Many companies face a common challenge about operational stability and benefits realization. Even though ERP systems are in use, 60% of companies are not able to make use of it. Based on the custom software development services, you can find two best software solutions in the market.
Who needs an ERP (SAP or Oracle) system?
SAP itself says that systems, applications and products and organizations dealing with products and in need of customised options use SAP software. When it comes to data handling organizations prefer Oracle software. Both products have their pros and cons, and you need to choose the one for you.
A Quick Comparison – SAP Vs Oracle
When companies tend to stand out in the competitions, you need to grasp the best out of the best software. There are two apparent software products available in the market, as in SAP and Oracle. While incorporating ERP systems in the companies, you need to check with all the variables and tradeoffs:
- Cost and Time
Cost and time are the main primary factors when it comes to the implementation of ERP systems in organizations. Because there involve some operational disruptions like shipping and manufacturing products.
Generally, implementing an ERP takes on around 2 months to 18 months, it depends on the requirements of the organization. Here, Oracle takes a maximum of 12 months to implement, whereas SAP takes a maximum of 14.7 months in implementation.
As SAP targets global and complex companies, it takes a more extended period for implementation. SAP targets the Organisation, which has at least 1$ billion annual turns over, and Oracle targets $750 million annual turnover companies. It is natural to take up a bit longer time for implementing in multiple locations.
When it comes to costing, SAP does costs much more than Oracle. Organizations spend 4% of their annual revenue on SAP, and the Oracle customers spend an average of 1.7% of annual revenue only.
- Implementation risk
Either of them involves their risks. Here, you need to check what are the methods and tools they are offering, which can suppress the risks to a more significant extent.
Many SAP customers claimed implementation failures when comparative to the Oracle customers. Along with that they also faced some material operational disruption while going live. SAP has introduced the best practices and pre-configuration methods to reduce the maximum risk.
Whereas with the Oracle, the third stage consulting group top list of 2019 ERP systems does not have a place for the Oracle Cloud ERP software. Every oracle customer is bound to a high degree of implementation risk. Oracle also has introduced similar practices to decrease the risk factor.
Both the software products involve high risk in implementation, which may affect the whole organization. But they had fixed the issues and taken precautions by considering the feedbacks. Both have a productive user kit, which does complete testing, training, and makes the implementation process more effectively.
- The Scalability
Businesses always look at different ways to expand and grow while producing excellent results. It is the reason why choosing ERP systems is a primarily essential factor. It will be an operational background and help in the scalability of the organization.
It is listed that 500+ companies are using either or both ERP systems for their industrial growth. Both are equally essential, but choosing any one of them depends on the organization’s requirements. Most of the companies are capable of increasing their scalability with either of the software.
The primary difference is that SAP is offering a single consistent system and primarily consolidating its products into a unique system from the ground level. Here, Oracle has the best options with numerous solutions. Such as Fusion, JD Edwards, E-Business Suite, Siebel, and Hyperion.
- Functionality and Customisation
An ERP system must have a set of functionality and should continuously work for improving business operations. There is no doubt that both SAP and Oracle can help in enhancing system functionality. But based on the reviews and feedbacks, it says that SAP customers can enjoy more benefits from the features than the oracle users.
Ease of customization is another important feature in the ERP system. Surprisingly, both SAP and Oracle are offering customization to the customers in their way.
SAP’s ERP systems are offering flexibility to integrate tools on to their software for enterprise customers. In contrast, Oracle is offering the best solutions for managers to integrate with the software according to their requirements.
- Customer Relationship Management
SAP has changed the traditional way of customer relationship management tool and integrated it throughout the ERP systems. It includes all the customer’s records, financial functions, and procurement.
Its built-in sales features help the sales force to manage accounts, streamline procurement process, build invoices, and manage contracts and orders from the interface of ERP. All the fonts that involve the customers are covered.
Organizations have a full customer experience suite, which can help with enhancing the lead generations more effectively. It also includes the entire marketing, finance, and sales teams, which speaks out the whole history of the customer and provides a perfect sales strategy.
Oracle has offered sales enablement tools, which are customer experience, marketing, sales, social tools, and services. These can be integrated with the Oracle ERP cloud. But Oracle does not have any dedicated sales tool, and this is a minor disadvantage for the companies with sales as their target.
However, it comes with a robust financial management tool, where you can find vital customer information. You can precisely filter the customer information such as orders, quote, and financial records.
Even though Oracle’s customer account management is good enough, but SAP is the best in this expectation. Whereas Oracle has its strengths in the reporting and data.
As said, both SAP and Oracle have their beneficial factors. Choosing one of them entirely depends on the organization’s targets and requirements. Both of them are offering a variety of functions, but they may or may not be suitable for your needs.
The Final Word
We can conclude that SAP is best for the companies who are looking for scalability from the consistency and standardization. And the Oracle works best with the organizations that have more flexibility and decentralized model.