SAP vs. Oracle: Which ERP System Provider is Best? (2023)
An ERP system is a software application that integrates all the core processes of an organization, including accounts payable and automation, human resources software (HR), customer relationship management (CRM), and supply chain management software (SCM).
The purpose of a great ERP system is to streamline these processes into a single system to improve efficiency and optimize business operations.
A single, integrated system also reduces the need for duplicate data entry, leading to errors and inefficiencies.
The problem is that since ERP systems are typically large and complex, they can be costly to implement and maintain.
That is where platforms such as SAP and Oracle come in.
These are two of the world’s leading ERP system providers.
They offer a wide range of ERP solutions and software applications, each with unique features and capabilities.
In this article, I will compare SAP and Oracle Cloud ERP systems across a range of criteria, including:
- Pricing Features
- Artificial Intelligence
- And more.
By the end of this article, you should have a good understanding of the main functional differences between SAP and Oracle ERP systems, along with a definitive idea of which one is better for your needs.
Let’s dive deep into this topic.
What is Oracle ERP?
Oracle ERP is a cloud-based enterprise resource planning software that helps businesses with financial management, supply chain, and HR.
The software is designed to automate back-office processes and give users real-time insights into their business.
Whether it’s automated tasks, data-driven decisions, or real-time collaboration, Oracle ERP can help businesses improve their bottom line.
With Oracle ERP, management can see a complete picture of their business, including sales, inventory, financials, etc.
The software also allows users to drill down into specific data sets for detailed analysis.
Additionally, the Oracle ERP software integrates with other Oracle products, such as Oracle CRM and Oracle SCM.
This allows businesses to get the most out of their Oracle investment.
- Multi-dimensional, self-serve reporting ensures that users consistently access the most up-to-date information.
- With Oracle ERP Cloud, businesses can make data-driven decisions that improve their bottom line.
- The software’s collaboration features allow teams to work on project management in real-time. This helps reduce errors and increase efficiency.
- Additionally, Oracle ERP’s average daily balances and transactions features give users a complete picture of their business finances. This allows businesses to manage their cash flow better and make more informed decisions about where to invest their money.
What is SAP ERP?
SAP ERP software (also known as SAP Business One) is an enterprise resource planning software developed by the German company SAP SE.
It is designed to help businesses manage their finances, logistics, and human resources.
With finance, manufacturing, and human resources rolled into one software, businesses can have a comprehensive solution for managing their operations.
This can increase efficiency and productivity, giving businesses a competitive edge.
With various integration options, businesses can connect their ERP system to other software, such as their CRM or eCommerce platform.
Machine learning and artificial intelligence also help businesses automate tasks like creating invoices or placing orders.
- Optimized production processes via scheduled production planning and execution
- Integrated information between business processes (e.g., finance, sales, and CRM)
- Revenue stream tracking from contract and customer management
- Sales target and quota management
- Materials and inventory planning capacity planning and Material Requirements Planning (MRP)
When comparing these two software in budgeting capabilities, SAP has basic budgeting features, which allow you to manage and execute general planning.
On the other hand, Oracle ERP is a much more comprehensive software that can manage your budgeting in production, sales, and more.
Moreover, Oracle ERP allows users to drill down into specific data sets for detailed analysis.
With its ‘Asset Lifecycle Management’ tool, businesses can keep track of their assets and inventory in one place, making it easier to budget and forecast for the future.
A series of features also help with enterprise resource planning and business management.
These features help businesses make data-driven decisions that can improve their bottom line.
Oracle has advanced pricing tools that allow businesses to manage their pricing more effectively.
Abilities such as managing multiple price lists, setting up price books, and creating discount schedules help businesses stay on top of their pricing.
There are also currency exchanges that can be used to manage pricing in different currencies.
This is helpful for businesses that operate in multiple countries or that sell their products internationally.
On the other hand, SAP has a ‘Simple Finance’ module that offers basic budgeting features.
This includes the ability to create and manage budgets through various dashboards, track actual numbers against budget, and generate reports.
