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Tell me everything about Private Equity in the ERP (enterprise resource planning) space. Specifically, what trends are present, which firms are most active, and the type of organization they seek.
Hello! Thanks for your request about Private Equity in the Enterprise resource planning space. The short version is that there is valuable information about Private Equity and some well-known organizations are actively associated with this concept. Below, you will find a deep dive of my research and findings.
Methodology
I began by familiarizing myself with private equity and enterprise resource planning. Next, I conducted a search through industry reports, corporate websites and regulatory filings for any information. I looked on trusted websites where private equity and enterprise resource planning are the main subjects of focus. Information regarding the organizations associated with the required topics is listed under TOP VENDORS.
Basic Information on Private equity
Private equity firms are in the business of investing in portfolio companies, each of which needs to increase revenue, reduce waste and generate healthy profit margins to create value for shareholders and investors. In order to reach these lofty goals, more firms are turning to modern technology. A fully integrated ERP and CRM solution will provide greater control and insight over finances, operations, and improve the bottom line.
Unlike angel investors or magnanimous millionaires, however, private equity firms have very clear strings attached to their dollars. Instead of dropping a pile of cash on a company's front porch and wishing them well, private equity groups will want to have a direct say in how that money is spent.
Basic information on Erp
management system covering functional areas of an enterprise like Logistics, Production, Finance, Accounting, and Human Resources. It organizes and integrates operation processes and information flows to make optimum use of resources such as men, material, money, and machine.
In many cases, a private equity firm will employ two strategies for improving the portfolio company’s revenue which includes cost-cutting initiatives and revenue-building initiatives. To save money, many business leaders turn to an enterprise resource planning (ERP) solution. ERP offers a strong foundation for capturing, analyzing and using core business data generated during financial operations, supply chain and inventory management, manufacturing and distribution operations, and other key business processes.
Growing companies need ERP systems that can grow with them yet don’t demand weeks or months of implementation and training. But that’s often hard to find.
Top Vendors
A few vendors lead the ERP market with strong force. The following vendors are in the top tier of the market:
1. Microsoft Dynamics AX (Microsoft Dynamics AX encompasses functions such as financial, human resources (HR) and operations management in addition to industry specific capabilities for distributors, retailers, manufacturers, service industries and the public sector.)
2. Oracle (Oracle offers a multitude of ERP options, but it appears to be focusing on various cloud-based ERP products such as the Oracle Financials Cloud and clouds for accounting, procurement and other areas instead of trying to sell a single "does everything" ERP suite. The company is heavily marketing these clouds with specific functions. This signals a change from the mega-suite days of the Oracle Business Suite.)
3. SAP (Like Oracle, SAP has taken a shift in direction in recent years. But this time, it is anchored in SAP HANA, which is its in-memory analytics platform. The SAP Business Suite 4 SAP HANA is the product it showcases on its website. It also has a variety of other offerings that are tailored to the size of the company and the industry vertical being served.)
4. Infor (Infor's most recent upgrade is Infor CloudSuite Industrial Enterprise, which offers the manufacturing industry access to applications in the cloud. This includes tools for document management, financial performance management, packaged analytics, compliance tools and enterprise asset management.)
5. Sage X3 (Sage X3 is said to empower growing mid-sized enterprises with flexible business management involving less cost and complexity than typical ERP systems. To manage financials, distribution, and manufacturing, Sage offers several deployment models.)
6. NetSuite (NetSuite markets itself as the world's most deployed cloud ERP suite, with more than 24,000 customers across 100 countries. It covers the full range of functions, including financial management, accounting, CRM, e-commerce and more.)
7. Epicor (Epicor ERP 10 is a suite consists of various modules for CRM, manufacturing, supply chain, HR, financial and more. It is focused on the needs of the manufacturing, distribution and services industries. It can be an on-site installation, hosted or run as a SaaS or cloud application.)
On the 5th slide of this presentation slideshow, the largest trends that are presented for PE and ERP are cloud-based ERP systems, user interface, and ERP integration.
Here is a list of websites that give information about each top tier ERP vendors:
As of firms, the following list features some firms that are currently active in private equity:
Conclusion
To wrap it up, private equity and ERP has been around for the last 50 years and continues to expand. Many private equity firms are focused on reducing waste of resources and increasing the use of resources. The main trends of private equity are cloud-based ERP systems, user interface, and ERP integration.
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