Erp Software

Category Intelligence on
ERP Software
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Report Ingredients
DATA SOURCES FOR THE ACTIONABLES

Beroe interviews and holds category-level discussions with dozens of industry subject-matter experts, domain consultants, sourcing & procurement
professionals across the world, technical & operations personnel, and leading suppliers on a recurring quarterly basis, hence, this content is an
amalgamation of category expertise built over many years. This is a standard operating procedure to triangulate all our data constantly. Below is/are
(a) representative sample(s) of the profile(s) of the multitude of subject-matter experts we talk to:
INDUSTRY EXPERTS SUPPLIERS DATABASES Beroe Experience
DESIGNATION & SUPPLIER DESIGNATION & EXPERTISE

EXPERT EXPERTISE PROVIDED EXPERIENCE PROVIDED
EXPERIENCE
Senior Solution Supply Trends and Core modules Database:

Senior ERP and 15+ years
IE1 Architect/20+ Insights, TCO, S1 Consultant/10+ Factiva, Bloomberg
Years Pricing Models functionalities,
Years
pricing models
Contract & Best

Practices, Cost- TCO and
saving S2 Project Lead/15 deployment
IE2 Project Manager – Opportunities, Years models,
ERP/15 Years contract
Supply Trends and
Insights, ERP
Adoption Trends
ACTIONABLE INPUT SOURCES

INDUSTRY EXPERTS SUPPLIERS DATABASES Beroe Experience

Key Changes Captured
February 2022
Key Change/Update Description Slide Nos.
Market Snapshot Global Market Size and Growth Rate 16

Executive Summary Global Market Size and Growth Rate, Regional Market Size and Growth Rate 18
Executive Summary Net Supply, Net Demand, Price Change 22
Regional Market Outlook Regional Market Size & Growth Rate 28–32
Industry-wide Adoption:
ERP SaaS ERP Deployment Adoption by Regions (2021) 33
ERP Deployment Models ERP Deployment Adoption Rate (2021) 47
SAP Revenue Details, Key Achievements/Certifications/Major Updates 58
Oracle Revenue Details, Key Achievements/Certifications/Major Updates 60
Microsoft Key Achievements/Certifications/Major Updates 62
Infor Key Achievements/Certifications/Major Updates 64
Sage Revenue Details, Key Achievements/Certifications/Major Updates 66
Sustainable Initiatives Overall Sustainability Impact/Adoption Level on Managed Security Services Procurement 73–74
ERP Deployment: Supply Chain & Procurement (2021), BI & Analytics (2021), CRM and Marketing
89
Migration To Cloud Automation (2021), Merchandizing (2021)

Price & Cost Summary: United States
February 2022
Forecast
Current
Parameter Geography Units
Value/Indicator
M-o-M Change (%) Q-o-Q Change (%) Y-o-Y Change (%)
Billing rate –
Senior ERP US 95 ($/Hour) – – 5–10%
Consultant (8–10
Years)
Billing rate –
Project Manager US 130 ($/Hour) – – 5–10%
ERP (10–15 Years)

Supply & Demand Summary: Global
February 2022
Forecast
Current
Parameter Geography Units
Value/Indicator
M-o-M Change Q-o-Q Change Y-o-Y Change
Net Supply Global 85–95 % 0 1.25–2.5% 5–10%
Net Demand Global 80–90 % 0 1.25–2.5% 5–10%

Market Dynamics Summary: Global
February 2022
Actual Change
Parameters Current Value/Indicator Units
M-o-M Change Q-o-Q Change Y-o-Y Change
Cloud ERP/SaaS High potential Rating – – No significant change
Intelligent ERP (Machine Learning, AI) High potential Rating – – No significant change
IOT in ERP High potential Rating – – No significant change
Buyer Power Medium Rating – – No significant change
Supplier Power Medium Rating – – No significant change
Intensity of Rivalry Medium Rating – – No significant change
Threat of Substitutes Low Rating – – No significant change
Threat of New Entrants Medium Rating – – No significant change

Table of Contents (1/2)
01 02 03 04
Market Monitoring Insigh
Executive Summary Market Analysis Procurement Best Practic ts
Slides 17–25 Slides 26–34 es Slides 43–47
Slides 35–42 • Cost Structure
• TCO for On-premise and SaaS
• Global Industry outlook • ERP Market Maturity • Delivery Models: Brownfield vs. Offerings
• Supply & Demand Market Outlook • Regional Market Outlook Greenfield
• Category Strategy • Growth Drivers and Constraints • Delivery Teams: Roles
• Category Opportunities & Risks • Types of Pricing Models
• Negotiation Leverage • License Types
• Talking Points to Business: ERP • Project and Payment Milestone
Software • Cost Saving Opportunities
• Impact of COVID-19 on ERP software
05 06 07 08
Billing Rates Supply Analysis SLAs and KPIs Sustainability Initiative
Slides 48–51 Slides 52–68 Slides 69–72 Slides 73–74
• Billing Rates: Methodology • Supply Market Outlook • SLAs and KPIs • RFP Questions
• Factors Influencing ERP Rates • Supplier Profiles • SLA Penalties
• ERP Billing Rates • SWOT
• Porter’s Five Forces Analysis

Table of Contents (2/2)
09 10 11 12
End-User Industry Updat
RFP/RFI Builder ERP Risk & Dispute Resol COVID-19 Impact e
Slides 75–81 utions Slides 85–86 Slides 87–101
Slides 82–84 • Retail
• RFP Questions • ERP: Risks/Challenges • COVID-19 Impact
• ERP: Dispute Resolution &
Termination

Research Methodology: The 3C Approach
• Category specific licensed subscriptions • Industry websites/associations specific to • Engagement with industry experts
Inclusion Criteria: the category • Experts’ Profile: Personnel at various stages
• Supplier websites & surveys of the value chain (buyers, suppliers,
• Data relevant to 2022*
intermediaries) with extensive experience
• Beroe IP and triangulated analysis • Beroe knowledge center, which has been
working/worked in large organizations
built over a decade of being in the • Data Collection: Statistically significant
procurement advisory and market research
sample considered via surveys and
space
telephone interviews
Market, Costs, Pricing & Industry Best Practices Supplier Analysis

Industry Analysis The data was gathered
Data gathered from case
through secondary and
The data was gathered studies relevant to
supplier interaction which
through secondary and Category from relevant
was validated from
supplier interaction which subscriptions + Supplier
interaction with industry
was validated from websites and surveys
experts.
interaction with industry
experts.
*We have used the most recent information/data available wherever 2022 data is not available
currently. Actual 2022 information/data will be updated once available. Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 11
Glossary
Term Definition
AMC Annual Maintenance Cost
APAC Asia Pacific
BI Business Intelligence
BPR Business Process Reengineering
CAGR Compound Annual Growth Rate
CAPEX Capital Expenditure
CRM Customer Relationship Management
D&A Depreciation & Amortization
ERP Enterprise Resource Planning
IoT Internet of Things
KPI Key Performance Indicator
M&A Mergers & Acquisitions
Mgt Management
OCM Organizational Change Management
OPEX Operational Expenditure
POS Point of Sale
R&D Research and Development
ROI Return on Investment
SaaS Software As A Service
SLA Service Level Agreement
SMB Small- and Medium-sized Business
SME Small- and Medium-sized Enterprise
TCO Total Cost of Ownership
UAT User Acceptance Testing
UI User Interface
Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 12

Category Definition: ERP
IT SOFTWARE
Database Management System Customer Relationship

ERP Software SAM
(DBMS) Management (CRM)
Finance, Management
Accounting, HRMS
Supply Chain, Inventory &
Production Management
Consulting, Advisory,
Implementation & Support
Reporting & Dashboard
NORTH AMERICA LATIN AMERICA EUROPE APAC MEA
US BRAZIL GERMANY AUSTRALIA UAE
CANADA CHILE UNITED KINGDOM INDIA QATAR
MEXICO ARGENTINA FRANCE SINGAPORE SOUTH AFRICA
REPORT FOCUS Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 13
ERP Value Chain
Value Chain Mapping
Main Partners for a ERP Implementation
Software Publisher Value Added Resellers System Integrators Third Party Service Providers
Key Expertise Key Expertise Key Expertise Key Expertise
Software Publishers/OEMs are • Value added resellers are • System Integrators generally Support Service Providers are
those who design & develop the partners of a software partner with multiple software those who provide on-going
software from base. Software publisher/OEM, who sells the publisher/OEM, who provide support to the application post
Publishers actively work on software to the customers and solutions to the business implementation. The support
developing system updates and in addition to that, they problems by combining contracts are signed for an agreed
introducing new functionality in provide services like multiple solutions which are upon period with multiple SLA’s in
the application to meet the consulting, advisory, best in each business area, place to monitor the quality of
customers business needs. implementation, customization rather than a single the support service. In most
and support for the ERP application. They provide cases, the resellers/system
application services like consulting, integrators provide the required
advisory, implementation, post go-live support.
customization and support for
the applications.
Sources: Primary Expert 1, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 14
ERP Software: Core Modules and Functionalities
Financial Management Supply Chain CRM Warehouse Management Project Management
• General ledger • Planning and demand • Master data management • Inventory management • Project definition
• Account receivable & management • Quoting and estimating • Replenishment cycle counts • Project costing
payable • Procurement • Credits and collections • Inventories traceability • Accounting
• Fixed asset • Quality management • Email campaign • Warranty tracking • Project portfolio
• Credit note/journal entries • Logistics and return • Automated sales processes • Shelf-life tracking management
• Tax engine and reporting • Installations and contracts • Data intelligence • Expiration dates tracking • Resource management
• Bank reconciliation • Trends, problems and • Kitting and assembly • Project billing
• Planning and budgeting opportunities • Wireless Warehouse,
• Pricing management Barcode
Widely used ERP core modules and their functionalities
Product Management Human Capital Management Order Management Production Management E-commerce Management
• Product data management • Payroll • Automated order entry • BOQ definition • Pricing management
• Product design • Learning management • Viewing and tracking • Discrete manufacturing • Product configurator
• Portfolio management • Benefits management • Order status • Process manufacturing • Customer definition
• Direct materials sourcing • Leaves management • Cancelled transactions • Online RFQ management
• Customer needs • Talent management • Order and credit limit
management • Time management • Validation and checking for
duplicate orders

Market Snapshot
MARKET OVERVIEW 2020*

GLOBAL MARKET SIZE:
$43.6 BILLION
HIGH MARKET MATURITY REGIONS
NORTH AMERICA, EUROPE, JAPAN
1
DELIVERY MODEL
• Multi-supplier with hybrid
MEDIUM MARKET MATURITY REGIONS
INDIA, CHINA, LATAM
2
deployment is the preferred
delivery model ERP CONTRACT PAYMENT PERIOD
LICENCE: WEEK 0–15 PERCENT
DEVELOPMENT: 12TH WEEK–20 PERCENT
DEPLOYMENT: 14TH WEEK–20 PERCENT
KPIs IN ERP TRAINING: 18TH WEEK–10 PERCENT
• Business Operations SUPPORT: 78TH WEEK–35 PERCENT
• System Response Time
• Maintenance
• Support
TOP GLOBAL SERVICE PROVIDERS

SAP | ORACLE | INFOR | MICROSOFT DYNAMICS | SAGE | EPICOR | NETSUITE
CONTRACT PERIOD NEGOTIATION FACTORS PRICING IN ERP DEPLOYMENT TYPE’S

AMC cost Fixed pricing ADOPTION: GLOBAL
1.5–3 years Hardware cost Time And Material-based
SaaS & Cloud: 72 percent
Customization Pricing
On-premise: 28 percent
Long-term licence
*We have used the most recent information/data available as 2022 data is not available currently.
Actual 2022 information/data will be updated once available Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 16
Executive Summary
“We have used the most recent information/data available wherever 2022 data is not available currently. Actual 2022 information/data will be updated once available.”

