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Top 15 Digital Transformation Trends in 2025

Top 15 Digital Transformation Trends in 2025

2024 turned out to be another slower year, following the trend of previous years. While there were hopes for a boost in the second half of the year, most companies remained cautious. They were cautious due to uncertainties surrounding the U.S. elections, ongoing geopolitical conflicts, and macroeconomic challenges. Despite some optimism that the new administration would be more business-friendly, the uncertainty will persist through 2025. Uncertainty is primarily due to tariff disputes and geopolitical tensions. With this outlook, most CFOs will be conservative with budgets for initiatives with uncertain short-term returns.

One promising factor expected to drive the economy is the ongoing investment in AI technologies. Many tech companies have significantly increased their spending on AI in hopes of boosting product prices and maintaining market share. These advancements, as a result, will transform interaction models for enterprise applications, improving lead and cycle times for most commercial transactions. The improved lead and cycle times, consequently, would offer a significant competitive edge for companies. Ultimately, this trend is likely to accelerate the replacement of legacy systems, making them AI-ready and driving digital transformation initiatives.

While AI’s broader influence is set to greatly impact the enterprise software market, policy changes associated with the potential implications of AI technologies may lead to stricter reporting requirements. These reporting requirements would affect not only tech providers but also other industries. This could result in higher financial and compliance costs, presenting opportunities for enterprise software vendors. Despite these challenges, expect a positive shift in 2025 if market conditions improve in the second half of the year. On the other hand, with the uncertainty surrounding tariffs and policy decisions, 2025 may be just as slow as 2024. Regardless of the outcome, these trends are likely to shape digital transformation initiatives and the enterprise software market.



The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

1. AI-Augmented Agents and AI Governance Platforms

Throughout 2025, enterprise software companies will face mounting pressure to justify their pricing. The most immediate opportunities for value creation and revenue generation will likely surface from AI agents integrated into various software categories. These agents will power use cases such as customer service and “generative insights” for complex systems.

As AI agents become increasingly proficient at specialized tasks, how will businesses leverage agent-to-agent orchestration engines to enable smooth collaboration between AI and humans? What impact will the rise of fully autonomous workflows have on business operations, and how can organizations ensure they remain ahead of these advancements? Moreover, with evolving policies and regulations, how will new AI governance platforms emerge, and how can businesses navigate these changes? To gain insights into how AI is shaping the future of business, download the full top 15 digital transformation trends for 2025 report now.

2. Chat-GPT Induced Revised Search Patterns and Consumer Behavior

ChatGPT could give rise to a new wave of search engines with multi-modal capabilities, posing a threat to Google’s market dominance. As these emerging competitors gain traction, Google would be compelled to integrate generative AI into its search workflows. This shift would also disrupt paid media as search engines explore new monetization strategies centered around ChatGPT-driven interactions.

As consumer behavior evolves with the rise of AI-driven search engines, how should businesses adjust their content strategies to balance both organic and paid visibility? What role will these shifts play in transforming business processes and influencing the future of enterprise software? To uncover more about how these changes will impact your organization in 2025, download the full report on the top 15 digital transformation trends now.

3. Continued Consolidation of the Enterprise Software Industry

The consolidation of enterprise software categories accelerated in 2024 and is expected to continue in 2025. This consolidation would lead to broader, more overlapping product offerings. More confusion! A trend that will drive significant pricing and architectural shifts for customers. Depending on the acquirer’s strategy, certain features may be phased out, or entire products may be discontinued.

With the ongoing changes in the enterprise software landscape, how can businesses prepare for unexpected pricing adjustments that might trigger unplanned upgrade projects? Think surprise bills! What steps should organizations take to mitigate potential disruptions and ensure smooth transitions? To stay ahead of these trends and better navigate the challenges of 2025, download the full report on the top 15 digital transformation trends now.

4. Cloud/Saas Expense Reduction and Saas Licensing Price Pressure

As businesses grapple with cash constraints, many will look to cut costs by optimizing their SaaS spending. They would also reduce costs by eliminating unused software. Shelfware! In response to these cost-cutting measures—and amid a challenging purchasing environment—software vendors are likely to raise prices. We’ve already seen this trend with platforms like Smartsheet and ActiveCampaign, where small pricing adjustments significantly increase overall customer costs.

As private equity acquisitions continue to influence the market, how should businesses prepare for ongoing pricing shifts that are expected to persist into 2025? What strategies can organizations implement to manage these changes and maintain budget control? To learn more about the trends shaping pricing strategies and digital transformation in 2025, download the full report on the top 15 digital transformation trends now.

5. Surge in M&A Activities and Deal Flow

With interest rate cuts and changes in the U.S. administration, M&A activity is expected to accelerate in 2025. Since M&A trends closely align with ERP and digital transformation initiatives, the digital transformation sector is likely to see increased deal activity.

With a slightly improved outlook for 2025, how will software vendors allocate resources to R&D and innovation to stay competitive in an evolving market? What impact will this shift have on the development of new solutions and the digital transformation landscape? To gain a deeper understanding of these trends and their potential effects, download the full report on the top 15 digital transformation trends in 2025 now.

6. Continued Reallocation of Skill Sets and Their Impact on Business Processes

AI is rendering several skill sets obsolete, a trend that will persist in 2025 as its effectiveness across various use cases becomes clearer. At the same time, the rise of AI governance platforms and AI agents will create demand for new skills.

How will the ongoing shifts in technology and business strategies reshape traditional business processes, requiring the reconfiguration of business process software and driving architectural changes? What new software categories are likely to emerge as a result of these transformations? To explore these insights and stay ahead of the curve, download the full report on the top 15 digital transformation trends in 2025 now.

7. Geopolitical Impact on Business Processes

With the risk of new conflicts and the escalation of existing ones, geopolitical tensions are expected to persist in 2025. As global economies struggle, the cost of living remains high, and real estate markets reach unsustainable levels, new and unexpected supply chain disruptions are likely to emerge.

As governments respond to evolving global challenges, how will new regulatory measures and policy changes aimed at controlling information, currency, and monetary flows impact business processes, reporting requirements, and enterprise architecture? To better understand these developments and how they may affect your organization, download the full report on the top 15 digital transformation trends in 2025 now.

8. More Disruptions Caused by Software Supply Chain and Cybersecurity Issues

Recent disruptions, such as the CrowdStrike incident, have highlighted the risks posed by software supply chain vulnerabilities. This has prompted companies and governments to reassess their impact. As AI enhances the ability of malicious actors to identify and exploit these weaknesses, policy changes around software supply chain security are inevitable.

How will new regulations introduce accountability measures for open-source software impact pricing models and software architectures in the coming years? To explore how these regulatory changes will shape the future of enterprise software, download the full report on the top 15 digital transformation trends in 2025 now.

9. Collaborative Partnerships and Continued Acquisition of Networks Producing Data

As data remains the key driver of AI effectiveness, 2024 saw partnerships forming even between competitors, such as the collaboration between Salesforce and Workday.

How will the continued trend of acquiring and integrating data-generating networks, such as Blue Yonder’s acquisition of One Network Enterprises, affect the future of enterprise software and digital transformation? Find out more about this evolving trend and other top digital transformation insights by downloading the full report on the top 15 digital transformation trends in 2025 today.

10. (No More) Breakup of Large Corporations and Antitrust Laws Blocking Large Deals

The incoming U.S. administration is expected to take a less stringent approach to scrutinizing mega-mergers compared to the current one. Deals like Google’s acquisition of HubSpot are likely to proceed, and the idea of breaking up large corporations, such as Google, will likely be off the table. Had such breakups occurred, they would have significantly impacted both front-end and enterprise processes for many organizations.

How will this shift lead to the acceleration of consolidation among large enterprise software companies, resulting in an even greater overlap of capabilities? To learn more about this and other emerging trends that are shaping the future of digital transformation, download the report on the top 15 digital transformation trends in 2025 today.

11. Continued Digital Transformation Failures and Focus on Enterprise Architecture

The consolidation-driven overlap will result in duplicated capabilities across enterprise software categories. This would create significant challenges for executives managing transformation initiatives. Companies like SAP have already begun focusing heavily on enterprise architecture. Smaller vendors are expected to adopt similar approaches.

How will this trend drive acquisitions in key areas like process mining, digital adoption platforms, and enterprise architecture visibility tools? To uncover more insights on this and other transformative trends, be sure to download the report on the top 15 digital transformation trends in 2025 today.

12. Energy-Efficient Algorithms and Computing

AI capabilities are currently constrained by infrastructure and energy limitations. As a result, significant investment will be directed toward data center energy technologies and energy-efficient algorithms.

How might this trend lead to the development of new models that surpass current ones, offering even more advanced and powerful capabilities? To explore this and other emerging trends shaping the future of digital transformation, download the report on the top 15 digital transformation trends in 2025 today.

13. Revised Processes for Sustainability and E-Invoicing

ESG and sustainability will remain key priorities for both governments and consumers. Policy changes in these areas will lead to new reporting requirements, which many software vendors will prioritize to capitalize on emerging trends.

As the ESG sector continues to evolve, with solutions competing for market share and overlapping capabilities, how will these developments influence business strategies? Additionally, with governments pushing for more efficient tax revenue collection through the evolution of e-invoicing processes, what impact will this have on reporting requirements and system architecture? To stay ahead of these trends, download the report on the top 15 digital transformation trends in 2025 now.

14. Omnichannel, Collaborative Experience, and Operational Intelligence Platforms

Companies excelling in omnichannel solutions, collaborative platforms, and operational intelligence will keep growing. The MACH ecosystem and real-time experiences are becoming mainstream. Tools like SmartSheet, Monday.com, Airtable, ClickUp, and Notion are redefining collaboration. Palantir is shaping operational intelligence. As these trends evolve, market leaders will gain more traction.

As emerging technologies continue to reshape the business landscape, how will legacy companies like Atlassian, Snowflake, and traditional commerce vendors adapt to stay competitive? Will they successfully catch up with the latest advancements or face challenges in their efforts? To explore how these shifts will impact the digital transformation journey, download the report on the top 15 digital transformation trends in 2025 today.

15. Race to Quantum Technologies

AI is driving demand for advanced infrastructure and computing power. This accelerates quantum technology development. Despite risks like q-day and post-quantum cryptography, investment in quantum is likely to grow, as seen before.

Could the advancements in quantum technology lead to the emergence of entirely new technologies and software categories? What potential breakthroughs can businesses expect in the near future as quantum developments accelerate? To dive deeper into this and other key trends shaping the digital landscape, download the report on the top 15 digital transformation trends in 2025 today.

Final Words

The year 2025 is expected to carry a level of uncertainty similar to that of 2024, resulting in a cautious approach for most CFOs. A potential catalyst for advancing the enterprise software market could be innovations powered by AI. Nevertheless, translating AI initiatives into tangible business outcomes may require time for companies to grasp fully.

For those contemplating digital transformation initiatives in 2024, allocate resources to a strategy aimed at mitigating financial and technical risks. Doing so will not only enhance your chances of securing the trust of financial executives but also guard against unforeseen challenges that may arise in the absence of such a plan.

Top 10 ECommerce Platforms In 2024

Top 10 ECommerce Platforms in 2024

While many associate digital eCommerce platforms with coupons scattered across websites, the scope of digital commerce extends beyond that perception. Even if your transactions don’t occur online, your website’s contact form serves as a digital commerce element, acting as a vital source for lead acquisition. Complete traceability of customer journeys depends on robust digital commerce capabilities, emphasizing their broader significance.

While understanding the scope of eCommerce is straightforward, selecting and implementing the right eCommerce platform for your digital objectives poses challenges. Issues like integrating payment and shipping providers, ensuring optimal site speed, and minimizing bounce rates are crucial for capturing a significant share of web traffic. As the number of channels continues to expand, evaluating pre-built integration capabilities becomes essential to prevent cost overruns. With increasing transaction volumes, the necessity for enterprise-grade features like digital asset management, approval flows, and a comprehensive digital experience management platform becomes evident. Additionally, operating in a regulated environment adds complexity, introducing compliance requirements that impact your transactions.



The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

Ultimately, even if a platform functions effectively with lower transaction volumes, the inability to scale with concurrent sessions—characteristic of enterprise-grade systems—can lead to missed opportunities. These factors contribute to the complexity of choosing eCommerce platforms. To navigate this challenge, consider initiating your journey by shortlisting a couple of options from the leading eCommerce platforms in 2024.

Criteria

  • Overall market share/# of customers. The higher the market share of the eCommerce platform, the higher it ranks on our list.
  • Ownership/funding. The more committed the management to the product roadmap of the eCommerce capabilities, the higher it ranks on our list.
  • Quality of development (legacy vs. legacy dressed as modern vs. modern UX/cloud-native). The more modern the development stack, such as headless and React-based development, the higher it ranks on our list.
  • Community/Ecosystem. The larger the community with a heavy presence from eCommerce companies, the higher it ranks on our list.
  • Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  • Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  • eCommerce market share and documented commitment (of the publisher through financial statements). The higher the focus on eCommerce, the higher it ranks on our list.
  • Ability to natively support diversified business models. The more diverse the product to support different business models and business processes, the higher it ranks on our list.
  • Acquisition strategy aligned with eCommerce. The more aligned the acquisitions to deepen eCommerce capabilities, the higher it ranks on our list.
  • User Reviews. The deeper the reviews from eCommerce users, the higher the score for a specific product.
  • Must be an eCommerce platform. It can’t be a module of an ERP or CRM product. It can’t be an app that might support eCommerce and POS processes. At a minimum, the product must support CMS and website development for different business models.

10. WooCommerce

WooCommerce primarily caters to small, content-focused companies aiming to augment their static websites with commerce capabilities, which are particularly appealing to entrepreneurs familiar with WordPress. However, businesses surpassing the $5-10 million revenue mark might encounter limitations in WooCommerce, making it more suitable for content-driven companies with lighter eCommerce requirements.

Despite its widespread popularity and numerous installations, WooCommerce’s commerce capabilities face substantial limitations, leading to conflicts among plugins. The security architecture isn’t tailored for commerce transactions, potentially causing failed eCommerce projects. While debates about transaction and commercial fees persist, ongoing maintenance and development efforts are comparable to both open-source and commercial platforms. Due to these considerations, we’ve significantly downgraded WooCommerce in this year’s ranking, replacing the Microsoft Commerce platform, which no longer features on the list due to limited developments in its ecosystem.

Strengths
  1. Price. WooCommerce offers budget-friendly pricing for startups, supported by a robust ecosystem of plugins and developers.
  2. Open-source. As an open-source platform, WooCommerce benefits from a vibrant developer community, eliminating licensing fees.
  3. Superior Content Management System. Leveraging WordPress, WooCommerce provides an excellent content management system with extensive plugin options.
Weaknesses
  1. Clunky User and Permission Management. Dependency on WordPress for user and role management poses challenges in handling complex B2B and B2C workflows. The workflows, especially those that involve multiple user personas.
  2. Plugin Conflicts. Multiple plugins are required for eCommerce operations, leading to potential conflicts that demand careful analysis and management.
  3. Data Model. Suited for content-centric operations, WooCommerce’s weaker data model may result in data integrity and maintenance issues compared to other platforms on the list.

9. Kibo Commerce

Kibo Commerce, an omnichannel and microservices-based eCommerce platform, empowers businesses to launch enterprise-scale commerce experiences that would traditionally require custom development. Its API-first and microservices-based design aligns with modern headless commerce platforms, enabling businesses to meet customer demands with agility.

The platform adopts an integrated approach, encompassing Order Management System (OMS), eCommerce, and subscription commerce. However, it faces competition from larger peers like Manhattan and IBM Sterling Commerce, which offer more integrated options within the same stack, including Warehouse Management System (WMS) and Transportation Management System (TMS).

While Kibo’s OMS effectively maintains a centralized statistical inventory, financial perspectives are often disconnected from the operational layer. In eCommerce and retail models, decoupling transactions for subsequent financial reconciliation is a common practice due to higher transaction volumes. Although Kibo excels in front-end experiences, it may encounter challenges with backend integration and supply chain issues, earning it the #9 spot among the top digital commerce platforms in 2024.

Strengths
  1. Enterprise Scalability. The microservices architecture facilitates individual scaling of commerce layers, ensuring enterprise scalability for peak shopping scenarios.
  2. Integrated OMS and eCommerce. Kibo offers pre-baked integration of eCommerce and OMS, saving considerable costs compared to building from scratch.
  3. Subscription Commerce. The platform includes built-in subscription workflows, a challenging feature to develop on vanilla platforms.
Weaknesses
  1. Limited Commerce Solution. Unlike competitors like Manhattan and Blue Yonder, which integrate a Warehouse Management System (WMS) and Transportation Management System (TMS), Kibo’s offering may not be as embedded.
  2. Limited Ecosystem and Consulting Base. Kibo’s consulting base is limited, affecting documentation and community support for their product.
  3. Cost. Positioned as a best-of-breed integrated commerce and OMS platform, Kibo tends to be more expensive than mid-market alternatives like BigCommerce or Shopify.

8. SAP Hybris Commerce

SAP Hybris Commerce targets larger enterprises with robust requirements, especially those already integrated into other SAP systems. This strategic alignment enables businesses to capitalize on integration synergies by exclusively partnering with a single vendor.

The eCommerce platforms landscape witnessed significant transformations in 2023, driven by the anticipated discontinuation of Oracle Commerce. This development sparked concerns about the potential sunset of legacy platforms like SAP Hybris, HCL Commerce, and Intershop. 

Despite these challenges, SAP Hybris has made noteworthy advancements in its headless technology stack, contributing to its improved ranking this year. While it may no longer be a frontrunner, SAP Hybris remains a viable choice for companies seeking an embedded and regulated experience, particularly with its CPQ and configurator layer. For these reasons, SAP Hybris Commerce secures the #8 position on our list.

