- Jan 12, 2023
- Category: Enterprise Resource Planning
If you use an ERP system to handle business operations, you have probably heard of Oracle and SAP. These systems consolidate all the business data and financial information to help departments provide better customer solutions. But there are distinctive differences.
While SAP focuses on real-time business process management, Oracle helps manipulate business data within a firm. Both have excellent features that support organizational operations, but the selection will depend on the company’s requirements.
Continue reading to delve into the Oracle ERP vs. SAP comparison and find out which suits you the best. Without further ado, let’s jump right in!
Brief Introduction to Oracle ERP
The Oracle organization began its business in 1977 and has been delivering unique software solutions since then. ERP systems, database management systems and cloud engineering platforms – they have it all.
However, Oracle ERP is amongst its most popular offerings. It is a cloud-based system that aims to make business activities simpler. It can seamlessly handle multiple aspects of an organization, including the following –
- Supply chain management
- Project management
- Financial management
- Compliance and risk assessment
So, company professionals can integrate data from various departments and examine their financial needs. It enables the departments to develop financial strategies accordingly. As Oracle ERP facilitates financial data manipulation, budgeting and financial forecasting become convenient.
A Brief Introduction to SAP ERP
Initially released in 1972, the SAP ERP comprises multiple software modules for business functions like human resource management, production management and customer relationship management.
The platform enables company officials to consolidate all the information into a single place. They can make vital business decisions according to the analysis of real-time data. Further, companies can focus on multiple verticals, such as –
- Financial controlling
- Sales and marketing
- Quality Management
- Plant Maintenance
- Quality Management
The data integration allows employees to develop better sales strategies and elevate their marketing. If you choose it, you’ll also experience automation support and improved efficiency in business techniques.
Oracle ERP vs. SAP: How Do They Differ?
If you’re confused about selecting SAP or Oracle, you must first understand the technical differences. The following section will offer sufficient information and clarity on their distinct features.
1. Business Analytics
The SAP ERP platform offers excellent features when it comes to analytics and reporting for businesses. Using the SAP Business Cloud, you can automate data, receive valuable insights and use data visualization features. The augmented analytics of SAP enables you to make data-driven decisions.
Oracle mainly focuses on machine learning and AI. The newly launched Oracle Fusion Analytics helps handle revenue, make financial predictions, and optimize capital.
Both platforms have decent analytics features and will suit almost all businesses. Their selection will depend upon the amount of analytics support you require and the processes you handle.
The SAP ERP has some solid features if you’re looking for budgeting features. You get functionalities like financial planning, accounting, treasury management and revenue management. Plus, there are tools for budget decision-making, prioritizing tasks and streamlining budget requests.
In Oracle ERP, the budgeting tools are a bit better and enhanced. This is because the platform boasts an Asset Lifecycle Management feature that simplifies asset accounting activities. It utilizes a single source of financial asset data and offers budgeting tools.
So, Oracle helps you understand your current financial position and makes budgeting easier. SAP has great functionalities, but they could be more extensive.
Managing the sales processes and strategies is essential for any company’s advancement. That’s why SAP provides functionalities for invoice management, contract management, order handling and focusing on procurement processes. The platform can also integrate customer records for better financial decision-making and strategizing.
On the other hand, Oracle doesn’t have specific sales functionalities on the platform. So, the ERP stores financial data and customer information for you to access whenever required. You will find customer information, financial data, order data and procurement functionalities in a single place.
Here, both platforms have high-quality sales functionalities. However, SAP has very function-specific tools, whereas Oracle has fundamental tools in a convenient setup.
4. Supply Chain Management
In this Oracle ERP vs. SAP feature comparison, know that both software has decent supply chain management functionalities. But, there are technical intricacies that set them apart.
SAP offers quality tools for order processing solutions. The ‘procure to pay’ system is also convenient for helping organizations in purchase management, procurement management and handling vendor choices.
Moreover, you also get a convenient and user-friendly mobile application for handling supply chain activities like moving shipments. The SAP inventory management allows you to access real-time inventory data and manage your supplies efficiently.
For Oracle, the Oracle Supply Chain Management Cloud empowers companies to make better supply chain decisions with real-time data. You get multiple offerings, including logistics cloud, procurement cloud, procurement cloud, and supply chain planning. Moreover, you gain better visibility of the supply chain processes.
Comparing the two, SAP offers better supply chain visibility and event management facilities. Oracle provides more convenience in resource allocation and tracking supply chain costs.
5. Cloud Adoption
Most small and large-scale firms are shifting to cloud infrastructure from traditional on-premise systems. The move offers better security and data storage with numerous other benefits.
Oracle ERP has always been among the best cloud platforms offering seamless business solutions. Its cloud infrastructure provides excellent data security, analytics and management. However, SAP has also adopted cloud functionalities with similar features through the SAP S/4HANA Cloud.
While both platforms have cloud technology enabled, Oracle’s cloud services are considered better.
Oracle ERP vs. SAP Comparison Table
|Comparison Factor||SAP ERP||Oracle ERP|
|Business Analytics||Offers data analytics, data visualization and automation.||Equipped with AI and machine learning.|
|Budgeting||Comes with financial accounting, revenue and treasury management features.||Comes with Asset Lifecycle Management for better financial management.|
|Sales||Has specific tools for invoice management, procurement and contract management.||Has basic tools for storing financial data and making sales decisions.|
|Supply Chain Management||Provides improved supply chain visibility and tools.||Provides enhanced supply chain expense tracking.|
|Cloud Adoption||SAP S/4HANA offers fundamental cloud facilities.||Supports seamless cloud adoption along with data security and analytics.|
Final Verdict: Oracle ERP or SAP ERP?
If your company is looking for an ERP solution with high-quality analytics features and decent cloud functionalities, go for SAP ERP. However, if you’re focused on making outstanding financial predictions using artificial intelligence, Oracle is the one.
The expenses for implementing Oracle ERP can be higher than that of SAP ERP. For better supply chain expense monitoring, Oracle will be the better option.
At the end of the day, your company’s business objectives, size and financial position will determine the choice of ERP system. Compare Oracle ERP vs SAP carefully before selecting one.