Large ERP providers such as SAP, Oracle, and other Tier-I providers are often consulted by companies pursuing a long-term digital IT strategy that includes significant expansions and innovations. This is not surprising. After all, large providers have various applications in their portfolio that complement their main ERP system, giving them an advantage over smaller providers.

This can be a solution for artificial intelligence (AI) that can analyze large amounts of data or an Internet of Things (IoT) solution that helps with product selection and packaging. If you are interested in such software, you have probably already read articles comparing SAP with Oracle.

What is SAP and what does it do?

SAP prefers to develop products from scratch rather than acquiring them. We have found that SAP’s ERP software includes many functions and therefore requires a technical and time-consuming implementation. SAP S/4HANA is a large-scale enterprise application that delivers high performance across all functional areas. For example, S/4HANA Cash Application uses machine learning to enable intelligent invoice reconciliation in real time. Small and medium-sized enterprises benefit from SAP Business One and SAP Business ByDesign. They offer comprehensive solutions for finance, sales, operations, and customer service.

What is Oracle?

Oracle’s main strength lies in acquiring product lines that, with flexible functionality, can cover a range of market niches. NetSuite, an ERP provider, was acquired by Oracle in 2016. The benefits of Oracle and NetSuite integration are currently being realized. For example, Oracle’s SaaS ERP functions have been enhanced by NetSuite. Oracle Cloud ERP was developed for large, multifunctional enterprises. Although it is a new product, it is gaining market share and expanding its functions.

Both SAP and Oracle offer a comprehensive range of enterprise solutions, including HR software, CRM software, and supply chain management software. Both providers were mentioned in our reports on the best ERP systems for manufacturing and distribution. According to these reports, the providers offer powerful features for supply chain and inventory management. In addition, they provide powerful software for production management.

Based on our experience in evaluating and implementing ERP solutions for customers, we have made some fascinating observations regarding the differences between SAP and Oracle:

The financial management functions of both SAP and Oracle ERP systems are excellent. Accounts payable, accounts receivable, and fixed asset management all received impeccable ratings, landing in first place. However, Oracle’s software triumphs in this category for several reasons. In risk management, Oracle is slightly ahead of SAP. Oracle improves financial management and reporting accuracy while also considering GRC standards. Oracle is known for its risk management solutions, which help enforce enterprise-wide compliance and automate some aspects of compliance across various industries. These tools help prevent cash outflows and provide a level of policy enforcement that allows companies to feel secure in the face of the risks they are exposed to. However, SAP’s risk management functions remain useful and can help your company identify and understand risk issues.

In budgeting, Oracle’s ERP system performs significantly better. SAP’s budgeting software is rather simple and offers the ability to monitor and execute general planning. Oracle, on the other hand, has a unique tool known as “Asset Lifecycle Management.” This allows you to maximize the financial value of your equipment and other assets. Additionally, you receive a set of tools to help you manage your company’s financial needs.

Oracle also surpasses SAP in core functions. SAP would already be good enough, but Oracle’s powerful pricing tools can make the difference between success and failure for your business. Among other things, Oracle can adjust your base prices based on market segments, currencies, and exchange rates. Furthermore, you can manage margins, discounts, and rebates based on predefined rules.

Oracle is a good option for personnel management, but SAP goes far beyond that. SAP is software that manages a wide range of HR transactions and allows users to retrieve important information about all transactions in one place. Employees also have access to a dedicated website where they can make changes to their own data if needed. SAP ERP software also supports payroll and offers e-recruiting functions that enable companies to better manage employee retention and turnover. Oracle has excellent reporting functions with visual representations that allow for quick communication, although they are overall less comprehensive. If you want to base your personnel decisions more on data, this can be significant for your company. Easily understandable data can help you recognize general trends and quickly get an overview of your company’s past and expected future.

Both Oracle and SAP offer good CRM software but have different strengths and weaknesses. Oracle is good in many areas but not particularly outstanding in any. SAP offers some truly remarkable features but also some that are merely adequate. For example, Oracle has strong marketing functions, including the ability to manage campaigns from a single platform. SAP does a good job in this area as well, offering cross-functional finance, procurement, and marketing processes. Campaign and budget planning is possible but not yet as advanced as in Oracle. Account management is also good in Oracle ERP, but SAP is the best in this area. SAP covers all customer-related areas. With this product, you can view your customers’ history, allowing you to focus better on lead generation. It is also linked to marketing, sales, and finance, giving you a complete picture of your customers. The more you know about your customers, the easier it is to run contextual advertising and apply smarter sales methods. We recommend both solutions for order management. SAP offers a wide range of solutions for merchants of all sizes, industries, and distribution channels.

Comprehensive ERP technologies enable companies to eliminate uncertainties and make smarter decisions by providing a clear overview of actual finances and processes. In this respect, both SAP and Oracle ERP software are very powerful.