Making Sense Of The EHS Software Mid-Market: Top Considerations For Buyers

Making Sense Of The EHS Software Mid-Market: Top Considerations For Buyers

It’s no secret that EHS technology investments have been largely deprioritized within mid-market firms. This has resulted in the use of antiquated software systems or Excel-based tools that pass as usable, but by no means drive organizations towards EHS excellence.

This mindset has contributed to many mid-market firms, which typically have reduced EHS resources and thus adopt a cost-centric approach to EHS technology investments, demonstrating a lower commercial EHS software penetration rate than the market average. While the reliance on workplace productivity software and internal databases may be cost-effective, it also leaves the door open for major errors in EHS reporting. In the age of ESG scrutiny, this fragmented approach to EHS IT ecosystems is no longer fit for purpose, even for sub-$1 billion organizations.

The need for the mid-market to upgrade its EHS software maturity coincides with two key developments. Firstly, the proliferation of multi-tenant SaaS deployments within the industry, which has allowed for lower licensing costs and accelerated deployment timelines, helping to overcome key hurdles for the mid-market. Secondly, several vendors have taken note of mid-market-specific priorities and are developing offerings targeted at small- and medium-sized enterprises (SME). These typically consist of pre-configured, plug-and-play solutions with no added frills. Prominent releases include Cority’s ‘Essentials’ solutions, HSI’s release of ‘EHS Essentials’ and Ideagen’s re-packaging of ProcessMAP to create its ‘Ideagen EHS Essentials’ product. As the mid-market segment outpaces the growth of the total market, it is clearly a savvy strategy to re-configure, package and market existing solutions as a point of entry to the world of commercial EHS software. Although, it must be said, we are hoping for some more creative naming strategies down the road.

The prevalence of quick-to-deploy mid-market appropriate software products makes 2023 a good, if slightly overwhelming, time for SMEs to survey available options. To streamline shortlisting processes Verdantix advises buyers to:

1. Develop their EHS digital strategy in line with firm-wide digital transformation efforts. Buyers should also conduct an in-depth as-is system architecture assessment and consider the value and feasibility of both a single management platform or a best-of-breed approach.
2. Review the Verdantix Product Benchmark: EHS Software Mid-Market Green Quadrant Outtake. Readers will gain an independent view of the broader market landscape as well as insight into which broad management platforms are best suited to the mid-market. This can be used to accelerate buyers’ understanding of available products.
3. Segment the market landscape to filter out potential vendors. Consider segmenting by region and offering type to gain access to deep subject matter expertise on local legislation, an on-the-ground presence and a right-fit software experience. For instance, many small firms with vanilla EHS software requirements will gravitate towards mobile-first platforms that typically deliver a highly engaging user experience.
4. Assess industry-specific subject matter expertise to differentiate vendors. The necessity of selecting an industry-appropriate software vendor increases for higher-risk industries as well as heavily regulated sectors, where specialized functionality and tailored best-practice workflows become mission critical. The need for vertical-specific support can be particularly acute for mid-market firms with lower EHS maturity.

For a more in-depth assessment of EHS management platforms suited to the mid-market, read our extract of the analysis from the 2023 EHS Software Green Quadrant.