Strengths
  1. Integration with Other SAP Products. SAP Hybris Commerce is particularly advantageous for enterprise companies in regulated industries, ensuring audit readiness for compliance standards like GDPR.
  2. Greater Control Over Infrastructure. The deployment suite of SAP Hybris Commerce offers comprehensive CI/CD capabilities, empowering IT teams to manage release and production support processes effectively.
  3. Deployment Flexibility. SAP Hybris allows deployment on the preferred cloud, providing greater control over infrastructure design and costs—a valuable feature for larger companies with high eCommerce site traffic.
Weaknesses
  1. Lagging in Headless Capabilities. SAP Hybris doesn’t boast strong out-of-the-box headless capabilities compared to other platforms on the list, coupled with a limited ecosystem of partners.
  2. Clunky Interface. The Hybris CMS exhibits a clunky interface resembling a customer portal rather than a modern eCommerce platform.
  3. Reliance on Legacy Technology. SAP Hybris still relies on legacy programming languages like Spring and Java, lacking robust support for out-of-the-box enterprise-grade features such as an asset management platform.

7. HCL Commerce

HCL Commerce, the enhanced iteration of IBM’s flagship product, IBM Commerce, inherits and advances its capabilities for modern headless development after acquiring it from IBM. Notably, it excels in offering enterprise-grade commerce features, allowing access to all of the commerce layers, including DAM assets, search, and cart, through APIs. 

While HCL Commerce introduces headless, React-based composable commerce capabilities, it primarily targets B2C brands. As a new entrant on our list, it replaces other eCommerce platforms like Oracle Commerce.

Strengths
  1. Headless Content Workflow and Management. HCL Commerce facilitates the retrieval and programmable publishing of DAM assets, leveraging enterprise versioning capabilities inherited from IBM Commerce. This supports intricate workflows for content collaboration.
  2. React-based Storefront Capabilities. With modern React-based composable commerce features, HCL Commerce enables the construction of omnichannel storefronts tailored for various geographical locations.
  3. Enterprise Scale Ready. Having proven its mettle with enterprise-grade commerce workloads over decades, HCL Commerce is an ideal choice for teams familiar with IBM Commerce, eliminating the need to learn a new data model and platform from scratch.
Weaknesses
  1. Legacy Programming Language and Architecture. Despite a redesigned front end, the back end still relies on legacy Java and Spring boilerplate, coupled with IBM’s intricate development practices, which might be less user-friendly for web developers.
  2. Limited B2B Capabilities. HCL Commerce’s data model isn’t optimized for industrial B2B use cases, making it more suitable for high-volume B2C companies. B2B companies might need significant investments in custom development.
  3. Limited CDP Capabilities. For B2C companies seeking personalization capabilities based on deterministic identity, HCL Commerce falls short compared to platforms like SAP Hybris, Sitecore, and Salesforce Commerce.

6. Episerver Digital Commerce

Episerver Digital Commerce/Optimizely is tailored for mid-to-large B2B companies seeking comprehensive B2B capabilities within a suite, minimizing the need for costly add-ons and extensive IT resources. Particularly advantageous for industrial businesses, it falls short of a fit for larger organizations requiring the robust enterprise-grade capabilities offered by bigger eCommerce platforms. 

Unlike some SMB platforms dependent on add-ons for digital experimentation, Episerver integrates the ability to build features and A/B tests seamlessly into its suite. It excels in providing deep features for intricate channels, encompassing partner management, product-based variants, and rule-based promotions.

Strengths
  1. Content Management Platform. Episerver’s CMS stands out for its flexibility, allowing marketers to execute intricate layout changes swiftly, enhancing the overall content management experience.
  2. Digital Experimentation Platform. In contrast to SMB platforms relying on additional components for digital experimentation, Episerver enables the creation of features and A/B tests seamlessly within its suite, ensuring full traceability across channels.
  3. Natively Supported Rich B2B Features. Episerver impresses with its provision of deep features catering to complex channels, including partner management, product-based variants, and rule-based promotions.
Weaknesses
  1. Ecosystem. Unlike the thriving communities surrounding platforms like Shopify or BigCommerce, Episerver faces limitations in terms of its ecosystem.
  2. Too Big for Smaller Brands. Geared toward larger companies, Episerver may overwhelm smaller brands due to its steeper learning curve.
  3. Expensive. Smaller brands with simpler needs might find Episerver’s pricing to be on the higher side.

5. Commercetools / Frontastic

commercetools, a startup valued at over $2 billion and backed by Accel, has garnered attention from major automotive brands like Audi, Volkswagen, Porsche, and Bentley for its customizable commerce experience. Pioneering a true microservices-based architecture, commercetools is a key advocate of the MACH alliance. 

Although the MACH and headless concept is relatively nascent, businesses prioritizing customized and composable experiences will find commercetools compelling. However, commercetools doesn’t offer the same bundled enterprise solutions as some competitors, potentially requiring several best-of-breed options for a comparable experience.

Strengths
  1. True MACH Platform. commercetools embodies the MACH principles—Microservices, API-first, Composable, and Headless—differentiating itself from platforms with mere APIs claiming to be headless.
  2. B2C-Friendly. Tailored for B2C companies, particularly in industries like automotive, commercetools boasts a data model conducive to interactive commerce experiences, with enterprise-grade B2C features embedded in its platform.
  3. Enterprise Scale. Proven in handling complex, multi-brand sites with billions of hits, commercetools has successfully secured clients that traditionally leaned towards legacy platforms like Oracle ATG, Hybris, or IBM Commerce.
Weaknesses
  1. Limited Head Capabilities. While commercetools provides robust APIs for the quick development of omnichannel heads, marketing practitioners may find its head limitations notable, even with the acquisition of Frontastic.
  2. Limited Bundle Offerings. While ideal for best-of-breed platform users, commercetools might be less appealing to organizations seeking bundled offerings available in tools like Sitecore or Salesforce Commerce, especially those favoring seamless integrations.
  3. Limited B2B Capabilities. Although commercetools is expanding B2B features, the distinct data model requirements for B2B may limit its applicability for industrial distributors and B2B companies.

4. Salesforce Commerce

Salesforce strategically targets larger enterprise companies seeking sophisticated eCommerce workflows, particularly those already leveraging other Salesforce products like CRM and Pardot. While it excels in catering to enterprise scenarios with a vibrant developer ecosystem and involvement in the React and headless communities, it may not be the optimal choice for smaller businesses. Salesforce Commerce stands out for supporting both B2B and B2C models, providing deep capabilities and robust product recommendations through its AI engine.

Maintaining its position from the previous year, Salesforce Commerce’s commitment to the eCommerce market is evident, backed by ongoing investments in eCommerce-centric capabilities through Salesforce ventures. Notably, it remains the sole platform on this list with equally profound capabilities for both B2B and B2C. However, its pricing structure may be considered expensive for SMB companies.

Strengths
  1. Ecosystem. Salesforce boasts one of the most vibrant developer ecosystems, actively participating in the React and headless communities. Additionally, it offers integration with modern headless platforms, facilitating the development of progressive web applications.
  2. Enterprise-grade Capabilities. Catering to both B2B and B2C models, Salesforce Commerce provides deep capabilities for enterprise scenarios, complemented by seamless integration with other Salesforce products.
  3. Robust Merchandising and Product Recommendation Capabilities. Distinguishing itself from other SMB products, Salesforce Commerce delivers robust product recommendation and merchandising planning capabilities through its AI engine.
Weaknesses
  1. Price. The pricing structure of Salesforce may be perceived as expensive by most SMB companies. Unlike competing products that include these capabilities in their suite, Salesforce Commerce employs separate pricing for its products, making total cost of ownership computation more challenging.
  2. Headless. While options for a headless experience are available on the Salesforce app marketplace, the platform lags behind in its headless journey compared to competitors like commercetools or VTEX.
  3. Challenging for Smaller Brands. The steep learning curve associated with Salesforce Commerce may overwhelm smaller companies that are less focused on enterprise-grade features.

3. Adobe Commerce/Magento

Adobe Commerce caters to mid-large enterprise companies with intricate eCommerce workflows, particularly those with complex needs for both B2B and B2C business models. However, it may not be the most suitable option for smaller companies. While Adobe Commerce/Magento offers an open-source version, many companies may opt for the enterprise edition for features like RMA and promotion permission, which are not available in the community edition. Noteworthy is Magento’s capability to run large-scale consumer-focused commerce sites with millions of daily visitors, though this scale typically requires the enterprise edition.

Maintaining its position from the previous year, Adobe Commerce is recognized for its commitment, backed by Adobe, and continues to attract an expanding customer base.

Strengths
  1. Enterprise-grade Functionality for B2B and B2C. Adobe Commerce/Magento boasts an exceptionally rich data model tailored for enterprise workflows, providing robust support for both B2B and B2C business models.
  2. Open-source. While an open-source offering is available, many companies opt for the enterprise edition to access features like RMA and promotion permission, which are unavailable in the community edition.
  3. Scale. Distinguishing itself from other platforms, Magento successfully powers large-scale consumer-focused commerce sites with millions of daily visitors, necessitating the enterprise edition.
Weaknesses
  1. Inflexibility. Magento’s data model exhibits tight data integrity with a prescriptive approach to eCommerce, aiming to prevent maintenance issues in the long run. However, this level of inflexibility may not be appreciated by developers.
  2. Overwhelming for Business Users. Business users may find the platform less user-friendly compared to some alternatives due to the complexity of Magento’s data model.
  3. Challenging for Smaller Brands. Adobe Commerce/Magento may prove overwhelming for smaller brands that are less focused on advanced eCommerce features and are in need of developer support.

2. BigCommerce

BigCommerce focuses on meeting the deep functionality needs of B2B SMB organizations, particularly those lacking internal IT capabilities for designing and supporting eCommerce operations. However, it may not be the ideal choice for larger companies. With an underlying data model tailored for B2B organizations, BigCommerce can accommodate complex product mixes and variants, which is especially critical for B2B organizations, with some B2C organizations requiring similar features as well.

Despite its popularity among smaller merchants, the growing BigCommerce ecosystem and capabilities might prove limiting, necessitating the use of multiple add-ons. While the platform offers pre-baked integrations with POS and ERP systems, building an omnichannel architecture could pose challenges due to the number of required add-ons. Additionally, BigCommerce has limited headless capabilities. Nevertheless, it maintains its previous ranking due to its momentum.

Strengths
  1. Deep Capabilities for B2B. BigCommerce’s underlying data model is designed to support the complex needs of B2B organizations dealing with intricate product mixes and variants.
  2. User-Friendly. While catering to the needs of B2B organizations, the platform is not as overwhelming as some enterprise-grade alternatives, requiring less training for business users.
  3. Flexible Pricing Options. BigCommerce provides companies with various pricing options at different stages of their journey.
Weaknesses
  1. Limited Enterprise-grade Features. The core suite may lack certain enterprise-grade features such as product recommendations, digital asset management, and digital experimentation management, requiring additional add-ons and incurring extra costs.
  2. Not Tailored for B2C Experiences. The distinct B2B data model might overwhelm companies primarily focused on B2C experiences, making it less suitable for such scenarios.
  3. Pricing Structure. Companies disliking GMV-based pricing may find BigCommerce’s pricing model less appealing, especially if they have internal IT capabilities for support.

1. Shopify

Shopify caters to B2C SMB organizations with products that don’t require intricate configurations, making it ideal for brands seeking omnichannel and DTC experiences without heavy IT infrastructure investments or developer assistance. Its ecosystem is a significant advantage, offering diverse options, and the Hydrogen on Oxygen headless platform has gained favor among the development community.

However, Shopify’s drawback lies in transaction fees and the need for add-ons to access complex B2C and B2B features. Despite these considerations, its thriving ecosystem ensures it maintains the top rank.

Strengths
  1. Simplicity for B2C. Shopify’s user-friendly data model suits B2C companies, providing flexibility and simplicity accommodating various payment providers and shipping options.
  2. Omni-channel Commerce. With pre-integrated POS, Shopify facilitates seamless data and inventory sharing across digital and physical channels, enabling a hassle-free omnichannel experience without costly custom integrations.
  3. Vibrant Ecosystem. Shopify boasts one of the most active developer ecosystems, heavily engaged in modern tech stacks and Javascript-based communities.
Weaknesses
  1. B2B Limitations. Although Shopify recently introduced B2B capabilities, they may be limited and more suitable for companies supporting both business models. Industrial distribution companies might find these capabilities restrictive.
  2. Transaction Fees. Companies uncomfortable with GMV-based pricing might perceive Shopify’s fee structure as unfavorable.
  3. Enterprise-grade Features. Unlike competitors offering bundled enterprise features, Shopify requires add-ons or third-party products for digital asset and experience management.

Conclusion

Selecting an eCommerce platform poses challenges. A profound grasp of financials is essential for comprehending total ownership costs, coupled with the expertise of independent eCommerce consultants to estimate custom functionality efforts. Additionally, this decision impacts overall architecture and operational efficiency, necessitating a comprehensive approach to eCommerce platform selection.

FAQs

Top 10 CRM Systems in 2024

Top 10 CRM Systems in 2024

In the past, sales and marketing operations could suffice with ad-hoc tools like spreadsheets or siloed software. However, the complexity of today’s sales and marketing departments demands more. CRM workflows differ significantly across industries and business models. For a natural and seamless experience, your CRM needs to support the specific data model required for your industry. The power of CRM lies in its ability to gather high-quality data from various systems and make it easily accessible to salespeople. However, obtaining this data can be challenging, especially if the CRM’s data model significantly deviates from your customer hierarchies and transactions.

Furthermore, the boundaries between CRM, CMS, call center systems, e-commerce, and ERP are becoming increasingly blurred. Modern CRMs now incorporate functionalities that traditionally belonged to ERP or e-commerce systems. The CRMs also overlap substantially with CMS systems, which have traditionally been home-grown due to the custom development required to build unique customer-centric workflows, especially the industries that want to track and manage their digital interactions.

Top 10 CRM Systems In 2024

This intersection necessitates a clear definition of the roles and responsibilities of various systems involved in managing customer-centric workflows. Without a well-structured architecture, challenges in adoption and data integrity may arise. Although some CRM systems may showcase adaptability across industries, it’s crucial to acknowledge that the leading CRM systems, despite their market dominance, may not universally cater to every industry or business model. Consequently, selecting a CRM demands a thorough examination of your architecture and a comprehensive understanding of available solutions. To kickstart this process, consider exploring a list of the top CRM systems in 2024.



The 2024 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

Criteria

  1. Overall market share/# of customers. The higher the market share in the CRM market, the higher it ranks on our list.
  2. Ownership/funding. The more commitment to the CRM offerings, the higher it ranks on our list.
  3. Quality of development (legacy vs. legacy dressed as modern vs. modern UX/cloud-native). The more cloud-native capabilities, the higher it ranks on our list.
  4. Community/Ecosystem. The larger the community with a heavy presence from CRM users, the higher it ranks on our list.
  5. Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  6. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  7. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  8. Acquisition strategy aligned with CRM offerings. The more aligned the acquisitions are with CRM offerings, the higher they rank on our list.
  9. User Reviews. The deeper the reviews for CRM offerings, the higher the score for a specific product.
  10. Must be a CRM product. It can’t be a CRM integrated with an ERP (that enterprise software vendors can’t sell standalone). Must contain deep sales and marketing operations capabilities. For example, marketing automation, territory planning, and sales and marketing workflow management.

10. Oracle CX Cloud

Oracle CX Cloud incorporates various best-of-breed CRM components, including sales, marketing, service, content management, and advertising cloud. It is tailored for large B2C enterprises, specifically those in industries like communications, media, and financial services. With Oracle Commerce being discontinued, the scope of Oracle CX Cloud may be confined to fewer industries. 

The recent acquisition of Cerner, which serves as a customer-facing channel for the healthcare market, raises questions about Oracle’s continued investment in the CRM portfolio. Furthermore, Oracle has consistently pursued industries with substantial data and analytical workloads. Given the current economic landscape, healthcare emerges as a more lucrative market compared to commerce and customer experience. Consequently, Oracle CX may not receive equivalent attention within the company’s portfolio. Despite this, it maintains the #10 ranking on our list as an enterprise-grade solution for businesses seeking an integrated CRM experience.

Strengths: 
  1. Marketing Automation and Ad Spend Tracking: Providing in-depth insights into customer behavior across various advertising platforms.
  2. Content and Centralized Asset Management: These features are particularly crucial for content-intensive industries such as media and telecom.
  3. Integration with Enterprise-grade CPQ and Sales Performance Management Tool: Offering a configurator for subscription-based offerings. This integration is especially beneficial for verticals like media and telecom. 
Weaknesses:
  1. Clunky UI: Oracle has incorporated various systems into its CX portfolio to enhance its capabilities, making a seamless experience challenging.
  2. Not as Strong B2B and Post-sales Capabilities: Oracle’s CRM falls short in post-sales CRM processes, particularly in B2B industries where pre-sales processes, such as manufacturing or distribution, are less extensive.
  3. Not as Strong for Regulated and Audit-centric Industries: Additionally, Oracle CRM may face challenges in industries and regions with significant audit requirements, such as GDPR compliance and version control.
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ECommerce Supply Chain Transformation

Learn how LockNLube transformed its inventory and supply chain challenges by consolidating over 20 systems.

9. SAP C/4 HANA

SAP C/4 HANA, an integral part of the S/4 suite, offers a range of best-of-breed CRM options in the CX portfolio, including sales, marketing, commerce, customer experience, and service cloud. It caters primarily to large utility, finance, and public sector companies, especially those with deep regulatory workflow requirements within CRM processes. 

The recent spin-off of Qualtrics may suggest that SAP is not as committed to the CX portfolio. Moreover, SAP faces substantial challenges with newer entrants in the headless space to disrupt its commerce portfolio. Still a viable option for companies requiring tight integration with CPQ and configurator available through the Hybris portfolio, SAP C/4 HANA still maintains the same ranking as last year.

