Odoo vs SAP vs Oracle ERP- A Comprehensive Comparison Guide

53% of businesses consider enterprise resource planning software a priority investment. Originally built for manufacturing operations, ERP systems have expanded to serve various industries and businesses.  ERP helps organizations integrate all facets of a business, including product development, manufacturing, marketing, and sales.

Multinational companies and even small and mid-level businesses use ERP systems. When 96% of emerging businesses excelling in their industries rely on some form of ERP solution, having the right solution is a must.

With several ERP solutions in the market, choosing one is difficult.

Thus, we present the top three ERP software that organizations mostly choose. Our analysis will enable you to compare the best features, mobile app availability, and platform integrations to help pick the right software.

Here’s a Brief on All the Three Enterprise Resource Planning Software

1. Odoo

Odoo is an open-source ERP software. It consists of all major modules- customer relationship management, e-commerce, accounting, billing, inventory management, warehouse management, and manufacturing. Since Odoo provides all functions under a single platform, organizations can use it to streamline business processes. Odoo ERP allows for seamless communication and information management.

2. SAP

SAP stands for System Applications & Products in Data Processing. It consists of the key business functions of an organization. SAP ERP consists of several modules: financial accounting, asset accounting, sales & distribution, material management, production planning, and plant maintenance. It prevents data duplication and helps streamline the decision-making process.

3. Oracle ERP

Oracle Enterprise Resource Planning (ERP) is a core suite of Oracle Cloud software-as-a-service (SaaS) applications. The cloud consists of Oracle Financials Cloud, Oracle Accounting Hub, Oracle Project Management, Oracle Procurement Cloud, and  Oracle Risk Management Cloud. It is easy to use and allows easy organization of data.

Odoo vs SAP vs Oracle ERP: Comparative Analysis

Here is a detailed analysis of the platforms to help you pick the best software.

With a Compound Annual Growth Rate (CAGR) of 7.9% from 2014 to 2020, ERP solutions targeting small to large-scale enterprises are expected to grow exponentially.

The most common debate for any large, complex company looking to implement an ERP system is whether to choose SAP or Oracle.

Undoubtedly, ERP plays an important role in the success of any business. That’s why choosing the right platform for your workload automation is crucial.

Determining which is the best fit for your business depends on your unique business requirements. However, we still compare two big-name ERP software packages – SAP and Oracle based on industry benchmarks.

SAP and Oracle are two very powerful and comparable ERP software, and both vendors are the clear market share leaders.

A Brief Overview of SAP and Oracle

SAP ERP is an end-to-end enterprise resource planning software that SAP SE developed in Germany. It is designed to support and integrate key business functions of an organization, including sales and distribution, finance, accounting, human resources, production planning, logistics, manufacturing, warehouse management, etc. Its most recent flagship product is named S/4HANA ERP for larger enterprises.

Oracle ERP is a holistic software application suite introduced by Oracle Corporation in 2012. It also manages enterprise functions, including accounting, financial management, project management, procurement, and more.

Difference Between SAP and Oracle ERP

SAP and Oracle provide a full business suite of solutions, including CRM, HRM, accounting, and SCM software. But they have very different results in implementing and using these two products.

To understand the difference between the two, we have narrowed down eleven key areas:

1. Implementation Duration and Cost

The most important aspect of choosing an ERP system is its implementation cost and duration. ERP implementation can cause operational disruptions, such as the inability to ship or manufacture products.

While the average Oracle customer takes 12 months to implement, SAP projects implementation lasts around 14.7 months. One reason SAP ERP installation takes longer is that it usually targets global and complex companies. SAP vendor targets companies with at least $1 billion in annual revenue. And Oracle targets companies with at least $750 million in yearly revenue. Thus, global ERP projects will naturally take a long time owing to their multiple locations and other standardization.

While talking about implementation cost in terms of the percentage of a company’s annual revenue, SAP is the higher cost option. The average SAP customer spends 4% of its annual revenue on its total cost of ownership, whereas the average Oracle customer spends 1.7% only. This again can be attributed to the fact that SAP targets a more complex structure and, therefore, higher cost.

2. Implementation Risk

Implementing either of the ERP solutions come with its own risks. However, you should be more concerned about which of the two offers tools and methods to help mitigate the risk of failure.

There were recent reports about high-profile transformation failures, such as the SAP failure at Lidl. More SAP users are claiming implementation failure than Oracle’s customers. In fact, SAP customers even experienced some material operational disruption at the time of going live.

