SAP and Oracle are well-known leaders in the ERP industry but numerous companies continue to hold their own in the ERP industry.  The ERP (enterprise planning resource) industry providers businesses of all types with the software needed to run them.  While the most recognizable of software providers like Microsoft, Oracle and SAP have become household words, less recognizable names in the ERP industry continue to service business worldwide.   Sometimes referred to as Tier II software – specialized and proprietary custom ERP systems are holding their own and give the big boys of software, a run for their money.

SAP and Oracle

SAP and Oracle follow the lead of the “Other Guys” in the ERP Industry to Small and Mid-sized Business

Specialty and formula-based manufacturing companies look to companies like BatchMaster and Epicor for erp applications designed to meet the frequently changing formulas and requirements of the food, beverage and service industries.   Maintaining consistency of formula or the integrity of a dye lot is achieved through the use of software specifically designed for that purpose.  

The need to produce focused solutions for small to medium sized business has been recognized by Microsoft, SAP and Oracle as a niche market worth serving and all three of these software developers are working on offering products that cater to the formula-based manufacturing industry.  For now, however, smaller software providers are reaping the benefits of servicing smaller business concerns.

Small and Tier II software developers are addressing the needs of potential customers in a variety of ways.  Traditional, SaaS (Software as a Service) and Hosted products are all represented in the ERP industry.  Bigger budgets find end to end solutions offered in all three forms.  Often, the ERP industry makes integrated solutions available with sophisticated functionality that had previously fallen under the exclusivity umbrella of big name, big ticket solutions from SAP, Oracle or Microsoft.  Big boy functionality is now within reach of small and medium businesses.

As an alternative, SaaS versions of full range business software are common in the ERP industry. Delivery methods have placed the functionality of robust software solutions within reach of those businesses that may not have the deep pockets necessary to implement a traditional system.  Graduated system implementation allows small and medium businesses more flexibility in managing the cash flow of this large operating cost.  It is phased in over time rather than at the beginning of an agreement.  Storing data elsewhere is an added advantage as it sets the stage for disaster recovery.

Hosted systems are convenient and cost effective.  Hardware requirements are not stringent and “leasing” the licenses does not cost as much.  Savings in are as much as 30% when comparing outright license purchasing to a hosted approach.  Transition to a hosted system is simpler and less time consuming but customization is limited and payment is usually made upfront which constitutes a greater out of pocket expense.  

Recognizing an underserviced niche market, SAP Oracle and Microsoft are offering or are developing their own answers for small, mid-sized specialty and batch-driven manufacturers and businesses but for now, this segment of the market is still dominated by the “other guys” of the ERP industry.

Written by :

tracey boxer