KLAS: Enterprise resource planning vendors don't have a leg to stand on
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 report published Aug. 11 by market research firm KLAS.
The Orem, Utah-based KLAS interviewed 225 provider organizations, focusing primarily on three players, Lawson, McKesson and Oracle, which were all rated below the KLAS average for healthcare IT.
“Many CIOs describe their experiences with ERP vendors as disappointing and painful,” the report stated. “Providers say they can expect either robust functionality or service and attention — not both.”
According to the report, most hospitals already have a variant of an ERP tool 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 coupled with functionality and dependable service,” the report concluded. “No one has it all together — yet.”
The top-rated vendor was McKesson with a score of 74.5 out of 100. It was followed by Oracle (71.8) and Lawson (68.6). API Healthcare and MediClick also were highlighted, though neither could be included in the head-to-head comparison with the above vendors, as they provide only some system components.
The Orem, Utah-based KLAS interviewed 225 provider organizations, focusing primarily on three players, Lawson, McKesson and Oracle, which were all rated below the KLAS average for healthcare IT.
“Many CIOs describe their experiences with ERP vendors as disappointing and painful,” the report stated. “Providers say they can expect either robust functionality or service and attention — not both.”
According to the report, most hospitals already have a variant of an ERP tool 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 coupled with functionality and dependable service,” the report concluded. “No one has it all together — yet.”
The top-rated vendor was McKesson with a score of 74.5 out of 100. It was followed by Oracle (71.8) and Lawson (68.6). API Healthcare and MediClick also were highlighted, though neither could be included in the head-to-head comparison with the above vendors, as they provide only some system components.