ERP-järjestelmät Suomessa 2025

Introduction to ERP Systems

Overview of the Webinar

• The webinar is focused on ERP systems, presented by Perttu Tolvanen and Kimmo Parkkinen.

• The discussion will cover results from a recent study on the ERP market in Finland, categorizing various systems and defining what an ERP system is today.

Purpose of No Patrol

• No Patrol specializes in consulting for digital projects, particularly during the preparatory phase, conducting numerous digital projects annually.

• They maintain independence by not partnering with suppliers or integrators, ensuring they provide unbiased solutions tailored to client needs.

Importance of Preparation in ERP Projects

Project Preparation Insights

• Emphasis on thorough preparation before selecting an ERP system; understanding business needs and requirements is crucial.

• Today's session includes a general overview of commonly used ERP systems in Finland, categorized into four groups based on their characteristics.

Categorization of ERP Systems

Types of ERP Solutions

• The presentation categorizes leading global providers, large international challengers, Nordic alternatives, and industry-specific solutions.

• Acknowledgment that many industry-specific solutions exist across different categories; boundaries between categories are not rigid but necessary for classification.

Defining ERP Systems

Historical Context and Evolution

• Historically, ERPs originated from inventory management and production control; foundational elements include logistics and product management.

• Over time, ERPs have expanded to include customer data management, sales leadership, HR management, reporting capabilities, financial accounting among others.

Current Trends in Finnish Market

• In Finland's SME sector, traditional financial management features may be less emphasized due to strong local solutions available for financial tasks.

• There’s a noted gap in human resource management within historical ERPs; these systems have primarily served manufacturing sectors rather than personnel management.

ERP Systems and Their Evolution

Understanding ERP Definitions and Statistics

• The definition of ERP systems is not very clear-cut, with a focus on their critical role in organizational operations.

• Smaller companies (under ten employees) are excluded from the statistics, leading to surprising findings about ERP adoption rates.

• In 2012, when Norpatrol was founded, only 33% of companies used ERPs; by 2024, this figure rose to 61%, indicating a significant shift away from reliance on Excel.

Growth and Adoption Trends

• ERP systems typically become relevant as companies grow beyond several dozen employees, especially in larger organizations with over a hundred or thousands of staff.

• The rise of SaaS solutions has made it easier for smaller organizations to adopt tailored ERP packages suited to their specific needs.

Innovations in ERP Solutions

• Over the past 15 years, there has been a revolution in specialized ERPs catering to various sectors like salons, gyms, and sports clubs.

• These specialized tools often include mobile apps and user interfaces designed for different roles within an organization.

Industry-Specific Usage Patterns

• Not all industries have fully adopted these systems; smaller businesses still consider implementation strategies carefully.

• Larger sectors such as wholesale trade and manufacturing commonly utilize these systems for logistics and project management.

Core Considerations for Implementing ERPs

• Identifying the most valuable resource within a company is crucial when deciding on an ERP system's core functionalities.

• Different organizations prioritize various aspects—like optimizing resource usage or managing material procurement—which should guide their choice of ERP.

Customization and Integration Challenges

• The role of ERPs varies significantly across organizations; they can be multifunctional but must align with specific operational goals.

• Organizations may prefer either comprehensive systems or point solutions based on their unique needs and existing architecture.

Strategic Evaluation for Implementation

• Companies should evaluate available systems tailored to their industry before integrating additional components into their existing frameworks.

• While integration capabilities exist, they present both opportunities and challenges that need careful consideration during implementation.

Integration Challenges in ERP Systems

Balancing Integration and Functionality

• The discussion highlights the challenge of determining how much integration is necessary for ERP systems, emphasizing the need to find a balance without overcomplicating processes.

• When evaluating ERP solutions, it's crucial to assess whether they align with specific business models, such as gym management software tailored for fitness centers.

