I’m in the middle of reviewing the best and most used enterprise resource planning (ERP) systems. Almost all articles lead to two contenders: SAP and Oracle. While they may have different target users/markets and technical maturities, comparing them cannot be helped. Here’s to share my understanding on what Oracle has and SAP doesn’t:
3 Big Things Oracle Has that SAP Doesn’t
1. Easier customization
Accommodating ever-changing business needs, Oracle provides flexibility and easy customization of the ERP modules (e.g. PeopleSoft and the e-business suite), while SAP is tightened with difficulty in adjusting the core processes and requirements of customers.
For companies having core competencies relying on their adaptability working with external pressures, Oracle is better recommended. For those which can accept less changes in the packaged system, SAP is likely found to be acceptable. The downside of SAP is that companies will be forced to adhere to how the SAP software works. Organization culture will be impacted and their standardized processes will be changed. Resistance must be expected and embraced.
2. Lower costs
Related to the first point: Because customization management affecting core functions is more efficient in Oracle, modules can be further tailored to suit the current processes of a system. In effect, training the users on how to use the ERP system upon deployment incurs lower costs and less time. In contrast, SAP has more complex features and functions that may be good for larger companies to utilize, but they must know just how to learn and manage training the users effectively on its complexities.
In terms of license fees, their prices are comparable but SAP demands higher consulting and resourcing costs. This might be because organizations, projects and teams using SAP are generally bigger in size. In the ERP world, SAP is looked up to as a high-end brand. Expensive to buy and difficult to customize and maintain, we can identify it like the Ferrari. On the other hand, Oracle can be deemed as the Mercedes Benz, a relatively less expensive brand having a broad variety of products with strong, underlying technology.
3. More product innovation
Oracle offers more innovation and invention in its technology direction (product road map), but this may also constitute to a negative inkling — that users/customers will feel uncertain towards acquiring their product lines at once. (They might want to see the latest release of patches or versions before deciding for final acquisition.) Quite the opposite, SAP today is seen as an innovation-free ERP company as it’s a very established one, indeed.
Conclusion
Both Oracle and SAP have their own strengths, weaknesses and tradeoffs. It’s hard to say which one is better because the selection of the “right fit” depends really on the requirement, priority levels and competitive advantages companies (regardless of industry) are aiming for.
About Rochkirstin Santos-Sioco
Health and technology freak. Food and lifestyle blogger with a large appetite for food and travel.
While cost is a major consideration in any system implementation, it is not the prime one. Fitness to the enterprise needs sets aside the cost and have value as the prime one to consider in any system implementation.
There are strict measures of ROI when it comes to cost and value. Before a project is approved, the management must see how the cost will benefit the entire organization. But yeah, before cost of course fitness to the needs of the company is primary.
I’m sure the article is very informative. I just found it too alien … coz I’m not an IT person. It was like reading texts from another planet. lol. I will forward this to my hubby who reads html like it’s his first language! 🙂
Haha sure thanks. 🙂
When I was on my college time I don’t mind or focus at all this oracle subject.. Lol how stupid how I am right now oracle is one of the biggest system.. but rest assured I have a little idea that really oracle is user friendly..
Oracle is a very broad database system (very popular on relational datbaases), and many enterprises with critical applications rely on it. You’re lucky to have a subject on Oracle in college! We didn’t have it in DLSU back then, and so I’m doing all these researches, comparisons and analysis by myself now without having prior knowledge.
This post is very informative. I now have a greater understanding of the oracle system, which our company uses. 😉
Wow. I’m interested to know which Oracle systems you’re using and if you also encounter similar problems. Haha.
Too bad I have no background in Oracle and SAP.
I would have wanted to become an IT specialist; the closest thing I did now is become a Website developer.
That’s okay. Everyone has got his/her own expertise. 🙂
I have experience in SAP especially on the accounting side (as a user). I can say that if a company is multinational and diversified, SAP is the way to go. I have never used Oracle but I have experience in Netsuite (which is owned by Oracle). Netsuite is best fit for small to medium sized enterprises.
In the Philippines, I know that most companies are using SAP rather than Oracle. I am not familiar with Netsuite but I hear several good review about its cloud computing services and customizations.
Never used SAP but I’ve had experiences with Oracle. It IS versatile and pretty much any organization can benefit off of it (I hope we’re talking about the right kind of Oracle here, LOL). It is still a pricey tool though.
I think we’re talking of the same Oracle. It’s just that inside Ora, there are different modules and applications. It’s too vast! 😀
Oracle is pretty much the biggest name of today. But for sure SAP and others can catch up with what ORACLE can offer.
Yes of course, they are in constant competition so some modules are better in SAP than in Oracle and vice versa. At the end of the day, the company should know which one can answer their needs.
I was im first year college when I encountered SAP. I even have some manulas for SAP pero haven’t tried Oracle yet.
Manuals now for both SAP and Oracle systems can be found online. If you are interested to help your company grow with ERPs, these two are good choices. Their websites have the full documentation and even video tutorials (demo). Want more? You can contact a representative and give you a larger overview of what they can offer. 🙂
Re accounting system, my previous company was using neither of those mentioned. they rely on manual computation and the likes. If I have to choose I prefer the Oracle.
Oracle system for Acctg is complicated though maybe at least to my view and usage because I’m not much familiar with accounting terms and conditions. There are too many reports offered and I really don’t know which ones are important and helpful.
At the end of the day, it has to be the system that can meet both the company requirements and what the company can afford; has to meet halfway and has to be something that can bring roi faster. I very much agree to your response to Sir Ed, a careful study has to be done before purchasing or acquiring anything for the company.
I’d like to emphasize on “careful,” as there are many steps before a project gets approved. Haha. It may take months to build on the business case and work on the cost-based analysis and related docs to be able to decide for budget and then the system to fit the needs.