Executive Summary (1/7)
Global ERP Industry outlook
• The global ERP market was valued at $43.6 billion in 2021. The Cloud ERP market is estimated to grow at a CAGR of 8
Key percent until 2026
Takeaway • APAC is expected to be the growth driving markets in the future. Supply is more consolidated, with the top five suppliers
holding over 50 percent of the market share globally
North America MEA

01 04
$14.7 billion, 03 $3.9 billion,
growing at 4–5 growing at 6–7
percent annually
01
percent annually
04 05 APAC
02 LATAM
05
$3.7 billion, $9.5 billion,
growing at 6–7 growing at 8–9
percent annually 02 percent annually
Europe
03
$11.8 billion,
growing at 4–5
percent annually
Source: Beroe Analysis, Industry Experts Market Maturity High Medium Low
*We have used the most recent information/data available as 2022 data is not available currently.
Actual 2022 information/data will be updated once available
Supply Market Outlook
Regions: North America,

Regions: APAC, Latin America Regions: Eastern Europe Regions: Middle East and Africa
Western Europe
Cloud/SaaS Adoption for ERP Cloud/SaaS Adoption for ERP Cloud/SaaS Adoption for ERP Cloud/SaaS Adoption for ERP
Deployment Deployment Deployment Deployment
Medium-
High Low Low
Low
Suppliers: Established global Suppliers: Global suppliers Suppliers: Mostly local Suppliers: Predominantly local
service providers cater to large- expand inorganically to tap vast suppliers with niche service suppliers, owing to the lack of
scale ERP buyers and have a opportunities. capabilities. Global suppliers demand for ERP
wide range of service engage through their channel
capabilities. partners.
Sources: Beroe Analysis, Industry Experts Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 19
Demand Market Outlook
• ERP penetration for large organizations is medium outside Europe and North America
• SMBs in APAC and Latin America are witnessing increasing adoption due to the efforts of large global buyers to consolidate the supply base
Regions ERP Adoption Rate Maturity of Service Providers Maturity of Buyers
North High High High

America
Latin
America Medium Medium Low
Europe High High High
APAC Medium High Medium
Middle
East and Low Medium Low
Africa
Source: Beroe Analysis, Industry Experts Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 20
Beroe’s Recommendations for an Ideal Category Strategy
The key value levers, which can be focused on, are Delivery & Contract Model and License Model.
Sourcing Strategy Multi-supplier  Global  Regional  In-house 
Delivery Model Brownfield Model  Greenfield Model  Hybrid Model 
Pricing Model Fixed Bid Pricing  Time & Material Based 
Short Term Long Term

Contract Model (less than a year)  Medium Term (1–4 years)  (more than 4 years) 
Deployment
Model
Cloud/SaaS based  On-Premise 
Governance Review During Contract Yearly Review of KPIs,

Model Renewal  SLAs, and Performance
Clauses

License Model Named User  Concurrent User 

  Large Enterprise Preferred Preferred by Both
High Low
Adoption Trend LEGEND: Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 21
Medium Preferred by Small and Medium Enterprise
Category Opportunities & Risks
Go-To-Market Now To Gain Additional Value Market Is Stable; Supply–demand Is Balanced Go-To-Market For Risk Mitigation
Key Insight
The demand for ERP upgrades and addition of new functionality and its support which can enhance the customer experience and provide them better
insights is increasing.
Supply Outlook: 
85–95% 80–90% 0–3% The global ERP supply market is consolidated, with large
Low Risk suppliers holding a major market share. Suppliers are
continuously investing in development of new features to
Net Supply Net Demand Price Change support enterprises. Niche suppliers, who cater to a
specific business need are gaining prominence.
Supply–Demand Balance Demand Outlook: 

The demand for greater insights from their systems and
adoption of technologies like artificial intelligence,
High Medium Low High Medium Low automation are driving the demand
Supply Demand
LEGEND
Price Outlook:  Input Cost Outlook:   Stable
Low Risk
The demand of adoption of technologies and better The input cost will continue to depend on the
 Quarterly Increase Favorable
experience might impact the price of consulting & development of new products and functionality and its  Quarterly Decrease Favorable Medium
Risk
advisory services. associated implementation and customization cost.  Quarterly Increase Unfavorable
 Quarterly Decrease Unfavorable High Risk
Sources: Industry experts, Beroe analysis *Change is against 2019 Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 22
Negotiation Leverage
Negotiation Conditions for Procurement Negotiation Leverage
UNFAVORABLE NEUTRAL FAVORABLE

• Category conditions are currently neutral for
negotiation of ERP solutions
3 • Stable market competition and neutral price
change, input cost change and supply demand
gap, due to prevailing conditions are factors
making the negotiation conditions stay neutral
1.00 1.67 3.33 5.00
Price Movement Input Cost Movement

Key Insights
1.5% 1.5% Price Movement
3 3
• A continuous requirement of support services
drives the price movement, despite reduction in
Input Cost implementation
Price Change
Change Input Cost Movement
• Need for highly skilled resources
Demand Movement Market Competition
Demand Movement
• Demand for continuous product support,
upgrade and new development activities
1.5% Market Competition
Supply–
3 Stable
3 • Market competition is stable, owing to the well-
established supplier & partner network for ERP
solutions
Demand Gap
Source: Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 23
Talking Points: ERP Software
Interactive UI Technologies Enhancing Effectiveness

ERP suppliers are focusing more on enhancing the Organizations are focusing more on contact-less
user experience and are extensively working to touch-points to establish an effective and a safe
improve their user interface to provide a greater application interface. For instance, HR applications are
customer experience. This enables the customers with Technology replacing bio-metrics and swipe cards to facial
Technology
more user-friendly applications. Innovation/ recognition and attendance monitoring applications
Adoption
Application post the pandemic.
Emerging Supply Market Enterprise Collaboration

Apart from the large off-shore destinations, customers ERP suppliers are starting to collaborate with suppliers
are looking at near-shore destinations in LATAM and offering Industry 4.0 technology, to add value to their
Eastern Europe for implementation and support Supplier- existing offering powered by new technology.
Supplier
partners, who can support them from a similar time Buyer
Landscape
zone, cultural, and linguistic profile and cost-efficient Engagement
pricing.
Talking Points to: Business Finance Suppliers
Impact of COVID-19 on Enterprise Resource Planning Software
• The COVID-19 is a global public health hazard that drastically changed the way businesses engage
• While ERP deployments and support is a mix of onsite and remote activity, there can be short-term delays in ERP
deployment.
Outlook
Increased in Demand of Cloud Infrastructure Increase in Virtual Connections
• The cloud infrastructure will gain prominence as it facilitates

remote access of IT applications which ensures Business continuity. • With the requirement of continuous support and staying connected
and strict client protocols and SLA’s, dependency on virtual
• Industry 4.0 applications will also see an increase in adoption as connection has increased leading companies to adopt remote
this will ensure continuous functioning of the systems with limited collaboration tools.
human intervention
Impact on IT Spend Higher Lead Time during Initial Deployment
• It is predicted that for 2021 spending on Tech Consulting and

• New and proposed projects might be impacted as the global supply
Systems Integration, services would remain flat compared to the
chain is disrupted.
pre-COVID levels
• This will lead to a higher lead time for the suppliers to begin their
• It might also go down by up to 3–5 percent if enterprises cut back
services.
on new tech projects
Market Analysis

Global ERP Market Maturity
• ERP penetration for large organizations is medium outside Europe and North America
Key
• SMBs in APAC and Latin America are witnessing increasing adoption due to the efforts of large global buyers to consolidate
Takeaway
the supply base
Regions ERP Adoption Rate Cloud Adoption Rate Maturity of Suppliers Maturity of Buyers
North
High High High High
America
Latin Medium Medium Medium Low

America
Europe High Medium High High
Medium
APAC Medium High Medium
Middle
East and Low Low Medium Low
Africa
Sources: Industry Expert 1, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 27
Regional Market Outlook
North America
Estimated Market Size (2021) Locations with High Maturity
Market
Information $14.7 billion US
Expected Growth Rate Locations with Medium Maturity
4–5 percent Canada
Major End-user Industries Locations with Low Maturity
Retail, BFSI -
Maturity of Service Providers Maturity of the Buyers
Medium Medium
Market
Maturity
Low High Low High
Global Service SAP, Oracle, Infor, Sage, Microsoft Dynamics, Local Service North America has well established global suppliers
Providers Epicor, Workday Providers and capable of delivering localized ERP requirements
*We have used the most recent information/data available as 2022 data is not available currently. Actual 2022 information/data will be updated once available
Europe
Market
Information $11.8 billion The UK, France and Germany
4–5 percent Scandinavian nations
Retail and Manufacturing Italy, Spain
Medium Medium
Market
Maturity
Low High Low High
Global Service SAP, Oracle, Infor, Sage, Microsoft Dynamics, Local Service Alto 4.0, View Point, BST Enterprise, FinancialForce
Providers Epicor, Workday Providers SRP
APAC
Market
Information $9.5 billion China, Australia
8–9 percent South Korea, India
Telecommunications, BFSI, Manufacturing Rest of Asia
Medium Medium
Market
Maturity
Low High Low High
Global Service Local Service Ramco systems, Adept, Deltek Vision

SAP, Oracle, Infor, Microsoft Dynamics, Epicor
Providers Providers
MEA
Market
Information $3.9 billion South Africa, Dubai
6–7 percent UAE, Saudi Arabia
Professional services, BFSI Rest of Africa and Middle East
Medium Medium
Market
Maturity
Low High Low High
Global Service SAP, Oracle, Infor, Sage Local Service

Ramco systems, Acumatica Cloud ERP
Providers Epicor, Microsoft Dynamics, Workday Providers
LATAM
Market
Information $3.7 billion Brazil
6–7 percent Mexico, Argentina, Venezuela, and Colombia
BFSI, Telecommunications, Government Rest of LATAM
Medium Medium
Market
Maturity
Low High Low High
Global Service Local Service

SAP, Oracle, Infor, Microsoft Dynamics abas ERP, IBS Enterprise, IFS Applications
Providers Providers
Industry-wide Adoption: ERP
SaaS ERP Deployment Adoption by Regions (2021*) ERP Adoption of Enterprises (2021*)
7%
21%
9%
Manufacturing
4% BFSI
5% 11% Telecom
Government
Healthcare
16% Retail
19% Aerospace and Defence
11%
Others
North America
Europe
APAC 12% 13%
LATAM Sources: Industry Expert 1, Beroe Analysis
50% MEA
ERP Adoption of SMB (2021*)
15% Textile Apparel

30% Agriculture & FMCG
Engineering
12% Manufacturing
22%
Pharamaceuticals
Automobile
Construction
3% 9% Healt & Education
4%
IT & IES
5% Others
9%
5% 8%
Sources: Industry Expert 1, Beroe Analysis
Sources: Industry Expert 1,2, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 33
Global ERP Drivers and Constraints
Hybrid ERP
• A hybrid ERP system is a perfect combination of in-house ERP supplemented by cloud-based ERP application. It is popular among organizations who want to improve ERP
functionality but do not want to change or add an in-house legacy system
• Hybrid ERP allows organizations to have a smaller section of functionalities of on-premise solutions, such as financial and manufacturing, and the rest of the applications on the
cloud.
SaaS adoption in ERP

