Discussion on Enterprise Resource Planning Software
Discussionon Enterprise Resource Planning Software
Enterprise resource planning is an integrated method that comprisessoftware and technology in a business set up. Some of these processesinclude product planning, marketing, manufacturing, production, andmaterials management. The software helps in business management.Enterprise resource planning systems track the business resources.The paper will discuss SAP and ORACLE that are both competitivecompanies.
Oracle is aninternational computer technology company that is based in RedwoodShores of California. It specializes in making enterprise software,databases software and Cloud engineered systems. The company wasfounded in 1977 at Santa Clara, California. Larry Ellison, Bob Miner,and Ed Oates were its founders. It is classified as second largestsoftware company by capital from Microsoft. The company has about136, 260 employees.
SAP is SoftwareCompany that develops business software. The company has operated for45 years ago since 1972. It is located in Walldorf,Baden-Wurttemberg, and other regional offices in foreign countries.The company has more than 300,000 customers worldwide and 84, 180employees.
Activitiesof the Two Companies
The company has the function of designing, manufacturing and sellinghardware and software materials. They also offer services likefinancing, consulting, training and hosting which complement theirproducts. They developed Oracle Application Server in the year 2004.The software helps in computer gridding. The relationship between thesoftware and Java helped developers to store procedures that arewritten in Java language. In 2007, they released 11g while in theyear 2013 they released 12c. The company also produces middlewarelike the identity management, system integration, application server,content management and user interaction products. Some of thehardware they develop includes Sun Microsystems and M-seriesmainframes. They also developed engineered systems like the ExadataDatabase Machine, Exalytics In-Memory Machine, and Oracle DatabaseAppliance.
Besides, Oracle provides services like Oracle Cloud. Some of theirservices include Software as a Service, Platform as a Service,storage, and network services. They also offer product support,Oracle Configuration Manager and Oracle Auto Service Request.
They designed a cloud-based product that was intended to competeOracle. SAP HANA provides users with data visualization and improvesmobile applications. The newest generation of SAP is SAP S/4HANA. Itprovides cloud on premises, faster data analysis and quick access todata. They have also developed Express Edition that operates inlaptops for cloud computing platforms for students and smalldevelopers.
Differencesof the Two Competitive Companies
Oracle is a company operating big middleware business, huge businessapplications but with a small hardware business while SAP has a smallmiddleware business and a small database technology. Oracle is aRelational database while SAP is an enterprise resource planningsoftware. They also differ in customer satisfaction and datatracking. SAP helps in real time tracking of finance, sales, andhuman resources while Oracle is used to manage data in an enterpriseonly. Finally, SAP can be run with several database systems includingOracle interface.
Comparingthe Two Companies
Oracle customers include Saudi Telecom, Colab, Dubai Holding, DG Khanand Portobello while SAP customers have a wide range of companies.They include Unilever, Adidas Group, Prime Meats among others. Inaddition, SAP ERP has high risks in implementation than when youimplement on Oracle ERP. The implementation cost also differs. SAPcustomers spend an annual implementation cost of approximate 4% whileOracle customers use 1.7%. The functionality of SAP is high than thatof Oracle hence the difference in implementation cost.
In addition, Oracle customers can take around 23 months to implementthe software while it only takes around 18 months for customers toimplement SAP ERP software. The scalability of the two companies iseven (Huang,Yung-Yun, and Robert, 20). Organizations can scale SAPand Oracle with either of their products. However, the scalabilitydepends on the customers need. Those customers in need of consistentand standardized scalability will choose SAP while those in need forscalability based on flexibility will be comfortable with Oracle`sproducts. Comparison by functionality, it is clear that SAP customersrealize more of functionality and benefits than in Oracle`scustomers. However, SAP customers experience lower payback thanOracle customers do. In addition, a comparison based on cloudadoption, it is observed that Oracle customers with cloud-basedsystems realize more business benefits than those of SAP.
SAP has proved to be appropriate for businesses that are aiming atexpanding and planning to form new business lines. The businessshould engage a rapid information technology system like that of SAPthat will improve their relationship with their customers, improveefficiency and maximize profit.
The SAP ERP takes a short time for implementation and provides anintegrated system that will monitor the finance, manufacturing andhandles the customer relationship management. SAP provides real-timeinformation on important business issues.
Most users have a perception that SAP is complicated. Hence, they donot see the need of incorporating it in small business. SAP BusinessOne lacks flexibility. It has no optional modules, but rather youhave to take it as it is. The SAP Business One also lacks payroll.Customers are required to purchase payroll from a third party.
Oracle Private Cloud is integrated and has reduced IT complexity.Hence, it has high demand to both technology and business leaders. Italso increases computer scalability and performance that help inminimizing IT costs. In addition, it is not limited to large businessonly, but it is applicable even in small and private businesses(Seethamraju,480).
The Oracle Private clouds are not as elastic as the demand in themarket and they have low scalability on demand. Oracle private cloudsare restricted by hardware and software parameters but not asservices. However, this limitation can be modified.
In conclusion, SAP and Oracle are software companies that arestriving to provide their customers with quality hardware, software,and best services. Customers should choose wisely depending on theirexpectations on scalability, functionality, and flexibility. Bothcompanies are reliable and help both small-scale and large-scalefirms.
Huang,Yung-Yun, and Robert B. Handfield. "Measuringthe benefits of ERP on supply
managementmaturity model: a “big data” method." InternationalJournal of Operations & Production Management 35.1(2015): 2-25.
Seethamraju,Ravi. "Adoptionof software as a service (SaaS) enterprise resource planning
(ERP)systems in small and medium sized enterprises (SMEs)." Informationsystems frontiers 17.3(2015): 475-492.
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