ERP implementation is needed by businesses at different stages of their growth. A small business, for instance, may not need an ERP system. However, a midsized to a massive corporates will benefit largely with ERP installation. ERP around the world is implemented largely by SAP, Oracle and Microsoft. Here is a quick glance of the top two companies currently dominating the market, Oracle vs. SAP:
Implementation risk – Implementation risk is higher with SAP business one compared to Oracle. In the past, some customers have given a feedback of experiencing material operational disruption when the ERP system was to go live. The most common disruption included inability to ship products or closure of books.
Implementation Cost – SAP costs higher compared to Oracle. The expenses incurred towards SAP ownership are 4% annual revenue and that towards Oracle ownership are only 1.7%.
Implementation duration – SAP surpasses Oracle on this factor with an average implementation time of 4 months. Oracle on the other hand takes around 22 months.
Scalability – When businesses invest huge sum of money in ERP system implementation, it is natural that they will look at long term scalability of the software. The ERP system becomes the backbone of the company and helps provide data and analysis for growth purposes. Both SAP and Oracle stand evenly on this particular parameter. The amount to which the software needs to be scaled up depends upon the client’s need. If your organization wants an ERP system, which is standardized and consistent even after the scalable change, then SAP business one is your answer. However, if the organization wants a decentralized model, then Oracle provides a wide range of such ERP products.
Cloud Adoption – The bigger ERP implementation giants are now using the cloud migration technology. The technology saves these organizations from maintaining a separate internal IT infrastructure. Oracle has some better features in this particular area thereby having more customers using the cloud-based phenomenon.
Software Customization – It is important that the ERP system has room for improvement. In this matter, SAP users have been found to make use of the customization feature extensively compared to Oracle users. Customization does come with associated costs. Hence, users typically align the system with their current processes at the beginning of the project itself so that future customizations can be limited.