• SaaS-based ERP solutions are gaining popularity in the mid-market segment, where it proves to be cost effective in
terms of implementation, reduced operational cost, increased business agility and the ease of start-up and
maintenance
• Large enterprises are slower in adopting SaaS-based ERP, since they have already made high investment in on-
premise deployments. Incumbent on-premise ERP suppliers offer migration path to SaaS, buyers decide on the
transition, based on costs and benefits, in terms of architecture, flexibility, interface, etc.
IoT and ERP
Drivers
• The ERP system will be integrated with the real-time unstructured data (produced from machines) to the structured
data from business operations. Legacy ERP, compounded with its business intelligence skills, will be empowered with
real-time data through IoT, to enable organizations to make actionable decisions
Intelligent ERP Application
• Business & IT leaders are expecting intelligent ERP systems, which include features, like machine learning, artificial
intelligence, and automation
• Lack of feature and function fits between the customers and ERP providers is the predominant constraint faced by
Constraints
ERP buyers. In several cases, customers do not find the ERP packages that will solve their business requirements
• Availability of alternatives for increasing the level of systems integration
• High switching cost and process integration involved, making it tough for the organizations to switch suppliers
• Enterprises that follow decentralized decision-making find it difficult to implement, as ERP systems are not easy to
change once they are configured and installed
• Lower ROI and high ERP failure rates
• Large enterprises’ resistance to OCM
Sources: Beroe Analysis, Industry Newsletters Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 34
Procurement Best Practices

ERP: Contract Bidding Process
• Up to 75 percent of the bidding weightage is dependent on the technical evaluation score

Key
• The testimony of three similar-sized implementations by the supplier is considered to be a mandatory requirement in the
Takeaway
bidding process
Pre-qualification Bid Technical Bid Evaluation
10
Proposal quality during the
technical presentation before
evaluation committee
Compulsory Important
• Country and local • Minimum annual turnover
Specific to assignment - Team
presence of $10–12 million structure& capablity of im-
• ERP implementation: • Profit: last three years plementing specific ERP
package
minimum of three firms • ERP implementation for 30
• Industry or function the past three years 60
Relevent ERP implementation
specific (project should be go- experience specific to agreed
alive) assignment
Financial Score (F) = (Lowest Price Quoted/Price Quoted) *100 Technical Score (T) = (Company's Score/Highest Score) *100
Weightage and Final Score
Technical Score Financial Score

T X 75% F X 25%
Sources: Industry Expert 1, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 36
Delivery Models: Brownfield vs. Greenfield
Key • For ERP implementations, the Brownfield model is more prevalent in the market compared to Greenfield
Takeaway
Approach Pros Cons
• Migration happens without • Lesser delays and disruptions • Takes longer duration, due to
reimplementation and disruption caused by testing to mission phased approach
to the existing business processes critical applications • Difficulty in data cleaning and
• Enables reevaluation of • More leverage of business users other technical issues, related to
customization and existing process experience to adopt changes to data migration
flows the system
Brownfield
• Ideal for organizations with • Migration can be suited for
Model
streamlined system in place available budget and market
conditions
• Migration requires complete re- • Lowers time-to-value and TCO • Difficulty in change management,
engineering and process • Enables faster adoption of due to radical reconstruction of
simplification innovation the entire ERP environment
• Enables organizations predefine • Makes the business cloud ready • Requires higher investment at a
migration objects and best when required shorter duration
practices • Higher system downtime
Greenfield • Ideal for organizations with
Model complex customization and very
old systems
Sources: Supplier Interaction Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 37
Delivery Teams: Roles
Integrating the
Central PMO Onshore Team Offshore Team
Teams
Establish a central Project Form a trained onshore team Mobilize the offshore Integrates key resources from both
Management Office. This with the critical skillset resources (developers, the teams at early phases to
would provide the support, requirements (solution testers, etc.) early into the improve the delivery quality.
governance, and tools to architect, technical consultant, project to reduce delays
delivery teams across etc.). If that is not available associated with
various locations. bring in resources from resource/skill availability.
offshore.
Working Hours
Knowledge Transfer Talent Retention Handoffs
Overlap
Once the project is Ensure the morale of Enforce a well-defined Ensure that the work hours
delivered, ensure all the offshore resource are kept handoffs during delivery of offshore team overlap
necessary knowledge is high and attrition kept low with rigorous checks in with onshore team. This will
transferred to the onshore for better quality throughout place. Ensure time zone help expedite complex issue
team, so that they can work the course of the project. differences are sorted out resolution and ease
independently. prior to handoffs. coordination challenges.
Sources: Supplier Interaction, Industry Experts Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 38
Pricing Models (1/2)
Fixed, regardless of hours/effort
• Clear and well-defined scope
Fix
• High knowledge retention
e d
• Low risk in terms of scope
• Professional project management

Contract, based on hours/effort
• Fixed project duration
• Defined objectives and
milestones
Tim • Estimating precise budget and
ea timeline
• Buyers’ involvement
nd
• Spend visibility
Ma
ter
ali
Sources: Industry Newsletters, Supplier Interaction Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 39
Pricing Models (2/2)
The below representation indicates the typically adopted model under various phases of ERP implementation:
Implementation
Requirement Support and
Package Selection Partner Fit-Gap Analysis Implementation Training
Analysis Maintenance
Selection
Time and Material Model: Phase 1 Fixed Pricing Model: Phase 2

1
Time and Material Model

2
Fixed Pricing Model Time and Material

3
Preferred Pricing Model
• There is no restriction in adopting any pricing model at any stage of ERP implementation
• The pricing models should be chosen based on the buyer maturity and supplier capability
Key Takeaway • In most cases, choosing an appropriate pricing model should be based on:
– The assessment (fit-gap analysis) of customer environment
– The resultant quality of implementation blueprint in the planning phase
Project and Payment Milestone
The below representation indicates the typical payment and project milestones followed in an ERP implementation (company headquarters–1st ERP
implementation):
• For SaaS, the implementation timeline can be close to that of an on-premise implementation, as long as the process and requirement remains the
Key same
Takeaway • Customization is the part in which significant time saving can be achieved. (Note: In SaaS, it is not recommended for more customization, since the
control will be at the supplier’s end)
The roll-out for each subsequent location might take 20–30 percent of the total first location implementation time. The analysis, requirement and
development are largely completed in the first implementation itself, and only minimal amounts of customization might take place to match the regional
requirements, such as language and work nature.
20%
15% 100% 20% 10% 25% 10%
Signing of Licence Fit-gap Sign-off and

Development Deployment Training Support Closure
Contract Purchasing Analysis
IP ERP supplier IP
0 0 0 2 2 6 8 4 12 14 4 18 60 78 3
Week 0 2nd Week 8th Week 12th Week 14th Week 18th Week 78th Week 81st Week
81 Weeks 20.25 Months 1.6875 Years 405 Working Days 567 Calendar Days
Payment Milestone Project Milestone
Sources: Industry Experts, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 41
Licence Types
ERP Licence Types
1 Super User
• Access to all modules:
2 Core Access
• Access to functional
3 Approval Access
• Access only to approve
4 View-only Access
• Access to users only view
top management, modules, with restrictions transactions, based on the reports, but do not
IT/admin team, etc. according to their roles in hierarchy. enter any data or approve
the organization E.g., the purchase manager any transactions
E.g., the store manager can only approves the
access procurement/inventory transactions, while editing is
and will have limited access to done by core users
financial module. (executives)
Named User Concurrent User
• The licences are allocated • At any point of time, a

based on usernames. fixed number of users can
access the ERP system
concurrently (online).
Sources: Supplier Interaction, Industry Experts Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 42
Market Monitoring Insights

Cost Structure Analysis
Cost Categories Contributed Value Impact on Cost

Components
On-premise SaaS On-premise SaaS
• Servers
Hardware cost • Client computers, peripherals 10 percent 5 percent
• Network components
Software cost • Server license (perpetual, subscription) 15 percent 20 percent
• Integration and customization

Implementation
cost • Change management and training 37 percent 35 percent
• Business Process Engineering (BPR)
• Online training, manual/documents

Training cost 9 percent 9 percent
• On-the job training
Support, • Post stabilization support

Maintenance & • Help desk support 29 percent 31 percent
Down Time cost • Maintenance & Downtime
Legend: Low Low–moderate Moderate Moderate–high High
Cost Saving Opportunities
Approaches to Savings Description Impact on Cost Savings Potential
Ensure deactivation of unused • Enterprise can end up paying Annual Maintenance Costs (AMC) for
licenses without penalty unused licenses
Procure license for current

requirements (avoid over • Buyers need no inventory licenses on the shelves, which will
consume AMC of around 20-25 percent of license cost
procuring)
• The level of customization is a key factor, which determines

implementation duration and cost. Customization cost can exceed
Minimal customization up to 10 times that of a software cost. Typically, organizations strive
to limit customization to <20 percent to achieve operational
efficiencies and cost savings
• Leverage internal users during the deployment process (high
employee knowledge transfer), which can reduce the cost and time
of post implementation training
Effective training • Training is vital to achieve 100 percent efficiency. The key factors
influencing the training are user availability/commitment, practical
training, continuous practice, training material, trainer and local
language proficiency and trainer professionalism
• The ideal state for any enterprise to switch from legacy to SaaS
based application, is when the business process and user adoption
Adoption of SaaS
are stable across all the functions. This would help reduce the
customization costs and avoid challenges around compatibility
Legend: Low Low–moderate Moderate Moderate–high High
TCO for On-premise and SaaS Offerings
Direct Cost Indirect Cost

On-premise
10% 15% 25% 12% 10% 15% 9% 4%
Hardware
End-user
and Software Implementation Customization Support Maintenance Down Time
Training
Network
SaaS
5% 20% 25% 10% 12% 15% 9% 4%
1st Year 2nd Year 3rd Year
Cost Incurred on On-premise Deployment Cost Incurred on SaaS Deployment
The above representation indicates the typical TCO incurred in on-premise and
SaaS deployment for five years.
ERP Deployment Models
• Organizations adopting to Cloud & SaaS Factors On-premise Cloud

have seen a larger spike compared to the
Key previous years
Takeaway • Large enterprises can consider SaaS as an Upfront cost
Low High Low High
appropriate option for smaller subsidiaries

or to add functionality in their existing
systems Faster implementation Low High Low High
and utilization
Hardware burden and Low High Low High

internal IT
ERP Deployment Adoption Rate (2021*) Network connectivity High Low High
Low
requirement
Flexible user handling Low High Low High

(add/remove)
26%
Low High Low High
SaaS & Cloud Control
On-Premise
74% Scalability Low High Low High
Low High Low High

Customization
Low High Low High

*We have used the most recent information/data available as 2022 data is not Security
available currently. Actual 2022 information/data will be updated once available
Sources: Beroe Analysis, Industry Expert Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 47
Billing Rates

