Choosing the right ERP (Enterprise Resource Planning) software is easily one of the most important and difficult decisions a purchasing team has to make.
Oracle and SAP are two of the biggest and most well-known names in ERP software. Each provider is better suited to some business needs than others. So keep your company’s unique needs in mind when comparing Oracle and SAP capabilities.
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What is Oracle ERP?
Oracle ERP is a cloud-based, fully integrated and comprehensive business management platform. It’s designed to help with streamlined processes, automated tasks, efficient and collaborative work on general ledgers, payables and assets, accounts receivable, collections, expenses and more.
With Oracle ERP, management can oversee accounting, finance, planning and procurement, project management, reporting, supply chain operations, and more from a single platform.
- Multidimensional self-service reporting
- Average daily balances
- Daily Transactions
Oracle ERP empowers employees to monitor and resolve concerns with self-service reporting capabilities based on real-time data. It also reduces complexity by facilitating collaboration and automating processes like file updates.
What is SAP ERP?
SAP S/4HANA is a comprehensive, cloud-based ERP platform that runs core departmental processes in a single system. Areas include finance, manufacturing, human resources, supply chain, services and procurement, among others.
Companies using SAP S/4HANA ERP benefit from integration between processes and a consistent in-memory data model. With built-in intelligent technologies – including AI, machine learning and advanced analytics – SAP ERP offers a range of benefits. For example, companies can manage rapid business changes, orchestrate internal and external resources, and use the predictive power of AI to plan future production ups and downs or assess profit and margin contribution.
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- Optimized production processes through planned plant maintenance
- Integrated information between production, quality and costs
- Track revenue streams from order to payout
- Sales target and performance monitoring
- Material and inventory planning
SAP’s ERP enables companies of all sizes to stay current with continuous updates, easy scalability and cost-effectiveness.
Comparison of Oracle and SAP offerings
Oracle and SAP each have something to offer when it comes to AI, customizability, security, and pricing.
Oracle vs. SAP: AI
Oracle and SAP both offer AI capabilities to increase efficiency and use business intelligence to drive your business forward.
Oracle’s built-in, AI-powered capabilities help organizations meet the increasing demand for personalization and improve a variety of business processes.
AI improves SuiteBilling, the financial services engine in Oracle. Suitebilling provides revenue recognition, the ability to transact across currencies, and predictive analytics. Within Oracle ERP’s financial services module, users can also test hypothetical scenarios and their financial impact on the business.
Chatbots are another way AI permeates Oracle’s ERP offering, serving as an intelligent interface between users and the back-office information they are looking for.
SAP also integrates AI into its product, specifically for managing invoices and purchase orders that inform how financial statements are prepared. This reduces manual data entry and saves time by identifying and resolving discrepancies. SAP has also integrated a chatbot capability, the CoPilot tool, as part of its broader Conversational AI service. CoPilot uses natural language processing to direct users to the information they are looking for based on the speech input in their query.
Oracle vs. SAP: Customization
Oracle offers extensibility with add-on modules such as finance, procurement, project management and more. Starting from the provided templates, users can adapt them to the needs of their department.
The SuiteBilling module offers customizable analytics and dashboards. The more tech savvy users can even code their own solutions into one of the modules. However, smaller companies should be aware that customization comes at a high price and is a formidable barrier to adopting Oracle’s cloud ERP software.
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SAP’s ERP, on the other hand, requires a higher commitment to the entire platform and limited customization. It is customizable in that SAP’s Integration Suite enables native integration with other SAP solutions to extend and enhance your enterprise-wide processes at will.
Oracle vs SAP: Security
Oracle’s cloud infrastructure is primarily designed for security. Oracle’s cloud ERP protects customer data through isolated network virtualization, highly secure firmware installation, a controlled physical network, and network segmentation. It also ensures secure connectivity through least privilege access, multiple levels of authentication, encrypted internal WAN connections, and secure external connections via a secure VPN, useful for today’s remote workers.
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SAP uses an advanced technology infrastructure that provides continuous updates to the platform via the cloud. In addition, SAP security experts manage data protection and address security threats, empowering customers’ internal SecOps teams and giving peace of mind to CISOs. With a powerful infrastructure and a dedicated team of security experts, users can rest assured that their data is in good hands.
Oracle vs SAP: Pricing
Oracle does not publicly display pricing information, so potential customers must contact sales for a customized quote.
However, based on enterprise customer reviews, Oracle’s ERP offering is about 10 percent more expensive than alternatives. Smaller and midsize customers report that Oracle’s ERP system is 30 percent and 37 percent more expensive, respectively.
After a free 14-day trial, one of three SAP S/4HANA pricing models applies, depending on what you choose: pay per module, pay per user, or per license.
Oracle vs. SAP: Which solution is better for you?
Choose ERP software carefully as it manages most of your company’s data. ERP software also requires a significant financial and time investment to purchase and implement.
Ask the ERP vendor for integrations, data migration, and training support. Implementation assistance may incur additional costs. Alternatively, a provider may be able to suggest external consulting firms that can provide virtual or on-site training.
For companies looking for a build-as-you-grow ERP, Oracle is a better choice as it offers a wide range of optional plugins. However, watch out for increasing costs with each additional add-on. SAP offers a more comprehensive package from the start, making it a great choice for companies willing to commit to a broader platform.
Depending on your organization’s current security model, you may wish to expand your SecOps team. In this case, SAP is a better choice as its security experts help to manage and optimize ERP security. Oracle, on the other hand, is more tool-based, including built-in security features in its ERP.
Still not sure which provider is right for your business? Compare Oracle and SAP against other vendors on our list of the best ERP systems for 2022.