Tier 1: SAP , Peoplesoft , Oracle.....
Tier 2: Navision, Skala, .......
Tier 3: Bifrost Tech, Karensoft, UBS, SQL Accounting......
When talking about ERP software, most Malaysian with some ERP knowledge will come across the above ERP provider. The first 3 company, we normally position them as "tier 1", then the next 2 is "tier 2" and the last 2 is "tier 3" ( of course there are many providers in market for tier 1, 2 and 3, the above named companies are just an example)
What does it mean ?
well , tier 1 , 2 and 3 is the service scope and different market segmentation they serve. For "tier 1" provider, they normally target on Multi Nationals Corporation (MNC) with the budget of millions dollars, and "tier 2" provider target on listed companies and large organization with the budget of less than a million, and "tier 3" provider target on Small and Medium Industries (SMI) with the budget of less than RM 100,000.
I am regret to know some tier 2 providers are still unaware of the business trends, they are still concern on finding big corporation with the budget of RM 300,000 to RM 800,000. When I was talking to such providers, they normally say " SMI ? They got budget or not ? If got more that RM 300,000 then could be considered........"
They don't know the other side is saying : " Tier 2 provider? They can lower the price or not ? If they can lower the price to below RM 100,000, then I will be glad to find one" - from the SMI
Obviously, closing a deal with the budget of RM 300,000 to RM 800,000 is much more profitable compare to closing a deal with the budget of RM 100,000. Most Tier 2 providers will give many reasons why they do not go to below RM 100,000 ...... For example, company image, less profit, high overhead etc.....
We are always talking about "long-term business partnership". It sounds good. But when it come to practice, many tier 2 providers just concern on short term profit, and ignore long term benefits.
Just imagine, these SMI will keep growing, one day, they may become MNC and listed companies as well, if you are smart enough, target to the right SMI with the potential to grow big , lower the ERP software price for them to use, when they grow, they will ask for more from your ERP software - and eventually, throughout the period, your ERP software price selling to those SMI will sure exceed RM 300,000 and above.
and one more important reward - they trust you.
For tier 3 provider such as Bifrost Tech and Karensoft, they are targeting on SME with the budget lower than RM 100,000 - sometimes could be RM 50,000 . Anywhere , with that price, the SMI also cannot expect too much on features or customization. Finding a good tier 3 provider could be a challenge, and try to understand how the ERP provider develop and customize software for your business.
Penang ERP Software Provider
Tier 2: Navision, Skala, .......
Tier 3: Bifrost Tech, Karensoft, UBS, SQL Accounting......
When talking about ERP software, most Malaysian with some ERP knowledge will come across the above ERP provider. The first 3 company, we normally position them as "tier 1", then the next 2 is "tier 2" and the last 2 is "tier 3" ( of course there are many providers in market for tier 1, 2 and 3, the above named companies are just an example)
What does it mean ?
well , tier 1 , 2 and 3 is the service scope and different market segmentation they serve. For "tier 1" provider, they normally target on Multi Nationals Corporation (MNC) with the budget of millions dollars, and "tier 2" provider target on listed companies and large organization with the budget of less than a million, and "tier 3" provider target on Small and Medium Industries (SMI) with the budget of less than RM 100,000.
I am regret to know some tier 2 providers are still unaware of the business trends, they are still concern on finding big corporation with the budget of RM 300,000 to RM 800,000. When I was talking to such providers, they normally say " SMI ? They got budget or not ? If got more that RM 300,000 then could be considered........"
They don't know the other side is saying : " Tier 2 provider? They can lower the price or not ? If they can lower the price to below RM 100,000, then I will be glad to find one" - from the SMI
Obviously, closing a deal with the budget of RM 300,000 to RM 800,000 is much more profitable compare to closing a deal with the budget of RM 100,000. Most Tier 2 providers will give many reasons why they do not go to below RM 100,000 ...... For example, company image, less profit, high overhead etc.....
We are always talking about "long-term business partnership". It sounds good. But when it come to practice, many tier 2 providers just concern on short term profit, and ignore long term benefits.
Just imagine, these SMI will keep growing, one day, they may become MNC and listed companies as well, if you are smart enough, target to the right SMI with the potential to grow big , lower the ERP software price for them to use, when they grow, they will ask for more from your ERP software - and eventually, throughout the period, your ERP software price selling to those SMI will sure exceed RM 300,000 and above.
and one more important reward - they trust you.
For tier 3 provider such as Bifrost Tech and Karensoft, they are targeting on SME with the budget lower than RM 100,000 - sometimes could be RM 50,000 . Anywhere , with that price, the SMI also cannot expect too much on features or customization. Finding a good tier 3 provider could be a challenge, and try to understand how the ERP provider develop and customize software for your business.
Penang ERP Software Provider
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