Billing Rates: Methodology
Overview of Billing
• Benchmark IT Billing Rates for the job roles & region understudy with different level of seniority.
Rates
• Understand the base salary range for the job role under study through various data sources like job portals, salary
guides & expert interactions
• Identify the employers contribution of social security benefits in the region through reports from various auditing &
Methodology consulting firms and expert interactions.
• Estimate the average overhead & profit percentage by collating insights received from IT company’s income statement
and IT industry experts
• Calculate the Ideal Billing Rate Range for a job role in the country under study.
• Negotiation Plan: Before negotiating with suppliers, companies should develop a negotiation plan which includes most
desirable outcome (MDO), where they can achieve maximum discounts and least desirable outcome (LDO), which is
the minimum discount that can be negotiated at the end of the agreement; then the companies should establish goals
and strategies that are definable, measurable and attainable to achieve discounted rates that are closer to most
desirable outcomes
What it Means for • Rates closer to MDO: In case the final negotiated rate cards are closer to the most desirable outcome, clients can
Client? further negotiate with the suppliers on value levers such IP Clause negotiations, acting as references, obtaining
publications and thought leaderships at the same cost etc.
• Rates closer to LDO: If the negotiated rates fall in the least desirable outcome range, there is a scope to reduce rates
by negotiating on profit margins, reducing senior personnel involvement etc.
• If the final discounted rates are not closer to the least desirable outcome, companies can look into the best alternative
to the negotiated agreement. This includes adopting software tools to automate processes, expanding the scope of
internal audit team by allocating some commoditized work, engaging with tier II firms etc.
Source: Industry Experts, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 49
Factors Influencing ERP Rates
ERP Implementation & support rates vary by client as client related factors such as client size, client spend, complexity of implementation, length
of engagement, geographies etc. influence the billing rates.
Supplier-related
Client-related factors
factors
• Size of the client • Type of service provider

• Client spend • Availability of resources
• Complexity of implementation • Client industry expertise of the service provider
• Geographic presence and subsidiaries of the • Capabilities/existing knowledge in the required
organization service
• Length of engagement • Client relationship
• Nature of deployment & delivery model • Requirement of travel
Source: Industry Experts, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 50
ERP Billing Rates
Billing Rate for 2021 (USD/Hour)

Rate Card Description Years of Experience
US UK
1-3 Years 85-120 55-80

Developer
4-7 Years 120-145 80-102
1-3 Years 75-90 45-60

Tester
4-7 Years 85-100 60-80
1-3 Years 80-95 55-80

Application Support Analyst
4-7 Years 95-115 80-102
1-3 Years 95-125 65-85

Business Analyst
4-7 Years 120-145 85-115
12-15 Years 125-170 130-160

Architect (Technical/Solution)
16-20 Years 165-200 165-190
12-15 Years 130-170 125-145

Project Manager
16-20 Years 170-190 140-175
Program Manager 20-25 Years 185-220 175-210
Source: IE 3 Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 51
Supply Analysis

Supply Trends and Insights
• Global suppliers are developing user-friendly interfaces and functionalities, moving away from the
existing high degree of complexity in software
• Upward trend, portraying increase in cloud deployment of ERP over on-premise solution, owing to cost
savings and ease of access to applications through cloud and mobile devices
01
Global/Regional
• ERP suppliers are investing heavily in increasing business intelligence, big data and analytics capabilities,
where ERPs will not only be used for data reporting but also enable the customers in robust and
intelligent decision-making
• Enabling flexibility in deployment options. Hybrid cloud model in which an organization combines on-
Supplier premise applications with cloud applications in its broader ERP package
ERP Supplier • End of Legacy System: Products such as Oracle EBS, Microsoft Great Plains, and Epicor Prelude are less
Perspective likely to introduce new capabilities or provide long-term support. This will force enterprises to migrate
towards a cloud based ERP solution or the latest ERP suite from the above suppliers
• Suppliers are highly fragmented in the mid-market segment
• Tier-II market players follow a vertical strategy, in which they limit their expertise to focus only on a few
02
specific industries.
• Increased trend towards globalization, where suppliers are building a greater amount of international
presence, either directly or through channel partners
Tier-II/Local • The mid-market segment has seen growth in increasing the number of SaaS ERP, due to reduced
Supplier implementation and operational costs
• Open-source ERP suppliers are evolving with a focus to reduce TCO and also enable customization
without access to source code
• Most adopted model (globally): Multi-supplier engagement is being practiced to achieve spend visibility, cost savings and risk
minimization.
• Contract length: 1.5–3 years
Engagement Pricing strategy Preferred Phase Benefit
Trends Fixed pricing Implementation High knowledge retention
Pricing strategy Preferred Phase Benefit

Time and Material Support and Maintenance Achieve greater spend visibility
Sources: Beroe analysis, Industry Experts, techtarget.com, cio.com Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 53
ERP Software Offerings from Tier-I Suppliers
• Tier-I ERP suppliers include SAP, Oracle and Microsoft Business Solutions/Microsoft Dynamics. They are normally complex
Key
and robust and are widely adopted by large organizations who posses complicated business operations and structures.
Takeaway
• The key suppliers who promote cloud ERP products are SAP S4HANA, Oracle Cloud, Microsoft Dynamics 365 and Infor Cloud
• SAP Business All-in-One

• SAP Business ByDesign
• SAP Business One • Fusion Applications—
• SAP Business One Cloud Governance, Risk and • Infor CloudSuite Solution
• SAP Business One, Compliance • Infor CloudSuite
version for SAP HANA • Fusion Applications—
Industrial (SyteLine)
• Fusion Accounting Hub
SAP Business One, • Infor LN • Microsoft Dynamics
• Oracle E-Business Suite
analytics powered by • Infor Distribution SX.e CRM
ERP Solutions
SAP HANA • Infor M3 • Microsoft Social
• PeopleSoft ERP
• SAP Business One • CloudSuite Financials Engagement
Solutions
Mobile App • JD Edwards and Supply • Microsoft Dynamics
• SAP ERP EnterpriseOne ERP Management Marketing
• SAP S/4 HANA Solutions • Microsoft Dynamics AX
• SAP Success Factors • JD Edwards World ERP • Microsoft Dynamics NAV
Solutions • Parature from Microsoft
• Oracle Financials Cloud
• Oracle Project Portfolio
Management Cloud
Mi
c
SA Ora Inf
or Dy roso
P cle nam ft
ics
Sources: sap.com, oracle.com, infor.com, microsoft.com Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 54
Service Capabilities of Key Global ERP Suppliers
Services Offered
Service
Providers Distribution
Manufacturing Service Marketing Supply Finance Human Sales CRM and Sourcing and
Chain Resources Inventory Procurement
SAP          
Oracle          
Infor          
Microsoft
Dynamics          
Sage          
Epicor          
Sources: Beroe Analysis, sap.com, oracle.com, infor.com, microsoft.com, sage.com, epicor.com Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 55
Frequently Shortlisted Supplier Ranking by Industry and Employee Size (1/2)
Company Size
Below 100 100–500 500–1,000 Above 1,000
Industry
• E2 Shop System • Oracle JD Edwards • IFS Applications

• IQMS SAP Business By Design SAP Oracle
Aerospace and • • •
Defence • Exact Global Next Enterprise IQ Infor SAP ERP Core Finance
• • •
• E2 Shop System Ramco Aviation Ramco Aviation Ramco Aviation
• • •
• NetSuite • Infor • S2K Enterprise • Oracle

Management Software
Automotive • Exact JobBOSS • Syspro • SAP ERP Core Finance
• SAP Business By Design
• Acumatica • IBM OpenPro • Xledger
• Pronto Xi
• Epicor • SAP Business One • NolaPro • SAP ERP

Banking • Hubble • OASIS • IBM OpenPro • Oracle
• Sage ERP • Microsoft Dynamics • SAP • Xledger
• Sage 300 Construction • PENTA Construction ERP • Unit4 Business World

Real Estate • Oracle JD Edwards Software
Construction/ • • AXIO for Professional
Design Spectrum • Sage 100 Contractor • Costpoint 7 Services
•
• Jonas Enterprise
• InFocus • Pronto Xi • SAP
• ProcessPro Premier
• Intacct • DEACOM ERP Software • SAP ERP Core Finance
Consumer Products • BatchMaster ERP
• Aplicor • S2K Enterprise • Xledger
• Exact Globe Next • Oracle JD Edwards Management Software • Oracle
Sources: Industry Experts Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 56
Frequently Shortlisted Supplier Ranking by Industry and Employee Size (2/2)
Company Size
Below 100 100–500 500–1,000 Above 1,000
Industry
• Microsoft Dynamics AX • Microsoft Dynamics GP
• Intacct
Food/Beverage • VIENNA Advantage ERP & • NetSuite
ERP-ONE • IFS Applications
CRM • Entrée • Pronto Xi
• Exact Macola • bcFood • Oracle JD Edwards
• abas ERP • IBS Enterprise • SAP Business All in one
Healthcare • EVO – ERP
• Exact Globe Next • IBM OpenPro • Epicor • Oracle JD Edwards
• Microsoft Dynamics • ePROMIS • Pronto Xi
• Microsoft Dynamics for
• NetSuite Retail • SAP S/4HANA
Retail • Blue Link • Epicor • SAP Retail
• Retailops • NolaPro • Pronto Software • Oracle Retail
• OASIS
• Infor Discrete • Oracle
• Exact MAX • ECi M1 Manufacturing Essentials
Manufacturing Manufacturing • EnterpriseIQ • SAP ERP Core Finance
Syspro • Infor Process
• Exact Globe Next • Microsoft Dynamics AX • SAGE Manufacturing Essentials
Transportation & • Microsoft Dynamics AX • Kenandy Cloud ERP • SAP ERP Core Finance
• Lawson M3
Logistics • NetSuite • Standard ERP • Microsoft Dynamics GP • SAP Business One
• Composity • Ramco • Oracle
• Bizautomation • IBM OpenPro
Technology • Microsoft Dynamics GP • SAP
• Vorex • Epicor • Carillon ERP • Oracle JD Edwards
• Acumatica • SAP Business One
Sources: Industry Experts Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 57
SAP
Geographical Presence CEO Christian Klein Company Type: Public

Germany (HQ), Global Website: www.sap.com Year of Establishment: 1972
Sectors Headquarters Revenue (FY 2021)
Aerospace and defence, automotive, chemicals,

communications, consumer goods, education and research,
construction and engineering, financial services, healthcare, SAP SE–Walldorf,
health sciences, high technology, hospitality, industrial Dietmar-Hopp-Allee 16, €27.8 billion
manufacturing, insurance, life sciences, media and 69190 Walldorf
entertainment, natural resources, oil and gas, professional
services, public sector, retail, travel and transportation, utilities, Tel.: +49 (0)6227/7-47474
wholesale distribution
Key Achievements/Certifications/Major Updates Service Capability Operating Profit (FY 2021)
• In January 2022, SAP announced that it is

€4.7. billion
purchasing leading Working Capital Management
firm, Taulia. Taulia has been a key SAP partner and Platform and technology, asset management,
over 80 percent of its client base deploys an SAP commerce, finance, human resources,
ERP system manufacturing, marketing, R&D/engineering, sales, Cash Flow from Operations
• May 2021: SAP S/4 HANA positioned as market service, sourcing and procurement, supply chain, (FY 2021)
leader by Gartner for Cloud core financial sustainability
management suite for midsize, large and global
enterprises €6.2 billion
Sources: sap.com, reuters.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 58
Key Global Supplier SWOT: SAP
• SAP is the leader in the ERP software market • Lack of product diversification when
• SAP provides industry-specific functionalities compared to its competitors, like Microsoft
with minimum customizations, benchmarking and Oracle
abilities and world-class industry experience • Lack of solutions for the SME market and
• A pioneer in cloud-based talent management expensive solution
software, based on its product and service • SAP contracts often result in excess spending
offerings during implementation because of the trouble
• SAP caters to diversified end-user industries, associated with introducing such complex
thereby reducing industry-specific risks and framework within enterprises
broad geographical presence
SWOT
• The SaaS infrastructure market represents

growth opportunity, thereby reducing the
cost incurred on hardware and operating • Potential risks from exchange rate
expenses fluctuations
• Uplifting standpoint for the enterprise • Hardware support may become obsolete
mobility market • Niche solutions often provide better
• Increased focus on IoT solutions capabilities and are less expensive
• SAP is quick to exploit this opportunity to • Pricing pressures, due to intense competition
enhance its big data offerings in line with ERP
Sources: Beroe Analysis, sap.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 59
Oracle
Geographical Presence CEO: Larry Ellison Company Type: Public