• A key debate arises around whether to adapt existing operational methods or acquire a system that fits current practices; experience suggests that adaptability is often more critical than capability.

General vs. Specialized ERPs

• General-purpose ERPs are likened to multifunctional machines capable of various tasks if users possess sufficient knowledge and skills.

• In larger organizations, the need for integrated reporting from a single system becomes essential, while smaller operations may benefit from specialized solutions designed for specific needs.

Market Analysis and Selection Criteria

• The analysis includes various players in the ERP market based on their proven usage in Finland, ensuring relevance and credibility within local business contexts.

• Emphasis is placed on selecting ERPs with established user bases and expert support available both from suppliers and clients.

Revenue Considerations

• A minimum revenue threshold (around one million euros) is suggested for companies included in the analysis to ensure viability; however, exceptions exist for those recently funded.

• Identifying product names used within different sectors proves challenging due to limited transparency from larger firms regarding actual revenues or customer bases.

Methodology and Classification Challenges

• The methodology involves utilizing diverse data sources including public records and industry reports while maintaining rigorous classification standards despite inherent challenges.

• Companies often prefer to present themselves as specialized rather than generalist providers, complicating clear definitions of what constitutes an industry-specific ERP solution.

Market Dynamics in Software Solutions

Overview of the Current Market Landscape

• The software market, particularly for collaboration tools like Teams and Confluence, is fragmented with many products being marginally used.

• Compared to other sectors such as e-commerce and online publishing, this market appears to be lagging by about 20 years, characterized by chaos and competition among various sized companies.

• There is a dynamic nature to the market; however, it remains uncertain whether it is stabilizing or continuing to evolve rapidly.

System Integration Challenges

• Many organizations still utilize multiple systems due to mismatched needs and lack of integration solutions.

• The number of small and medium-sized solutions continues to grow, indicating that the market is not yet fully developed.

Major Players in the Market

Global Leaders

• Key global players include SAP (Germany), Microsoft, and Oracle (USA), all aiming for ecosystem integration where customers can access everything through a unified interface.

• These companies typically manage complex business processes with extensive systems requiring robust data management capabilities.

SAP's Positioning

• SAP has made significant strides towards cloud migration despite facing challenges during this transition.

• It aims to provide a unified business platform managing entire production chains but has been perceived as rigid in usability.

User Experience Improvements

• Recent improvements have been noted in user interfaces during SAP's cloud transition, making them more accessible across organizations rather than just for specialized users.

Product Offerings

Diverse Solutions from SAP

• SAP offers various packages tailored for different needs ranging from flagship models like HANA to more compact options suitable for smaller businesses.

Organizational Support Strength

• One of SAP’s strengths lies in its ability to support complex organizational structures across multiple countries, positioning it alongside Oracle as a leading solution provider for large enterprises.

Discussion on ERP Solutions for Medium and Small Enterprises

Overview of ERP Suitability

• The conversation highlights that certain ERP solutions are tailored for smaller organizations, particularly medium-sized businesses with revenues around 10 million euros.

• It is noted that these systems are not designed for small businesses but rather cater to more complex business processes, which can lead to challenging implementation projects.

Microsoft Dynamics 365 Positioning

• Microsoft is recognized as a dominant player in the Finnish market, especially with its Dynamics 365 product family, which includes finance and supply chain management modules.

• The integration of financial processes and global business support through multiple currencies and accounting standards is emphasized as a strong feature of Microsoft's offering.

Supply Chain Management Insights

• The discussion points out that Microsoft's supply chain management capabilities focus on material flow control and inventory management.

• There’s an observation about the increasing number of integrators for Microsoft products, indicating improved adoption rates among customers.

Market Competition Analysis

• A comparison is made regarding the ease of implementation between different ERP solutions; Business Central from Microsoft is seen as user-friendly compared to others.

• The conversation transitions to Oracle's position in the market, describing it as a "giant among giants," often compared with SAP.