While this will get the job done with smaller businesses, it doesn’t offer the same comprehensive features as Oracle.
AI in an Oracle vs. SAP Business
Both of these software use AI in their specific ways.
Oracle’s AI features help businesses whenever there is a change in demand and can automatically update the sales forecast.
Artificial intelligence, as used by Oracle, also ensures that business processes are running as they should through monitoring for anomalies.
If there is a problem, it will be flagged, and businesses can take action to fix it.
In addition to the above, artificial intelligence is also used in financial services modules.
This uses predictive analytics to ensure that transactions are compliant with regulations.
It can also help businesses test various hypothetical situations and what their impact would be on the company.
There is also the option to use chatbots as a way to bridge the gap between users and back-office support.
Companies can use this to answer common questions or help with tasks that need to be completed.
On the other hand, SAP uses artificial intelligence for invoice generation and management, helping its users reduce manual data entry.
Chatbot features also use natural language processing to give users the ability to answer questions using specific business data.
Businesses can use this to answer common questions or help with tasks that need to be completed.
Oracle offers templates that users can edit to meet specific needs.
These templates can be used as a starting point and then customized as needed.
For those needing more advanced solutions, there is also the option to code specific customizations.
This is helpful for businesses with particular needs that are not met by out-of-the-box functionality.
This typically involves a substantial cost as getting such customizations wrong can significantly impact the business.
SAP’s ERP is more limited when it comes to customization and realistically requires its users to use the platform as it is.
The available customization options typically revolve around minor changes in terms of integration with 3rd party software.
Security is always on the mind of businesses, especially when it comes to confidential data.
Both Oracle and SAP offer robust security features that help businesses keep their data safe.
Oracle’s security features are built into its cloud design and infrastructure.
With features such as isolated network virtualization, users can ensure that their data is safe from unauthorized access.
A controlled physical network also deals with risk management and reduces the chances of data breaches.
Network segmentation provides an additional layer of security and ensures that only authorized users can access specific data.
Conversely, SAP uses advanced technology infrastructure to continuously update its security features.
This includes protection against security threats that are constantly evolving.
Regular security audits also help ensure that the system is always up-to-date.
With dedicated security teams employed by SAP, businesses can ensure that their data is always safe.
Both platforms put data security as one of the top items on their priority list.
SAP definitely comes out on top when it comes to human resources.
This platform offers a comprehensive business suite of tools that helps businesses manage their employees.
This includes everything from payroll to talent management.
Users can access all the information they need in one place, making it easy to manage.
Employees also get a portal designed just for them, helping them stay up-to-date with what is happening in the company.
They can also use this platform to access their pay stubs and other important information.
This means that when it comes to essential features (including payroll and offers e-recruiting), SAP is the better option as it helps businesses manage their most important asset, their employees.
That said, Oracle offers good reporting features when it comes to HR.
With an emphasis on visualizations, businesses can get a good overview of their HR data.
This can be helpful for those who want to ensure they are getting the most out of their HR data.
Oracle also offers Oracle HCM (human capital management), which can be a good way for small and large enterprises to manage their HR.
Knowing the differences between an ERP and CRM, along with how they work together, should help in the decision-making process.
As always, there are pros and cons to using both systems when it comes to their CRM capabilities.
Oracle Is more of a jack of all trades in this regard.
It offers a wide range of features that businesses can take advantage of.
This includes everything from sales and marketing to customer service and support.
With so many features, businesses can get an overall great return on their investment.
The downside is that finding a tool specializing in one particular area can be difficult.
On the other hand, when it comes to anything customer-facing, SAP is the better system.
It offers a comprehensive suite of tools to help businesses manage their customers.
This includes features such as customer segmentation and real-time analytics.
With its focus on the customer, businesses can ensure they provide an excellent service and experience to their people.
Using SAP, you can see the complete customer history in one place, which helps you better serve these people to the best of your ability.
Various integrations with finance, sales, and marketing also make it easy to get a 360-degree view of the customer.
When it comes to database management, there is a clear winner, which is Oracle.