Strengths:
  1. Integration with Gigya and Customer Data Cloud. Noteworthy strengths include consent and preferences with audit-ready capabilities for compliance workflows such as GDPR, CCPA, and LGPD. It also offers cross-channel personalization and identity management.
  2. Integration with Other SAP S/4 HANA Products. Embedded experience because of the tight integration among SAP products is one of the biggest highlights of SAP C/4 HANA.
  3. Integration with Enterprise-grade CPQ and Sales Performance Management Tool. Companies with enterprise-grade quoting, sales territory, and compensation management needs will find C/4 HANA appealing.
Weaknesses:
  1. Marketing Automation. C/4 HANA lacks sophistication in pre-sales processes, including marketing automation.
  2. Tight Integration with SAP Products. The data model may feel restrictive for sales and marketing teams seeking fluidity to focus on sales rather than operational details.
  3. Inflexibility and Complexity of the Solution. Enterprise workflows like approval management, regulatory checks, and budgetary approvals may seem unnatural and complex for small to mid-size organizations seeking more straightforward CRM solutions.
Salesforce vs SAP C/4 HANA CRM

8. Zendesk Sell

Zendesk Sell, an entry-level CRM among top CRM systems designed for companies utilizing ZenDesk for customer service and ticketing workflows, acquired these capabilities through the Base CRM acquisition. It targets smaller companies with under 10-15 employees, lacking mature CRM capabilities such as sales ops planning, marketing automation, and territory management. However, larger companies may find its capabilities limiting. 

Also, most enterprises exploring CRMs require custom development capabilities because of the unique customer experience and service workflows. So Zendesk would not be a fit for them seeking customizability as offered by other platforms such as Salesforce or HubSpot on this list. Zendesk maintains its ranking from the previous year, with no significant developments observed.

Strengths:
  1. Simple Interface for Startups. Zendesk’s interface is appealing to users with straightforward CRM needs, especially for lead and opportunity tracking, resembling the look and feel of HubSpot and Close.io.
  2. Easier Transition for Zendesk Users. Users of Zendesk will find it attractive due to the similar interface and the ability to create integration workflows between the two apps.
  3. Easier Calling and Emailing Natively within the App. Zendesk’s design is user-friendly for sales development reps involved in multi-touch campaign execution and tracking directly within the app.
Weaknesses:
  1. Zendesk Sell and Support are not tightly integrated. Despite being part of the Zendesk suite, Sell and Support apps lack tight integration, resulting in a disjointed experience and minimal data exchange between them.
  2. Marketing Automation. Marketing automation capabilities in Zendesk CRM are not as robust, necessitating the use of third-party marketing automation software and an additional license.
  3. Advanced CRM Capabilities. Zendesk CRM offers limited advanced features such as reporting, CSV import/export, and revenue operations planning.

7. Monday.Com

Monday.com is geared towards small companies already using it for project management and those with custom CRM workflow needs, such as real estate and non-profits. However, it may not be an ideal choice for companies that can easily find other options through a pre-built platform.

Implementing Monday.com internally would require a tighter governance process, especially if it is being used for cross-functional workflows. The fluidity of the platform might lead to business users’ overengineering process, leading to the creation of technical backlog and maintenance nightmares in the long term. Also, confidently predicting and estimating the final costs requires solution architecture expertise. The ranking for Monday.com remains unchanged from the previous year, with no significant developments observed.

Strengths:
  • Better Customizability. Monday.com serves as a highly customizable technical platform, excelling in ad-hoc workflows and offering superior customization capabilities.
  • Easily Build Automated Actions and Integration with Other Apps. Business users find it easy to construct automated actions for notifications and approval flows.
  • Best for Industries Such as Real Estate and Non-profits. Industries like real estate and non-profits requiring flexibility for customized processes may find Monday.com suitable for their unique needs.
Weaknesses:
  1. Risk of Over-Engineering Processes. While its customizability is beneficial for specific industries, there’s a risk of over-engineering processes, potentially impacting downstream workflows.
  2. Primarily a Project Management Tool. Monday.com is fundamentally a project management tool, necessitating the construction of advanced CRM functionality and reports.
  3. Data Integrity. Due to its technical nature, Monday.com may lack referential integrity between business objects, potentially leading to data integrity issues.

6. SugarCRM

SugarCRM caters to smaller companies seeking free or open-source software and those with specific CRM workflows. However, it may not be the best fit for larger companies in search of a robust CRM solution. SugarCRM maintains its ranking among top CRM systems, with no significant developments observed.

Strengths:
  1. On-prem Option with the Community Edition. SugarCRM provides a community edition that can be hosted on-premises, making it favorable for companies with existing server infrastructure.
  2. Ability to Build Ads Right from the Platform. SugarCRM stands out with features like the ability to build ads directly from the platform, streamlining the interface for companies managing ads without juggling multiple tools.
  3. Great for Cost-sensitive Organizations. Cost-sensitive organizations with in-house developers benefit from SugarCRM, eliminating concerns about recurring licensing fees.
Weaknesses:
  1. Clunky Interface. The interface lacks modernity, potentially hindering user adoption, particularly within sales teams.
  2. Limited Reporting Capabilities. SugarCRM’s reporting capabilities are restricted, requiring significant investment in development and internal costs to generate reports.
  3. Potential Higher Costs with the Community Edition. While the community edition doesn’t have a licensing fee, organizations are responsible for support, upgrades, patches, hosting, and security. Despite its cost-saving intent, it may end up being as expensive as SaaS options.

5. Pipedrive CRM

Pipedrive CRM is designed for smaller companies and solo founders with limited budgets seeking an entry-level CRM solution for customer interaction management. However, it may not be the best fit for larger companies with mature CRM processes requiring features like territory planning, quoting, and sales compensation management. Pipedrive CRM maintains its previous ranking among top CRM systems, with no significant developments noted.

Strengths:
  1. Workflow Automation: Pipedrive CRM offers workflow automation capabilities that are beneficial for companies looking to minimize data entry and automate lead capture and nurturing processes.
  2. Similar Look-and-feel as HubSpot: With a data model and user interface similar to HubSpot, Pipedrive CRM provides a familiar experience that aids sales teams, especially those less technically inclined.
  3. Easy Customization of Reports and Goal Setting: Teams with limited technical proficiency will find Pipedrive’s reports easy to customize compared to more complex tools.
Weaknesses:
  1. Weak Data Structure for Complex B2B Organizations: B2B organizations with intricate customer hierarchies may struggle to integrate with Pipedrive due to its weak data structure. Limitations in data model sharing for leads and contacts can pose challenges for larger companies.
  2. Limited Data Import and Export Functionality: Companies seeking robust data import and export capabilities, especially for leads and opportunities from external systems, may find Pipedrive limiting.
  3. Not Suitable for Larger Organizations: Pipedrive CRM may not meet the needs of larger organizations with deeper requirements for territory management, sales compensation, and approval workflows.

4. Zoho CRM

Zoho CRM is tailored for smaller professional services companies like marketing agencies, tech startups, and software development firms. It proves especially effective for those already utilizing Zoho for HCM or accounting purposes. However, it may not meet the advanced CRM needs of product-centric organizations. Zoho CRM maintains its previous ranking with no significant developments noted.

Strengths:
  1. Data Model Similar to Salesforce: Zoho’s data model mirrors Salesforce’s, facilitating implementation and integration with systems like ERP that have complex customer masters.
  2. Workflow for Data Quality: Zoho CRM includes a pre-packaged workflow builder, allowing teams with development expertise to construct intricate workflows. This aids in maintaining data hygiene and enhancing CRM adoption.
  3. Zoho Creator: The inclusion of Zoho Creator, an app development platform in the suite, enables developers to swiftly integrate other software and create custom apps without relying on additional third-party tools.
Weaknesses:
  1. Advanced CRM Features: Zoho CRM may not be suitable for large companies with regulatory, compliance, or planning needs due to its weaker out-of-the-box support for these capabilities.
  2. Territory Management and Sales Team Planning: Zoho CRM lacks robust support for territory management and sales team planning compared to some of the other leading CRM solutions.
  3. Limited Integration Options Outside of Zoho: While excelling within the Zoho ecosystem, integration options outside Zoho are limited. Connecting with other systems would require custom integration and development efforts.
Zoho CRM vs Microsoft Dynamics

3. HubSpot CRM

HubSpot CRM is a leading choice for smaller companies aiming for seamless integration of customer-centric workflows, covering essential CRM processes such as sales, service, CMS, and marketing automation. In contrast to Salesforce, HubSpot excels in user-friendliness and customization, even though it may not match the depth of customer and field service workflows or provide as many built-in custom objects for specific industries. 

However, this adaptability might pose challenges for companies unfamiliar with robust data and process governance. HubSpot CRM proves advantageous, especially for content-heavy B2B companies aiming for centralized management of digital marketing and sales channels. The recent acquisition of Clearbit further enhances HubSpot’s capabilities by integrating data and intelligence with core CRM processes, solidifying its position as the third-best CRM solution on our list.

Strengths:
  1. Price: HubSpot CRM stands out for companies seeking a more affordable CRM option than Salesforce.
  2. Marketing Automation and Omnichannel Tracking: One of the strongest marketing automation tools integrating all channels, including emails, social media, and the web.
  3. Ecosystem: HubSpot boasts a strong ecosystem and seamless integration with other CRM systems, CMS platforms, and eCommerce tools for users focusing on marketing automation.
Weaknesses:
  1. Weaker Data Model for B2B Businesses: The companies requiring ERP-like operational capabilities, including CPQ inside HubSpot, might struggle with the leaner object model of HubSpot.
  2. Advanced CRM Features: HubSpot may not suit companies with deeper compliance, regulatory, and quoting needs, necessitating substantial development on top of the platform.
  3. Territory Management and Sales Team Planning: The weaker data model makes it less suitable for industries requiring robust out-of-the-box capabilities for territory management and sales team planning, where referential data integrity is crucial for accurate CRM data.

2. Microsoft Dynamics CRM

Microsoft Dynamics 365 CRM is designed for mid-to-large-sized companies, especially those leveraging other Microsoft products such as Dynamics 365 ERP. However, for smaller companies seeking data model fluidity, it may not be the ideal choice.

Microsoft secures the second-largest market share in the CRM space, following Salesforce. It particularly appeals to companies prioritizing robust operational capabilities within the CRM, including features like territory planning, global and centralized compliance, complex CPQ processes, and tight integration with project management workflows.

While Microsoft excels in supporting operational processes, its integration support may be limited to commerce and content management platforms, modern search technologies, headless platforms, data and intelligence providers, and centralized social media management platforms. Despite these considerations, Microsoft Dynamics CRM remains a formidable player in the CRM market, securing its position at #2 in our list of top CRM options.

Strengths:
  1. Complex Business Object Support: Facilitates the creation of necessary permissions and approval flows crucial for larger, regulated enterprises.
  2. Integrated Microsoft Ecosystem: With database-level replication and a shared common data model, integration with other Microsoft products is seamless.
  3. Advanced Territory Management: The CRM comes pre-packaged with strong capabilities for advanced territory management and global sales compensation planning.
Weaknesses:
  1. Less Fluid Data Model: Dynamics 365 CRM has tighter dependencies between objects, particularly regarding pricing, products, and their correlations with accounts, posing usability challenges compared to more flexible CRM systems.
  2. CSV Import and Export Challenges: The platform lacks intuitive support for CSV import and export, making it less user-friendly for sales teams looking to import opportunities and leads from external systems.
  3. Limited Marketing Automation: The marketing automation component in Dynamics 365 lacks strong ecosystem support with external CMS providers.

1. Salesforce CRM

Salesforce serves companies of all sizes, featuring a startup-friendly version and excelling in managing complex CRM workflows. While not always the ideal choice for entities with unique CRM processes, such as those in real estate or uniquely structured non-profit organizations, Salesforce comprehensively covers enterprise sales and marketing workflows throughout all phases—pre-sales, sales, and post-sales. The platform stands out for its depth in industry-specific sales and marketing processes, offering pre-populated layers of business objects without the need for custom development on vanilla platforms. 

The Salesforce ecosystem holds authority in headless and commerce spaces, positioning it as an ideal enterprise Cx platform for various industries. These strengths contribute to Salesforce CRM maintaining its #1 position on our list.

Strengths:
  1. Robust Data Model for Varied CRM Needs: Salesforce boasts the most extensive data model, catering to the complex requirements of diverse industries and business models.
  2. Specialized Capabilities in Telecom and Media: Salesforce stands out with advanced product and CPQ capabilities, particularly beneficial for industries like medical devices and telecom.
  3. Comprehensive Product Portfolio and Ecosystem: Offering best-of-breed solutions across all CRM areas, including marketing automation, field services, and eCommerce.
Weaknesses:
  1. Cost: Salesforce may have a higher price tag compared to other CRMs, making the per-seat cost more expensive.
  2. Complex Customization Process: Customization in Salesforce may not be as intuitive as in other CRM systems, with a potentially complex and dated object model due to the mix of lightning and legacy interfaces.
  3. Industry-Specific Limitations: While Salesforce excels in certain industries, it may not be the best fit for every sector, requiring deep collaboration with ERP systems.

Conclusion

As customer experience takes center stage in securing business deals, sales and marketing departments increasingly require advanced CRM capabilities. A comprehensive CRM is essential for maintaining a centralized view of customers throughout their journey, whether in the pre-sales or post-sales phase. Without a CRM offering a centralized workflow and interaction management platform, competing in today’s market conditions can pose significant challenges.

The choice of CRM directly influences your enterprise architecture. Therefore, selecting a CRM that aligns with your business model and enterprise architecture is paramount for the success of digital transformation initiatives. If you’re currently evaluating CRM systems, consider the points highlighted above in addition to the expertise of independent CRM consultants. This list aims to assist you in narrowing down suitable options for your needs. 

FAQs

Top 10 Systems for Your Enterprise Architecture

Top 10 Systems for Your Enterprise Architecture

Enterprise architecture is more than a technical concept. But what is enterprise architecture? Think of enterprise architecture as the connected business systems that drive your operational processes with four primary perspectives. 1) business architecture, 2) process architecture, 3) data/information architecture, and 4) system architecture. Generally, most industries have two choices when building their architecture. They can either buy a system or build it themselves. But regardless of whether you buy or build, your enterprise architecture is equally important.

Top 10 Systems For Your Enterprise Architecture - List

Also, some people might feel that ERP might be the answer to all of their system issues. They might also feel that enterprise architecture is only relevant for larger companies. However, even ERP systems require a well-defined architecture around them. So, regardless of the organization’s size, the lack of architecture results in ERP implementation failure. As well as poor adoption of digital initiatives and unforeseeable business disruptions. Understanding the enterprise architecture and each system’s role is crucial for your digital journey. In this article, we have covered major systems that your architecture might need as you grow.


10. Project Management

  • Which companies need to include PM as part of their enterprise architecture? In general, your enterprise architecture may not require project management software unless you execute these projects for your core business operations. For example, the ad-hoc engineering projects executed to improve processes or a CapEx building would not be part of your enterprise architecture. In other words, they can remain siloed. As far as the scope of enterprise architecture goes, these projects are applicable to businesses that sell them as their core offerings. These businesses include marketing agencies, defense contractors, sign manufacturers, or construction supply manufacturers.
  • Why do you need project management software? Generally, most project-centric organizations seem to be human-resources-driven. And these projects need to be estimated accurately and monitored throughout the process to avoid financial loss. So this is the core reason why PM software is critical for these organizations. 
  • Who needs to interact with project management software? Most commonly, these projects typically serve many different stakeholders. It could include the subject matter experts or individual contributors. It could also include project managers, estimators, and financial executives interested in the financial health of the project. 
  • Which capabilities do you need in the project management software? Typically, the capabilities crucial in project management software include resource scheduling, project governance, procurement, and timesheet management. You might also choose to go for packages such as timesheet software vs. project collaboration software.
  • What are the different options for project management software? Generally, there are two choices for project management software. For example, it can be standalone software or integrated with financials. In the startup phase, you might be OK with keeping it standalone. But as your project volume and scheduling complexity grow, you might need an option natively integrated with your financials.

9. Data Warehouse/Data Lake

  • Which companies need to include data warehouses as part of their enterprise architecture? Generally, most SMB companies might not include a data warehouse in their architecture. Because the operational systems crucial for their workflow take priority. However, once you have multiple systems in your architecture and struggle to get 360 degrees of your business due to the disparate data sources, you might need to include it in your architecture.
  • Why do you need data warehouse software? Typically, companies require a data warehouse when they need to consolidate insights from multiple systems, external or internal. Moreover, the drivers for data warehouses could be regulatory or forecasting. As well as for enabling decision support systems. It can also help them with historical data that is unavailable through their operational systems. Historical data typically gets lost when operational systems are replaced.
  • Who needs to interact with data warehouse software? In general, there are several stakeholders for data warehouse software. But the primary consumer would either be a BI tool. Or data scientists who might further augment the data and feed it back to the BI tool.
  • Which capabilities do you need in the data warehouse software? Depending upon the use case, several technologies are available to build a data warehouse or lake. But the most basic ones would be a separate data store. As well as ETL technology to move data nightly. The ETL technology helps avoid the impact on the operational performance due to the overhead exerted by the ETL pull.
  • What are the different options for data warehouse software? Generally, there are numerous technologies available to build data warehouses. But the easiest one would be to rent data warehouse capabilities, available through major cloud providers such as Azure, AWS, or GCP.

8. Business Intelligence (BI, S&OP, CPM, and ODP)

  • Which companies need to include business intelligence as part of their enterprise architecture? Typically, companies need business intelligence systems such as S&OP, CPM, and operational data platforms. They need it when they might have business performance issues such as inventory, cash flow, or waste in the manufacturing process. However, these systems are often siloed in SMB organizations unless offered pre-integrated with the ERP, etc. But as the complexity of your architecture and systems increase, you might need to integrate them.
  • Why do you need business intelligence software? Mostly, these analytical systems have pre-built workflows. These workflows can augment your datasets or allow additional dimensions such as seasonality to be added. They might also provide you with insights that might be harder with operational systems. It might be harder due to the rigidness of their data structure and impact on operations. In general, the role of business intelligence is to provide interactive analytics from data that you may have in your data warehouse.
  • Who needs to interact with business intelligence software? The consumers of business intelligence software are typically business users who need additional insights and KPIs for their workflow.
  • Which capabilities do you need in the business intelligence software? Generally, the main capabilities required in business intelligence software would be interactive analytics. And the analytical workflows to facilitate collaboration among business users.
  • What are the different options for business intelligence software? Typically, several options are available, with some offering their internal data store for the temporary storage of interim datasets. And the options could also be function specific. For example, a separate tool might be available for S&OP. Or the tool may offer connected planning as part of the suite.

