Epicor Strengths, Domain Expertise, and Key Differentiators
Epicor specifically serves the following markets: Automotive Building Supply Distribution Manufacturing Retail Epicor is uniquely positioned to support all these industries with industry-specific suites. But those suites are built on platforms that allow them to share services where they have common needs. These solutions are created using a component-based architecture rather than as a single monolithic structure. The key advantage: New components can be added as extensions, or used to replace existing components without having to invasively modify a monolithic structure. By taking this approach, modern architectures support loose coupling of these extensions through APIs (application programming interfaces) that negate the need for invasive customization, while also providing last mile functionality.
This type of loose coupling is often described as microservices. For Epicor, it provides the ability to develop common features and functions once and share them across multiple product lines. There will always be features and functions required by all companies – functions like document management, human capital management, sales pipeline management, and general accounting. Epicor is able to develop modules, extensions and services once that benefit all its industry suites, making it possible to accelerate innovation and keep pace with change. Its cloud strategy includes providing deployment freedom of choice, allowing clients the opportunity to deploy the same Epicor ERP solution in the cloud or on-premises.
Epicor Recent Developments
In July 2021 Epicor rebranded its flagship Epicor ERP product. Epicor ERP 10, now called Epicor Kinetic, is a multi-tenant SaaS ERP system for small to medium-sized manufacturing and distribution firms and offers functionality for specific industries, including discrete manufacturing, process manufacturing, metals and lumber. Although Epicor ERP 10 was cloud-ready -- along with several other Epicor products such as Prophet 21 (distribution ERP), BisTrack (lumber and building industry ERP) and CMS (automotive industry ERP) -- Epicor felt Kinetic had to be cloud native for customers to realize the full benefits of a digital transformation. Kinetic is built on Microsoft Azure and now has a modern multi-device browser-based UX.
Later in October 2021 Epicor announced the latest release of Epicor Prophet 21, the cloud-based industry productivity solution for distributors. The new release underscores the company’s continued commitment to build best-in-class Industry Cloud solutions. Epicor Prophet 21 offers a new Epicor Cloud Enterprise Services package for large distributors looking for greater control and flexibility to manage global operations on a scalable and more secure cloud platform. New enterprise cloud services include isolated cloud infrastructure for greater autonomy, customizable upgrade schedule, additional processing capacity, more database access, and dedicated premium support expertise. The latest release not only delivers new cloud capabilities, but it also provides a path for customer growth that can easily adapt to evolving needs. The modular design enables components to be installed and scaled out independently, making it easy to personalize and configure the Epicor Prophet 21 solution.
Also in early November 2021 Epicor previewed two new industry data analytics solutions for automotive replacement parts distributors and service chains during the 2021 AAPEX Show. The new solutions, Epicor Predictive Inventory Assistant (PIA) and Epicor Predictive Maintenance Assistant (PMA), are designed to help users increase sales, profitability and customer loyalty by enabling world-class service levels and operational efficiency.
In July 2020, launched Epicor Commerce Connect Express (ECC Express), a new portal for its existing Epicor Commerce Connect solution. The product aims to help businesses quickly improve productivity, offer quality online experiences and stay connected with customers and suppliers.
A month later, Epicor launched DocStar Enterprise Content Management solution, including an upgraded user interface, enabling teams to work smarter from any location. The new user interface helps make document management and automated accounts payable solutions in the cloud or on-premise easier to use, and enables customers to create and process secure e-forms to capture, verify, approve, and integrate data and processes with core business systems remotely.
In April 2019, Epicor launched Epicor Virtual Agent (EVA), a digital agent designed to help users work smarter. EVA is a virtual assistant, and much more, as it includes built-in artificial intelligence designed to simplify interactions with ERP systems, as well as automate tasks to speed up operations.
In October 2018, Epicor unveiled the latest versions of its distribution software solutions, Epicor Prophet 21 and Epicor Eclipse. These modern enterprise resource planning (ERP) systems are designed to fit the needs of today's digital distributors, enabling them to take full advantage of cloud-ready technologies to drive sales growth and increase margins. This new release includes the migration of the Prophet 21 Wireless Warehouse Management System (WWMS) to the Prophet 21 web application, a time clock entry feature, and improved integration between Prophet 21 and Epicor Manifest for shipping management.
Epicor Mergers and Acquisitions (M&A) Activities
In August 2020, KKR & Co Inc sold Epicor Software Corp to Clayton Dubilier & Rice in a $4.7 billion deal. CD&R plans to expand Epicor by building cloud-based products with a software-as-a-service model, as well as acquiring other companies in the sector. CD&R has quite deep pockets and will offer Epicor the opportunity to spend more for these acquisitions. The acquisition of KBMax in May 2021 is an example. KBMax is a technology leader in the Configure Price Quote (CPQ) Market. the acquisition drives continued growth for Epicor with the ability to offer KBmax software as a stand-alone cloud first, low/no code toolset, or integrated into the Epicor productivity suite to generate new, cross-and-up sell potential.
