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Procurement Market Intelligence Report

ERP Software Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for ERP Software?

What is the average price of ERP Software?

This procurement report includes pricing information to help you purchase ERP Software. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of ERP Software been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase ERP Software yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing ERP Software?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for ERP Software with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ERP Software?

Market share concentration in the ERP software market is high. Of the estimated 550 ERP software providers in the United States, the top four generate more than 50.0% of total revenue. The ERP software market is mostly dominated by large, multinational software companies, such as Microsoft, SAP and Oracle. However,... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Updates & Services

What is the product road map for your ERP software?

How often do you update your ERP software and will you provide training and support on new features?

Can caps be placed on the total cost of maintenance and support services?

What user training resources do you provide with your ERP software? Do you offer on-site, online and print instruction?

Do you offer free training on new features after upgrades?

Functionality & Quality

How does your ERP software handle market-specific or unique transactions?

What range of functions does your ERP software cover?

Is there a strong application development community for your ERP software?

What security procedures do you use and how do they protect data privacy?

Have you ever been the victim of hacking? If so, how did you remedy the issue(s)?

Experience & Competition

How do you view your position in the ERP software market?

How do you differentiate your ERP software from the solutions offered by competitors?

Which companies in my industry use your software? Can you provide me with referrals?

What is your company's revenue breakdown between new software licenses or SaaS subscriptions and maintenance?

How much do you spend on research and development? How does that compare to your closest competitor's expenditures?

Is your company a buyer of technology? Have you acquired any competitors in the past three years?

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Key elements for every RFP

What should my ERP Software RFP include?

Project Budget

Buyers should indicate whether they have an expected budget for the ERP software.

Buyers should describe their preferred terms for invoicing and payment.

Buyers should list any other software products they wish to procure along with the ERP software to achieve a bundling discount.

Buyers should reference the Benchmark Price section of this report to determine whether they are paying a competitive price for ERP software.

Selection Criteria

Buyers should evaluate providers based on the scope of services they offer.

Buyers should consider the financial health of potential providers.

Buyers should evaluate the quality of providers’ product roadmaps and pipelines.

Buyers should consider the experience that providers have in the ERP software market.

Buyers should reference the Buying-Decision Scorecard section of this report for detailed descriptions of additional selection criteria.

Project Schedule

Buyers should specify the final submission date for proposals.

Buyers should indicate the date by which the ERP software solution must be fully implemented.

Buyers should disclose the date that providers will be notified about contract awards.

Buyers should indicate how long they expect the software service contract to last, if applicable.

Evaluate major factors to mitigate risk

How risky is the ERP Software supply chain?

Supply chain risk in the ERP software market has been low during the three years to 2018. This low level of risk boosts buyer power because it means that providers are unlikely to encounter upstream disruptions that prompt them to raise market prices suddenly. As a result, buyers may have... Subscribe to learn more.

HIGH

MEDIUM

LOW