Oracle's ERP Offerings

Overview of Oracle E-Business Suite

• Oracle E-Business Suite is identified as one of the oldest products in the market, having been around for over 25 years despite its outdated foundational structure.

• Despite its age, it remains a core component in global operations, with ongoing support promised until at least 2036 or 2037.

Transition to Fusion Cloud ERP

• Oracle emphasizes its Fusion Cloud ERP as their primary solution aimed at large enterprises with complex structures needing unified reporting across diverse business units.

Acquisition of NetSuite

• The acquisition of NetSuite by Oracle in 2016 raised eyebrows due to Larry Ellison's ownership stake prior to the purchase.

• NetSuite serves as Oracle's solution for small-to-medium enterprises (SMEs), known for being an all-in-one platform popular in the U.S. but less so in Europe.

User Experience Considerations

• NetSuite is described as user-friendly and quick to implement compared to other options within Oracle’s suite.

Discussion on ERP Systems and Market Dynamics

Overview of SAP Customer Demographics

• Tuija comments that 80% of SAPI customers are small to medium-sized enterprises (SMEs), but the speaker feels that larger organizations are more significant revenue sources for SAP.

Legacy Systems and Transition to Cloud

• A participant notes that many ERP systems, like Oracle's e-Business Suite, were built decades ago. This raises questions about whether this is beneficial or risky.

• The speaker does not see it as a major risk, citing challenges faced by older systems transitioning to cloud environments, which require substantial time and investment.

Challenges in Cloud Migration

• Older on-premise solutions developed over 20 years have proven durable but face difficulties when migrating to cloud platforms due to the need for rebuilding functionalities.

• The speaker suggests caution when dealing with providers who have recently transitioned their core products to the cloud.

Oracle's Approach to Cloud Solutions

• Oracle has not fully migrated its e-Business Suite to the cloud; instead, it has developed Oracle Fusion Cloud AR as a new solution while maintaining legacy systems separately.

Competitors in the ERP Market

• The discussion shifts towards competitors challenging major players like SAP, Oracle, and Microsoft.

• Odoo is highlighted as a leading challenger in this market despite being smaller than these giants.

Odoo's Unique Positioning

• Odoo operates on an open-source model with a free basic version available, allowing users flexibility in implementation without additional licensing costs.

Comparison with Other Platforms

• The speaker mentions previous CRM studies where Odoo was also noted for its adaptability and modular approach.

• Originally known as Open ERP, Odoo follows a similar model to Magento by offering an open-source platform with enterprise-level options for those needing enhanced features.

Evolution of Open Source Models

• The success of open-source models like Magento demonstrates how they can dominate markets over time through flexible user adoption strategies.

Future Implications for Open Source Solutions

• As seen with WordPress WooCommerce and Liferay, open-source models continue proving effective in various sectors by allowing gradual transitions from free versions to paid enterprise solutions.

What is the Future of ERP Market?

Insights on ERP Market Evolution

• Kimmo Parkkinen discusses the growth of the ERP market, noting that while it may not be completely revolutionary, its applications are clearly increasing. He emphasizes the importance of having a knowledgeable partner when implementing these systems.

• Parkkinen advises against heavily customizing basic versions of ERP solutions. Instead, he suggests adding supplementary modules and collaborating with skilled partners to address specific needs.

• He identifies strong competition for general ERPs, particularly from multifunctional machines. Customers must have a clear understanding of how they want these systems to operate.

Comparison with E-commerce Platforms

• The discussion shifts to e-commerce platforms like Shopify, which dominate globally despite open-source disruptions. In Finland, Shopify remains a leading platform with nearly 10,000 stores.

• While many Shopify stores are small, this illustrates that both SaaS solutions and robust ERPs can coexist in the market. Other notable Finnish SaaS solutions include Lemonsoft and Oscar.

Competitors in the ERP Landscape

• The conversation highlights various competitors alongside Odo in the ERP space. There’s an acknowledgment that more information will be gathered about these players as research continues.