While KBMax is the latest in a series of strategic merger and acquisition efforts that cement Epicor’s ambitions to become the sole provider of mission critical business applications to customers in the key industries served, it also looks for some smaller “tuck in” acquisitions to further strengthen certain verticals. One such “tuck in” was announced on September 30, 2021. Epicor agreed to acquire CBC Computer Systems and its Decor Fusion software, the only POS system made exclusively for paint and decorating retailers. The deal underlines Epicor’s commitment to delivering industry-specific enterprise software to promote business growth and differentiate itself from the fleet of one-size-fits-all, off-the-shelf ERP solutions.
Previous acquisitions include: Majure Data, a leading provider of warehouse management solutions for the lumber and building materials (LBM) industry, acquired in July 2019. DocStar acquired in January 2017. DocStar brought collaborative cloud-based enterprise content management (ECM) and automated accounts payable (AP) solutions to the Epicor enterprise resource planning (ERP) solutions portfolio.
Epicor Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Epicor applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Epicor and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Epicor Kinetic (formerly Epicor ERP), Epicor iScala, Epicor BisTrack, Epicor CMS, Epicor Eagle, Epicor Eclipse, Epicor LumberTrack, Epicor Propello, Epicor Prophet 21, Epicor CPQ customers.
Ownership: - Clayton Dubilier & Rice
Number of Employees: 3800
Functional Markets: Analytics and BI, Collaboration, Content Management, CRM, eCommerce, EPM, ERP Financial, ERP Services and Operations, HCM, Product Lifecycle Management, PPM, Procurement, SCM, TRM, PaaS,
Key Verticals: Aerospace and Defense, Automotive, Communications, Construction and Real Estate, Consumer Packaged Goods, Distribution, Healthcare, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Oil, Gas and Chemicals, Professional Services, Retail, Transportation, Utilites,
Epicor Key Enterprise and Cloud Applications
Epicor Kinetic (formerly Epicor ERP), Epicor iScala, Epicor BisTrack, Epicor CMS, Epicor Eagle, Epicor Eclipse, Epicor LumberTrack, Epicor Propello, Epicor Prophet 21, Epicor CPQ
Epicor Revenues, $M:
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* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Epicor Revenue Breakdown By Type, $M:
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Epicor Enterprise Applications Revenues By Functional Markets, $M:
Epicor Enterprise Applications Revenues By Verticals, $M:
Epicor Revenues By Region, $M
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Epicor Direct vs Indirect sales
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Epicor Customers - Breakdown by Geo, Size, Vertical and Product
No. of Epicor Customers: 27000
No. of Epicor Enterprise Applications Customers: 27000
No. of Epicor Cloud Customers: x
No. of Epicor Cloud Subscribers: 120000
Epicor supports over 27,000 customers in 150 countries around the world. For many years, Epicor grew through acquisition, and therefore it accumulated a broad portfolio of ERP products for manufacturing, some of which competed against each other. Many of its customers came through these acquisitions. Back in the 2006-2008 timeframe Epicor set out to consolidate its solutions. At the time it was the first and only ERP vendor to do this successfully and this was the genesis of Epicor ERP 9, named because it rationalized 9 different products. Later, the 9 was treated as a version number and eventually became Epicor ERP 10, which is the predecessor to Kinetic. Kinetic is the “go forward” for all these manufacturing solutions acquired in Epicor’s early years, but it still has a large number of customers still running these older products.
Then its previous owner (KKR) bought both Epicor and Activant, which had its own share of multiple products, but all targeting various types of distributors. While Prophet 21 became the strategic go forward product for distribution, there remain many running other Activant products. They have not moved to the latest version of (now) cloud-based Prophet 21 either because of inertia or because they are in a specialty business that another Activant product targeted, but Prophet 21 did not.
While for many years, the vast majority of its customers and prospects still preferred solutions that were on-premises, the global pandemic has awakened the need (and the desire) to move to the cloud. And so, Epicor is now making a major push to help those clients move forward, into the cloud. Today Epicor supports over 7,000 cloud customers with over 150,000 users. This includes many existing customers that migrated from on-premises solutions to SaaS. To date Epicor has migrated 875 manufacturing customers, 250 distributors and 750 retail customers.
Customer references include Yesco Electrical Supply, Chirch Global, Metal-Tech Partners, Traeger Grills, Boral Roofing Pty, Dolphin Group, OMADA International, WD-40, Rentokil, AC Brothers, Diamond Paper Company, Abatix, Stellar Industrial Supply, Hodges Supply, Granite City Electric Supply Company, Kipper Tool Company, Royal Australian Mint, Calibre Equipment, PureMalt, Ian Macleod Distillers, London Electric Vehicle Company, Boers, Jurox, Guralp, FixFast, Jonesco, Coventry Plumbing and Heating, Turbo Power Systems, Cox Powertrain, Reactive Downhole Tools, Involve, Optima Products, Pentagon Builders Merchant, Western United Electric Supply Corporation and many others.
