“The ERP Market is undergoing a generational technology shift.” These words, used by Gartner analysts to explain why they introduced a new Magic Quadrant focused on Core Cloud Financial Management Suites, an independent and exhaustive review of products available to ERP buyers at midsized, large, and global enterprises.
As the ERP Market transitioned from a static to a dynamic market with over $31B in play, Gartner noted in its report,
“The market for core financial management suites has been static for many years. However, over the last 12 to 18 months, cloud core financial management suites have matured to such an extent that they have disrupted this static market. This reflects the increasing prevalence of postmodern ERP strategies.
[…] Postmodern ERP is the deconstruction of suite-centric, monolithic, on-premises ERP deployments into loosely coupled applications, some of which can be domain suites (such as core financials or HCM) or smaller footprint applications that are integrated as needed.”
Gartner Releases First Ever Magic Quadrant for Cloud Core Financial Applications
Traditionally, Gartner avoided discussing the cloud for core financial management applications, as few major enterprise purchasers were considering the cloud. However, with an expected $31B in ERP spending moving to the cloud, the analyst firm has released this new Magic Quadrant to assist purchasers in finding vendors based on Ability to Execute and Completeness of Vision.
We explained the Gartner process for designing their Magic Quadrant in our blogs explaining Host Analytics’ rise to the top of their respective MQs (Financial Corporate Performance Management and Strategic Corporate Performance Management).
How Gartner Analyzes Core Financial Management Suites
For this Magic Quadrant, Gartner defines core financial management suites as follows:
- The core functional areas of general ledger (GL), accounts payable (AP), accounts receivable (AR), fixed assets (FA), project accounting, project costing, and project billing.
- Financial analytics and reporting, including provision of financial information (such as P&L and balance sheet) and the ability to provide financial information such as KPIs to managers and executives.
- Basic indirect purchasing functionality (from creating a requisition through to purchase order processing and AP invoice matching and payment), because many organizations — especially midsize organizations — need some basic procurement functionality as part of a core financial applications deployment.
Ability to Execute
- Product or Service
- Overall Visibility
- Sales Execution
- Market Responsiveness
- Marketing Execution
- Customer Experience
Completeness of Vision
Eight components go into the completeness of vision judgements.
- Market Understanding
- Marketing Strategy
- Sales Strategy
- Product Strategy
- Business Model
- Vertical/Industry Strategy
- Geographic Strategy
What Does This All Mean?
Remember, these are the best of the best—many are nominated but don’t make the cut for reasons discussed in the Magic Quadrant. Each vendor that makes the list is defined as one of the following:
- Leader: Higher Completeness of Vision, Higher Ability to Execute
- Challenger: Higher Ability to Execute, Lower Completeness of Vision
- Visionary: Higher Completeness of Vision, Lower Ability to Execute
- NichePlayer: Lower Ability to Execute, Lower Completeness of Vision
Intacct Named Visionary in 2017 Magic Quadrant for Cloud Core Financial Management Applications
In this first year of the presenting the Magic Quadrant for Cloud Financial Management, Gartner recognized Intacct for its unique vision in anticipating customer needs, finding the company third in its completeness of vision (following massive global players in Oracle ERP Cloud and Workday) and fourth in ability to execute.
As a well-positioned leader in the midsize market, Intacct is built to support finance process improvement. Even its listing in the top four for ability to execute shows that the company is able to meet the needs of its own market. Comparable brands with much bigger global presence and name recognition score much lower on completeness of vision.
In reality, though, Intacct made the list for its ability to meet the needs of customers, remaining flexible enough to adapt to an ever-broadening market—ranging from the small business that needs to step away from the basic software all the way up to an increasing number of post-IPO companies and global players.
Get the Full Report Gartner Magic Quadrant for Cloud Core Financial Management Applications for Free
This report, generally only available to Gartner clients (or those willing to spend big money on a report), is available for free for a limited time from Intacct. If you are interested in learning more about the other applications on this list or are a software decision maker looking to compare applications, we welcome you to download the Magic Quadrant here, and to learn more about Intacct by contacting us.