Global Website: www.oracle.com Year of Establishment: 1977
Sectors Headquarters Revenue (Q2 2022)
Aerospace and defence, automotive, chemicals,

communications, consumer goods, education and research,
construction and engineering, financial services, healthcare, 2300 Oracle Way,
health sciences, high technology, hospitality, industrial $10.4 billion
manufacturing, insurance, life sciences, media and Austin, TX 78741 US
entertainment, natural resources, oil and gas, professional Tel.: +1 737 867 1000
services, public sector, retail, travel and transportation, utilities,
wholesale distribution
Key Achievements/Certifications/Major Updates Service Capability Operating Loss (Q2 2022)
• In December 2021, Oracle signed a definitive

agreement to purchase Cerner, a pioneer in Business analytics, business process services,
offering digital information systems $0.8 billion
customer experience, CRM, enterprise content
• September 2021: Oracle launches Fusion management, enterprise management, ERP, financial
Marketing, fully automated lead generation and management, governance, risk, human capital
qualification solution management, marketing cloud, master data Cash Flow from Operations
management, database and IT infrastructure for SAP, (Q2 2022)
• August 2021: Oracle named as market leaders by oracle for mid-size companies, procurement, product
Gartner for cloud ERP for product centric lifecycle management, project portfolio
enterprise management, social relationship management,
$1.7 billion
• Oracle launches integrated, High Performance supply chain management, sustainability
Analytics Engine for MySQL database services
Sources: oracle.com, reuters.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 60
Key Global Supplier SWOT: Oracle
• Oracle strengthens its ERP market • Heavy dependence on the U.S. and
with inorganic and a number of high European market, lack of solutions for the
profile, acquisitions. SME market
• Strong finance and accounting • Lack of Asian marketplaces
functionality • Heavy reliance on M&As rather than
• Diversified geographic presence and direct market entry
customer base • Declining hardware system business
• The advanced pricing module
supports complex pricing scenarios.
• Sustainable margins and cash flow
conversion rates
SWOT
• Increased spending by companies for • Competition from open source software

enterprise software providers
• Increased adoption of cloud computing • Increasing adoption of NoSQL database
services poses a threat to the company's
• Oracle expanded its product line with the traditional relational database business.
addition of new cloud products to its • Intense competition, leading to pricing
existing portfolio. pressures
• Tapping of cloud and mobile infrastructure
market in the APAC region, where the
cloud market is in its nascent stage
Sources: Beroe Analysis, oracle.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 61
Microsoft
Geographical Presence CEO: Satya Nadela Company Type: Public

Global Website: www.microsoft.com Year of Establishment: 1975
1 Microsoft Way, Redmond,

Retail, service industries, manufacturing, distribution, WA 98052-6399 $168.1 billion
financial services, public sector US
Tel.: +1 425 882 8080
• In January 2022, FedEx and Microsoft unveiled a

new cross-platform logistics solution for e- $69.9 billion
commerce that looks to enhance merchant
competitiveness in the e-commerce vertical by
enhancing customer engagement and offering Sales, service, marketing, social, ERP, small and mid-
better shipping options Cash Flow from Operations
size businesses (FY 2021)
• July 2021: Infor positioned as leaders in Nucleus
Research ERP Value Matrix
• May 2021: Infor positioned as a market leader for $61.3 billion
multi-enterprise supply chain network by Gartner
Sources: microsoft.com, reuters.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 62
Key Global Supplier SWOT: Microsoft
• Strong R&D capabilities across • Selecting à la carte options or

regions partner solutions will drive up TCO,
• Solid financial position across its thereby affecting ROI.
business operations • Microsoft caters only to Small &
• High flexibility Medium size enterprises.
• Ease of customization and
integration
• Simpler UI
• Lower TCO when compared to its
competitors
SWOT
• Increasing adoption of cloud • Threat due to software piracy in the

computing services emerging market that leads to the
• Engagement in M&As decline of its PC market, which
• Expanding its focus of end-user accounts for 70 percent of the
industries, in terms of ERP software company’s overall revenue
• Extend its solution to large-sized • Increasing open source ERP
companies • Government litigations and
regulatory activities
• Tough competition in the ERP
software market
Sources: Beroe Analysis, microsoft.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 63
Infor
Geographical Presence CEO: Kevin Samuelson Company Type: Private

Global Website: www.infor.com Year of Establishment: 2002
Sectors Headquarters Revenue
Aerospace, defense, automotive, chemicals, Infor

distribution, equipment, dealers, rental and service, 641 Avenue of the Americas
fashion, financial services, insurance, food & NY 10011 NA*
beverage, healthcare, high tech, hospitality, industrial US
machinery and manufacturing, public sector Tel.: +1 646-336-1700
Key Achievements/Certifications/Major Updates Service Capability EBITDA
• In October 2021, Infor purchased Lighthouse

Systems, a pioneer in manufacturing execution
system (MES) software for smart manufacturing NA*
• July 2021: Infor positioned as leaders in Nucleus Customer experience suite, enterprise asset
Research ERP Value Matrix management, enterprise financial management,
• May 2021: Infor positioned as a market leader for enterprise performance management, ERP, human Cash Flow from Operations
multi-enterprise supply chain network by Gartner capital management, product lifecycle management,
supply chain management
• December 2020: Infor named as leaders in world
wide SaaS & Cloud enabled asset intensive EAM NA*
application and world wide Point of Sale
applications in QSR by IDC
Sources: infor.com, reuters.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 64
Key Global Supplier SWOT: Infor
• Robust adoption of cloud services and leader • Lack of brand identity in HCM & Services
in inventory management space.
• Intuitive and customizable UI design
• Inexpensive when compared to its peers
• Low TCO
• Infor develops software for specific parts of
broad industries (vertical growth strategy)
SWOT
• More expansion in emerging • Dependence on third-party cloud for

markets hosting
• Product innovation • Fluctuating international currency exchange
• Developing diversified products and rates
services • Competition from open source ERP
providers
Sources: Beroe Analysis, infor.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 65
Sage
Geographical Presence CEO: Stephen Hare Company Type: Public

Global Website: www.sage.com Year of Establishment: 1981
Sage (UK) Limited,

Accountants, start-up business, small business, C23 5 & 6 Cobalt Park Way,
midsized business, construction and real estate, Cobalt Business Park, Newcastle upon Tyne, £1.8 billion
wholesale distribution, manufacturing NE13 9AA
Tel.: + 44 (191) 294 3000
• In January 2022, Sage completed the purchase of £0.3 billion

Brightpearl, a cloud-based multichannel retail
operating system for retailers and wholesalers
Payment processing, managing people and payroll,
• July 2021: Sage launches new partner program to Operating Cash Flow
managing your entire business, managing accounting
promote partner growth. (FY 2021)
and finances, managing customer relationships
• May 2021: Sage received the highest score for core
financials for lower and midsized enterprise use
case 2021 by Gartner £0.4 million
Sources: sage.com, reuters.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 66
Key Global Supplier SWOT: SAGE
• Strong geography-wide customer base • Narrow feature sets that limits the ERP
• Strong market position in both established and only for SMEs
emerging markets • Lack of branding compared to its peers
• Second largest provider of ERP to SMBs
• Large network of partners and suppliers,
enabling its distribution capabilities
SWOT
• Hybrid cloud strategy • Lack of rapid adoption to technological

• Increasing adoption of cloud computing changes and advancements
services • Risk from exchange rate fluctuations
• Tap the opportunity created by the • Fierce competition in the SMB market
growing complexity of tax laws, thereby
creating a specific module for tax
• Developing diversified products and
services
Sources: Beroe Analysis, sage.com, Annual Reports Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 67
Procurement Centric Five Forces Analysis for Global ERP Market
• Global ERP companies have less dependence on Supplier Power Buyer Power • The global ERP supplier market is consolidated,
implementation partners with the top four suppliers holding over 60
• They have all knowledge in-house and develop percent of market share
their products by themselves. The resulting • There is not much gap between the pricing of
bargaining power of suppliers is no real threat competitor's products, which significantly
• The cost of outsourcing to develop products has reduces the buyer power
significantly enhanced the abilities of software • Global suppliers target large-sized buyers, where
companies to negotiate, in terms of setting up Barriers to Intensity of Threat of pricing is not a key component in influencing the
their operations, and has hence reduced the New Entrants Rivalry Substitutes buyers’ decision, thereby reducing the buyer
supplier power power
• The cost of migrating from an existing supplier • Acquisitions reduce competition and
to another is very high, hence the buyers tend consolidate the ERP market share, which
to stick with one supplier itself significantly reduces the buyer power
• The barrier to new entrants is medium, they • The ERP software market is mature enough that • The threat of substitution is low
penetrate the market with their niche service competition turns from features to price
capabilities and technologies • Open-source ERPs can be substitutes, but they cannot
• There is intense rivalry among country-specific compete with global suppliers offering a wide range of
• The threat for new entrants, who can develop ERP suites, which is better adapted to local, service capabilities
ERP for all business process, is low since it legal and tax conditions
requires high investment, and the market is
dominated by large players. However, there are • Risks are divided, and so are the shortcomings
new niche suppliers, who develop products and improvements
focused on a specific business process
Low Medium High
Note*: Supplier Power refers to the negotiation leverage direct Tier 1 suppliers to business hold and not the supplier’s supplier(s)”
Sources: Beroe Analysis, Industry newsletters Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 68
SLAs and KPIs

SLAs and KPIs
Definition: Tolerance Level
1 CRITICAL
Breakdown or crash of ERP
2 HIGH
Drastic decrease in ERP
3 MODERATE
Moderate decrease in ERP
4 LOW
No impact on daily business
application that has critical performance that has an performance that has operations but which has
impact on running the impact on business functions minimal or no impact on affected or may affect a
production server and that and the risk of data loss, daily business functions and minimal number of ERP users
has affected or may affect which may affect 10–50 no impact on data integrity,
>50 percent of users percent of ERP users which has affected or may
affect <10 percent of ERP
users
ERP Availability SLA: Business Operations
Acceptable
Level Acceptable Percentage of incidents Acceptable
Availability of highly critical Availability of moderately Level Level
99.5– completed within the
business systems critical business systems
95–98% defined resolution criteria 90–95%
99.8%
ERP Performance SLA: System Response Time
End-to-end response time Capable of supporting 200 Planned down time for
Acceptable Acceptable Acceptable
should be <2 seconds. Level concurrent users for access Level upgradation, bug fixing, Level
(e.g., end-user to core to internet maintenance, etc., should
99.5% 98% 95%
application and back) portal and core application not be >4 hours
SLA Penalties (1/2)
Availability and Performance

Minimum SLAs at Critical Level
Between Between Between
Below 90%
99.5% and 99% 99% and 98% 98% and 90%
Escalation to buyer, which may