Epicor Market Opportunities, M&A and Geo Expansions
While its recent developments all emphasize “cloud first,” Epicor is not a newcomer to the world of SaaS solutions, although not all its strategic products have always been SaaS-enabled. Kinetic (previously known as Epicor ERP), which targets manufacturing, has been available as a true multi-tenant SaaS ERP for more than a decade. SaaS-enablement of its ERP solutions for wholesale distribution (Prophet 21) and its Retail Cloud offering came later. But Epicor has accelerated its own multi-year journey in recent years. But the vast majority of it customers remain on-premise. Epicor has always put its customers’ priorities first. And for many years, the vast majority of its customers and prospects still preferred solutions that were on-premises and/or were reluctant to move away from older “tried and true” applications they knew and (maybe) loved.
This acceleration, combined with the urgency created by a global pandemic, has resulted in a dramatic change in the mix of Epicor’s business. Not too long ago the ratio between on-premises versus Software as a Service (SaaS) deals was 5%:95%. Today the mix is closer to 60%:40%. SaaS bookings to date this year were up 88% overall, and for business outside of the United States, were up 100%. Epicor has experienced about 200% growth in existing customers moving to the cloud since 2019 and 2021 is gaining even more momentum. Epicor now supports over 7,000 cloud customers, with more than 150,000 users. And so, its own installed base of customers (many of them acquired through M&A through the years) presents a huge opportunity for Epicor, in addition to net new prospects that might be running legacy products from some of its competitors.
But acquisitions also create more opportunity. The acquisition of KBMax, for example, opens up new international growth markets for Epicor across the United Kingdom, France, Benelux, Sweden, Finland, Italy and Germany.
Epicor Risks and Challenges
However, Epicor’s huge installed base of customers that may not be running the latest releases of its strategic products also present a risk. For those stuck in the past, for whatever reason, it is not (and should not) be a simple upgrade/migration to the cloud. In order to gain the full benefits of the new, modernized, technology-enable solutions, they will have to re-implement. And so this opens the door for a full selection process, which may bring in competing products.
Epicor Ecosystem, Partners, Resellers and SI
Epicor sells mostly direct, but it also keeps more than 60 ISV partners and 400 channel partners. Among Epicor resellers are: Six S Partners, EC Solutions, Inc., Cre8tive Technology & Design, Encompass Solutions, Inc., Sage Clarity LLC, Evron Computer Systems Corp., ComTec Solutions, LLC, Concerti, Vision Business Systems, HRMS Solutions, Inc., E2B Teknologies, Latin Data dba Sl Consulting, Retail Distribution and Manufacturing Systems, Clients First Business Solutions, Auros, Compasys, AppTec, MIS Consulting, 2W Technologies, Inc., CompuData, Inc., EpiCenter, Advance Process Consulting, Latin Data SA De CV, RheinBrucke, Think Technology, BISCit Australia, Fujisoft Technology LLC and others.
But Epicor looks to its ecosystem for more than just sales and service. It might also form partnerships to further strength its industry specific solutions to deliver more last mile functionality. Some examples:
In September 2021 Epicor Software Corporation, announced that it had expanded its automotive Industry Data Analytics portfolio to include SideKick360, a popular web-based reporting platform that helps tire dealers and similar businesses generate increased revenue from each service opportunity. Epicor is now the exclusive provider of the SideKick360 solution within the automotive aftermarket.
In August 2021 Epicor expanded its automotive aftermarket data “factory” by using artificial intelligence/natural language processing capabilities to capture part and service insights from vehicle repair events. This additional information will be integrated into existing and future Epicor Industry Data Analytics solutions used by leading aftermarket parts manufacturers, distribution networks, independent distributors and service chains.
Epicor has contracted with Predii, an enterprise AI software company specializing in the automotive aftermarket, to apply AI in assessing repair event data flowing through the Epicor data factory. This new process will further refine and enrich vehicle part and service insights embedded within Epicor analytics used at every level of the aftermarket.
In July 2021 Epicor worked with Sage Clarity, a leading provider of software and advisory services for the manufacturing and supply chain industries, to make its MES Ecosystem app suite available for Epicor MES solutions. The MES Ecosystem app suite provides Industry 4.0 modules, integrations and plug-in apps for Epicor’s Advanced MES system. The Ecosystem apps can be installed on either new or existing machines. The Ecosystem app suite provide Digital Twin functionality, intelligent root cause analysis intelligent Messaging Workflow and Factory Views with real-time KPI heatmaps.
In January 2019, The Microsoft-Epicor partnership expanded an already proven strategy to a global scale, as more customers are able to access the power of Epicor ERP and Prophet 21 running on the public cloud platform. Microsoft technologies optimize productivity and innovation for Epicor, its customers and partners. Epicor leverages a range of Azure technologies including the Internet of Things, artificial intelligence and machine learning to deliver ready-to-use, right-sized solutions for midmarket manufacturers and distributors.
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Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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