• International challengers are also mentioned; IFS Cloud is noted as a significant player operating in 80 countries and providing effective solutions for equipment maintenance and project management.

Industry-Specific Solutions

• IFS offers tailored packages for different industries such as manufacturing (M3 product line), food and beverage sectors, showcasing their adaptability to specific business needs.

• Epicor is introduced as another major player catering to manufacturing industries including automotive and construction. They provide diverse solutions beyond traditional ERPs.

Localized Offerings and Future Trends

• Epicor's extensive workforce indicates its size within the global market compared to other organizations discussed which have smaller teams but still play significant roles.

• Unit N is highlighted for its unique offering tailored specifically for municipalities in Finland, indicating a trend towards localized packaging of larger products.

• The discussion touches on white-label packaging trends within Finland's software landscape, suggesting potential future developments where local adaptations might become more common among providers like Odo.

Overview of Nordic Competitors

• A list of Nordic solutions has been compiled for further exploration in upcoming discussions. Detailed descriptions will be provided in subsequent materials regarding each product's capabilities.

This structured overview captures key insights from the transcript while maintaining clarity and focus on essential points related to the evolving ERP market landscape.

ERP Systems in Finland: An Overview

General Trends in ERP Systems

• Discussion on the distinction between industry-specific ERP systems and general-purpose ERPs, highlighting the importance of specialization.

• Mention of Visma's acquisition strategy, including its purchase of multiple Finnish software companies, indicating a trend towards consolidation in the market.

Key Players in the Market

• Overview of Novaa and Figuro as examples of long-standing and newer players respectively; Novaa has been around for 25 years while Figuro is relatively new.

• Description of various solutions offered by Visma, including specialized products for manufacturing industries and service organizations.

Competitive Landscape

• Introduction to competitors like Heeros and Severan, with Heeros being positioned as a smaller alternative to larger ERPs like Unit Nelen.

• Lemonsoft is highlighted as a reliable choice for small businesses due to its ease of use and public company status.

Specialized Solutions

• Oscar Software noted for its strong presence in wholesale management; it includes e-commerce capabilities.

• Digi (now NVION), recognized for its historical significance but currently more involved as an integrator rather than a primary ERP provider.

Industry-Specific Offerings

• Confirma's acquisition strategy includes integrating various ERP solutions like Netbaroni into their offerings aimed at SMEs.

• Roima Intelligence focuses on complex supply chain management solutions within manufacturing sectors, showcasing specialization trends.

Emerging Competitors

• Pinja’s Total ERP solution is mentioned as significant within Finnish manufacturing, emphasizing its role in production management.

• Heeros' recent acquisition by Counter highlights ongoing competition among firms targeting expert organizations such as consulting firms.

This structured overview captures key insights from the transcript regarding the landscape of ERP systems in Finland, focusing on major players, competitive dynamics, and emerging trends.

Insights on Niche Market Solutions and ERP Systems

Overview of Lenio and Its Growth

• Lenio, a small but rapidly growing company from Sweden, has gained attention due to its unique SaaS product tailored for small businesses. It currently serves around 140 clients.

Industry-Specific Solutions

• The discussion highlights the importance of specialized solutions for various industries, noting that while some companies may not focus on a specific sector, they still provide effective tools for managing operations.

Diverse Needs Across Sectors

• Different sectors have distinct operational needs; thus, specialized systems are essential. Examples include construction technology, property management, and agriculture—each requiring tailored solutions.

Challenges in ERP System Selection

• Selecting an ERP system is complex due to the variety of industry-specific requirements. Companies must identify their unique needs before committing to a solution.

Market Dynamics in Specialized Industries

• Some industries operate within isolated ecosystems with limited choices for software solutions. This creates challenges in discussing the broader ERP market as it varies significantly across sectors.