In the case of Oracle, its flagship Oracle Cloud ERP software was not listed among the top ERP systems by Third Stage Consulting Group. Every ERP customer is associated with a higher degree of risk, and both systems entail a complex transformation bound to affect the whole organization somehow.

To help deal with it, SAP’s All-in-One product features include the best practices and pre-configurations intended to reduce risks and accelerate implementation. Oracle has also developed tools in the same manner to expedite the implementation. It also has a User Productivity Kit that makes the testing, training, and implementation more efficient.

3. Cloud Adoption

Gone are the days of big, complex internal IT infrastructures that were required to host ERP software or any other software applications. A large number of organizations are now opting for cloud-based deployment. You can deploy it through pure software as a service or get it hosted by a third-party provider.

While both vendors offer cloud delivery models, data suggests that Oracle has seen much success in this area. There are rumors that SAP’s Business One, which was once considered the most viable cloud-based offering, is now losing ground. Thus, customers realize leveraging Oracle’s cloud options has more measurable benefits than SAP’s.

Furthermore, only Oracle offers an on-premise solution. Even though many organizations are putting their faith in cloud models, many industries still don’t use cloud-based products for compliance reasons. So this again makes for a significant factor when choosing software.

4. Scalability

Businesses are continually looking for ways to expand and grow. That’s why it’s essential that whichever ERP they choose provides them the operational backbone to help build and scale their businesses.

Most Fortune 500-listed companies are using either or both systems. Thus, it is safe to say that the world’s largest organizations can scale their companies with either product. SAP and Oracle are quite even, but their scalability degree depends on your organization’s particular needs.

They differ because SAP offers a consistent and single-system feel. It has primarily developed its products from the ground and consolidated them into a unique system. Whereas Oracle has created more of a best-of-breed option with its various solutions. These include JD Edwards, Fusion, E-Business Suite, Hyperion, and Siebel.

Therefore, SAP is the best option for companies looking for scalability through standardization and consistency. And Oracle ERP works best for organizations with a decentralized model and more flexibility.

5. Functionality and Customization

Apart from having a strong technological background, an ERP should have a robust set of functionality that continually works towards improving business operations. In this case, there is no doubt that both SAP and Oracle work well toward enhancing their system functionality. But it has been seen that SAP customers can realize more benefits from their expected functionality than Oracle’s users. Whereas Oracle’s customer realizes a faster payback than SAP’s customer.

Another important feature of any ERP system is the ease of customization. To ensure a good fit, customization between the ERP system and the company’s operational needs is necessary. To our surprise, Oracle and SAP have their own way of offering customization to their customers.

SAP’s ERP system offers customization and flexibility to integrate tools into its software for its enterprise customers. And Oracle has best-of-breed solutions that allow project managers to integrate with the software as per their needs easily.

6. Customer Relationship Management (CRM)

SAP S/4HANA has dismantled the traditional customer relationship management (CRM) tool and integrated it throughout the ERP system by including customer records within the sales, procurement, and finance functions. Oracles offer CRM or sales enablement tools such as customer experience, sales, marketing, service, and social tools as a stand-alone service, which can be integrated with the Oracle ERP Cloud.

SAPS/4HANA’s built-in sales feature enables the sales force to easily manage accounts, build invoices, streamline procurement processes, and manage orders and contracts from the ERP interface. It has you covered in all fronts that involve the customer.

It offers a full customer experience suite that lets you see your customers’ histories. Thus, you can tackle your lead generation more effectively. Besides, it is fully integrated with marketing, sales, and finance, which gives you the whole story of your customers. This added information about your customers helps you make smarter selling strategies.

On the other hand, Oracle doesn’t have a dedicated sales tool within the ERP Cloud product. This could be a minor disadvantage for sales-focused companies. However, it has some outstanding features, like a strong financial management tool that stores vital customer information. And so you can easily filter the information by the customer and find their financial records, orders, and quote information.

Even though Oracle ERP has good Customer Account Management, SAP excels in this area. But at the same time, Oracle’s strengths lie in its reporting and data capabilities.

7. Human Resource Management

SAP ERP scores a bit higher than Oracle ERP here. Oracle’s human resource management is not as robust as SAP’s. SAP goes the extra mile to provide companies with loads of HR functions, such as facilitating the payroll processes, simplifying employee onboarding, and allowing employees to access critical information from a single place. Moreover, it empowers employees to self-manage timesheets, procurement processes, and personal information.

