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Aberdeen study finds Lawson No. 1 provider in ERP software cost per user

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Lawson Software has released that independent research firm Aberdeen Group's recent study found that Lawson is the No. 1 provider in software cost per user among five leading manufacturing ERP vendors.

The Oct. 17, 2006 research report, The Total Cost of ERP Ownership, examines how five of the top ERP vendors compare against specific metrics designed to measure Total Cost of Ownership (TCO). Aberdeen based the results on a survey of 689 manufacturing companies that were using a single ERP vendor.

The research validates Lawson's advantage in three key TCO areas: price, price performance and cost of business benefits achieved. In price, Lawson has the lowest average software cost per user among the ERP vendors at $2,086. The other vendor applications profiled cost up to 48 percent more per user for software and services.

In price performance, the report ranked Lawson as tied for the leadership position in the high number of ERP modules used by companies - 11.11 modules out of a generic set of 24. Modules are applications such as general ledger, accounts receivable, human capital management, forecasting and demand planner that are found within the broader ERP suite.

According to Lawson, the fact that Lawson’s customers are using so many of the modules tells it that customers are getting more value out of their investments with Lawson.

The report also showed that of the five vendors in the study, Lawson secured the low average cost per user per percentage point of functionality used in the ERP modules. Using the same criteria, the other vendor applications are up to 46 percent higher in cost. 

Aberdeen also recognized that the success of an ERP implementation needs to be measured by the achievement of business benefits such as the reduction in manufacturing operational costs and improved manufacturing schedule compliance. The study revealed that Lawson has a lower average cost per percentage point of business benefit improvement than the largest ERP vendors. 

Lawson knows that factors such as cost, industry expertise and financial viability as a vendor are important to its customers and prospects and they are addressing all of those with an ERP system from a company that keeps it simple in a complex world of globalization, compliance requirements and a myriad of application options.

A related August 2006 Aberdeen study, the ERP in Manufacturing Benchmark Report, said functionality and TCO were clearly the top two selection criteria in ERP software decisions.

Ballantyne, concurs that functionality, cost and knowing the market were critical to their business. When Ballantyne initially selected Lawson, they were impressed with the system's functionality, pricing and Lawson's implementation team. Ballantyne liked Lawson 's market focus, Lawson's demonstrated commitment to the middle market tier was a valuable factor for Ballantyne. At the time, Ballantyne reviewed several vendors, including SAP, but Lawson proved to be a much better fit to its needs from a cultural and developmental perspective.

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