Open Source ERP Observations

• The conversation shifts to open-source ERPs, emphasizing their prevalence in projects encountered by the speakers. While many systems exist, only a few generate significant revenue.

Planning for System Upgrades

• Upgrading existing systems poses difficulties due to legacy systems like Excel or SAP that have evolved alongside business processes over time.

Understanding Current Systems' Functions

• A comprehensive understanding of current system functionalities is crucial when transitioning to new ERPs. This includes knowing integration points and reporting requirements.

User Training and Change Management

• Successful implementation hinges on user training and engagement during transitions. Proper groundwork correlates with smoother upgrades; hence thorough preparation is vital before making changes.

Challenges in ERP System Upgrades

Reasons for System Upgrades

• The need for system upgrades often arises from multiple factors, with technology obsolescence being a common reason. Outdated technology may lack support and development, making it difficult to find skilled professionals who can work on it.

• Manual processes are prevalent in many organizations, leading to inefficiencies. When combined with outdated technology, this creates strong justification for initiating an upgrade.

Consulting Perspective on Upgrades

• As consultants with over 20 years of experience, the team often evaluates whether clients should continue using their current systems or transition to new solutions based on business needs.

• Recommendations frequently suggest enhancing existing systems through integrations and improvements rather than complete overhauls unless significant business drivers necessitate change.

Specific Upgrade Scenarios

• In some cases, such as when a client changes their pricing model significantly (e.g., moving from monthly billing to event-based billing), upgrading the ERP system becomes essential due to incompatibility with old systems.

• The decision to upgrade is typically influenced by various factors rather than a single issue; thus, understanding the broader context is crucial.

Benefits and Considerations of New Systems

• Potential benefits of new systems include improved scalability and user-friendliness. However, these advantages must be weighed against the reasons for dissatisfaction with current systems.

• Many users express frustration with their ERPs after two years of use. This dissatisfaction can stem from limitations in adapting to evolving business models or integration challenges.

Key Takeaways for Successful ERP Implementation

• A thorough needs assessment is critical before selecting an ERP system. Understanding what the current system does well helps inform future decisions.

• Often, organizations discover that their existing ERP has accumulated numerous modifications over time, complicating transitions to new systems. Incremental analysis may be necessary instead of seeking a one-size-fits-all solution.

ERP Architecture and Implementation Insights

Importance of ERP Architecture

• The speaker emphasizes that ERP implementation is fundamentally an architectural exercise, requiring a comprehensive understanding of the organization's structure and needs.

• They advocate for pilot testing as a crucial method to evaluate different ERP systems, ensuring alignment with employee preferences and operational requirements.

User Involvement in ERP Systems

• Highlighting the necessity of user engagement, the speaker notes that widespread adoption in environments like machine shops depends on collective usage and input from employees during the process.

Managing Pilot Programs

• Caution is advised regarding pilot programs; they should not be extended too far into business processes without reassessment to avoid costly commitments or failures.

Cost Considerations Over Lifecycle

• The discussion includes long-term cost implications associated with ERP systems, which differ significantly from short-lived web solutions. Factors include customization, ongoing development, monthly fees, and user licenses.

Training and Internal Costs

• It’s essential to account for training costs and internal resource allocation when implementing new systems. Both internal and external resources must be considered for effective deployment.

Vendor Selection Criteria

• The importance of vendor expertise is stressed; vendors should have industry-specific knowledge and proven references to ensure successful system integration.

Criticality of Vendor Team Competence

• The speaker warns against choosing vendors lacking relevant experience, emphasizing that their team's competence is vital for long-term success with the ERP system.

Long-Term System Viability

• A sustainable ERP solution requires careful consideration beyond initial implementation; maintaining adequate resources for ongoing support and development is crucial.

Conclusion & Further Resources

• The session concludes with gratitude towards participants while encouraging them to explore additional resources available online regarding ERP selection processes.

This structured summary captures key insights from the transcript while providing timestamps for easy reference.