2% 5% 10% lead to partial payment of only
50 percent
Penalty by Quarterly Payment (Percent)
ERP Maintenance and Support

Tolerance Level SLA: Minimum Service Level Penalty by Quarterly Payment
Between 98% and 95% 5%
Critical
<95% 10%
Major
<95% 5%
Minor
<95% 5%
Note: All minimum service level SLA compliance are against total tickets received for this particular service level. SLA will be in place on post go-live stabilization period.
SLA Penalties (2/2)
Support and Maintenance SLA
Action Tolerance Level Duration Expected Actions
Critical 1 hour
• Initial review, category identification, information

High 4 hours with the problem report
Initial Response • Assign the work to individual for analysis
Medium 8 hours • Respond to people concerned who raised the
issue
Low 16 hours
Critical 4 hours
High 1 working day • Detailed analysis of the problem report, root

cause analysis, potential risk/impact
Complete Analysis/Resolutions
• Estimation of the effort is based on the resolution
Medium 7 working days and closing of the problem
Low 10 working days
Note: All SLAs are for a typical ERP in a large enterprise, and there can be minimum fluctuation based on the type of business operation. (E.g., Compared to the construction sector,
CPG companies make money, based on daily production and B2C market. In this case, they will try to maintain tight SLA for efficiency.)
Sustainability Initiatives

Sustainability Initiatives
Overall Sustainability Impact/Adoption Level on Enterprise Resource Planning LOW MEDIUM HIGH
Procurement
Bio-Diversity Carbon Emissions
• Microsoft is collaborating with Esri, a • SAP consists of a set of solutions to reduce the
geographical information software firm to carbon footprint by gathering relevant data from
integrate data from satellites, ground-based SAP S/4HANA, curate the data with emission
devices, and user-sourced data to create an factors for certain categories, calculate the
environmental database for AI-driven analysis to product footprint across the product lifecycle,
respond to questions specific to planetary health and track & assess the calculated product
and sustainability footprint
• Some of the biodiversity applications include • In SAP’s 2021 half-yearly report, it has reduced
offering wildlife biologists with habitat its 2021 carbon emissions outlook from 145
information and reliable measurements of forest kilotons to a range of 90–110 kilotons
borders to aid preservation initiatives • To make sure, it becomes carbon neutral in its
own operations by 2023, SAP follows a three-
step approach: Avoid: whenever applicable;
Reduce: When greenhouse gases are
unavoidable, it tries to minimize them through
innovations by improving efficiency and
minimize all types of emissions; Compensate: For
business flights, SAP has announced an internal
carbon price to offset associated carbon
emissions

Purchasing Process: RFP/RFI Builder

RFP Builder (1/6)
Before floating a Pre-qualification RFP questionnaire, companies must ensure that the supplier signs a non-disclosure agreement and the timelines
are set out in particular to complete the survey.
General Information: Supplier Details

1 Supplier Name
2 Head Office Address
3 Regional Office Address
4 Company Website
5 Year Founded
6 Revenues (Global, by region and service line)
7 Service Line Capabilities
8 Regional Capabilities (Level of Coverage by region and country)
9 Indicate number of permanent employees by region (North America, Europe, APAC, LATAM)
General Information: Client References & Market Position
1 List minimum five customer references with respect to ERP solutions in your major operating regions (preferably same as buyer industry)
2 Who do you consider to be your largest competitors? What is the competitive advantage you have over your competitors?
3 List the authorized service, implementation and support partners globally
4 Who are your top three clients? What percentage of your revenue do they comprise?
5 Are you an ERP product company or ERP consulting firm?
RFP Builder (2/6)
Functional and Service Capabilities
1 What all version of ERP does the system integrator support?
2 Please list the type of deployment options supported?
3 Integration capabilities supported by the supplier
4 Ability to support the analytical requirements
5 List of Remote access methods available during implementation and support
6 Web portal and service capability for internal and external users
7 List of detailed functional requirements to be supported
8 Approval mechanisms supported in the application
9 Various testing mechanisms adopted during implementation
10 Project Management and Implementation Methodology
11 Do you support Greenfield implementation
12 Do you support Brownfield implementation
13 What are the various training methods adopted by the supplier
14 What are the approach taken to study the existing business process
15 What are the different documents do you provide during the course of implementation
RFP Builder (3/6)
Quality & Service Assurance
1 What is the delivery teams structure look like?
2 What is your SLA for bug fixing?
3 What is the typical time for acknowledgement of service request?
4 What is the typical resolution time for service requests?
5 How are product change details communicated? Are there automated alerts for bug-fixes, patch updates, version updates etc.?
6 Is there a dedicated portal to raise service or change requests? What are the available communication channels? Please indicate (if applicable)
7 What are the steps taken to ensure data privacy and security.
8 Risks associated with loss/damage of physical documents and infrastructure
9 Please include a statement detailing any potential compliance or regulatory restrictions relating to your provision of this service, if applicable
10 Do you foresee any risks that might impact the engagement success and please state the steps to mitigate the risk?
Pricing
1 What is the pricing model that you support for each stage of the project
2 Detail the various price components including post implementation service and support.
3 What percentage of license fee is charged as support fee?
4 What is the credit period (30 days/60 days/90 days, etc.) and payment models available?
5 Various Licensing models offered
RFP Builder (4/6)
Cost
1 Please state your standard rate offered by country by job role
Sample 2: Fee Breakdown template (Time & Materials Model, with Capped fee)
Country 1
Standard Job Proposed Rates (Hourly/Daily) Days During Days During Days During Days During
Roles* [Week/Phase/M [Week/Phase/M [Week/Phase/M [Week/Phase/M Total Days Total Fee (Excl.
VAT)
Regional Currency US $ onth] 1 onth] 2 onth] 3 onth] 4

• *Please list the standard job role which is equivalent to the roles with in your organization. Standard Job Roles are: ERP Technical Developer, ERP
Support Analyst, Project Manager, ERP Consultant, Test Analyst (Manual), ERP Administrator, etc.
• Please add or delete days by week/phase/month as required
• Please complete a day rate excluding VAT and expenses for each role type and in each region
• Hourly rates will be 1/8th of the day rates
RFP Builder (5/6)
Service Delivery
1 Do you have prior experience working with the company of the similar size?
2 Have you worked on similar projects or consulted with other companies facing the similar issues? (YES/NO)
3 Please provide a brief case study of your recent project that is similar to this activity? (Details to be included are project year and location, size
of team, length of engagement, services offered and results/outcomes achieved)
4 Please also list up to five other clients where you have also done the similar work during the last two years?
Please describe the structure and composition of your team, including the list of the Personnel such as Key Experts, Non-Key Experts, and
5 relevant technical and administrative support staff.
6 For proposed core project team, please provide a detailed background of the consultants. Include names, grades, brief bios (1/2 page max.)
detailing relevant experience: such as their roles on above listed case studies, and their proposed role on this project
7 Can you supply a dedicated global account manager for our company?
8 Can you supply a quarterly summary of work carried out and overview associated with the work?
9 How often do you provide debriefs of the work in progress? (weekly/bi-weekly, etc.)
10 How do you ensure knowledge and skill transfer through out the project so that any dependency is minimized?
11 Do you intend to subcontract part of the work (For example, any specific service line in the category)? If so, to whom
12 If subcontractors are used, please indicate their specialization?
RFP Builder (6/6)
COVID-19-Specific Questions
As it is currently not possible to work onsite, how will your firm engage with key stakeholders, particularly on project kick-off, and develop the
1 relationships required to act as trusted advisors?
2 Please confirm if the meetings, trainings and conferences will be conducted through teleconference
3 What are the collaboration tools used for calls and teleconference meetings?
4 Please confirm whether the current pandemic presents any risks to your ability to deliver this project and if so how these will be mitigated?
5 Please confirm the steps you are taking to ensure that our and your resources are protected from COVID-19 infection
Noting the increased level of home working, please confirm the steps taken by your organization to ensure data/information security in this
6 environment
Please confirm your organization's compliance with our Information Security Policy (such Policy to contain requirements relating to home
7 working)
3 Please confirm the maximum percentage of fees you will charge as expenses (The expectation is now 0 percent for international travel.
However, please specify if travel is necessary to countries with low COVID-19 cases)
4 Please mention if you will be using low cost resources and specify the cost benefit to us
Please mention any reasonable contingency amount to cover any additional costs and expenses that may become payable due to COVID-19,
5 such as potential demobilization, remobilization, hotel expenses due to quarantine, etc.
6 In case travel is necessary, please indicate the arrangements that will be made for your consultants for quarantine
7 Are you willing to be flexible in payment terms? If yes, please specify the payment practices adopted during the pandemic
ERP Risks & Dispute Resolution

ERP: Risks and Challenges
Key
The causes of ERP failure have been categorized under six headings: Tactical, Strategic, Technology, Process, Cost and People.
Takeaway
• Ineffective training
• Missing subject-matter expertise
• Lack of user engagement
• Lack of decision-makers
• Inadequate resources
• Unrealistic expectations
• Lack of user interest in change Tactical • Lack of finding and solving incidents
• High project team attrition • Lack of inter-department structural and
functional requirements
People
• Ineffective OCM
Strategic
• Improper/unrealistic project
scheduling
• Poor project management
• Exceeding budget cost ERP Failure/Litigation
Cost • Lack of commitment from the top
• Unrealistic ROI management
• Improper team composition
Technology
Process/ • Lack of quality in BPR
Functional • Lack of IT infrastructure
• Unfit timing for go-live
• Extreme customization
• Lack of right users for UAT
• Inaccuracy in data
• Lack of quality testing
• Improper package selection
• Lack of knowledge transfer
• Lack of knowledge in legacy system
Sources: Beroe Analysis, Supplier Interaction Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 83
ERP: Dispute Resolution & Termination
What are the typical damages and corresponding Penalty clause in ERP Implementation?
• If the supplier delays the scheduled completion by a week, then a buyer can penalize the sum of 0.5–1 percent of total ERP contract price/next
project mile stone excluding the AMC/ATS charges.
• If the project goes beyond the project completion date by 10 percent of total time, the buyer can penalize up to maximum of 10–15 percent of the
total contract price excluding AMC
What are the typical dispute resolution process and the ideal reasons for ERP failure/Lawsuits?
Resolution of
Steering Committee Two Arbitrators Middlemen (Umpire) Termination/Lawsuit
Disputes
30–60 days notice

30 Days from start of (From supplier and Final Proceeding for 10–20 percent of
issue (informal) Company End) Resolution Termination charges
TCV
In General, the contract termination happens on the following conditions,

• Reached maximum limit as per Damages and Penalty clause
Termination
• Very low quality in deployed manpower (On shore/Offshore services)
• Low quality in service (Response/Reporting etc..)
Sources: Beroe Analysis, Supplier Interaction Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 84
COVID-19 Section

CATEGORY SUMMARY: COVID-19 IMPACT
February 2022
INSIGHT ON CATEGORY IMPACT: The deployment of ongoing and planned ERP implementations is likely to get impacted.
Cloud Adoption of Resource

Infrastructure Lead Time for Virtual Adoption of Availability
Adoption IT Spend Deployment Connection Industry 4.0 Onsite
PRE-COVID
(2019)      
COVID
(February 2022)      
 Increase beyond 3 percent
 No significant change
 Decrease beyond 3 percent
End-user Industry Update
Retail

Retail ERP Software: Core Modules and Functionalities
Supply Chain Merchandizing Corporate

