Every year, hundreds of businesses contact Software Advice to find the best enterprise resource planning (ERP) software to fit their needs. These interactions with prospective buyers provide us with considerable insight into the broader ERP software market and the trends that occur within it. We recently analyzed a random sample of these interactions to better understand the factors that influence ERP software buyers’ purchasing decisions. These findings will help guide the decisions of other buyers in the market for such a solution.

1. Software Advice BuyerView:
ERP Software Report
Insight into today’s software buyer

2. Between 2013 and 2014, we spoke to hundreds of buyers seeking to implement
a new enterprise resource planning (ERP) system. We examined the data from
these interactions and found that:
• Two-thirds of buyers do not currently use an ERP system, and 44 percent rely
on a combination of disparate systems to execute ERP processes.
• Fifty-nine percent of buyers cite the need to improve the integration of data
between different business processes as a top reason for seeking an ERP
system.
• Forty-seven percent of all buyers cite the need to improve their customer
relationship management (CRM) database as a reason for wanting to purchase
an ERP system.
• Among buyers currently using ERP systems, 24 percent cite lack of support and
19 percent cite cost as their primary reasons for wanting to switch to a new
system.
Abstract

3. Percent of sample
Two-thirds of buyers do not currently use an ERP system, and 44 percent rely on a
combination of disparate systems to execute ERP processes.
Two-Thirds of Buyers Are Making Their First Foray into ERP
Multiple systems
ERP software
QuickBooks
Non-ERP business software
Office productivity software
Proprietary system
Manual methods
0% 10% 20% 30% 40% 50%

4. Improving integration, especially with their consumer relationship management
(CRM) systems, was a top concern for all prospective buyers.
Improving Integration is a Top Concern For All Buyers
Improve integration
Improve CRM
Current lacks support
Current too expensive
Company growth
Improve accounting
Regulatory compliance
New business
0% 15% 30% 45% 60%
Percent of sample

5. Twenty-four percent of buyers currently using ERP systems cite lack of support and
19 percent cite growing costs as reasons for wanting to switch.
Current ERP Users Fed Up With Growing Costs and Lack of Support
Improve integration
Improve CRM
Current lacks support
Current too expensive
Company growth
Improve accounting
Regulatory compliance
New business
0% 15% 30% 45% 60%
Percent of sample

6. Seventy-seven percent of prospective buyers want to deploy a new ERP system
within six months.
Most Buyers Want to Deploy an ERP System Within Six Months
<1 month15%
1 to 3 months26%
3 to 6 months36%
6 to 12 months23%

7. Eighty-seven percent of prospective buyers were small to midsized businesses,
defined here as those with annual revenues of $100 million or less.
Most Buyers are Small to Midsized Businesses
Less than $1 million4%
$1 million to $5 million22%
$6 million to $25 million37%
$26 million to $50 million15%
$51 million to $100 million9%
Over $100 million13%

8. Most of the buyers we spoke with are in manufacturing, logistics, heavy industry
and high tech.
Most Buyers in Manufacturing, Logistics and Heavy Industry
Percent of sample
Manufacturing
Logistics
Heavy industry
High tech
Food and beverage
Consumer goods
Professional services
Non-profit
Media
Finance
Other
0% 5% 10% 15% 20%

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10. Software Advice™ is a trusted resource for software buyers. The company's
website, www.softwareadvice.com, provides detailed reviews, comparisons and
research to help organizations choose the right software. Meanwhile, the company’s
team of software analysts provide free telephone consultations to help each
software buyer identify systems that best fit their needs. In the process, Software
Advice connects software buyers and sellers, generating high-quality opportunities
for software vendors.
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