User satisfaction: What is the status of ERP use in practice?
The study "ERP in Practice 2020/21 - User Satisfaction, Benefits & Prospects" shows where customers' shoes pinch and how the systems are evaluated. The study was carried out by Trovarit AG with the support of selected partners such as the Swiss consulting firm 2BCS AG.
For the tenth time since 2004, Trovarit AG in Aachen, together with partners from Germany, Austria and Switzerland, has investigated user satisfaction with ERP software. The basis is a data collection from mid-March to the beginning of July 2020. 2089 questionnaires were approved for the evaluation after intensive quality checks. 41 systems have a relevant share of the installed base. The Trovarit study is the largest independent user study on ERP use in Europe.
Systems are replaced a little earlier
Among other things, the age of the ERP systems in use was examined. After the average useful life has risen continuously over the last few studies, this year for the first time a slight decline from 11.7 years of operation (2018) to 11.3 years was recorded. This indicates increasing replacement investments in the last two years. Most users adhere to vendor release cycles and ensure that their deployed software is current. On the other hand, 30 % of installations use a release that is three or more years old.
User satisfaction: A question of benefit and economy
There is a significant correlation between user satisfaction and the benefits or cost-effectiveness of the ERP system used. The majority of study participants attest that their systems make a concrete contribution to simplifying and accelerating processes (59 %) and providing information quickly and easily (56 %). However, significantly fewer of the respondents see the often-cited role of the ERP system as the "backbone of the software landscape". It must be pointed out here that the benefit aspects depend on the size of the company. For smaller companies, process efficiency and transparency are more important than for larger companies, which measure their ERP more by the ability to automate processes and reduce process costs.
Customer relationships pay off
The top rankings in the 2020/21 satisfaction survey go to providers that either offer above-average benefits, have low complexity, or maintain a close customer relationship. Open, intensive communication with customers in particular secures many plus points. Providers who can offer development, implementation and support from a single source gain important advantages in the users' favor. This is demonstrated, for example, by providers such as Opacc or oxaion in the "medium weight class". Demanding ERP installations tend to have a harder time due to the high project complexity. For example, Microsoft "Dynamics 365 Finance & SCM" (formerly Dynamics AX/Axapta) and SAP S/4 HANA are noticeably behind Infor ERP LN in the overall score.
Only little change in ranking
Compared to 2018, most systems have confirmed their results. However, there are also some winners and losers. For example, the Swiss provider TOSCA (dynasoft AG) shows a marked increase in the software satisfaction category. On the other hand, Canias, among others, has to accept losses in satisfaction with the provider. The evaluation of IFS Applications appears surprisingly negative, after the solution had achieved quite good results in previous years. Customers criticize the satisfaction with the maintenance partner and service provider around the cloud offering; in most cases this is the manufacturer IFS itself. This led to a veritable crash by half a school grade. Overall, the study shows that the size and complexity of an ERP installation is directly related to user satisfaction. The higher the requirement level, the more critical the customers.
ERP deployment: These are the most important problem areas
Users see the biggest challenge in excessively long vendor support response times (16 % of companies), followed by ERP operations costs (13.4%) and data maintenance efforts (13.1 %). But there is good news, too: One in five companies state for the record that they have no problems in ERP operations. Again, this statement is a matter of size. Only 10 % of the medium-sized companies can underline this in contrast to 24 % among the smaller companies. There are also different problem areas between the large and medium-sized companies. These include adaptability of the software, ergonomics, effort for updates, and interfaces or integration of software applications.
In addition to user satisfaction, the focus is on these topics
Not surprisingly, 60 % of the companies surveyed consider data and information security to be very relevant. This corresponds with second place, adherence to legal requirements and compliance with industry regulations. Here, ERP providers will be even more challenged to meet the requirements in the future. Be it through clear identity management, legally compliant archiving of documents, the use of personal data or the management of product information (GTIN/NTIN/PPN), expiration dates and batch numbers. If one takes a closer look at the evaluated ERP systems, it is not surprising that 45 % of the users make usability and software ergonomics an issue. The topic of mobility also makes it into the top 5. Mobile use is playing an ever greater role in business models, organizational structures and forms of work.
Despite everything: Most of the systems with high user satisfaction
The current Trovarit study shows that most users are largely satisfied with the ERP software they use. Not everything that is currently hype in the media is already resonating in business practice. The Internet of Things, Artificial Intelligence, Robotic Process Automation or Augmented/Virtual Reality are not really on the agenda yet. The relationship and communication with the customer are and will remain decisive success factors in user satisfaction, in addition to the technology used.
Source: 2BCS INC.
