offering must be a viable and supported

Installed base size

Application Functionality

Architecture


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Product Centric CompaniesEXAMPLES

Is a comprehensive and scalable solution

Can support thousands of users in one instance - Gartner considers it best-suited for fast-

growing companies

SAP's partner strategy, including the PartnerEdge program - very complete and consistent

Has a Web-based Solution Configuration for Business All-in-One

Improve successful on-time, on-budget deployments

SAP Business All-in-One

A wide range of industry functionality is supported in the core system

Multiple deployment options (IBM, Oracle middleware and Windows) allow companies

to align with their platform of choice

The new releases - steps toward embedded analytics

Oracle's Accelerate program delivers partner-built, industry-specific versions

JD Edwards has a presence in many countries, either directly or through partners

Oracle JD Edwards EnterpriseOne


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Multi-entity company ---- characterized by following criteria

Consists of multiple organizational units, such as multiple business

units with different offerings

The company is present in multiple countries with differing legal,

tax and statutory requirements per country

The entities can encompass multiple manufacturing, sales or

delivery locations

These companies have cross-entity functions and structures

Vendors' ERP systems that cannot support multiple entities in one

single instance not included

Single instance ERPFurther

Extension

Evaluation Criteria

ERP systems -- composed of varying functional depth and

breadth to meet the needs of these different-size companies

This Magic Quadrant, we concentrate on ERP systems that are

used primarily by multi-entity companies seeking a single-instance ERP system


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Single instance ERPEXAMPLES

Architecture supports a multitenant SaaS deployment

A Microsoft-centric solution in terms of technology components used, and is fully built

using .NET

Microsoft-centric technology strategy - makes it easier and faster to train end users and

internal IT support staff

Offers more than 100 predefined, role-specific dashboards and KPIs

Provides a shared benefits program

Epicor ERP

Flexibility and extensibility of Microsoft Dynamics AX makes it a strong solution

Best use - satisfying divergent business unit needs, such as multimode manufacturing

Leverages the Microsoft application platform and productivity suite

New architecture of Microsoft Dynamics AX 2012 - supports the parallel deployment of

extensions

Provides premier supportRole-based UI personalization is seen by customers as being very flexible

Microsoft Dynamics AX


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Service ProvidersCASE 2

Market condition

Globalization Demand for global rollouts of SAP

software

Demand from new verticals like public sector, life

sciences and banking, emerging markets

Some challengesImplement faster and less expensively, with

less risk and more predictability

Ensure the implementation brings about the

business benefits promised

Leading ESPs differentiate on capabilities

New ProductsNew delivery and consumption Models


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Service ProvidersEVALUATION

CRITERIA

how well the provider performs a spectrum of services compared withits peers and how well it is positioned for the future

Ability to execute

current service offeringsProduct/Service

Assessment of service provider's practice area profile

Analysis of strategy and organization

Overall Viability (Business Unit,Financial, Strategy, Organization)

Pricing strategy and alternative pricing models

Customer feedback on value for moneySales Execution/Pricing

Vendor's capabilities to deliver against business-outcome-basedobjectives and metrics

Market Responsiveness andTrack Record

Clients feedback on working with provider

Key metrics that drive customer experienceCustomer Experience

vehicles that enable the organization to operate effectively andefficiently on an ongoing basis- training programs, global deliverycenters, centers of excellence

Operations Standard


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Service ProvidersEXAMPLES

Deloitte- Leader

Multiple competenciesprovide a holistic solution

Experienced in very large multiyear programs to harmonize clients businesses and

standardize their processes

Global delivery leverage global talent at competitive rates

Deloitte continues to be strong in finance transformation, enterprise performancemanagement (EPM), business planning and consolidation (BPC), and governance, risk

and compliance (GRC). It has also invested heavily in Hana as well as in mobility.

Clients find Deloitte's industry-based approach and Enterprise Value Delivery

methodology, a project methodology designed to unlock maximum value while

managing risks in projects, highly beneficial in their SAP-enabled business

transformation journey


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TCS-Challenger

Full set of SAP life cycle services, from consulting to implementation, managed

services, BPO and hostingend-to-end menu of SAP services

A development partner with SAP early product access and in-depth technical

understanding of these (Ex. MII, product life cycle management, mobility applications

in CPG and an SAP Expert Finder application, and testing)Preconfigured solution investments SWIFT MRO (a solution for the airline

industry), tax intelligence (a solution developed with KPMG for effective tax planning

and management), dealer management and legal management

Centers of excellence for Hana and mobility where it develops use cases with SAP and

clients

Technical expertise, flexibility, excellent work ethics, attractive price points and desireto go the extra mile are cited by clients as key strengths


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Infosys-Challenger

Largest offshore-centric player in the SAP implementation space

Vertical expertise and vertical solutions for retail and CPG; manufacturing;

life sciences; energy, utilities, oil and gas; professional services; high tech; and banking

Major investments in newer areas (mobility, Hana, analytics and cloud), as well as new

modules, such as trade promotion management (TPM)It has co-development agreements with SAP on several initiatives, such as mobility

(SAP Retail Execution), and it collaborates with SAP on client proofs of concept (POCs)

in TPM and Hana

Value realization model throughout the implementation life cyclealigns SAP

programs with desired business outcomes

Outcome-based pricing based on value realization resonates with ClientsStrong delivery capabilities and mature processes, as well as on- and offshore

capabilities to support their SAP programs.


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Mainly to do with niche and small vendors

Innovative local companies often do not appear on a Quadrant - small revenues

Rate only vendors which are associated

Add more points

Limitations


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Thank You

Documents

Dynamics in IT Industry Pitch