75% of Dutch organizations uses an ERP system, CRM is less used
SAP remains market leader in both ERP and CRM
74.8% of Dutch organizations use an ERP system. In manufacturing this is even 93.5%. However, CRM systems are embraced much less as only 38.7% of organizations use a CRM solution. Like last year, SAP is market leader for both systems, with a share of 30.2% for the ERP market and 27% for the CRM market. This is evident from Smart Profile’s market analysis, in which nearly 5,200 decision-makers from Dutch organizations with more than fifty employees took part.
There is a big difference in the ERP penetration rate of the various branches. Healthcare showed a large growth in the use of ERP systems last year, but still scores the lowest at 55.8%. In the manufacturing sector (93.5%) and wholesale & retail (92.1%), the percentages are considerably higher. The largest increase was the education sector, with a difference of 4.5 percentage points compared to 2018. In the construction sector, the use of ERP systems actually decreased by 5 percentage points.
ERP on premise most popular
In 2011, 59.4% of the ERP software ran at the organisations own location, in 2019 this is only 35.9%. Nevertheless, this is still the most popular solution. Hosted comes in second place with 29.4%, remote (ERP system at a sister or parent location in the Netherlands or abroad) has a share of 24% and 17.6% opts for ERP in the cloud. Cloud use is therefore a lot more popular in the Netherlands than in Belgium, where only three percent of organizations put the ERP system in the cloud.
Where local and remote show a downward trend, the hosted and cloud categories are on the rise. From 2011 to 2017, the use of a hosting partner for ERP increased very quickly. In recent years, hosting growth has stagnated, while ERP from the cloud continues to grow substantially.
There are clear differences in the sectors in which they host the software. Multinationals mainly prefer remote running of ERP software. The share of hosted is highest at (semi) government institutions. For national and medium-sized companies, the majority of ERP software runs locally.
SAP remains market leader regarding ERP
It is no surprise that SAP is in the lead of ERP vendors. For years it has left the competition in the Netherlands behind. SAP is also the most widely used ERP system in 2019, with a share of 30.2 percent. With a considerable distance of 11.4 percentage points, Microsoft comes in second place with a share of 18.8 percent. Exact is third with a 12.9 percent share.
SAP is especially popular with multinationals: 67.9% prefer this system. In the public domain, however, it is inferior to AFAS, this vendor has the largest share here with 25.1% (SAP 20.3%). Microsoft, in turn, is a favorite with organizations with 50 to 250 employees and organizations with 250-500 employees.
Use of CRM systems shows a slight increase
Smart Profile also investigated the Dutch CRM market. This investigation shows that a total of 38.7 percent of all Dutch business locations with 50 or more employees use CRM software. This is an increase of 0.8 percentage point compared to last year. Among government institutions, the use of such systems increased the last year: from 24.1% to 35.6%. The penetration rate is by far the highest in the ICT & Utilities sector (60.1%). Although the education sector shows a slight increase (+1.9 percentage points), the CRM penetration rate is lowest here: 16.6%.
Increase of CRM in the Cloud
The integration of the CRM system in the cloud has increased considerably in the past year, with an increase of no less than 9.4 percentage points. It is striking that this trend is visible in Belgium (with an increase of 5.9 percentage points), in contrast to ERP in the cloud. In the Netherlands, cloud hosting with a share of 38.3% now occupies a leading position for the first time. 28.9% choose to place the CRM software with a hosting partner. 24.2% opts for on-premise and 21% for remote. The cloud is particularly popular with multinationals and national companies. (Semi-) government institutions more often choose a hosting partner and medium-sized companies prefer to keep their CRM solution on premise.
27% chooses CRM from SAP
As with ERP solutions, SAP also leads the list when it comes to CRM systems; 27 percent of the organizations opt for SAP. Incidentally, Microsoft is increasing faster by 3.1 percentage points (versus 1.7 percentage point growth for SAP), but the share remains at 23.1%. Salesforce takes third place with 17.8%.
CRM software from SAP is particularly popular among multinationals, where the share is no less than 50%. In other segments, Microsoft has to tolerate itself. In fact, SAP is only in fourth place in the medium-sized companies segment.