Customer Management
Management Management Store Management Management
Sourcing Pricing & Campaign POS Business Intelligence Sales Management
Distribution Promotions Workforce Management Real estate Management Marketing Management
Advanced Store
Replenishment Allocations Asset Management Customer Service
Technologies
Mobile Device
Inventory Category Management Gift Registry CRM
Management
Purchase order
Space Optimization Back Office Integration Finance Call Center
Management
Warehouse Trade Management Central Office Performance Management Customer Loyalty
Transportation Sales Audit Labels & Tags IT Management Preferences
Reverse Logistics Invoicing matching Mobile POS HCM Promotion Analytics
Store Inventory
Procurement Merchandizing System Customer insights
Management
Membership Retention
Store Allocation Physical Store Returns Management
Analysis
Advanced Planning Online Store Loss Prevention Survey Score Analysis
Foreign Trade Mail & Catalogue Catalogue Management Customer Lifetime Value
Sources: Supplier Websites, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 88
ERP Deployment: Migration To Cloud
• It has been estimated that over 55 percent of the retail customers approach hybrid deployments in ERP implementation with smaller core
applications on premise and the rest on cloud
Key • Customers are stagnant in adopting cloud for their core supply chain and business intelligence modules due to data dependencies, information
Takeaway security and data migration constraints. Owing less data security requirements and decreased operational cost (TCO), greater cloud adoption is seen
in implementing CRM and merchandizing modules
Supply Chain & Procurement (2021) BI & Analytics (2021)
21%
28% 24%
31%
Migrated Migrated
Currently Migrating Currently Migrating
Future Migration Planned Future Migration Planned
No Migration Planned No Migration Planned
19%
19%
29%
29%
CRM and Marketing Automation (2021) Merchandizing (2021)
18% 13%
31% 33%
Migrated Migrated
Currently Migrating Currently Migrating
Future Migration Planned Future Migration Planned
No Migration Planned 29% No Migration Planned
26%
25% 25%
Sources: Supplier Interaction, supplier websites, Industry Expert 1, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 89
Factors influencing Cloud Deployment of ERP: Retail
Factors Importance Key

Takeaway
Data Security Requirements Low High • Over 70 percent of the retail industry in North America have
already adopted ERP deployments on cloud, and 20 percent
have exhibited their interest in moving to cloud in the future.
Application performance Low High
• Retail cloud provides efficient collection of enormous data
generated from POS systems at the retail end; analyzes the
Infrastructure resilience Low High sales data in real time enabling sacrosanct inventory
management
Regulatory Compliance Low High • Advanced cloud servers link supply chain to independent
cash points on retail outlets. These servers provide secure
and accessible storage that can track performance of
Customer Considerations Low High
commodities in comparison to various time period
• Adoption of Cloud-based ERP will enable the retail team to

Geographic Considerations Low High
access the data through mobile, which is an upcoming
technology. The data can be accessed on the Go, instead of
depending on a work-station
Supply Chain Considerations Low High
CAPEX and OPEX trade off Low High
Sources: Industry Journals, Supplier Websites, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 90
Retail ERP Supplier Project Team (1/2)
Key In order to enable the implementation of ERP, customers need to have check on the talent pool that would be involved in the entire project life cycle.
Takeaway The team should possess the following structure with listed minimum expected experience, certifications etc. for an effective ERP implementation.
Project Director Project Manger Solution Architect Technical Architect Functional Lead
• Project Director must be PMP • Professional qualification • Professional qualification with • 15 years total experience • Professional qualification
certified with at least 15 years total at least 15 years total including 8-10 years of ERP with at least 10 years total
• Professional qualification experience including experience including experience experience including 6-8
with more than 20 years total minimum 8-10 years of ERP • Minimum 8-10 years of ERP • Involved in installation of years of ERP implementation
experience including 10 implementation experience implementation experience hardware and operating • At least 3 successful Full life
years’ experience of IT • Involved in managing at least • Involved in at least three system, database, system cycle implementation of ERP
Program Management and 3 successful full life cycle successful full life cycle maintenance, installation of • Demonstrated leadership and
ERP implementation implementation(s) of ERP in implementation(s) of ERP ERP system for at least three managerial skills, as well as
• Should have extensive large organizations (at least including at least one in successful ERP the ability to establish and
experience and proven of the size of customer) retail/trading industry implementations maintain relationships with
expertise in managing multi • Experience of managing • Involved in solution design, • Involved in fit-gap analysis client leadership
module contracts of this type large, cross-functional teams business design in similar jointly with functional
and complexity assignments in the past consultant –identifies gaps
and designs the solution to
address the gaps
Source: Industry Expert 2, Supplier websites Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 91
Retail ERP Supplier Project Team (2/2)
Technical Lead Technical Consultant(s) Functional Consultant(s) Support Team Member Helpdesk Support Staff
• Professional qualification with • This has to be the same • Finance Consultant • ERP Support Experience: • At least three years of
at least 10 years total person who will be deployed • Domain Experience: Minimum Minimum three years with at experience in technical
experience including 6-8 years on the project three years (PSU and least one ERP support support (software, hardware,
of ERP implementation • ERP Experience: Minimum 3 trading/banking) services for a period of one network etc.)
• Involved in installation of • ERP Implementation year • Good knowledge of computer
years with at least two ERP
hardware and operating system Experience: Minimum three • Should able to provide (Microsoft Office, and
end-to-end project
configuration, system years with at least one ERP end- complete hands on support Networking/Hardware
maintenance, installation of
implementation experience
• Involved in providing the to-end project implementation to the customer team at the functions)
ERP system for at least three experience in PSU/retail trading
technical support post go-live location • Good communication skills
successful ERP
and understanding in the
implementations
• Involved in fit-gap analysis components of customers
jointly with functional ERP system deployed
consultant –identifies gaps and
designs the solution to address
the gaps
• Performed data migration
activities
Source: Industry Expert 2, Supplier websites Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 92
ERP: SLAs in Retail Sector (1/4)
The definitions below describe the service levels to be established for the services offered by the retail ERP supplier to its customer. The ERP supplier
must monitor and maintain the stated service levels to provide quality service to the customers.
Service Level Definitions
1
•
Scheduled Maintenance Time
Time period during which the

2
•
Scheduled operation time
Scheduled operating hours of

3 System or Application downtime
Accumulated time during which

4 Incident
It refers to any event/abnormalities

system will not be in service the system for the month the system is inoperable within the in the functioning of the data
due to a scheduled activity • All scheduled maintenance time scheduled operation time but center and data recovery center
• Scheduled maintenance time is on the system would be outside the scheduled equipment/services that may lead
the planned downtime with deducted from the total maintenance time and measured to disruption in normal operations
prior permission of the operation time for the month to from the time customer and/or its of the data center and disaster
customer, during non-business give the scheduled operation employees and/or stakeholders log recovery center, system or
hours time a call with the ERP supplier team of application services.
• The total operation time for the the failure or the failure is recorded
core systems and applications in the when the System is returned
will be 24X7X365 to proper operation.
Availability: The percentage of time for which the services and facilities are available for conducting operations on customers system including
application and associated infrastructure.
(Scheduled Operation Time – System Downtime) 100%

Availability *
(Scheduled Operation Time)
Sources: Industry Experts, Supplier Websites Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 93
• SLA’s to be followed during the operations period of the installed ERP system comprising of a contract period from the date of final go live. On completion
Key of the contract period, it is the customers sole discretion to renew the SLA's for the following contract term
Takeaway • Payment Terms: The services are to be delivered by the ERP supplier with respect to the agreed SLA's. The customer pays the supplier for the services
rendered in fulfillment of SLA, in accordance with the terms of payment schedules
Penalties:
The ERP supplier is expected to provide the following service levels. In case these service levels cannot be achieved (as shown in the table below), it shall invoke the performance
related penalties.
Payment of 40 percent of the equated quarterly payment is linked to the compliance with the SLA metrics. This percentage will be applied to the 40 percent of the quarterly payment
to arrive at the amount payable to the operator for that quarter.
• The ERP supplier will get 100 percent of the quarterly payment (50 percent) if the baseline performance metrics are complied
• In case of lower performance on all the metrics, the supplier will get 30 percent of the quarterly payment of 50 percent
• In case of breach of performance on all metrics, the supplier will get 0 percent of the quarterly payment of 50 percent
Retail SLA
S. No Description Measurement Methodology Tolerance Level Definition
Baseline >=97 percent of the transactions take less than

• The time includes the cumulative time of sending or equal to 2 seconds
Time to load (simulated transactions) the request from the dedicated customer machine
login page or any other page (other over internet to the data center to the time the <97 percent and >=90 percent of the
1 than home page) of the portal that page fully loads on the customer’s machine Lower Performance transactions take less than or equal to 2 seconds
can be viewed by the users without Pages will be defined by the customer based on the
logging into the system. •
criticality and number of visits to the page <90 percent of the transactions take less than or
Breach equal to 2 seconds
Baseline 95 percent of the transactions take less than or

• This looks at the elapsed time between the time a equal to 8 seconds
request (submission of the form including
Request-response time for form attachments) is submitted to the time the response <95 percent and >=85 percent of the
2 submission related services used by (acknowledgement) is sent back. Irrespective of the Lower Performance
users through the portal. transaction type, payment gateway and any transactions take less than or equal to 8 seconds
external agency transaction
• Measurement will be on real time transactions Breach <85 percent of the transactions take less than or
equal to 8 Seconds
Sources: Industry Expert 1, Industry Expert 2, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 94
Retail SLA
>=95 percent of the transactions take less than

Baseline or equal to 3 seconds
Request-response time for workflow This is the elapsed time between the time a request is
interaction/ submitted to the time the response is received at the
workflow based transactions (e.g., customer's site. Lower Performance <95 percent and >=90 percent of the
3 transactions take less than or equal to 3 seconds
retrieval of work Irrespective of the transaction type any external
items,..) of the services accessed by agency transaction times will be subtracted from the
users. total elapsed time.
Breach <90 percent of the transactions take less than or
equal to 3 seconds
98 percent of the transactions take less than or

Baseline equal to 10 seconds
This is the elapsed time between a request submitted

Request-response time for to the time the first page of the document is retrieved <98 percent and >=95 percent of the
4 transactions with document and rendered at the customer's location. Lower Performance transactions take less than or equal to 10
retrieval and rendering services Measurement will be on real time seconds
through portal for the users. transactions.
<95 percent of the transactions take less than or

Breach equal to 10 seconds
Baseline <= 4 hours

Measured during the regular planned/unplanned
5 Recovery Time Objective (RTO) (customer at its discretion can ask SI to do a drill) DC-
DR Drill or an DC/DR outage
Breach Default of the Baseline
Retail SLA
>=95 percent of the transactions take less than

Request-response time for services Baseline or equal to 3 seconds
accessed by users • The time is the elapsed time between the time
(e.g., login (with or without the requests is submitted to the time the response is <95 percent and >=90 percent of the
6 digital signature) and loading the received at customer system Lower Performance
index page, search, view applicant Irrespective of the transaction type, any transaction transactions take less than or equal to 3 seconds
•
details, establishment & finance times will be subtracted from the total elapsed time
functions). Breach <90 percent of the transactions take less than or
equal to 3 seconds
Baseline >= 99.5 percent

