Analyst firm sees cloud ERP solutions rapidly maturing, with market leaders continuing to invest in new features and capabilities.
Recently, the independent Gartner research group released its second Magic Quadrant evaluating cloud core financial applications. The salient point in the report is this, “The market for cloud suites will continue to evolve during the next five to 10 years. While rapidly maturing, the roadmaps associated with many cloud solutions evaluated here remain a work in progress in relation to functional depth, industry and geographic support.”
MY KEY TAKEAWAY FROM THE GARTNER ANALYSIS
We took a look at the first Magic Quadrant for this market back in 2017. From a 1000-foot view, not that much has changed. In the initial report, only three systems ranked “high” in both completeness of vision and ability to execute. Those same three systems continue to lead:
Oracle NetSuite, with even stronger execution and vision since the last version of this Magic Quadrant
Oracle ERP Cloud, with broad and deep financial management and international capabilities; as well as its strategic focus on selling and marketing the solution in all regions
Workday, with its robust cloud service, strong financial functionality and innovative use of technologies to support financial transformation
One to watch: Microsoft Dynamics 365 for Finance and Operations is the only one of a number of Microsoft ERP solutions that met the criteria for this Magic Quadrant. Gartner notes “innovative use of technology for analytics, with embedded Power BI and real-time, in-memory multidimensional analysis capabilities,” along with plans to incorporate AI/ML capabilities such as predictive payments. However, the jury is still out on how useful organizations will find these analytics capabilities and how quickly the AI/ML roadmap will materialize in this solution.
All in all, the updated Magic Quadrant findings are no surprise. As cloud adoption accelerates, we expect the leading publishers will continue to pour money into research and development to improve their solutions and market position. We are not likely to see a single “best solution” emerge from the pack.
HOW TO FIND THE RIGHT CLOUD FINANCIAL MANAGEMENT SOLUTION FOR YOUR ORGANIZATION
The proper solution for your organization will depend on your needs, industry and geographic reach.
Start by clearly and completely articulating your requirements, keeping your strategic vision and long-term goals in mind.
Evaluate providers based on current capabilities as well as overall roadmap. What is the future direction for this solution — and how does it align with your organization’s strategy?
Quick tip: Once you are ready to move forward with a solution, be sure to follow best practices for managing the project. Replacing a financial management system is complex, expensive, risky and resource-intensive. It’s worth the time and effort to make sure every detail is properly addressed to help ensure a successful outcome.
BRINGING IT ALL TOGETHER
Cloud-based financial management systems have proven highly advantageous to many of our clients, giving them access to enterprise-class innovations that are accelerating business growth. If you have any questions about where the ERP market is going and how your plans fit in, feel free to reach out. An advisor can be invaluable as you seek to evaluate your options and chart a strategic course. Bridgepoint Consulting is here to help. Explore our Technology Consulting services or get in touch!
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“Someday” Is Today: How Cloud ERP Leaders Are Changing the Game
Michael Johnson leads Bridgepoint Consulting’s Technology Consulting practice, which helps organizations leverage technology to drive transformation. The practice specializes in designing and implementing innovative solutions that allow organizations to grow and scale efficiently. He has 30 years of experience with integrated business solutions, including as managing director at KPMG Consulting, where he oversaw the planning and implementation of HR and finance business solutions for a range of organizations.