The new Meta Group study entitled "Deriving Value from 21st Century ERP Applications" has confirmed that QAD, provider of enterprise applications for global manufacturers, is the ERP value leader for manufacturers.
According to the study, QAD delivers manufacturing companies the lowest total cost of ownership relative to company revenue (relative TCO), the fastest time to implement (TTI) and the highest average annual quantifiable benefits as a percentage of TCO.
This extensive market study articulates ERP market trends and provides key metrics and statistics on leading ERP vendors.
The study surveyed more than 200 companies to delineate six leading ERP vendors based on quantifiable, tangible and intangible results needed to justify an ERP implementation. It examined critical areas such as relative total cost of ownership - implementation plus two years` support costs as a percentage of customer revenue - and total time to benefit, from implementation to the first tangible returns. The report factored in complexity of projects, and normalised data to eliminate the most extreme high-end engagements and create a foundation for meaningful comparison.
"Enterprises are rigorously analysing the cost and benefits of ERP software to make better-informed decisions in a difficult economy," said Barry Wilderman, senior vice-president and director, Meta Group. "Meta Group has been focused on measuring the total cost of ownership and value derived from ERP applications for more than five years. Companies we interviewed gave QAD high marks with respect to relative TCO (TCO divided by revenue, a TCO measure that factors out company size). For more complex analysis, other variables should also be considered, such as modules implemented, number of users and geographic locations."
Among the vendors who serve the manufacturing industry, QAD represented lowest average total cost of ownership - implementation and two years support - as a percentage of corporate revenue. Normalised data shows customers` average expenditure on QAD applications was little more than one-half of 1% of revenue (0.58%), less than even the least expensive of the mega-suite ERP vendors and the industry average of 0.94%. QAD implementation costs alone, including software, hardware, professional services and internal staff, averaged one-third that of competitors in the ERP sector - and often even less. When Meta Group compared total installation cost to software cost, QAD implementations were less labour-intensive than the industry median.
"When it comes to time - first to implement and then to achieve quantifiable benefits - QAD applications took just more than one year to implement, on average, compared to more than two years typically required for the competitive set. QAD applications were also found to deliver the fastest time to benefit and the highest average annual benefits as a percentage of TCO, compared to the rest of the field," said Bryan Nelson, managing director of QAD South Africa.
"Meta Group`s findings confirm what we have known for quite some time: that QAD`s laser-like focus on providing applications for manufacturers in six key verticals enables us to deliver lower total cost of ownership and faster time to benefit," said Nelson.
"This focus ensures our software is easy to implement; customers confirm that they don`t have to change business processes to fit our system. With more than two decades of insight into real-world manufacturing conditions, we know how to help customers successfully cope with the challenges of being suppliers and manufacturers in a global economy," concluded Nelson.
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QAD enterprise applications leverage advances in Internet and enabling technologies to provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time. Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and medical products use QAD applications at approximately 5 200 licensed sites in more than 80 countries and in as many as 26 languages. For more information about QAD, telephone (011) 807 6660, or visit the QAD Web site at: www.qad.com.