7. Integration Technologies

  • Which companies need to include integration technologies as part of their enterprise architecture? Unless you have siloed systems or maintain everything in one system without additional channels, you may require an iPaaS. On the other hand, workflow collaboration would be an additional layer on top of the core operational architecture. You need it to enable master data control and ad-hoc workflows. Generally, Workflow collaboration tools don’t impact the enterprise architecture as much unless they are overused or overengineered.
  • Why do you need integration technologies? Essentially, integration technologies allow you to keep all your integration code in one place. Without an iPaaS, your choice would be to keep the integration code inside the source or destination system. And due to the additional overhead required, this choice may be more expensive to maintain over time. They might also be prone to bugs as the source and destination systems upgrade their interfaces. Additionally, the integration technologies allow safeguards if systems operate at different speeds.
  • Who needs to interact with integration technologies? Mainly, the integration technologies are used by developers or admins who need to ensure that integration flows work as expected.
  • Which capabilities do you need in the integration technologies? In general, the integration technologies must support various integration patterns such as HTTP, FTP, or Queue-based. It must also allow building an orchestration layer to transform and massage data in different formats.
  • What are the different options for integration technologies? Generally, there are several options available depending on the budget and capabilities. For example, if the company doesn’t want to utilize an iPaaS, they might host integration code in their existing data center or write it inside the source or destination system.

6. Manufacturing Software/MES

  • Which companies need to include manufacturing software as part of their enterprise architecture? Typically, These systems are applicable to manufacturing companies. They might use a separate MES system or a collection of tools that might serve a similar function as an MES. They also need a MES system if they have real-time integration with machines. We also need to collect and process operational data to optimize shop floor workflow. On the other hand, CAD, engineering, and R&D software typically have minimum impact on the enterprise architecture. The only cases where they might have an impact are when they need to be integrated with the operational flow to minimize data entry.
  • Why do you need manufacturing software? Since the shop floor is the primary cost driver for manufacturing companies, they need different tools to improve shop floor productivity. As the maturity of the shop floor and the order volume increase, they might need to integrate their shop floor technologies more.
  • Who needs to interact with manufacturing software? Typically, the primary stakeholders are plant floor users, supervisors, and manufacturing executives who need them for their operational workflow. 
  • Which capabilities do you need in the manufacturing software? In general, the shop floor capabilities might include scheduling and in-process inspections. As well as real-time integration and control of the machines, and engineering and R&D workflows.
  • What are the different options for manufacturing software? Mostly, the options could be siloed manufacturing software if your accounting function is completely siloed and disconnected from operations. It could also include an MES in conjunction. With an ERP, or a standalone manufacturing ERP (depending upon the company’s operational complexity).

5. Supply Chain Software (P2P, WMS, and TMS)

  • Which companies need supply chain software? It would depend upon your business model. If you have an extremely busy warehouse, WMS might be the first system you might introduce even before an ERP system. As the complexity of your business grows and order volume increases, you will be adding several specialized systems to your enterprise architecture, including TMS and P2P. Generally, systems such as strategic sourcing may not have as much impact on the enterprise architecture and can remain siloed.
  • Why do you need supply chain software? Most ERP systems may not be as efficient for warehouse or transportation operations. For example, suppose the out-of-the-box processes of ERP aren’t sufficient to meet the desired efficiency. Or integration requirements with warehouse equipment. In that case, you might need a specialized warehouse or transportation system.
  • Who needs to interact with supply chain software? Generally, the primary consumer of the supply chain systems would be warehouse operators and supervisors, logistics managers, and operations executives.
  • Which capabilities do you need in the supply chain software? The capabilities could be as simple as barcode scanning, rate shopping, or full-blown supply chain control tower capabilities to monitor the entire supply chain.
  • What are the different options for supply chain software? You have several options for supply chain management, with some software offering end-to-end traceability, including any exceptions as goods move through the supply chain. However, as the system complexity increases, you might need to select a specialized system for each area of the supply chain where you might have the most issues in your processes.

4. Human Capital Management

  • Which companies need to include human capital management as part of their enterprise architecture? Most companies start with essential payroll software that might be clubbed with an accounting system. However, as the number of employees grows in the organization and depending upon the criticality of human resources and compliance needs, you might need a specialized HCM system. The HR and HCM systems can remain siloed for SMBs as they don’t impact the enterprise architecture much. However, the integration may be required if you have HCM processes embedded as part of your operation flow, such as sales comp calculation.
  • Why do you need human capital management software? They need a specialized HCM system to meet each state and country’s compliance and reporting requirements. Generally, HR managers have one of the most complex recruiting, onboarding, and learning workflows, which drives the need for a specialized HCM system.
  • Who needs to interact with human capital management software? The primary consumers of the HCM systems are employees, HR managers, and finance executives. 
  • Which capabilities do you need in the human capital management software? The capabilities of an HCM system could include onboarding, training, skill development, performance management, and recruiting.
  • What are the different options for human capital management software? The options for HR and HCM could include simple payroll software or a full-blown HCM system to manage the needs of the entire HR department.


The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

3. E-commerce and POS Platforms

  • Which companies need to include digital commerce as part of their enterprise architecture? Most companies selling products or services through retail locations or virtually would require several tools to enable their sales process. For example, if the order volume is too low, they might process the orders directly in the ERP or accounting software. 
  • Why do you need digital commerce software? If digital is your primary customer acquisition channel, you need tools designed to be efficient for the channel. For example, a POS system is designed for faster processing at retail locations. eCommerce platforms, on the other hand, have several capabilities tailored to the needs of digitally-savvy customers.
  • Who needs to interact with digital commerce software? These tools are primarily used by the sales and marketing teams to interact with and find customers.
  • Which capabilities do you need in digital commerce software? At a minimum, you need a content and commerce management system that allows you to build a decent web presence and optimize the site for search engines. Then, you might have more robust needs, such as digital asset management and a digital experience platform. It will also provide a product information management system to support experiences such as buy-online-pickup-in-store and omnichannel.
  • What are the different options for digital commerce software? There are several options available depending upon the digital maturity of the organization. As you grow your digital presence and revenue, you will be including specialized software such as product information management or digital experience management.

2. ERP and Accounting Software

  • Which companies need to include ERP as part of their enterprise architecture? The companies need an ERP system when siloed systems become a bottleneck to their growth and require substantial admin efforts to enter data in multiple systems. Companies that might be below $10 million in revenue might be able to manage without a fully integrated ERP
  • Why do you need ERP software? The ERP systems are designed for a cross-departmental operational workflow where the alignment of multiple functions such as sales, finance, procurement, and operations is necessary to deliver goods and services timely. And the ERP systems offer cross-departmental insights and KPIs that would be inaccurate and require substantial efforts with siloed systems.
  • Who needs to interact with ERP software? Everyone who touches the operational core, including sales, operations, finance, and procurement, might interact with an ERP system. 
  • Which capabilities do you need in the ERP software? At a minimum, an ERP system could include sales order processing, AR, AP, GL, purchase order processing, cost accounting, manufacturing, and project management. ERP systems typically don’t have operational capabilities for HR, marketers, and sales. Instead, they might use specialized software that integrates with ERP, such as HCM or CRM, for their operational workflow.
  • What are the different options for ERP software? There are several options available as the maturity of an organization grows, starting from essential accounting software to full-blown ERP systems. These systems might be able to manage most operational workflows where departments might overlap financially.

1. Customer Relationship Management

  • Which companies need to include CRM as part of their enterprise architecture? The smaller companies start with a standalone CRM system to manage their customer interactions until the point of order processing. Then, as the order volume grows, the CRM must be integrated with the ERP and eCommerce systems
  • Why do you need CRM software? CRM systems manage the entire workflow for sales and marketers during the pre-sales process. It starts with marketing automation, lead follow-up, and opportunity tracking. As well as quoting, customer journey builder, and marketing spend tracking. And finally, sales planning and forecasting, as well as territory management, are important.
  • Who needs to interact with CRM software? The primary consumer of CRM software is sales and marketing teams.
  • Which capabilities do you need in the CRM software? When you start, a small CRM with primary lead distribution and account tracking capabilities may be sufficient. But as you grow, you need more advanced marketing automation, territory planning, and quote management capabilities.
  • What are the different options for CRM software? Several options are available, starting from standalone software for CRM and marketing automation. But as you grow, you will need at least the entire sales and marketing function to be integrated with at least light integration with the ERP system. 

Conclusion

With these systems, you are touching the surface of the complexity of enterprise architecture. As the technologies mature and operational complexity increases with ever-growing customer expectations, the enterprise architecture will likely play a more significant role in the enterprise system design.

So when you are looking at a new system next time, think about how the system might fit in the architecture. And what you need to do to ensure that the data integrity across your enterprise architecture is maintained. And hopefully, this post has given you some insights into how each system fits into the digital architecture.

FAQs

Top 10 Large Company ERP In 2024

Top 10 Large Company ERP in 2024

For large companies, selecting an ERP system is no longer about meeting functional specifications. Instead, it’s about their ability to handle the transactional capacity and cross-functional process throughput. Evaluating software-enabled processes’ throughput mirrors physical or human resources planning, commencing with the desired state and identifying necessary resources. Contrary to the misconception of infinite capacity in software systems, meticulous capacity planning is indispensable.

The critical determinant in cross-functional process throughput boils down to the choice between isolated and tightly integrated processes. Amidst variables like human resources interactions, reconciliation overhead, and the switchover effect, pinpointing the most financially efficient approach proves challenging. Consequently, companies adopt varied ERP implementation strategies—some favoring tightly integrated methods, others leaning towards slightly more best-of-breed approaches. Additional factors include the generation of journal entries per user interaction, driving system overhead, and the cycle time for cross-functional processes. Advocates for real-time to batch conversion exist, yet even in batch mode, time considerations take precedence. For example, an MRP run exceeding 5 hours could fracture SQL connections and disrupt planning schedules, underscoring the need for meticulous analysis and ERP selection aligned with these considerations.

Top 10 Large Company ERP in 2024 - Quadrant

While throughput assessment may seem scientific, persuading every department to use the same ERP system can cause political resistance and power struggles. Evolving desired states and extended implementation horizons are other challenges large organizations face, forcing them to treat ERP as the corporate financial ledger while allowing their subsidiaries to choose their systems. So, which systems prove optimal at this stage regardless of their choice of architecture? Let’s delve in.



ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

Criteria

  1. Definition of a large company. More than $1B in revenue or more than 1000 employees. Might be publicly listed. Financial controls are a must for SOX compliance and public reporting. Finance takes over operational needs. Might be present in more than ten countries.
  2. Overall market share/# of customers. Higher market share among the large companies ranks higher.
  3. Ownership/funding. The more committed the management to the product roadmap for large companies, the higher it ranks on our list.
  4. Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
  5. Community/Ecosystem. The larger the community with large companies, the higher it ranks on our list.
  6. Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  7. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  8. Larger company market share. The higher the focus on large companies, the higher the ERP system ranks on our list.
  9. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  10. Acquisition strategy aligned with large companies. The more aligned the acquisitions are with the large companies, the higher it ranks on our list.
  11. User Reviews. The deeper the reviews from large companies, the higher the score for a specific product.
  12. Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

10. Workday/Certinia

Workday, initially tailored as an HCM solution for Fortune 1,000 accounts, finds its niche in industries with sizable white-collar workforces. While Workday serves well as a comprehensive ERP for large enterprises in sectors like tech, media, telecom, banks, retail, and financial services, its suitability diminishes for product-centric industries requiring deeper transactional depth in inventory, costing, and MRP processes. However, it can excel in product-centric scenarios in a best-of-breed architecture sitting atop a corporate financial ledger. 

Historically, Certinia served as an alternative for finance before Workday developed its financial module. Depending on architectural preferences, both Workday and Certinia would be fit for best-of-breed architecture in some industries or function as complete ERPs in others. Despite a lower market share as ERP, their unique presence secures the #10 position on this list.

Strengths
  1. Enterprise-grade best-of-breed capabilities. Workday and FinancialForce excel in HCM and PSA, respectively, in their target industries, sitting atop the corporate financial ledger such as SAP or Oracle.
  2. Proven for enterprise workloads. Both solutions have been proven for enterprise workloads where the Fortune 100 may process millions of journal entries per hour, only possible with the disconnected architecture. 
  3. Cloud-native. Both solutions are cloud-native, a huge plus for large enterprises aiming for superior cross-functional throughput.
Weaknesses
  1. Requires internal IT maturity. The executives with limited experience in building complex architecture might struggle to hire skilled experts.
  2. Requires discipline with master data governance. The inability to build cross-functional with master data governance and cross-functional integration workflows might be counterproductive.
  3. Expensive. While operationally efficient, best-of-breed architecture is likely to be the most expensive of all, with substantial integration and maintenance costs in the long term.

9. QAD

QAD, a supply chain-focused manufacturing solution, caters to large automotive, F&B, and high-tech companies. Ideal as a subsidiary-level solution or as a corporate ERP for lower enterprise markets, it suits firms seeking robust functionality in supplier collaboration and international trade. Although a legacy solution, QAD has announced its plans to rearchitect the solution on a modern tech stack. However, its smaller size may pose challenges with transactional processing for larger accounts, and its niche nature could be limiting for enterprises with diverse operational models. Considering these factors, QAD secures the #6 rank among large company ERP systems.

Strengths
  1. Pre-integrated best-of-breed suite tailored for specific micro-verticals. QAD shines in specific micro-verticals where the generalized BOMs and recipes of vanilla solutions might struggle, especially beneficial as a subsidiary solution of large enterprises.
  2. ERP + Supply Chain Suite. QAD is perhaps the only suite that combines the capabilities of both suites, especially beneficial in architecture with disconnected supply chain planning at the plant level.
  3. Multi-entity Support. QAD would be a great fit for enterprises that want to consolidate some entities relevant to supply chain planning while keeping the remaining integrated through the corporate financial ledger.
Weaknesses
  1. Limited focus. The limited focus might be a challenge for enterprises planning to host all of their entities in one solution, requiring an upgrade to a more diverse solution. 
  2. Limited ecosystem. QAD’s ecosystem is substantially limited, causing issues with global rollout in countries with limited local talent.
  3. Technology. While QAD plans to redesign its entire platform, moving away from legacy technologies such as RPG, it might take a few years before it fully stabilizes.

8. Sage X3

Sage X3 is suitable for enterprises in the agriculture, F&B, and process manufacturing industries as a subsidiary-level best-of-breed solution, sitting atop SAP or Oracle– or, as a corporate solution for lower enterprises. With one of the strongest security and financial traceability, it could be a great fit for publicly traded or audit-ready companies in the lower enterprise market. However, it’s not proven with the upper enterprise market, particularly those necessitating millions of journal entries per hour. Despite these considerations, it secures the #8 spot among large company ERP systems.

Strengths
  1. Great for enterprise pharma and agriculture companies. Last mile capabilities for pharma, agriculture, and process-centric companies as a subsidiary solution atop a corporate financial ledger such as SAP or Oracle.
  2. Deep ERP layers for audit-ready and public companies. Ideal as a complete ERP solution, especially in the process-centric companies in the lower enterprise market.
  3. Great ecosystem of consultants for pharma validation. The ecosystem includes consulting companies with deep expertise in the Sage X3 product and validation procedures.
Weaknesses
  1. Limited focus. The limited focus of the solution might be a challenge for enterprises active with the M&A cycle and using it as a corporate solution with the desire to host all of their entities in one solution. 
  2. Not proven for the larger enterprise market. While great for the lower enterprise market and as a subsidiary solution, it’s not a great fit as a corporate solution for the upper enterprise market.
  3. Limited best-of-breed capabilities. Enterprise companies looking for pre-integrated best-of-breed options may struggle to find those options with Sage X3.

7. Unit4

Unit4, a robust ERP system, specifically targets large educational institutions and public-sector entities. Its forte lies in people-centric functionality augmented by enterprise-grade ERP capabilities. Noteworthy is Unit4’s unique standing, offering enterprise-grade functionalities for student information and teacher workflow management, setting it apart in the market. Proven in handling substantial workloads, Unit4 boasts successful implementations in some of the largest universities and public sector organizations, traditionally domains of Oracle Cloud ERP, Workday, or Microsoft Dynamics 365 F&O. Despite being rearchitected for a cloud-native experience, Unit4 remains a legacy product.

While primarily a European solution, Unit4 ensures localization and globalization for numerous countries. However, its challenge lies in accommodating diverse business models, making it less suitable for companies acquiring entities with varied business models, securing the #7 position on our list of large company ERP systems.

Strengths
  1. Enterprise-grade capabilities for universities and non-profits. Perhaps the only solution in this space that has depth in the public sector space, requiring substantial consulting efforts atop vanilla solutions.
  2. Cloud capabilities. While the solution is legacy, they have made substantial progress with their cloud capabilities. 
  3. Pre-integrated HCM and procurement processes tailored for service-centric industries. Solutions such as Workday that offer best-of-breed HCM and indirect procurement capabilities might be technically and financially risky.
Weaknesses
  1. Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Unit4’s expertise. 
  2. Limited ecosystem and consulting base. As of today, their North American presence and consulting base is significantly limited.
  3. Limited best-of-breed capabilities. Enterprise companies opting to build best-of-breed architecture might not find as many pre-baked integration options, requiring substantial consulting efforts.

6. Deltek

Deltek caters to major government contractors, AE, and construction companies, serving as an ideal subsidiary solution for large enterprises or as a corporate solution for lower enterprise segment planning to host all of their global entities in one database. Tailored for these industries, Deltek offers unique capabilities, leveraging industry-specific databases and integrations, which is particularly crucial for processes like CPQ. While excelling in deep capabilities for certain industries, Deltek is not as complete as an ERP as other solutions on this list, necessitating additional integrations. Despite its focused scope, recent developments have influenced its ranking, securing the #6 position among large company ERP systems.