This platform offers a comprehensive suite of tools that helps businesses manage their databases, including security and performance.
With an Oracle database, businesses can ensure that their data is managed in the most efficient way possible.
SAP, on the other hand, offers a more basic set of tools.
This happens because SAP does not have its own database but instead relies on various integrations to happen.
While this does make it easier to manage, it also means that businesses miss out on some of the more advanced features.
Supply Chain Management
The supply chain refers to business processes that allow companies to get their products from suppliers to customers.
It includes everything from manufacturing to logistics and distribution.
Both of these platforms offer many features in this regard.
SAP’s ‘procure to pay’ module helps companies manage their supply chain.
When it comes to procurement, this helps businesses save time and money on their supply chain.
On the other hand, Oracle uses a ‘supplier invoice to payment’ process management tool.
This tool helps businesses to automate their supply chain and improve efficiency.
In general, both platforms are suitable when it comes to having a reliable supply chain.
Inventory management refers to the process of tracking and managing inventory.
It includes everything from purchasing to warehousing and distribution.
Both platforms offer many specific features in this respect.
However, they both have their way of dealing with this business area.
SAP’s focus is on preventing shortages in inventory.
It uses a ‘demand-driven’ approach when dealing with ERP vendors.
This means that businesses can be proactive in their inventory management.
On the other hand, Oracle’s ERP platform focuses on increasing productivity.
It does this by typically using a ‘just-in-time’ approach.
This means that businesses only produce what is needed when it is required.
In this regard, knowing what type of business intelligence is required for one’s own needs and choosing the better system based on this is usually the best way forward.
SAP vs. Oracle – FAQ
What Is Oracle Netsuite?
Oracle Netsuite is a cloud-based business management software suite that offers a range of applications, including customer relationship management (CRM), enterprise resource planning (ERP), and e-commerce.
It is designed to help businesses automate and streamline their operations.
What Is Microsoft Azure Interconnect?
Microsoft Azure Interconnect is a secure, high-speed connection between Oracle Cloud Infrastructure and Microsoft Azure.
Businesses often worry about data security and performance issues with traditional on-premise systems.
However, with Oracle Cloud and Microsoft Azure Interconnect, businesses can take advantage of the security and performance of the cloud without having to worry about these issues.
What Are ERP Offerings?
ERP cloud offerings are enterprise resource planning solutions offered by various providers, such as Oracle and SAP.
These solutions help businesses manage their operations more effectively and efficiently.
Whether dealing with healthcare, accounts payable or receivable, or any other business operation, an ERP solution can help automate and streamline the process.
How Vital Is SaaS Automation When Choosing An ERP?
SaaS automation is an important consideration when choosing an ERP solution.
The reason for this is that it can help to improve the efficiency of your operations and reduce the amount of manual work that is required.
The suitable cloud applications can also help automate and streamline your business operations.
With the IoT (internet of things) now becoming more prevalent, the right cloud platform can also help you connect your devices and systems.
This can provide you with real-time data to help you make better decisions.
Ultimately, the best ERP solution for your business (whether it happens to be a SaaS or otherwise) will depend on your specific needs and requirements.
What is Oracle Fusion?
Oracle Fusion is a cloud-based enterprise resource planning (ERP) system from Oracle Corporation.
It is a complete, integrated ERP software that includes everything you need to run your business in the cloud.
SAP vs. Oracle – Who’s The Winner?
There is no easy answer regarding which system is better as it all depends on the needs of your business.
Oracle software might be the better choice if you are looking for a comprehensive solution that offers many features.
However, if you are looking for a customer-centric solution, then SAP is the way to go.
In the end, the decision comes down to what your business needs.
Asking both providers the questions that matter to your business and going through a free trial would be the best way to make the right decision.
Further reading on AdamEnfroy.com: Apart from the above, there are other aspects to an ERP that might be important to your business.
These could include warehouse management systems that can automate your inventory, project management software and tools to help with timelines and resources, or even third-party logistics software to help with shipping and receiving.
I encourage you to check out the above posts to get to know more about these topics and be well-informed when choosing an ERP for your business.