KLAS: Workday, Oracle Receive Top Scores for Cloud-based ERP Services

February 27, 2023 - The top cloud-based enterprise resource planning (ERP) vendors received praise for their supply chain management and financials modules, but many users reported experiencing challenges with implementation, according to the KLAS ERP 2023 report.

Researchers interviewed healthcare professionals over the last 12 months using KLAS’ standard quantitative evaluation for healthcare software. The report assesses customer adoption across the three ERP pillars: financials, human capital management (HCM), and supply chain management; ERP vendor performance; and customer optimism about how vendors will perform in the future.

Workday

Workday received the highest overall performance score of 86.5 on a 100-point scale. The vendor had high customer satisfaction with supply chain management functionality, scoring 7.4 on a 1 to 9 scale. Around 60 percent of users adopted the supply chain module.

Workday’s supply chain management module has historically been perceived as a weak spot, but recent product enhancements have improved satisfaction and generated excitement among users, the report noted.

Customers are generally satisfied with the vendor’s HCM and financials modules; HCM module adoption was between 86 and 100 percent.

Some users said they would like better functionality for inventory, turnover rates, supplier lead time, and reporting. But they said they appreciate the vendor’s transparency about its solution’s gaps and its plans to address them.

Most Workday customers are optimistic about the future, referencing the vendor’s performance, clear communication, and strong track record of valuable enhancements. A few users who are not optimistic are concerned Workday will not address their functionality needs in a timely manner.

Newer Workday customers reported bumpy implementation and training experience. These respondents said some of the vendor’s approved implementation partners lack expertise and an understanding of best practices.

Oracle

Oracle received a high overall performance score of 79. The financials module is one of the vendor’s strongest areas and has seen high user adoption. Customers said they appreciate Oracle’s dedication to enhancing the product with new technology.

The vendor’s supply chain module is generally seen as a strength, with users saying it is straightforward and sophisticated for viewing and editing historical pricing information. However, some users said the module’s usability and functionality could be improved, including its contract management and price-capturing tools.

Oracle’s acquisition of Cerner has made users feel that the vendor is focusing on improving their solutions for customers, according to the report.

Customers who are optimistic about Oracle’s future performance cited the frequent upgrades that meet user needs and the communication that reaffirms the vendor’s investment in improving the customer experience.

Pessimistic users said they experienced rough implementations and struggled to achieve outcomes. Oracle has historically used third-party service firms to manage implementations, prompting users to want more involvement and critical guidance from the vendor during implementations.

Infor

Infor received a 74.9 for overall performance. The vendor has experienced a 15-point performance score increase over the last three years.

Infor’s solution was the most broadly adopted cloud platform among respondents. Adoption of financials, HCM, and supply chain management modules all fell between 71 and 85 percent.

However, users reported frustrations with the HCM module, referencing talent management and payroll difficulties. Users also noted poor usability and insufficient integration among the supply chain and financials modules.

Users said that Infor executives have listened more carefully to customers and addressed problems over the last few years. System configuration is a key challenge, with customers citing the system’s complexity and nonintuitive user interface. Customers said they would like best practices training included in their contract at no additional cost.

Infor users were optimistic about the vendor’s future performance, citing the executive team’s vision and focus on customer success and their efforts to use feedback to address concerns and improve outcomes.

Some users reported rough implementations that make it hard to achieve outcomes. In addition, inefficient processes have led to an increased need for full-time equivalents for some customers.

SAP

SAP received a performance score of 74.4. The vendor has a small US customer base, but users reported broad module adoption; 100 percent of users adopted the financials and supply chain management modules.

Users said these modules were reliable but noted that the HCM module does not meet expectations. In addition, users said the solution has not evolved to meet organizations’ reporting needs.

Some users expressed excitement about moving from the on-premise solution to the cloud-based solution, while others wanted to move away from SAP entirely and find a new vendor.