Strengths
  1. Last-mile capabilities for GovCon and construction-centric verticals. Deltek has last-mile capabilities in the construction and GovCon space, making it an ideal subsidiary solution for large enterprises.
  2. Access to the databases and networks relevant to these industries. Deltek has several products in its portfolio with industry databases and networks that would be much harder to build atop vanilla solutions because of the subject matter expertise required in these industries.
  3. Multi-entity capabilities. Their multi-entity capabilities are rich, making them suitable for lower enterprise companies seeking a corporate solution to host all of their entities in one database.
Weaknesses
  1. Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Deltek’s expertise. 
  2. Limited ecosystem and consulting base. As of today, their ecosystem and consulting base is significantly limited.
  3. Not proven for the larger enterprise market. While great for the lower enterprise market and as a subsidiary solution, it’s not a great fit as a corporate solution for the upper enterprise market.

5. Infor CloudSuite M3/LN

Infor LN and M3, distinct products bundled into CloudSuite offerings, share our list’s ranking due to their non-overlapping target markets. While Infor CloudSuite LN focuses on discrete-centric verticals like aerospace and automotive, Infor M3 caters to industries such as apparel and food and beverage. Both offer comprehensive manufacturing solutions for global organizations with diversified manufacturing business models, including essential components like PLM and industry-specific quality features. Positioned as subsidiary solutions for the upper enterprise market or corporate solutions for the lower enterprise market, they secure the #5 spot among large ERP systems.

Strengths
  1. Great for lower enterprise companies as pureplay manufacturing business models. Ideal for lower enterprise companies as a corporate solution or as a subsidiary solution for upper enterprise, publicly traded, private equity-owned, or holding companies.
  2. Most comprehensive manufacturing capabilities. Both can support the most complex manufacturing business models for global companies exploring operational synergies across global entities. 
  3. Enterprise-grade capabilities for lower enterprise companies. While most smaller solutions might require ad-hoc arrangements for global financial operations, both have them natively built.
Weaknesses
  1. Not the best fit as a corporate ledger. Large enterprises, private equity, or holding companies requiring global solutions while using a tier-2 solution at the subsidiary level might not find the most value with both.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on very few Infor resellers for consulting and support.

4. IFS

IFS focuses on large enterprises in the airline, MRO, construction, oil and gas, and heavy equipment field service sectors, offering strong ERP, EAM, field service, and enterprise project management capabilities. Suited for large enterprises seeking best-of-breed solutions, IFS can sit atop financial ledgers like SAP or Oracle or serve as a subsidiary solution. Despite notable progress in North America, its install base is comparatively limited. With recent growth in enterprise adoption, IFS secures the #4 position on our list.

Strengths
  1. Enterprise-grade field service and asset management capabilities. This is especially suitable for upper enterprise companies seeking best-of-breed capabilities with field service and asset management.
  2. The data model is aligned with companies with large programs. Industries such as MRO, Oil, and Gas follow very different project structures and BOMs. And IFS’s data model allows them to manage complex programs without any ad-hoc arrangements.This is especially beneficial for lower enterprise companies looking for last-mile capabilities pre-baked with the solution. 
  3. Technology – While a legacy solution, IFS technology has been rearchitected and modernized using cloud-native SaaS technologies.
Weaknesses
  1. Limited focus. The limited focus might be a challenge for enterprise companies active with M&A cycles. 
  2. Limited ecosystem. Its presence and install base are still limited in North America compared to other solutions on this list.
  3. Not proven for the larger enterprise market. While great as a best-of-breed solution for field service or EAM, it’s not proven for the workload of Fortune 1000 companies.

3. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 F&O is perhaps the most diverse solution accommodating several global business models in one database, making it an ideal solution for lower enterprise companies seeking a corporate solution to host all of their entities in one database. While a great fit as a corporate ledger for large enterprises, it’s not as proven as other leading solutions in the enterprise market with workloads as high as millions of journal entries per hour that Fortune 1000 companies might demand. Given these considerations, it secures the #3 spot on our large company ERP systems list.

Strengths
  1. Diverse capabilities.Supports global operations and business models and pre-baked integration for the best-of-breed CRM and field service solutions.
  2. Ecosystem. This is especially beneficial for private equity and holding companies trying to streamline all of their entities on one solution. They can find add-ons if the core solution doesn’t meet their needs for last-mile industry capabilities.
  3. Global capabilities. Global capabilities would help enterprise companies in countries with its limited presence or support, making it a truly global solution compared to other platforms on this list.
Weaknesses
  1. The channel is not as regulated. Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
  2. Limited best-of-breed capabilities directly through OEM. While Microsoft Dynamics 365 F&O has a vibrant marketplace to augment its core capabilities, crucial capabilities such as PLM, etc, might not be owned and pre-integrated by Microsoft.
  3. Limited last-mile capabilities. The last-mile capabilities required in specific micro-verticals such as dairy, plastic, building supplies, or metal might require add-ons or expensive development on top of the core platform.

2. Oracle Cloud ERP 

Ideal for large enterprises in service industries, Oracle Cloud ERP stands out as a top choice as a corporate financial ledger within best-of-breed architectures, whether for publicly traded or privately owned entities. While excelling as a financial ledger, its suitability as a subsidiary solution in best-of-breed setups is limited due to over-bloated global capabilities and leaner last-mile functionalities compared to other solutions on the list. Given these considerations, Oracle Cloud ERP claims the #2 spot among large company ERP systems.

Strengths
  1. Robust finance capabilities for large, global enterprises. Capabilities include having five layers of GL restrictions, multiple layers of sub-ledgers, and book closing requirements across divisions, making an ideal corporate ledger for complex global enterprises.
  2. Proven solution as a corporate ledger with Fortune 1000 workloads. It can handle the workload of large enterprises processing millions of GL entries per hour. 
  3. Ecosystem.  Oracle Cloud ERP has an ecosystem of experienced consultants capable of handling the architecture of such complex enterprises.
Weaknesses
  1. Global transactional and financial traceability are not as intuitive. While functionally capable, transactional and financial traceability might not be as intuitive for large, complex enterprises.
  2. It may not be the best fit for large enterprises with complex transactions or Fortune 1000 global MRP workloads. While great as a financial ledger, complex products with serialized structures or large enterprises with very complex BOMs with operational and financial synergies among entities might struggle with the solution because of the workload requirements at this scale.
  3. Not the best fit as a subsidiary solution. There are better solutions on this list that can offer much deeper operational capabilities at the subsidiary level without the overloaded complex financial layers of Oracle Cloud ERP.

1. SAP S/4 HANA

SAP S/4 HANA is among the few solutions with capabilities to handle the workload expectations of most complex products with global MRP runs, making it ideal as a corporate ledger for most enterprise companies, publicly or privately owned, or as a corporate ERP for globally integrated product-centric industries, regardless of their design including shared services. Despite its enterprise-grade capabilities, it is not as suitable for enterprises seeking deeper operational capabilities at the subsidiary level. Given these considerations, it secures the #1 rank among large ERP systems.

Strengths
  1. Robust finance capabilities for large, global enterprises. Capabilities include several financial hierarchies to support complex, global organizations without requiring ad-hoc arrangements for global traceability or consolidations.
  2. Proven solution with the most detailed enterprise-grade MRP strategy for global planning. Globally connected enterprises with shared product models and dependencies among entities, SAP S/4 HANA, can handle most complex planning configurations without the requirement of decoupling the transactions.
  3. Intuitive global transactional and financial traceability. It is one of the most intuitive ERP products for such complex operations with its transactional maps capabilities built with the products, making debugging complex financial enterprises easier.
Weaknesses
  1. Behind in cloud ERP capabilities. Despite advanced financial traceability and technical capabilities, the functional capabilities are not as rich as with its on-prem version.
  2. Not the best fit as a subsidiary solution. There are better solutions on this list that can offer much deeper operational capabilities at the subsidiary level without the over-bloated complex financial and enterprise layers.
  3. Limited last-mile capabilities. In industries where it might not be the most frequently installed as an operational solution, the other solutions are likely to have deeper last-mile capabilities.

Conclusion

Transitioning into the $1B club brings unique challenges like navigating multiple country regulations, cash flow intricacies, currency hedging, and international supply chain complexities—issues less prevalent in mid-market companies

Deploying systems designed for smaller enterprises may lead to financial control shortcomings. Large companies should avoid squeezing into ill-fitting solutions and explore options tailored to their specific needs. Let this list guide you in narrowing down suitable ERP choices for your enterprise with the help of independent ERP consultants.

FAQs

Top 10 Mid-Sized Business ERP In 2024

Top 10 Mid-sized Business ERP in 2024

Exceeding the $100 million revenue mark is more challenging than commonly perceived. Relying on ad-hoc planning and siloed processes can result in financial performance issues. To advance to the next stage, robust process integration and global financial and operational synergies are essential—and because of these reasons, companies require mid-sized business ERP designed for this stage.

Moreover, even within mid-market businesses, diverse needs emerge. The larger peer group, denoted as upper mid-market companies (approaching $1B in revenue), frequently opt for extensive ERP systems like SAP S/4 HANA or Oracle Cloud ERP. However, prematurely implementing such enterprise-grade ERP systems can hinder momentum and growth, particularly when facing challenges in predicting size and business model evolution during active M&A cycles. Conversely, others seek global synergies, employing shared services to uncover financial and supply chain benefits in specific regions. These contrasting approaches call for distinct system strategies.

Conversely, the smaller peer group, positioned at the lower end of the mid-market (approximating $100M in revenue), can advance to $250 million without necessitating the same level of process stringency. Nevertheless, they often require planning for more advanced capabilities such as ATP, allocation, or consolidated planning. For seamless cross-functional adoption of planning solutions, teams must streamline their data and processes. However, at this stage, limitations in implementation budgets and skillsets prevent them from adopting the same approach as their upper mid-market peers. Some companies aiming for accelerated growth may emulate the upper mid-market strategy, while others may opt for a conservative approach, selecting systems designed for the lower mid-market segment. So, what constitutes the ideal systems for these mid-market businesses?



ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

Criteria:

  1. Definition of mid-size organizations. $50M-$1B in revenue or less than 1000 employees. It might be present in 4-10 countries. Getting the proper planning and scheduling is critical for growth. The integration of processes and systems is essential to plan and scale.
  2. Overall market share/# of customers. The higher the market share among the mid-market companies, the higher it ranks on our list.
  3. Ownership/funding. The more committed the product roadmap for the mid-market, the higher it ranks on our list.
  4. Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
  5. Community/Ecosystem. The larger the presence from the mid-market companies, the higher it ranks on our list.
  6. Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  7. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  8. Mid-market market share. The higher the focus on mid-market companies, the higher the ERP system ranks on our list.
  9. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  10. Acquisition strategy aligned with mid-market. The more aligned the acquisitions are with the mid-market, the higher it ranks on our list.
  11. User Reviews. The deeper the reviews from the mid-market companies, the higher the score.
  12. Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

10. Plex

Plex targets mid-market automotive companies, specializing in manufacturers and distributors within the Toyota and Ford ecosystems. Taking an MES-first approach, it provides robust last-mile capabilities tailored to this niche. Plex is particularly suitable for upper mid-market companies adopting a best-of-breed strategy, with Plex as the operational solution and a stronger financial solution handling corporate ledger functions.

It may also be a good fit for lower mid-market businesses aligned with Plex’s core capabilities and stable business models. However, Plex’s lack of significant portfolio developments for mid-market customers has led to a slight downgrade, maintaining its position at #10 among mid-sized business ERP systems.

Strengths
  1. Last mile capabilities for mid-market companies with limited budgets. Companies limited in their budget would find the last mile capabilities appealing as building them might be technically and financially risky for mid-market companies.
  2. MES-first approach. Plex is perhaps the only solution in the mid-market space that takes a MES-first approach, making it especially friendly for companies interested in capitalizing on Industry 4.0 strategies
  3. Cloud-native. Plex was born in the cloud just like other cloud-native solutions, providing richer cloud capabilities such as enterprise search and being mobile-friendly.
Weaknesses
  1. Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles. Even for pure-play manufacturers, the capabilities might be on the learner side because of the limited support for mixed-mode manufacturing.
  2. Limited ecosystem and consulting base. The consulting base is super limited, with companies primarily relying on Plex to provide professional services.
  3. It is not an ideal solution as the enterprise core. The ERP layers are substantially limited a challenge for mid-market companies planning to go public or requiring deeper ERP capabilities.

9. Unit4

Unit4 serves service-centric mid-market organizations, standing out with its integrated human resources component. Distinct from counterparts like FinancialForce, Sage Intacct, and Workday, Unit4 excels in supporting the operational processes of schools and public sector entities. Competing with major players such as PeopleSoft, Oracle Cloud ERP, SAP S/4 HANA, Microsoft Dynamics F&O, and Workday, Unit4 proves to be an ideal fit for various mid-market segments. Recent acquisitions have broadened its capabilities, offering integrated suites for P2P, HCM, and ERP in service-centric industries. Despite the lack of momentum in 2024, it still maintains its position at #8 on our list of the top 10 mid-sized business ERP systems.

Strengths
  1. Enterprise-grade capabilities for universities and non-profits. Unit4 is perhaps the only solution in this space that has such depth in the public sector space. The same capabilities would require substantial consulting efforts atop vanilla solutions.
  2. Cloud capabilities. While the solution is legacy, they have made substantial progress with their cloud capabilities. 
  3. Pre-integrated HCM and procurement processes tailored for service-centric industries. Solutions such as Workday that offer best-of-breed HCM and indirect procurement capabilities for similar verticals might be technically and financially risky.
Weaknesses
  1. Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles, especially for business models outside of Unit4’s expertise. 
  2. Limited ecosystem and consulting base. As of today, their North American presence and consulting base is significantly limited.
  3. Limited best-of-breed capabilities. Mid-market companies opting to build best-of-breed architecture might not find as many pre-baked integration options, requiring substantial consulting efforts.

8. Deltek

Deltek targets mid-market businesses in construction, government contracting, architecture, and engineering. Setting itself apart from similar solutions like QAD, Plex, Epicor Kinetic, and Infor CSI, Deltek boasts logos as prominent as AWS and Booz Allen Hamilton. However, these logos often leverage their best-of-breed capabilities, which are relevant for mid-market companies considering Deltek as an operational solution. While its multi-entity capabilities position it as a corporate solution in the lower mid-market, additional complementary solutions like CRM may be needed for features found in fully integrated alternatives. In contrast to Sage Intacct or Oracle ERP Cloud, Deltek excels in last-mile functionality for government contractors, particularly in DCAA compliance. Given a substantial downgrade due to a lack of portfolio momentum, Deltek secures its position at #8 among mid-sized business ERP systems.

Strengths
  1. Last-mile capabilities for GovCon and construction-centric verticals. Deltek has last-mile capabilities in the construction and GovCon space, requiring substantial development atop vanilla solutions.
  2. Access to the databases and networks relevant to these industries. Deltek has several products in its portfolio with industry databases and networks that provide it a unique advantage over other vendors. 
  3. Multi-entity capabilities. Their multi-entity capabilities are rich, making them suitable for upper mid-market companies seeking one solution to host all of their entities in one database.
Weaknesses
  1. Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles, especially for business models outside of Deltek’s expertise. 
  2. Limited ecosystem and consulting base. As of today, their ecosystem and consulting base is significantly limited.
  3. Limited best-of-breed capabilities. Mid-market companies opting to build best-of-breed architecture might not find as many pre-baked integration options, requiring substantial consulting efforts.

7. Sage X3

Sage X3 holds a distinctive market position, primarily targeting process, agriculture, and food & beverage companies. Unlike many counterparts focused on discrete manufacturing, Sage X3 stands out with profound functionality tailored for process-centric industries. It excels in features like native support for formulation, potency management, use-by-date, sub-lots, and food traceability. They are the right fit for upper mid-market companies seeking operationally rich solutions at the subsidiary level for process-centric industries. Or the lower mid-market companies are seeking one solution for all of their global entities in one database. Sage has had a questionable commitment to their X3 product lately, and because of this, we have downgraded their ranking substantially, now ranking at #7 on this list.

Strengths
  1. Great for upper mid-market pharma companies. Designed for process and food and beverage manufacturing and distribution. As a result, it provides far deeper functionality for large pharma companies out of the box.
  2. Deep ERP layers for audit-ready and public companies. Sage X3 is especially strong with its accounting and finance capabilities for mid-market companies aiming to go public or the ones that require audit-ready capabilities.
  3. Great ecosystem of consultants for pharma validation. The ecosystem includes consulting companies with deep expertise in the Sage X3 product and validation procedures.
Weaknesses
  1. Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles, especially for business models outside of Sage X3’s expertise. 
  2. Limited ecosystem. While it has great ecosystems of consultants and partners, the number of integrations supported might be limited for business models outside of its core expertise.
  3. Limited best-of-breed capabilities. Mid-market companies looking for pre-integrated best-of-breed options may struggle to find those options with Sage X3.

6. QAD

QAD focuses on upper-mid-sized companies with intricate supply chain requirements, particularly in the automotive and life sciences verticals. While it may lack the extensive last-mile functionality for Honda or Toyota ecosystems, unlike Plex or Infor LN, QAD excels in international trade and TMS capabilities pre-built with the core solution.

These TMS capabilities closely match those of larger counterparts like Oracle Cloud ERP and Microsoft Dynamics F&O.QAD has made substantial advancements with its technology with its new announcement of rearchitecting its entire platform, securing its rank at #6 on this list.

Strengths
  1. Pre-integrated best-of-breed suite tailored for specific micro-verticals. QAD shines in specific micro-verticals of Automotive and Life Sciences where the generalized BOMs and recipes of vanilla solutions might struggle.
  2. ERP + Supply Chain Suite. QAD is perhaps the only suite that combines the capabilities of both suites, such as Supply Chain and ERP. Most solutions would require two different suites, creating data siloes with these suites and struggling with centralized inventory and supply chain planning.
  3. Multi-entity Support – Unlike other smaller solutions that are likely to have limited global support, QAD has built-in support for companies interested in exploring operational and financial synergies globally.
Weaknesses
  1. Limited focus. The limited focus might be a challenge for mid-market companies active with M&A cycles, especially with business models outside of QAD’s expertise. 
  2. Limited ecosystem. QAD’s ecosystem is substantially limited, and for the most part, you will be relying on QAD’s professional services for maintenance and support.
  3. Technology. While QAD plans to rearchitect their entire platform moving away from legacy technologies such as RPG, it might take a few years before they are fully stable on the new platform.

