Project-Based ERP Market Definition

Project-based enterprise resource planning (ERP) systems provide an end-to-end business solution for all company departments that generate revenue by conducting complex projects. These systems contain modules that address financial management, project and resource planning, sales and marketing, as well as project risk and governance. By recording all project-related information, companies gain visibility into the type of projects that are the most profitable. Industries utilizing a project-based ERP system include engineering, construction, and government contractors. Project-based ERP systems require precise tracking of the profitability of each project and portfolio. This type of software is used mainly by members of the project management office department, such as project and program managers or analysts.

There are two major types of project-based ERP solutions:

• Focused best-of-breed software, which focuses exclusively on project-based industries.
• Broader ERP systems that provide features for project-based companies combined with functionality for manufacturing or distribution.

While product-based businesses generally utilize ERP systems, project-centric manufacturers use a project-based ERP system to better plan and monitor operations. This type of software should not be confused with project management software, which only focuses on projects and does not provide features for operations. These systems may also integrate with CRM software and human resource management systems.

To qualify for inclusion in the Project-Based ERP category, a product must:

• Include functionality for project, program, and portfolio management
• Provide an end-to-end solution for all project-based work of a company
• Track and record resources and costs on a project and portfolio level
• Deliver front office (sales and marketing) and back office (procurement) features
• Manage suppliers, subcontractors, contracts, as well as bids and RFPs
• Support project-accounting features as well as time and expense tracking
• Integrate with or provide modules for HR, workforce management, or payroll

Usability Index Description

A product’s Usability score is calculated by a proprietary algorithm that factors in real-user satisfaction ratings for a number of use-related review questions. Software buyers can compare products in the Project-Based ERP category according to their Usability scores to streamline the buying process and quickly identify the most usable products based on the experiences of their peers. For sellers, media, investors, and analysts, the Index provides benchmarks for product comparison and market trend analysis.

Badges are awarded to products for: Best Usability (highest overall Usability score), Easiest to Use (highest ease of use rating), Easiest Admin (highest ease of admin score), and Best Meets Requirements (highest meets requirements score).

Products included in Usability Index for Project-Based ERP | Winter 2023 have received both a minimum of 10 reviews and 5 responses from real users for each of the use-related questions featured in our review form by November 22, 2022. These ratings may change as the products are further developed, the sellers grow, and as additional opinions are shared by users. A new Usability Index report will be issued for this category as significant data is collected.