SAP Vs Oracle-Operational benefits and Post-implementation profits

13 May

The biggest challenges faced by the enterprise companies while incorporating the ERP system in their industry are the biggest buzz for the few years.

Some of the challenges are simple operational stability and benefits realization. In recent times, about 60% of the companies failed to get the benefit from the incorporation of ERP systems in the companies. According to the custom software development services, there are two kinds of software that are considered to be the best in the market.

To stand out in the competition in the market, the companies tend to choose the best ERP system in their business. By narrowing down the choices, the obvious two that come up the minds of the companies are the SAP and Oracle. However, with various tools available in the market, the key factors between the two must be considered by the companies before selecting them. At this time, it's important to consider the factors so that there is no confusion while signing the deal.

In the year 2014, according to Panorama's consulting, the "Clash of Titans" report gathered quantitative results from various enterprise companies across the globe who implemented the ERP systems. The companies have various results and experience of incorporating the two products SAP and Oracle. There are various variables and tradeoffs to be considered while incorporating ERP systems in companies, there are various factors that must be considered.

The top 5 factors to consider while choosing the two products are listed below.

  • Cost and time for implementation

SAP is a high-cost option when considered the annual revenue of a company. The average cost of an SAP customer to spend 4% of the revenue in the system while the average expenditure of Oracle customers is 1.7%. Although the cost is a big factor yet the features attributed to the breadth of functional ability. The cost is an integral part of the integration.

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Another factor that the enterprises, CIOs and the project teams are concerned about is the time it takes to implement the system. However, as per many custom software, development services SAP excels in such situations. While the Oracle takes 23 months to implement the ERP system in a company while SAP can do the same thing in less than four months. This is the situation where Oracle’s acceleration and SAP’s pre-configurations come to rescue.

  • Scalability

Most large organizations and small-sized companies are highly concerned about the scalability of ERP systems. The companies that suffer years of inconsistent business incorporate the ERP systems, to grow the companies and help them scale. In the case of scalability, SAP and Oracle are mostly even. The scalability results are mostly similar for the companies using any of the products.

Many best web development company use both the products and find fruitful results. However, the scalability entirely depends on the requirements of the products. There are various product solutions created by Oracle while the SAP has developed its products from origin creating a single consistent system. The companies that look for scalability and standardization often find SAP to be a better option for scalability.

  • Software customization and function ability

According to the Best web development company, the basic requirement of the enterprise companies is the improvements and the functional ability of the operations. The technological backbone that supports the ERP system is not a problem. Considering this factor, both the SAP and Oracle are both great in performing for the functionality.

The survey report says that the SAP development company customers are way more satisfied with the performance of the system functionalities, while Oracle is said to repay quicker than that of SAP. The customization process is required for every company that considers fitting for the ERP systems and other operational requirements. The customers of both products need to customize the system for fitting the ERP system in their business.

  • Cloud adoption

Earlier many huge IT industries hosted the ERP software and other software applications in the enterprises. Many organizations are changing their software and adopting cloud software. The customers of Oracle highly prefer the cloud platform and the existing customers benefit more from the product than that of SAP Development Company. SAP's business was once highly popular in the arena which now might cause huge losses to the company. The survey data confirms that in spite of both the products adopting the cloud platform, Oracle has received much success in this field.

  • In-memory technology

It is said that for many years, the two platforms have boasted about their in-memory technology that will change the future of the ERP system. SAP software solutions have a single platform that has been benefiting many companies. However, certain drawbacks come up with a single platform like deployment cost and limited compatibility.

Oracle is excelling in the situation where the in-memory technology differentiates from being functional and easily integrated with compatible databases. In-memory technology allows customers to execute ERP applications and faster analytics by providing high productivity and insights.

Conclusion

The above points might not provide a clear concept of the best ERP system among Oracle and SAP software solutions. However, the operational benefits and the profits that can be made after the implementation of the company can be considered by the enterprise companies. The choice depends entirely upon the needs and capabilities of the enterprises.

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