5. IFS

IFS caters to mid-size utility, oil and gas, MRO, airline, and large equipment service companies, positioning itself as a cost-effective alternative to SAP S/4 HANA. Ideal for upper mid-market companies unable to invest millions in consulting and implementation, IFS excels in managing complex field service scheduling, even for massive workforces of up to 500K field workers.

In terms of technology and cloud-native experience, IFS rivals QAD and Plex with its superior user experience. Because of the limited focus of their solution to certain industries and advancements in technology with other vendors, we have downgraded their ranking slightly but still maintain its ranking at #5 on this list.

Strengths
  1. Enterprise-grade field service and asset management capabilities. While limited in its suite and focus, their last-mile capabilities are the strongest for their target industries.
  2. The data model is aligned with companies with large programs. Industries such as MRO, Oil, and Gas follow very different project structures and BOMs. And IFS’s data model allows them to manage complex programs without any ad-hoc arrangements.
  3. Technology. While a legacy solution, IFS technology has been rearchitected and modernized using cloud-native SaaS technologies.
Weaknesses
  1. Limited focus. The limited focus might be a challenge for mid-market companies active with M&A cycles. 
  2. Limited ecosystem. Its presence and install base are still limited in North America compared to other solutions on this list.
  3. It is not the right fit for holding and private equity companies as a corporate ledger. While IFS can provide the best-of-breed capabilities in a two-tier architecture or can act as one solution, IFS might not be the best fit to be used just as the corporate ledger for mid-market companies.

4. Epicor Kinetic

Epicor Kinetic specializes in manufacturing, addressing hybrid scenarios in industries like metal, automotive, and aerospace with formal processes and intricate inventory management. Tailored for organizations spanning manufacturing, construction, and distribution, Epicor Kinetic uniquely aligns with their core processes.

In the realm of cloud capabilities, the modernized Epicor Kinetic, distinguished from legacy systems, features mature offerings, including enterprise search. While well-suited for lower mid-market companies, those in the upper mid-market with over three financial hierarchies may find it less ideal, requiring ad-hoc arrangements. With out-of-the-box MES functionality, Epicor Kinetic caters to mid-market companies seeking integrated Industry 4.0 capabilities without extensive consulting costs, securing the 6th position on our list of top 10 ERP systems for small businesses.

Strengths
  1. Great for formal manufacturing organizations. The manufacturing organizations that follow formal manufacturing processes with revision numbers would relate to the product more.
  2. Last-mile capabilities for complex manufacturing organizations. 90% of the capabilities required by verticals such as metal, automotive, and aerospace are pre-packaged with the core platform. 
  3. Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search and transactional maps for end-to-end transactional traceability.
Weaknesses
  1. Not a great fit for upper mid-market companies with more than three layers of financial hierarchies. Epicor Kinetic will require ad-hoc arrangements for larger mid-market companies with more than three financial hierarchies.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

3. Infor CloudSuite LN/M3

Infor CloudSuite LN and M3 stand as flagship solutions tailored for upper-mid market companies, with over $250M in revenue. In particular, Infor M3 excels in unique inventory capabilities, supporting planning based on style, size, and season with native integration for apparel-centric PLM. Conversely, Infor LN has the most comprehensive manufacturing capabilities.

While most smaller manufacturing solutions may have limitations with the type of manufacturing they can support and would require ad-hoc arrangements, Infor LN and M3 can support most manufacturing business models. Given their lack of overlap, LN and M3 collectively secure their position. Although lacking major developments in 2023, their suite-centric approach positions them favorably for mid-market companies, earning them the 3rd spot on our list of top 10 ERP systems in 2024.

Strengths
  1. Great for upper mid-market pureplay manufacturing business models. Ideal for upper mid-market companies or as subsidiary solutions in a two-tier setting for private equity-owned or holding companies.
  2. Most comprehensive manufacturing capabilities. Both can support the most complex manufacturing business models, WBS-centric manufacturing, or support for attributes with MRP planning. 
  3. Enterprise-grade capabilities for upper mid-market companies. While most smaller solutions might require ad-hoc arrangements for global financial operations, both have them natively built.
Weaknesses
  1. Not the best fit as a corporate ledger. Private equity and holding companies requiring global solutions while using a tier-2 solution at the subsidiary level might not find the most value with both.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on very few Infor resellers for consulting and support.

2. NetSuite

NetSuite stands out as a versatile solution, making it a top choice for private equity and holding companies seeking to streamline their portfolio companies on one solution and skillset. Its broad market coverage caters to diverse segments, offering native capabilities and vibrant ecosystem add-ons for comprehensive global support. While not as tailored for intricate operations like industrial manufacturing or distribution without add-ons, NetSuite excels in supporting various business models, be it product- or service-centric. It proves invaluable for companies requiring robust financial audit support, crucial for publicly traded organizations.

In a pivotal move, NetSuite introduced CPQ and enhanced P2P capabilities in 2023, expanding its offerings, securing its rank at the #2 spot on our list of top 10 mid-sized business ERP systems in 2024.

Strengths
  1. Diverse capabilities.Supports multiple industries and business models with pre-baked integration flows, reducing consulting and implementation efforts for budget-constrained mid-market companies.
  2. Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities in most industries.
  3. Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for mid-market businesses.
Weaknesses
  1. Weaker data model. The data model is not as structured as with SAP or Acumatica, making it harder to understand and follow.
  2. Limited mature last mile capabilities. While NetSuite has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution are extremely limited.
  3. Not fit for pure-play manufacturing or industrial distribution holding companies. Companies focused on pure-play manufacturing or industrial distribution might not find the most value in NetSuite.

1. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance and Operations is perhaps the most diverse, with native capabilities to host business models as diverse as discrete and process manufacturing, as well as discrete and service-centric verticals. While it can support most business models natively as part of the same platform, it also offers a vibrant marketplace to augment its core capabilities, making it ideal for private equity and holding companies to streamline all of their global entities on one solution and skillset. Although re-architected for a cloud-native experience, not all modules and workflows have fully transitioned, retaining some legacy components. Given its diversity and applicability for most industries and mid-market companies, it wins the #1 spot on this list.

Strengths
  1. Diverse capabilities.Supports global operations and business models and pre-baked integration for the best-of-breed CRM and field service solutions, ideal for mid-market organizations growing in complexity.
  2. Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities of most industries.
  3. Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for mid-market businesses.
Weaknesses
  1. The channel is not as regulated. Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
  2. Limited best-of-breed capabilities directly through OEM. While Microsoft Dynamics 365 F&O has a vibrant marketplace to augment its core capabilities, crucial capabilities such as PLM, etc, might not be owned and pre-integrated by Microsoft.
  3. Limited last-mile capabilities. The last-mile capabilities required in specific micro-verticals such as dairy, plastic, building supplies, or metal might require add-ons or expensive development on top of the core platform.

Conclusion

Mid-market companies at a critical juncture often contemplate larger solutions like SAP S/4 HANA or Oracle ERP Cloud, risking low adoption due to complexities. Success in the mid-market hinges on exploring dedicated ERP options tailored to their current needs, avoiding unnecessary change management challenges. 

Despite a large solution’s capacity, it might not be the most financially prudent decision. This list serves as a starting point, yet expertise is crucial for aligning a solution with unique business requirements. Consulting with an independent ERP expert ensures a successful ERP journey.

FAQs

Top 10 ERP Systems for Small Business in 2024

Top 10 ERP Systems for Small Business in 2024

As businesses evolve beyond the startup phase, they often resort to employing various disjointed solutions, even if ERP may be part of their architecture. ERP adoption at this stage is primarily centered around financial reporting and basic transactions. The budget constraints of the previous stage lead to the creation of ad-hoc processes and unique data models, urging the need for streamlining to sidestep financial challenges at the next inflection point. Additionally, the expansion of departments introduces overlaps in responsibilities, making finding ERP systems for small business uniquely challenging.

To meet KPIs and delivery expectations, batch capabilities become pivotal at this stage. The increased workload arising from reconciling disconnected data silos and managing ad-hoc processes prompts exploration of process re-engineering and tightly integrated processes. This also triggers the consolidation of critical point solutions requiring tighter alignment of cross-functional processes, particularly those involving inventory. Inventory accuracy and financial control gain significance, especially if the small business is now owned by a private company with aggressive M&A and growth plans, necessitating a superior ERP implementation, often requiring expert assistance.

Top 10 ERP Systems for Small Business in 2024 - Quadrant

While a micro view is important at this stage of ERP selection, complete automation of planning, procurement, and scheduling may not be a critical focus. Additionally, if executive teams lack experience in such transformations, they might not fully appreciate their value. Their tactical perspective and critical success factors are likely to guide them toward systems aligning with their priorities and current needs. So, which ERP systems are best suited for smaller businesses?



ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

Criteria

  1. Definition of small organizations. $10-100 mil in revenue or 25-300 employees. Low implementation budget up to $100K. No appetite for integration or custom development. Some systems and processes could remain siloed. Little to no planning is needed.
  2. Overall market share/# of customers. The higher the market share among small organizations, the higher it ranks on our list.
  3. Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
  4. Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
  5. Community/Ecosystem. The larger the community with a heavy presence from small organizations, the higher it ranks on our list.
  6. Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  7. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  8. Small business market share. The higher the focus on small organizations, the higher the ERP system ranks on our list.
  9. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  10. Acquisition strategy aligned with startups. The more aligned the acquisitions are with the small organizations, the higher they rank on our list.
  11. User Reviews. The deeper the reviews from small organizations, the higher the score for a specific product.
  12. Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

10. SAP Business One

SAP Business One proves excellent for smaller companies prioritizing financial control over extensive operational features, particularly suitable for companies in geographies where other operationally rich ERP solutions might not be available. In contrast to DIY-friendly options like Odoo or Zoho, SAP Business One has more detailed ERP layers but not as detailed as those found in NetSuite or Acumatica. 

The cloud version lacks the deep industry functionality inherent in the on-premises version, especially in contrast to specialized solutions like Aptean Ross. Diversified business models, such as equipment dealerships, seeking robust field service capabilities may find SAP Business One less accommodating than alternatives like Acumatica or Prophet 21. Due to a perceived lack of momentum in the SAP Business One portfolio, a slight downgrade has been made, yet it retains its position at #10 of top ERP systems for small Business.

Strengths
  1. Global Capabilities. Ideal for companies in geographies where other operationally rich solutions might not be accessible.
  2. Financial traceability and governance workflows built with the product. The transactional maps to track complex multi-entity workflows are built as part of the product. 
  3. Power of HANA. Companies with complex product mixes and resource-intensive product models, such as serial number processes, may require the power of HANA even for smaller operations.
Weaknesses
  1. Behind in cloud capabilities. The cloud version is not as rich operationally as the on-prem variant, requiring third-party add-ons and code base from VARs.
  2. The cloud ecosystem is not as developed as its on-prem variant. The cloud ecosystem doesn’t have as many companies investing in add-ons and integration.
  3. Lack of SAP’s commitment to the SMB market. SAP’s focus is on retaining its enterprise market, which puts the SMB market at a disadvantage.

9. Rootstock

Utilizing the Salesforce platform, Rootstock, alongside SAP Business One, MS Dynamics 365 Business Central, and Epicor Prophet 21, caters to distributors and project-centric custom manufacturers. Particularly attractive to companies on the Salesforce platform, Rootstock faces limitations inherent in the Salesforce platform. Newer CRM systems, including Salesforce, lack the same database-level referential integrity enforced by traditional ERP systems. While enhancing the user experience for sales and marketing teams, this design may pose financial control challenges.

Rootstock’s current implementation base is limited, relying on various apps within the Salesforce ecosystem, thereby elevating integration and maintenance risks. Additionally, issues like the disconnected reporting layer in Salesforce contribute to a less cohesive experience compared to newer ERP systems. Despite these considerations, Rootstock maintains a strong position for smaller businesses, securing its spot at #9 on our list of top 10 ERP systems for small businesses.

Strengths
  1. Salesforce-native experience. The transition would be easier for companies already using the Salesforce platform for other departments.
  2. Pre-integrated with other best-of-breed Salesforce apps. The transactional maps to track complex multi-entity workflows are built as part of the product. 
  3. Cloud-native and mobile-friendly. Companies with complex product mixes and resource-intensive product models, such as serial number processes, may require the power of HANA even for smaller operations.
Weaknesses
  1. Data integrity and financial control issues. CRM-friendly data models bypass the database-level referential integrity, potentially causing financial control issues.
  2. Limited install base. The current install base of Rootstock is substantially limited compared to other solutions positioned for smaller companies.
  3. Limited consulting base and ecosystem. While Rootstock leverages the Salesforce ecosystem, the companies that would deeply understand Rootstock IP are limited.

8. Aptean Ross ERP

Aptean Ross ERP caters to process manufacturers and distributors with extensive requirements for traceability, formulation, and nutrient support. Similar to Epicor Prophet 21, Aptean Ross ERP has undergone rearchitecting to incorporate cloud-native functionality.

While not as globally localized, Aptean Ross ERP excels in providing deeper operational functionality tailored to specific industries. Positioned between larger solutions like Sage X3 and Microsoft Dynamics 365 Business Central and smaller ones like Odoo or Zoho, Aptean Ross requires consulting support for setup and implementation.

Given its targeted focus on specific industry verticals, Aptean Ross ERP may face challenges with companies with diversified business models. Despite these considerations, Aptean Ross ERP retains its position at number 8 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Last-mile capabilities for the process industry. The last-mile capabilities, such as recipes, formulation, and batch production capabilities, are pre-baked as part of the solution.
  2. Pre-integrated essential bolt-ons. Supported and maintained by Aptean. But don’t forget to vet pre-baked workflows for your use cases.
  3. Relatively Cloud-native. While legacy, the solution is available as a cloud version, making it easier for smaller companies to implement ERP without worrying about IT.
Weaknesses
  1. Limited consulting base and ecosystem. The consulting base is limited to Aptean, and since Aptean is privately equity-owned, the support and professional services may not be as friendly as those of family-owned businesses.
  2. Clunky technology underneath with potentially poorer documentation. Since it’s not a complete rewrite, it retains the legacy code base, exception flows, data model, and documentation.
  3. Limited focus. Companies that are diverse with their business model or active in the M&A cycle might outgrow the solution quickly, requiring another implementation.

7. Sage Intacct

Distinguished from other options, Sage Intacct holds a unique market position, concentrating on service-centric sectors like oil and gas, construction, utility, non-profit, and media. While lacking the extensive operational capabilities of Acumatica or NetSuite for product-centric industries, Sage Intacct boasts enhanced multi-entity functionality tailored to its design and target market. 

However, Sage Intacct falls short of Acumatica’s versatility in supporting diverse business models such as manufacturing, distribution, field service, and construction. Born in the cloud ERPs like Acumatica and NetSuite, Sage Intacct features a modern interface akin to Acumatica or Microsoft Dynamics 365 Business Central. Positioned beyond smaller startup solutions like Odoo or Zoho, Sage Intacct necessitates consulting assistance for setup and configurations.

Despite these considerations, Sage Intacct maintains its position at number 7 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Great as a corporate financial ledger. The accounting and financial capabilities are enterprise-grade to support global financial operations in one database while using best-of-breed solutions or ERP in the 2-tier setting.
  2. Last-mile capabilities for service-centric organizations. Service-centric organizations have very unique needs, such as revenue recognition, partner accounting, and subscription accounting, which are pre-baked with the solution. 
  3. Cloud-native. The technology is cloud-native, with modern APIs to integrate with best-of-suite offerings.
Weaknesses
  1. Limited focus. The core capabilities, especially for inventory-centric organizations, are substantially limited, making it more of a best-of-breed enterprise-grade cloud accounting solution as opposed to a true ERP.
  2. Overly complicated security and macro capabilities that smaller companies might not find as valuable. 
  3. Integration challenges for smaller companies. The reliance on external CRM and field service software causes challenges with integration and maintenance in the long run.

6. Epicor Kinetic

Epicor Kinetic serves as a specialized manufacturing solution, catering to hybrid manufacturing scenarios that demand formal manufacturing processes and intricate inventory management, particularly in sectors like metal, automotive, and aerospace. Tailored for organizations straddling manufacturing, construction, and distribution, Epicor’s core processes uniquely suit this intersection. 

The modernized Epicor Kinetic boasts mature cloud capabilities, including enterprise search, setting it apart from its legacy counterparts. While laden with operational features for larger enterprises, its focus remains limited, potentially presenting an overly complex data model for smaller organizations with constrained implementation budgets. Offering out-of-the-box MES functionality, Epicor Kinetic appeals to smaller companies seeking pre-integrated Industry 4.0 capabilities without hefty consulting expenses. As a result, Epicor Kinetic secures the 6th position on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Great for formal manufacturing organizations. The manufacturing organizations that follow formal manufacturing processes with revision numbers would relate to the product more.
  2. Last-mile capabilities for complex manufacturing organizations. 90% of the capabilities required by verticals such as metal, automotive, and aerospace are pre-packaged with the core platform. 
  3. Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search and transactional maps for end-to-end transactional traceability.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

5. Epicor Prophet 21

Epicor Prophet 21 caters to smaller industrial distributors, offering deeper operational functionality despite being less globally and locally oriented than SAP Business One or Microsoft Dynamics 365 Business Central. Its out-of-the-box capabilities make it a preferred choice for smaller distributors aiming to avoid expensive integration and custom development risks. Although distribution-focused, it lacks the diversification seen in other solutions on this list that cater to various business models like industrial manufacturing or field service capabilities. 

While Epicor Prophet 21 has undergone a rearchitecture with the Epicor Kinetic UX framework, a significant portion of the code remains legacy. The SaaS version offers concurrent users, potentially reducing costs for companies with multiple shift workers reutilizing licenses. Despite legacy aspects, it maintains its position at number 5 on our list of the top 10 ERP systems for small businesses due to its strong presence in buying groups.