• Measured as the availability of select set of end-to-
end services that when executed, cover the
7 Availability of Services for users underlying solution and infrastructure components Lower Performance <99.8 percent and >=99 percent
(e.g., servers, database, content management,
forms)
• The services shall be measured on 24X7X365
Breach <99 percent
Measurement of resolution time from the ticket is >=98 percent of Level 1 tickets should be
logged to the time it is resolved. The tickets include resolved within 4 working hours, remaining 5
Resolution of tickets turnaround time for repairs or replacements, Baseline percent within One Working Day;
logged by users (excludes infrastructure and also incident reporting of application >=90 percent of Level 2 tickets should be
8 resolved within 2 working days, remaining 5
tickets for generation mal function.
of ad-hoc reports) Level 1: Operational issues/showstopper percent within Four Working Days
Level 2: Workaround available
Level 3: Modifications or bug fixes
Breach Default of the Baseline
Retail ERP Pricing: License Types (1/2)
Key Retail ERP applications are usually provided with user-based licenses. The access to ERP system by the users are hugely specific
Takeaway to their core functionalities in the value chain of customers system.
ERP Licence Types
1 Operational User
An Operational (OP) user is an individual
2 Information User
An Information (IN) user is authorized to
3 Request/Confirmation
Requisitions/confirmations user is
4 •
Partner Channel User
Solely authorized to perform
authorized to access the licensed access the licensed software solely to authorized to access the licensed channel management related roles
software to execute, create, read, perform read-only ERP transactions. software solely for the purpose of supported by the licensed software
update, and delete software This user cannot make any changes to • Submitting purchase requisitions • Enter and update leads and
transactions. This user can also make the existing data or add any new data. • Entering order confirmations opportunities
changes to the database. • Manage channel marketing fund
requests and claims
• Manage service requests, warranty
claims and complaints
Named User Concurrent User

5 Logistics User
Logistics user is a named user solely
6 Supply Chain User
Supply chain planner user is authorized

7 CRM User
CRM user is authorized to
8 •
Mobile Engine User
Mobile engine user is a named user
authorized to perform following tasks to access: CRM software licensed under the who may use the applications of the
for the applicable licensed software • Demand Planning Agreement. A CRM user may extract mobile engine
• Transportation management: • Supply Network Planning and data from any data source into any • Mobile engine provides a platform
– Warehousing Deployment Licensed CRM software and/or push independent framework for mobile
– Track and trace • Supply Chain Cockpit data out of any licensed CRM software scenarios, including mobile devices,
• Production Planning and Detailed into any data source provided Licensee such as palmtop computers,
Scheduling has secured an appropriate license for personal digital assistants and
• Clear-to-build/Backorder Re- all such data source(s) and such use is laptops
Scheduling otherwise in accord with the terms of
• Collaborative Procurement the agreement.
Sources: Supplier Websites Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 97
Retail ERP Pricing: License Types (2/2)
ERP Licence Types
9 Project User 10 Worker User 11 Manager User

12 Procurement
• Project-related resource • Worker user is a named user • Request administrative changes • A procurement self-service and
management, project-related working in licensee’s production using processes and forms collaborator user is a named user
creation, change and display of facilities or as a maintenance contained within human capital who is authorized to perform the
quotation worker who is solely authorized to management following self-service roles
• Order and billing perform one or more of the • Create requisition requests and supported by the licensed software
• Accounting on individual projects following roles supported by the candidate assessments all solely for such individual’s own
• Creation of project-related licensed software • Perform talent assessments and purpose and not for or on behalf of
purchase requests, purchase • Display work instructions, and appraisals other individuals to create shopping
orders and service entry sheets document activities and operations • Plan and approve compensation, carts or requisitions, check, receive
• Product and project related • Confirm goods receipts, goods view budget overview or collaborate items in a requisition
reporting managing project- issues, stock movements and • Organize project management tasks • Request sourcing or contracting
related revenues and expenses completion confirmations into • Approve travel requests and support, review and/or approve
• Viewing Accounts Receivable maintenance work orders expenses, perform workflow tasks items, participate in RFX scoring,
(A/R) General Ledger (G/L) • Enter production order • Manager self-service user also provide supplier feedback, view
postings confirmations includes the rights granted under reports or search system content
• Controlling access and releasing • Record product or production the employee user upload compliance information or
product data and recipes in information, e.g. quality inspection recipe component information.
collaborative product results or plant/process/equipment Each procurement self-service user
development scenarios data also includes the rights granted
• The project user also includes the • Enter production issues and related under the application user
rights granted under the manager service requests, submit purchase
self-service user requisitions for tools, spare parts
for production equipment, etc.
• Enter service requests and service
entry sheet
• Maintenance activities, reporting or
dash-boarding related to the items
set forth above
• The worker user also includes the
rights granted under the employee
user
Sources: Supplier Websites Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 98
Critical Success Factors for ERP Implementation: Retail
• The following are identified to be critical success factors enabling ERP implementation in a retail environment, marked with
Key their level of importance (importance levels are indicated based on the inputs from the supplier assessment survey which
Takeaway includes the top five retail ERP suppliers)
• Top management support, selection of solutions that addresses the existing problem statement at organization level and
ERP user's involvement are found to be the utmost critical factors supporting successful retail ERP implementation
Factors Importance Factors Importance
Low High
Top Management Support Organizational Fit Low High
Low High Low High

Clear Goals and Objectives Partnership with supplier
Low High Low High

Management Of Expectations User Involvement & Participation
Low High Low High

User Acceptance Interdepartmental Co-operation
Low High
Change Management Supplier Support Low High
Low High Low High

BPR & Minimum Customization Use of supplier Tools
Data Management Low High Business Culture Low High
User Training & Education Low High External Consultants Low High
Sources: Supplier Websites, Industry Expert 1 and 2, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 99
Case Study: ERP implementations in Pantaloons Retail (1/2)
• Pantaloons Fashion & Retail Limited is an Indian clothing and retail chain, owned by Aditya Birla Nuvo Limited. The company
holds its strong footprint in the Indian subcontinent with a retail chain of 130 fashion stores across 40 cities and towns spanning
1.7 million square feet, which is amongst the largest in India
Client
• To shut down the business application development from local suppliers

• Cultivate project and business focus among the employees
• Improved store operation and robust enterprise IT support system
• Improved financial tracking across retail locations and support financial accounting across their retail business.
Requirement
• Enhance decision making with well-informed real time sales data’s
Pantaloons decided to proceed with SAP retail ERP solutions. SAP retail solutions offerings for Pantaloon included trend analysis,
supply chain management, distribution and warehousing management, sourcing, procurement management, merchandizing,
financial management, marketing, brand management, CRM, quality management.
Solution
Pantaloons now faced three risks associated with the implementation of new technology
• Technological Risk: Whether the decision to adopt certain new technology is correct or not.
Pre-
Implementation • The difficulties in filling up the voids when trained employees starts leaving the company
Risks • Prime risk was planning the implementation and the danger of investment going wrong
Source: Supplier Website, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 100
Case Study: ERP implementations in Pantaloons Retail (2/2)
Implementing SAP retail ERP solutions was carried out in three phases
• Phase 1: Documentation of existing processes and the fit gaps were analyzed. The SAP retail team worked closely with pantaloon
employees to understand the processes and gaps.
• Phase 2: SAP platform for pantaloons retails was built. The template was designed after carefully evaluating the business needs
Implementation
of Pantaloon
• Phase 3(Go-live phase): This involved Pantaloon retail stores to go live on ERP system. Data’s were imported from legacy system
to the newly installed retail ERP system. The pool of unorganized data of pantaloons were formatted and organized to be
uploaded into the system
• Over 180 Pantaloon retail store locations went live on SAP with more than 2000 users. The project cost was estimated to be over
$ 8 Million
• SAP handled a wide range of functionalities such as merchandizing management, category management, planning and supply
Post
chain management, financials and HR payroll management
Implementation
• Post implementation several additional modules were added to keep the system updated
Over the time period of two years they were able to see the following improvements in their processes
• SAP retail solutions were completely integrated with the POS machines. Furthermore, sales data generated where uploaded into
SAP system automatically updating the inventory movement and financial changes
• Improved business insights with more real time financial information and lower financial costs via convergence of financial
accounting
• Operational benefits includes accounts receivables, reduced from 12 percent to 5 percent and 25 percent more efficient to close
Benefit's finance accounts with ERP in place
Source: Supplier Website, Beroe Analysis Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 101
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Category Intelligence on

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Multi-Tier Supply Alternate Supplier

Understand the Determine trickle From unaffected

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World’s first on-demand procurement

700+ Thought Leadership Artefacts

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DATA SOURCES FOR THE ACTIONABLES

INDUSTRY EXPERTS SUPPLIERS DATABASES Beroe Experience

DESIGNATION & SUPPLIER DESIGNATION & EXPERTISE

Senior Solution Supply Trends and Core modules Database:

Contract & Best

ACTIONABLE INPUT SOURCES

© Copyright 2022 Beroe Inc. All rights reserved. 4

Key Change/Update Description Slide Nos.

Market Snapshot Global Market Size and Growth Rate 16

ERP Deployment Models ERP Deployment Adoption Rate (2021) 47

SAP Revenue Details, Key Achievements/Certifications/Major Updates 58

Oracle Revenue Details, Key Achievements/Certifications/Major Updates 60

Microsoft Key Achievements/Certifications/Major Updates 62

Infor Key Achievements/Certifications/Major Updates 64

Sage Revenue Details, Key Achievements/Certifications/Major Updates 66

© Copyright 2022 Beroe Inc. All rights reserved. 5

© Copyright 2022 Beroe Inc. All rights reserved. 6

Net Supply Global 85–95 % 0 1.25–2.5% 5–10%

Net Demand Global 80–90 % 0 1.25–2.5% 5–10%

© Copyright 2022 Beroe Inc. All rights reserved. 7

Cloud ERP/SaaS High potential Rating – – No significant change

IOT in ERP High potential Rating – – No significant change

Buyer Power Medium Rating – – No significant change

Supplier Power Medium Rating – – No significant change

Intensity of Rivalry Medium Rating – – No significant change

Threat of Substitutes Low Rating – – No significant change

Threat of New Entrants Medium Rating – – No significant change

© Copyright 2022 Beroe Inc. All rights reserved. 8

© Copyright 2022 Beroe Inc. All rights reserved. 9

© Copyright 2022 Beroe Inc. All rights reserved. 10

Market, Costs, Pricing & Industry Best Practices Supplier Analysis

Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 12

Database Management System Customer Relationship

Reporting & Dashboard

NORTH AMERICA LATIN AMERICA EUROPE APAC MEA

US BRAZIL GERMANY AUSTRALIA UAE

CANADA CHILE UNITED KINGDOM INDIA QATAR

MEXICO ARGENTINA FRANCE SINGAPORE SOUTH AFRICA

Value Chain Mapping

Main Partners for a ERP Implementation

Key Expertise Key Expertise Key Expertise Key Expertise

Financial Management Supply Chain CRM Warehouse Management Project Management

Widely used ERP core modules and their functionalities

Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 15

MARKET OVERVIEW 2020*

TOP GLOBAL SERVICE PROVIDERS

CONTRACT PERIOD NEGOTIATION FACTORS PRICING IN ERP DEPLOYMENT TYPE’S

Back to TOC © Copyright 2022 Beroe Inc. All rights reserved. 17

North America MEA

Regions: North America,

Regions ERP Adoption Rate Maturity of Service Providers Maturity of Buyers

North High High High

Europe High High High

APAC Medium High Medium

Sourcing Strategy Multi-supplier  Global  Regional  In-house 

Delivery Model Brownfield Model  Greenfield Model  Hybrid Model 