Switching ERP Vendors May Not Be the Answer
All ERP products fall short of the KLAS health care technology average.

OREM, UT, August 11, 2010 /24-7PressRelease/ -- No enterprise resource planning (ERP) vendor overwhelmingly satisfies clients more than the others, but with so few options--and none performing well--migrating to a new vendor may not be worth the cost, according to a new report published by KLAS.

For the new study, "The Conundrum of ERP: Is It Possible to Get Functionality and Service?", KLAS interviewed 225 provider organizations, focusing primarily on the three most prominent players, Lawson, McKesson, and Oracle. All three rated below the KLAS average for health care information technology.

"Many CIOs describe their experiences with ERP vendors as disappointing and painful," said Lorin Bird, KLAS research director and author of the report. "Providers say they can expect either robust functionality or service and attention -- not both."

According to the report, most hospitals already have an ERP solution of some sort and are somewhat of a captive audience, so vendors have little reason to develop and support their core ERP products. Instead, they focus on developing peripheral modules to address related markets, such as human capital and workforce management, or acquiring new technologies to augment their existing offerings.

"Hospital executives are wishing a vendor would step forward with an integrated stack for ERP, including human capital management, workforce management, and business intelligence, with a healthy dose of functionality and dependable service," Bird said. "No one has it all together -- yet."

The top-rated vendor in "The Conundrum of ERP: Is It Possible to Get Functionality and Service?" was McKesson, with a score of 74.5 out of 100. It was followed by Oracle (71.8) and Lawson (68.6). API and MediClick were also highlighted, though neither could be included in the head-to-head comparison with the above vendors, providing only some system components. Electronic Healthcare Systems, Kronos, MEDITECH, Microsoft, Oracle and SAP are also included in the early data portion of the report.

For more information about the financial ERP market, as well as the strengths and weaknesses of participating vendors, "The Conundrum of ERP: Is It Possible to Get Functionality and Service?" is available to health care providers online for a significant discount off the standard retail price. To purchase the full report, health care providers and vendors can visit www.KLASresearch.com/reports.

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Andrea Morrill
KLAS
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