Strengths
  1. Ideal for industrial distributors. Last-mile capabilities include support for buying groups and complex kits, with light manufacturing built as part of the product.
  2. Ecosystem integration in the industrial space. Epicor Prophet 21 has pre-baked integration with most tools prevalent in the industrial distribution space, such as eCommerce platforms. 
  3. Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial independent ERP consulting help to be successful with the product.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

4. Infor CloudSuite Industrial

Infor CloudSuite Industrial stands out as a robust solution for larger OEMs engaging in mix-mode manufacturing. Unlike Acumatica or NetSuite, it surpasses them in size, offering comprehensive support for multi-entity structures and global operations. With inherent capabilities for diverse manufacturing processes like JIT and Kanban, Infor CloudSuite Industrial eliminates the need for numerous add-ons. Additionally, it includes Infor OS, facilitating seamless integration with other Infor products like Infor WMS and Infor CRM.

Although larger than startup-focused solutions such as Odoo or Zoho, Infor CloudSuite Industrial, tailored for manufacturing, may require assistance from a consulting company. It may not be the ideal choice for businesses with hybrid models like manufacturing and distribution or distribution and construction. Despite these considerations, Infor CloudSuite Industrial maintains its position at number 4 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Ideal for industrial manufacturers. The data model is especially friendly for companies with or without formal manufacturing processes with complex field service operations.
  2. Last-mile capabilities. Mixed-mode manufacturing capabilities, especially for manufacturers that might require all modes of manufacturing, including ETO, MTO, or MTS.
  3. Infor OS. Unlike other systems on this list, Infor OS doesn’t require a separate license for external iPaaS tools to integrate with external applications.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Limited focus. The limited focus on certain business models poses the risk of requiring another ERP system to support complex and diverse business operations.
  3. Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on a limited number of Infor resellers.

3. Acumatica

Acumatica, akin to NetSuite and Sage Intacct, is a cloud-native ERP solution with extensive multi-branch capabilities spanning manufacturing, distribution, construction, and field service, all consolidated in a single database. This broad functionality distinguishes Acumatica from more specialized solutions like Epicor Kinetic, Epicor Prophet 21, and Infor CloudSuite Industrial.

Despite its focus on small businesses, Acumatica lacks robust globalization and localization features, catering to a limited number of countries by default. This simplicity, however, benefits smaller companies by avoiding unnecessary layers of multi-entity operations. While well-suited for operations in countries like the US, UK, and Australia, Acumatica’s scope is restricted compared to solutions providing localized capabilities in more regions. Although targeting small businesses, Acumatica surpasses Odoo or Zoho in scale, necessitating consulting help for implementation. These aspects solidify Acumatica’s standing at #3 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Rich operational capabilities packaged in one database. Business models as diverse as field service, manufacturing, construction, and distribution in one database.
  2. Cloud-native, with the experience being very similar to other SAAS products, such as Salesforce or Quickbooks.
  3. Deep batch capabilities. While some solutions on this list might not have scalable layers for batch operations, the Acumatica data model is friendly for most 1:N capabilities companies seeking to decouple and optimize their operations.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Limited global application. Acumatica is relevant only in certain countries where they might have localization supported.
  3. Limited mature last mile capabilities. While Acumatica has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution might be limited.

2. Microsoft Dynamics 365 Business Central

MS Dynamics 365 Business Central excels for diverse businesses in the service and product-centric industries. It is especially friendly for holding and private equity companies trying to streamline their entire portfolio on one solution. While the operational capabilities might be limited, its vibrant marketplace can fill the gap for most industries, making it a truly diverse ERP system in the small business space. 

It is also one of the most localized and globalized solutions with a consulting base present in most countries, making it a truly global solution to keep all global entities without requiring another ERP because of the diversity or outgrowth of the business model because of active M&A activities. Because of these reasons, Microsoft Dynamics 365 Business Central retains its position at number 2 on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Diverse capabilities.Supports multiple industries and business models and pre-baked integration for the best-of-breed CRM and field service solutions.
  2. Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities of most industries.
  3. Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for smaller businesses.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. The channel is not as regulated. The Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
  3. Limited mature last mile capabilities. While Microsoft Dynamics 365 BC has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution might be limited.

1. NetSuite

NetSuite stands out as a globally adopted and diverse solution for smaller businesses. While it boasts strong financial capabilities for both public and private sectors, the experience can be patchy due to the legacy interface despite being a cloud-native ERP. Scalability issues with data layers make NetSuite challenging to implement in spaces like manufacturing and industrial distribution. However, it excels for holding companies and private equity firms streamlining their portfolio companies on one solution.

In contrast to Acumatica, NetSuite, like SAP Business One and Microsoft Dynamics 365 Business Central, excels in deep globalization, covering over 100 countries with country-specific apps for regulatory compliance. While startups may be enticed by its introductory offer, NetSuite’s scale demands consulting help, setting it apart from simpler solutions like Odoo or Zoho. NetSuite maintains its position as the number 1 choice on our list of the top 10 ERP systems for small businesses.

Strengths
  1. Diverse capabilities.Supports multiple industries and business models with pre-baked integration flows available through Celigo.
  2. Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities in most industries.
  3. Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for smaller businesses.
Weaknesses
  1. Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
  2. Weaker data model. The data model is not as structured as with SAP or Acumatica, making it harder to understand and follow.
  3. Limited mature last mile capabilities. While NetSuite has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution are extremely limited.

Conclusion

Defining SMB can be subjective, yet small companies share specific needs upon outgrowing the startup phase. Limited budgets and expertise hinder expensive integrations, requiring comprehensive functionality within the suite. 

When evaluating an ERP solution as a small company, avoid smaller solutions for startups or larger ones for mid-size enterprises. Identifying the right-sized solution is crucial for a successful implementation. Taking the help of an independent ERP consultant might go a long way to finding a solution uniquely tailored to your needs.

FAQs

Top 10 ERP Systems for Startups in 2024

Top 10 ERP Systems for Startups in 2024

Growing startups transitioning from smaller accounting systems after they hit their first million in revenue may not immediately prioritize process integration. The simplicity of their existing systems may lead them to believe that larger counterparts overcomplicate processes and data. Some startups attribute their agility and superior customer experience to their “uniquely crafted processes.” Operational challenges typically emerge around $30-40 million in revenue, varying by industry, as headcount increases, leading to diverse processes and conflicting sources of truth.

This financial inflection point indicates the outgrowth of the startup stage. Progressing to the next inflection point involves embracing tighter processes and data integration while minimizing existing data silos. Companies weigh options between fully integrated ERP systems or partial integration, with operational integration being the priority. Depending upon the direct impact of data siloes on operational efficiency, the need for integration might vary. In certain industries, the need for integration may not be pressing due to lower transaction volumes or minimal impact on the bottom line.

During the startup phase, companies often lack the financial means to hire experienced executives or consultants. Consequently, they gravitate toward user-friendly ERP systems that require minimal expertise and are specifically designed to be “forgiving.” While their forgiving nature simplifies usage, it may lead to data integrity concerns. Nonetheless, these issues typically don’t have a substantial impact on the bottom line during this stage. The systems crafted for startups possess unique characteristics. Curious to discover which systems are tailored for this crucial phase?



ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

Criteria

  1. Definition of startups. Less than $10 mil in revenue or 20-25 employees. Founder leading most of the functions. 1-2 employees for each function, including accounting, purchasing, and operations. $0-30K implementation budget.
  2. Overall market share/# of customers. The higher the market share among the startup companies, the higher it ranks on our list.
  3. Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
  4. Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
  5. Community/Ecosystem. The larger the community with a heavy presence from the startups, the higher it ranks on our list.
  6. Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
  7. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  8. Startup market share. The higher the focus on startups, the higher the ERP system ranks on our list.
  9. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  10. Acquisition strategy aligned with startups. The more aligned the acquisitions are with the startup market, the higher it ranks on our list.
  11. User Reviews. The deeper the reviews from the startup companies, the higher the score for a specific product.
  12. Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

10. ECI Macola

ECI Macola, acquired from Exact, resembles SYSPRO in functionality, serving 1K+ customers with deep capabilities for small manufacturers and distributors, surpassing Odoo or ERPNext. While not as robust as Acumatica or NetSuite, it excels with distribution industries and light manufacturing within ECI’s portfolio. Despite being less complex than Acumatica or NetSuite, consulting help is essential, setting it apart from DIY solutions like Odoo or ERPNext. 

Without consulting help, companies are likely to run into implementation and adoption challenges. The uncertainty in ECI’s commitment to Macola’s future, especially innovation compared to other products in their portfolio, results in a substantial downgrade this year, maintaining rank #10.

Strengths
  1. A tightly integrated data model. The data model is scalable and very ERP-like but would require substantial consulting expertise to code and formalize SKUs, BOMs, and GLs.
  2. Processes are especially friendly for FMCG distributors. The data and process models are especially friendlier for FMCG distributors. It might not be as suitable for other industries or diverse business models.
  3. SQL-based. Compared to other solutions on this list, this is an SQL-based solution, providing tighter data integrity that might not be feasible with file-based variants.
Weaknesses
  1. Requires consulting help. The relational data structure requires substantial consulting help. Without seasoned executives or consutlants, the startups are likely to face implementation or adoption issues.
  2. Uncertain technology roadmap. With so many solutions in ECI’s portfolio, overlapping solutions like ECi Macola might not receive the same attention as their cloud-native variants.
  3. Not as cloud-native. While they have improved the tech stack substantially, it’s not as cloud-native as other options on this list.

9. NetSuite

NetSuite, a multi-tenant, multi-entity solution, targets distribution, B2C, and commerce-centric and service-centric organizations with an attractive starting implementation fee of $30K. The price point is appealing for startups, although it necessitates significant customer involvement. While suitable for upper-range startups, NetSuite is the most complex on this list, requiring consulting help. 

Its object and process model rival Acumatica and Sage Intacct, and it offers globalized and operationally rich solutions for product-centric and service-centric companies. Despite being excellent for slightly larger organizations, NetSuite’s complexity makes it less desirable for startups seeking simpler DIY solutions. This year, NetSuite sees a slight downgrade but maintains rank #9 on the list for ERP systems for startups.

Strengths
  1. A scalable ERP. NetSuite’s diverse operational model and global capabilities can accommodate many business models in several geographies, making it a scalable ERP.
  2. Ecosystem and consulting base. The ecosystem has one of the best-of-breed SaaS solutions with pre-baked integration to augment its core capabilities, and the consulting base is available in most countries.
  3. Ability to support diverse business models. Ideal for startups that are private equity-owned or active with M&A cycles. Also, it is ideal for holding or private equity companies looking to streamline their entire portfolio on one platform.
Weaknesses
  1. Requires consulting help. The complex data model would require substantial consulting help, or the startups might face implementation or adoption challenges.
  2. Bloated Multi-entity Capabilities. The bloated multi-entity entities’ capabilities might be overkill for startups operating in just a couple of countries and might require unnecessary consulting and data modeling help.
  3. Expensive. NetSuite is perhaps one of the most expensive on this list, which might be cost-prohibitive for startups looking for affordable solutions.

8. Acumatica

Acumatica, a multi-tenant, multi-branch solution, primarily targets US and UK-based companies with limited global operational capabilities. It focuses on distribution, construction, manufacturing, and field service organizations, utilizing a reseller network for promotion. Although suitable for startups outgrowing their initial phase, Acumatica may lack simplicity for those avoiding costly consultants and intricate integrations. 

Native integrations include Shopify, BigCommerce, POS, PLM, and marketplace integrations, catering to late-stage startups. However, the design complexity requires consulting help and budget allocation is necessary to maintain integrations. While Acumatica is comparable to NetSuite, its smaller size and simpler design make it more approachable for startups. This year, Acumatica experienced a slight downgrade but maintains rank #8 on the list of ERP systems.

Strengths
  1. A scalable ERP. Just like NetSuite, Acumatica’s data layers natively support complex business operations, whether you need simpler transactional processing capabilities or batch, to make your operations efficient.
  2. Ability to support diverse business models. Acumatica can support multiple business models as part of the same database, making it ideal for companies with diverse business models.
  3. Not as bloated with global capabilities. Limited multi-entity capabilities make the data model simpler for startups that don’t need unnecessary layers of global capabilities.
Weaknesses
  1. Requires consulting help. It would require seasoned ERP consultants to implement, making it less friendly for startups with limited implementation budgets.
  2. Pricing might be harder to predict with growth. Consumption-based pricing requires consulting expertise to estimate transactions as the pricing is not as intuitive and predictable as per-user pricing.
  3. Harder to learn. The ERP layers make it harder for startups to learn who might require a simpler data model without cross-functional dependencies and exceptions.

7. Sage Intacct

Sage Intacct focuses on non-inventory or service-centric industries, offering extensive financial capabilities suitable for mid-sized professional service firms. While surpassing QuickBooks enterprise, Microsoft GP, Zoho, and Odoo in financial capabilities, Sage Intacct may require add-ons, integrations, or custom development if you plan to use it in industries it doesn’t target, such as manufacturing or distribution.

Unlike QuickBooks or Odoo’s simplicity, Sage Intacct, tailored for slightly larger organizations, likely necessitates consulting help for implementation. For service startups, including non-profits, construction, marketing agencies, or financial services, Sage Intacct stands out, providing deeper operational capabilities unique to these verticals. Similar to NetSuite and Acumatica, Sage Intacct faces challenges with layers and complicated accounting and security structures that might be less beneficial for startups. As a result, it has been substantially downgraded and now ranks at #7 on our list of top 10 ERP systems for startups.

Strengths
  1. Ideal for holding and private equity companies looking for a corporate financial ledger. Ideal for holding companies to host global startups in one database.
  2. Friendlier for service-centric startups. Capabilities such as partner accounting and revenue recognition are natively built as part of the product.
  3. Ecosystem and consulting base. Their ecosystem consists of several SaaS vendors, and most accounting firms consult on the product.
Weaknesses
  1. Requires consulting help. A richer accounting and security layer would require help from consulting firms.
  2. Bloated Multi-entity Capabilities. Unnecessary for companies looking for simpler solutions.
  3. Integration challenges. Sage Intacct doesn’t have core capabilities built as part of the same solution, such as CRM or field service, requiring external software and integration maintenance in the long term.

6. Zoho

Zoho, like Odoo, dominates the CRM and HCM markets with a substantial market share. Employing a strategy akin to Salesforce and Workday but tailored for smaller startups in professional services, distribution, healthcare, and eCommerce. With growth, challenges may arise with intricate scenarios like consolidated invoicing or complex allocations. Despite these challenges, Zoho’s user-friendly design facilitates easy DIY implementation with minimal consulting help or expenses. However, we’ve downgraded Zoho due to less tightly integrated apps, causing potential data integrity issues for ERP-like operations. Despite the downgrade, it retains the #6 rank on our list of the top 10 ERP systems for startups in 2024.

Strengths
  1. Easier to learn for companies outgrowing QuickBooks. ERP data models are generally harder to learn because of cross-functional dependencies. That’s not the case with Zoho.
  2. Friendlier for service-centric startups. The data model is especially friendlier for service-centric operations, with CRM being very similar to Salesforce with an integrated project and HCM module.
  3. Does not require as much consulting help. The data model is flatter and doesn’t have as complex ERP layers, which makes the implementation easier and less expensive for startups.
Weaknesses
  1. Does not provide the same level of data and process integration as with a true ERP. Flatter data model would not be as scalable for startups looking for mature capabilities such as batch operations or layered pricing.
  2. Ecosystem limited to Zoho products. Zoho’s ecosystem might not have as many best-of-breed pre-integrated options for companies integrating with tools of their choice.
  3. Not a scalable ERP solution. The data model is not as tightly correlated, which will drive operational inefficiencies and financial control issues at the micro level with growth.


ERP System Scorecard Matrix

This resource provides a framework for quantifying the ERP selection process and how to make heterogeneous solutions comparable.

5. SYSPRO

SYSPRO, a single-tenant product, closely resembles ECI Macola, Microsoft GP, SAP Business One, or Infor Visual. Tailored for small discrete and process manufacturers and distributors, it offers extensive operational functionality comparable to Acumatica or NetSuite.

While not as globally localized as SAP Business One, SYSPRO matches in financial capabilities, supporting complex distribution businesses with rich UoMs, activity-based accounting, and layered object hierarchies. Despite these capabilities, implementation demands consulting help, posing challenges for startups in self-serve mode.

Comparable to Acumatica or NetSuite for businesses with one or a couple of US sites, SYSPRO lacks the cloud-native edge of newer players. Its operational and financial depth surpasses Odoo and Zoho, yet the complexity and implementation costs deter startups from seeking simpler, DIY-friendly solutions. Despite pros and cons, SYSPRO maintains the #5 rank on our list of top 10 ERP systems for startups.

Strengths
  1. A tightly integrated data model. An ERP-like data model with mature ERP capabilities, such as complex layers for inventory costing and MRP.
  2. Ability to support diverse business models. SYSPRO, while friendlier for F&B-centric distributors, can support many business models including discrete and process, as well as distribution.
  3. SQL-based. Compared to other solutions on this list, this is an SQL-based solution, providing tighter data integrity that might not be feasible with file-based variants.
Weaknesses
  1. Requires consulting help. The relational data structure requires substantial ERP consulting help. Without seasoned executives or consutlants, the startups are likely to face implementation or adoption issues.
  2. Harder to learn. The ERP layers would make it harder for companies that might be outgrowing point solutions such as accounting or CRM.
  3. Not as cloud-native. While they have improved the tech stack substantially, it’s not as cloud-native as other options on this list.

4. ERPNext

ERPNext stands out for startups with technical skills, following a distribution strategy akin to Odoo and fostering a vibrant open-source developer community. Though not as well-adapted as Odoo, it caters to the verticals with a heavier need for custom development, such as non-profits or universities.

While supporting basic transactions, it lacks depth in business objects and process models in richer ERP systems, which is crucial for scalability. Unlike other niche, focused solutions solutions, such as ECI Deacom, ProShop, GlobalShop, and JobBOSS2, ERPNext lacks industry-specific last-mile functionality. Despite the pros and cons, it maintains the rank of #4 on our list of the top 10 ERP systems for startups.