Not only that, but SAP also offers e-recruiting functionality, which provides all relevant information about employee retention and battling turnover rates.

What makes Oracle stand apart is its excellent reporting capabilities. On top of that, it supports visual representations, which makes communication really quick and easy. So Oracle will be a good choice for a company that is more data-oriented while making its decision. It has the capability to grasp the overall trend and analyze it for you so that you can have a good understanding of your company’s future.

8. Supply Chain Management (SCM)

Regarding supply chain management, both ERPs have comparable SCM (supply chain management) software. They have their own strong areas. Therefore, you should choose the one whose features align with your business needs.

Some of the features include:

• Purchase Order Processing: Both ERPs are equally capable of it. SAP utilizes the ‘procure to pay’ module, which helps companies streamline their purchase activities and provides buyers with real-time information to make smart and quick decisions.
• Distribution Management: Both the ERPs are well-equipped to provide information on warehouse profitability and automate related processes.
• Order to Cash: SAP and Oracle are equally efficient in managing quotes and other aspects of contracts with clients or suppliers.

There is also a supplier invoice to payment process management tool, which includes contract creation, invoice payment is taken, registration, etc. It makes the whole purchase and production process easier for the company. In fact, it brings more transparency to the entire process.

SAP and Oracle differ in their caliber regarding the advanced planning system (APS) and event management. Oracle has better APS, which lets you track costs and allocate resources more efficiently. Whereas SAP excels in event management, providing better insights and visibility into your supply chain.

9. Financials

SAP and Oracle ERP systems offer comprehensive and scalable financial management solutions. Some features include account receivable, accounts payable, ledger, and more. However, unlike SAP, Oracle lets you purchase all of these functionalities in one single package or separately as you want. It gives the user a sense of freedom while buying the product.

Moreover, Oracle scores better than SAP in some financial areas. Oracle has improved business management tools and focuses on financial data movement within a company. Companies can integrate this data and manipulate it depending on their needs.

Besides, Oracle offers risk management solutions that can be quite helpful in terms of enforcing enterprise-wide compliance. It also automates some standard compliance applicable in various industries. The advantage is that it brings a level of policy enforcement and helps prevent cash leakage. SAP’s risk management is no less, though. It helps your business identify and better understand risk factors.

Some of the advanced Oracle ERP modules are ‘Transaction to Cash Position,’ which takes a point-of-sale approach and integrates it with long-term financial data. Then, there is ‘Asset Management to Retirement,’ which covers the full lifecycle of assets — from acquisition to amortization and eventual disposal.

10. Inventory Management

Inventory management is a crucial part of the manufacturing process and warehouse management. Luckily, both ERP solutions offer a holistic inventory management tool.

Since both are cloud-deployed, they can provide real-time information about stock availability any day. ERP in inventory management ensures that the company stays up-to-date with its stock level; thus, the production process is not disrupted because of a supply shortage. It results in an efficient supply method, and the company can meet its customer’s demands on time.

While both ERPs may be equally efficient in doing what they do, Oracle boasts of boosted productivity. And SAP takes pride in the fact that it completely prevents stock shortages.

11. In-Memory Technology

In-memory technology helps ERP systems to run applications and analytics faster. It helps in increasing system productivity and efficiency.

While both ERPs claim that their in-memory technology will change the future of ERP, SAP is making significant progress with its in-memory database. SAP HANA is a highly functional ‘all-in-memory’ system. However, it is only beneficial for a centralized business model as it provides all in a single platform. It may be an advantage, but it also means a higher cost of deployment and compatibility limitations.

Oracle is not behind the race. Their new in-memory system is highly functional and easy to integrate with the existing database and applications. Being a cost-effective option gives them an edge over the SAP ERP system. However, this system may not be a great choice for an organization looking for a more centralized system.

Fully functional ERP tools help businesses drive better decision-making through clear insights into actual finances and operations. The above points may have made it clear that SAP and Oracle ERP software do well and have their own advantages in certain areas. It may provide you with some context to compare these two products.

Odoo vs SAP vs Oracle ERP: Which Works Best?

Oracle ERP is the most popular tool amongst the three software; Odoo vs SAP vs Oracle ERP, followed by Odoo and then SAP. This is because Oracle ERP is easy to use, offers automatic software updates, and is customizable. 

We have offered a detailed insight into the three main ERP software. Read them to get a fair idea of the tool best suits your organization’s requirements.

Did we miss out on any aspect? Let us know in the comments section below!