Strengths
  1. Easier for companies to outgrow QuickBooks. The data model is not as tightly correlated and integrated as other richer ERP solutions, making it easier for startups transitioning from point solutions such as CRM or QuickBooks. 
  2. Ecosystem and Development Help. ERPNext has a vibrant technical community of developers, which makes it affordable for companies to access technical talent in several geographies.
  3. Does not require as much consulting help. The data layers are not as intertwined as the other richer ERP systems, making the implementation easier and less expensive.
Weaknesses
  1. Does not provide the same level of data and process integration as with a true ERP. Cross-functional data layers don’t have the same hierarchies and layers, making it less scalable compared to other richer ERP solutions.
  2. An open-source ecosystem might lead to inexperienced developers promoting untested and unsecured code. The code promoted by inexperienced developers may lead to cybersecurity issues and operational disruptions.
  3. Requires business consulting help to avoid overengineering by developers. And overengineering might lead to maintenance nightmares and operational inefficiencies.

3. ECI JobBOSS2

ECI JobBOSS2 emerges as a new cloud-native product, combining JobBOSS and E2 Shoptech’s strengths. JobBOSS was tailored for smaller custom manufacturing startups, while E2 Shoptech, a more robust counterpart akin to SYSPRO or Macola, targeted smaller jobs and machine shops, featuring deep capabilities seen in products like GlobalShop or ProShop.

As ECI JobBOSS2 unfolds, it’s poised to inherit JobBOSS’s development flavors, promising easy configuration in the DIY mode. With deeper functionality tailored for machines and job shops, unparalleled in vanilla solutions like Odoo or ERPNext, ECI JobBOSS2 holds its ground at #3 on our list of top 10 ERP systems for startups.

Strengths
  1. Easier to learn. The data model and user flows are similar to QuickBooks, making the software easier to learn for startups.
  2. Friendlier for machine shops. Ideal for smaller machine shops without complicated inventory needs or SKU codings but still with the most relevant operational capabilities, such as job management and basic scheduling.
  3. Does not require as much consulting help. The data model does not require codings or layers similar to richer ERP systems, making it much less expensive to implement.
Weaknesses
  1. Might not provide other crucial integrations such as MES or QMS out-of-the-box. Gaining compliance certifications may require expensive consulting and development help.
  2. Private Equity ownership might not be as friendly for startups with support and consulting. The support and consulting might not be as friendly as ECI, which is privately equity-owned, as startups might expect from other family-owned solutions.
  3. Compliance workflows such as AS9100 might require substantial consulting support. The compliance workflows might not be as pre-baked with other solutions that might not be ERP but might have richer operational and compliance capabilities.

2. ECI Deacom

ECI Deacom stands out as the purpose-built solution for process industries catering to food and beverage distributors, pharmaceutical and cannabis manufacturers, and DTC brands. Unlike file-based solutions, DeaCom excels in transactional integrity, boasting an SQL-based data store. Even more mature systems like Acumatica or NetSuite face challenges in these verticals, necessitating multiple add-ons. 

Companies in these niches demand unique capabilities, including traceability, recall management, route accounting, and compliance with serial number requirements. While ECI Deacom, born in the cloud, may not have as detailed and scalable data model as NetSuite or Acumatica, its seamless implementation in the DIY mode, with minimal consulting assistance, contributes to its rank at #2 on our list of the top 10 ERP systems.

Strengths
  1. Easier to learn. A flatter data model makes it easier for startups transitioning from point solutions such as QuickBooks to learn. 
  2. Cloud-native. The cloud-native interface would not have as much switchover effect as with the other legacy variants.
  3. Substantial last-mile capabilities for process and F&B verticals. Deeper operational capabilities required for process industries, such as route accounting or multiple serial and lot numbers supported on the item master, make it uniquely suitable for these industries.
Weaknesses
  1. The data model is not as scalable as a true ERP. The data model is especially flatter for complex operations such as multi-entity accounting, running into scalability and traceability issues.
  2. Private Equity ownership might not be as friendly for startups with support and consulting. The support might not be as friendly as with a family-owned company.
  3. It would require consulting help with data modeling. The deep layers of data required for pharma and F&B operations would require consulting support to implement successfully.

1. Odoo

Odoo emerges as a straightforward choice for startups, offering superior operational capabilities compared to cloud accounting solutions like QuickBooks, Xero, or FreshBooks. With an affordable per-app business model, Odoo has a tighter data model comparable to mature ERP solutions than lightly integrated software like Zoho. While lacking out-of-the-box last-mile functionality for niche industries, Odoo stands out for eCommerce companies and industry 4.0 integrators, leveraging in-house capabilities to extend and support internal processes.

Odoo’s object and process model may not match the richness of Acumatica or NetSuite, but this simplicity contributes to its startup-friendly design, eliminating the need for expensive consulting assistance. As a result, Odoo maintains its top position at #1 on our list of the top 10 ERP systems for startups.

Strengths
  1. Easier for companies to outgrow QuickBooks. The lean data model and workflows make it easier for startups transitioning from QuickBooks-like solutions to learn. 
  2. Ecosystem and Development Help. The availability of cheaper technical talent globally helps startups extend or augment core capabilities.
  3. Ideal for diverse startups. The data and process model supports diverse industries, including product and service-centric startups, making it an ideal solution for private equity and holding companies to host all of their global startups in one database.
Weaknesses
  1. Mature capabilities are not as pre-baked as larger peers. Mature capabilities such as MRP, allocation, and batch are not as detailed as with other richer ERP systems. 
  2. An open-source ecosystem might lead to inexperienced developers promoting untested and unsecured code. The inexperienced developers might promote untested code, causing cybersecurity issues or operational disruptions.
  3. Requires business consulting help to avoid overengineering by developers. Without access to seasoned ERP consultants, Odoo implementation is likely to run into implementation or adoption challenges.

Conclusion

Crafted for startups, these solutions provide vital features without requiring consulting, facilitating a smooth transition and adoption. With essential pre-built capabilities, they surpass other cloud accounting alternatives that barely provide after-the-fact financial reporting without access to critical financial control that you need with growth.

If you’re moving beyond QuickBooks, Xero, or FreshBooks, these solutions are perfect for advancing to the next stage of growth without straining your finances. Ensure a thorough analysis of your specific needs to pinpoint the solution aligning with your critical success factors. If you lack regular insights into these solutions, consider engaging independent ERP consultants for informed guidance.

FAQs

Top 10 Construction ERP Systems for 2024

Top 10 Construction ERP Systems in 2024

The construction industry necessitates dedicated ERP systems tailored for distinctive accounting and payroll demands. This explains why accountants often undergo specialized training in construction accounting when transitioning into this industry.

Moreover, industries adjacent to construction, even if not at its core, often adopt numerous processes from it. Manufacturers supplying the construction sector undergo pre-construction, bidding, and submittal processes. Likewise, contractors like electrical, plumbing, and HVAC may share these processes and necessitate specific feature sets.



ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

Hence, ERP systems not tailored for construction accounting and industries may seem out of place. So, which construction ERP systems should we consider, and how do we assess them? Let’s kick off with a compilation of the top 10 construction ERP systems frequently implemented in the industry. This list is curated after analyzing numerous ERP systems and their capabilities using publicly accessible information, along with insights from our team’s experience in evaluating these systems for clients. The intent here is not to make recommendations but to present options for your thorough consideration. Are you prepared to delve into the list?

Criteria

  1. Overall market share/# of customers. The higher the market share of the product, the higher it ranks on our list.
  2. Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
  3. Quality of development (legacy vs. legacy dressed as modern vs. modern UX/cloud-native). The more cloud-native are construction capabilities, the higher it ranks on our list.
  4. Community/Ecosystem. The larger the community for the construction product, the higher it ranks on our list.
  5. Depth of native functionality for specific industries. The deeper the construction functionality provided out-of-the-box that the publisher owns, the higher it ranks on our list.
  6. Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list. 
  7. Construction product share. The higher the focus on construction, the higher the ERP system ranks on our list.
  8. Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
  9. Acquisition strategy aligned with construction. The more aligned the acquisitions are with construction, the higher it ranks on our list.
  10. User Reviews. The deeper the reviews on public sites by construction companies, the higher the score for a specific product.
  11. Must be an ERP product. It can’t be an edge product such as Salesforce, ProCore, Adeaca, InEight, or ServiceNow. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.


The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

10. Viewpoint

Similar to CMiC, Viewpoint stands as a longstanding player in the construction domain. Since its acquisition by Trimble, it has provided more extensive construction management features. Despite endeavors to shift their legacy codebase to the cloud, many screens still retain a distinctly on-premises appearance.

Functionally, Viewpoint can address the majority of your construction business requirements, spanning construction management, estimating, construction finance, equipment management, and more. While Viewpoint’s revenue share surpasses CMiC’s in the construction sector but falls short of Deltek’s, its recent valuation during the Trimble acquisition reached $1.2 billion. Given these factors, Viewpoint retains its position at #10 on our list of the top 10 construction ERP systems, with no change in rank this year.



ERP Selection Requirements Template

This resource provides the template that you need to capture the requirements of different functional areas, processes, and teams.

9. Unanet

In contrast to CMiC and Viewpoint, Unanet focuses on Architectural and Engineering firms, catering to stringent DCAA compliance requirements for government contractors, akin to Deltek. Setting itself apart from its legacy counterparts, Unanet boasts a contemporary, cloud-native interface.

Although Unanet offers a comprehensive solution for project-centric firms, it operates atop other accounting packages like Sage or SAP. This is commonly employed in a two-tier setting, where larger enterprises seek enhanced financial control at the corporate level. Despite its robust features, Unanet holds a smaller market share compared to Viewpoint and because of these reasons, Unanet ranks at #9 on our list.



ERP System Scorecard Matrix

This resource provides a framework for quantifying the ERP selection process and how to make heterogeneous solutions comparable.

8. SAP S/4 HANA

Similar to Microsoft Dynamics 365 F&O, S/4 HANA caters to enterprise companies with over 10-15 entities. Both solutions boast seamless integration of resourcing and procurement within projects, facilitating effective supply chain management, resourcing, and forecasting. Additionally, they feature robust field service components. SAP S/4 HANA expands its portfolio with complementary solutions like SuccessFactors for HCM and Concur, encouraging best-of-breed configurations. Companies often leverage SAP S/4 HANA alongside other leading solutions, such as Salesforce for CRM and Workday for HCM.

Although SAP S/4 HANA lags in operational ERP capabilities in the cloud, its financial functionalities suffice for many construction companies. Vanilla ERP systems may not be as pertinent in the construction space, leading these companies to seek construction-centric solutions like Unanet or Procore in a two-tier setting for operational construction needs. Consequently, SAP S/4 HANA retains its position at #6 on our list of the top 10 construction ERP systems this year.

7. Sage Intacct

Unlike Acumatica, Sage Intacct primarily targets service-centric industries, including construction—a sector that has been a significant revenue driver for Sage through its Sage 300 CRE product. Although Sage Intacct may not currently boast the same construction market share as competing products or Sage 300 CRE, its design aligns well with construction-centric industries. With robust multi-entity functionality and native consolidation capabilities, Sage Intacct stands out. Additionally, its seamless integration with ProCore positions it as a powerful cloud-native solution, offering a unique advantage that sets it apart from other competing solutions.

Although Sage Intacct boasts superior design for the construction sector compared to other cloud-native products tailored for product-centric industries, its entity-based pricing presents a drawback compared to Acumatica. However, as Sage Intacct continues to enhance its capabilities, mirroring those of Sage 300 CRE, it is anticipated to provide a migration path for customers transitioning from the CRE product.

By expanding its capabilities, Sage Intacct aims to capture a more substantial share of the construction market compared to its competitors. However, its current limitations, particularly in areas like union reporting, have led to a slight reduction in Sage Intacct’s ranking. Nevertheless, it retains the position of #7 on our list of the top 10 construction ERP systems.

6. Sage 300 CRE

As the longstanding leader in construction and real estate, Sage 300 CRE boasts robust accounting functionality and seamless integration with ProCore, a powerhouse in construction management. While its capabilities in AE and GovCon may not be as pronounced, Sage 300 CRE remains an appealing choice for SMBs needing comprehensive features in construction accounting, estimation, job cost codes, and project procurement, backed by Sage’s financial stability.

While Sage 300 CRE stands strong for SMB construction companies today, its future is uncertain due to Sage’s focus on the Intacct portfolio. Existing customers face a dilemma as transitioning to Intacct may lack the same depth. Prospective users may hesitate, anticipating potential shifts in Sage’s product strategy. Consequently, we’ve significantly adjusted its ranking this year, placing it at #6 on our list.

5. Acumatica

Much like Sage Intacct, Acumatica ranks among the top three cloud-native ERP products. Acumatica offers a construction edition with robust features tailored to construction-centric field services, payroll, and job codes. While lacking some multi-entity functionality, Acumatica compensates with seamless integration with ProCore. Its consumption-based pricing appeals to construction companies with fluctuating workforce needs for various projects, positioning it as a compelling choice.

Acumatica may need additional add-ons for comprehensive DCAA compliance compared to Deltek and Sage 300 CRE. Nevertheless, its core features, including accounting, project management, field service, construction job management, and cost code tracking, are expected to be more robust. Despite these strengths, Acumatica faces limitations in globalization and location capabilities, limiting its scope in a few countries. Consequently, Acumatica’s ranking has been downgraded this year, although it maintains the #5 position on our list.

4. IFS

IFS offers a wealth of functionality designed for companies with substantial asset and field service operations, making it particularly advantageous for the construction sector. Tailored service-centric capabilities cater to project-driven organizations, aligning with the data model of companies managing large programs. With WBS-centric processes providing comprehensive project visibility, including field services, IFS stands out as an excellent choice for construction-centric industries. Positioned uniquely, IFS appeals to enterprises in search of mature, industry-specific capabilities, minimizing the necessity for extensive development compared to generic ERP systems like SAP or Oracle.

Navigating the IFS data model requires an adept internal team and external ERP advisory support, crucial for aligning processes with its intricate structure. Tailored for upper mid-market companies outgrowing smaller systems like Acumatica or NetSuite, IFS offers mature capabilities for enterprise-wide asset scheduling and maintenance. Beyond functional prowess, IFS adeptly handles the transactional workload of upper-mid-market enterprises.

Distinguished by robust global, multi-entity capabilities, IFS operates seamlessly as a cloud-native ERP solution. With a substantial customer base in the $100M – $1B revenue range, many approaching the $1B mark, IFS has surged into this year’s ranking at #4. Recent successes in the North American market and securing prominent enterprise logos in construction contribute to its notable ascent on our list.

3. Microsoft Dynamics 365 F&O

Catering to enterprise companies with over 10-15 entities, Microsoft Dynamics 365 Finance and Operations aligns well with the construction industry. SMBs in construction often manage numerous entities, typically assigning one per project based on project complexity and financial risk. Although transaction volumes are lower than retail or manufacturing, Dynamics 365 Finance and Operations effectively addresses the unique needs of construction SMBs.

Although Microsoft Dynamics 365 Finance and Operations lacks the operational depth of specialized solutions, larger companies favor its corporate-level financial control. In a two-tier setting, they often utilize additional Dynamics F&O add-ons like Adeaca for operational requirements. Addressing construction-specific features may necessitate further add-ons or custom development for optimal functionality.

Furthermore, MS365 F&O offers seamless integration for field service, HCM, and CRM at the database level, empowering large companies to construct a best-of-breed architecture. This consistency in performance has contributed to Microsoft Dynamics 365 Finance and Operations gaining the new rank at #3 on our list of top 10 construction ERP systems this year.

2. Oracle Cloud ERP

Unlike SAP S/4 HANA and Microsoft Dynamics 365 F&O, Oracle ERP Cloud stands out as a prominent leader in the construction enterprise space, offering extensive operational functionality tailored for construction-centric businesses. Oracle’s construction-focused ERP Cloud portfolio encompasses various products, including Oracle Aconex for design and construction coordination, Primavera products for project and portfolio management, Textura payment for subcontractor invoicing, and additional tools for submittal management during the pre-construction phase, fostering collaboration among general contractors and subcontractors.

Oracle’s operational capabilities in construction industries grant it a notable advantage over competitors in the enterprise space, including Microsoft F&O and SAP S/4 HANA. While Oracle may not exhibit the same depth in last-mile functionality for government contractors as Deltek, Sage, or Unanet, its globalized and localized features cater to the demands of large public construction firms. Oracle Cloud ERP remains an excellent choice for enterprises seeking to consolidate global entities seamlessly within a single database, minimizing the need for numerous subsidiary-level ERP systems in a two-tier setting. Consequently, Oracle Cloud ERP has significantly elevated its position on this year’s list, now securing the #2 ranking.

1. Deltek

Deltek dominates the construction and GovCon sectors, boasting a substantial market share and a robust valuation of $2.8 billion in 2016. Outclassing legacy competitors, Deltek stands as one of the GovCon giants, securing major customers like AWS and Booz Allen Hamilton. With advanced cloud-native functionality, Deltek outpaces smaller vendors like Viewpoint and CMiC. Its solution, widely embraced, particularly by larger construction firms, solidifies Deltek’s leadership in the industry.

Deltek gains a distinct advantage through its extensive ecosystem penetration. Major GCs using Deltek often mandate their sub-cons to adopt the platform, fostering collaboration, especially in the pre-construction and bidding phases. While lacking Oracle ERP Cloud’s extensive globalized features, Deltek excels in operational capabilities, catering to upper mid-market organizations. In the upper mid-market space, Deltek faces minimal competition, contributing to its remarkable ascent in the rankings. Deltek now claims the top spot on our list of the top 10 construction ERP systems.

Conclusion

Construction businesses require specialized processes and accounting solutions. Generalized ERP systems often prove inadequate for meeting the unique needs of the construction industry. Selecting an ERP becomes even more challenging for industries blending construction with manufacturing, service repair, or distribution.

When assessing a construction ERP system, prioritize understanding and identifying unique critical capabilities for successful implementation. This curated list aims to offer potential options that align with your specific needs. But don’t underestimate the importance of an independent ERP advisor for your construction ERP journey.

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