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Comparison Between Sap And Oracle IT Essay

In this survey we have to discuss about the two ERP packages named SAP and Oracle. We could making this survey as we have to get and implement an ERP system into our organization. As we have to choose and use anybody of the two inside our company. So first we will discuss about what an ERP system is, what its components are and just why it is so a lot of importance now days. Then we will discuss about both most dominating ERP suppliers SAP and Oracle and differentiate between them based on some tips like cost, which one is better to make use of, functions, applications, technology systems etc and finally we gives conclusion about the evaluation done and examine that which one is better and which is to be implemented in the organization.

Introduction OF THIS Report-

Enterprise source of information planning (ERP) what does indeed this mean, in a short and simple way and by the name we can define it as planning done within an enterprise to manage the resources. ERP is a part of Enterprise management system (EMS). EMS is thought as a system which handles an enterprise by the use of various resources available to operate a business. It includes various components and ERP is one of the components. In EMS, ERP system takes on an important role as the major decisions are taken through it. ERP system deals with the planning and use of resources in the business. The resources are funding, material, developing, capacity and human resources. The ERP provides, the methodology of accessing the resources need for confirmed business plan to achieve certain business goals. It also helps to execute the ideas, decisions and activities in the time destined manner. The ERP offers a support system in purchase process, updating and reporting various functions. The ERP is the main interface of the business. The implementation of the majority of the ERP deals begins with this is of enterprise composition, authorities, functions, business process and business strategies. The ERP solutions are available in unique program and also in house windows NT. The normal ERP package consists of the next modules- (Wailgum, 2011)

Sales, marketing and distribution.


Inventory management.

Personnel management.

Finance management.




There are six system which together act as the support systems to the ERP, they are-

Communication management system (CMS).

Security management system (SMS).

Electronic data interchange (EDI).


Attendance management system (AMS).

Document management system (DMS).

Comparison Between SAP and Oracle -

As already discussed above that presently SAP and Oracle are the two most dominating ERP vendors in the market, so to select any one of these we must do a in depth study about each of them and compare the two based on some characteristics and finally evaluate whatever one is best suited for our organization and put in place in it. We will evaluate each of the products based on business functions, technology systems, cost, and ease of use.

General functions and applicability-

SAP does its business longer than oracle as SAP was started out a long time before and oracle is new in the market in comparison to SAP. In my view, erect industry-specific efficiency is where in fact the rubber hits the path as the desire of business applications unfolds. The power of your ERP package deal is to learn and take the services of the individuals also to build them matching to their need into an application which is actually customized based on the customer, for the individual business in the business of that specific. This says that although a strong service infrastructure is necessary, the suppliers also need a big selection of services with them to accumulate the further the merrier. SAP will take benefit here as it includes skill in 28 verticals and gets the software features to prove. To offer all the functions as usable for future is one of the duty of SAP and if it is done than it probably will built more customers and can have a dazzling future. On the other hand oracle provides functions that are profound vertical and have a partnering strategy, but this efficiency is significantly behind the SAP efficiency. So now oracle is trying to fill the blanks insurance firms more partner products but still it is well known that what the merchandise will do and what exactly are their applications we can say that SAP is at the benefit of both. (SAP vs Oracle)


Oracle's applications are flexible and also construction is possible, therefore its technology mound for its applications. But the best of the solutions were there in the market but nonetheless oracle was able to embrace in the middleware market in early stages as company had strong middleware products. Also the oracle group was working to simplify and open its request architecture. Oracle provided something which was easy to install and maintain for the customer that was its benefit. Also oracle is developing a unified data model. On the other hand SAP has five different data models for the clients to focus on. If any corporation wants an individual source with SAP then it must create a data ware house. But oracle makes data warehouse optional for its customers which cause faster access to information.


Total cost of possession (TCO) consists of technology, extensibility and execution and ROI. Now the question is which is better, SAP or Oracle? As Oracle's applications are extensible and flexible it lightens the want for customization. Because of customization deployments that are arriving faster, and also scheduled to lower consulting costs of the internal resources the business enterprise operations are becoming quicker. The result of all these attributes leads to a lower cost of ownership which everyone wants. As all these attributes are present in the Oracle technology so its cost is lower than SAP' and not just the cost is leaner however the average three year total cost of ownership of Oracle is 48% less than SAP's, which is a big difference in the expense of the two.

Ease of use-

As we know that the ERP system can't gratify all the clients, but due to overall flexibility of the applications of oracle it has enticed many customers and organizations towards it. Oracle also rises and has advantage in a number of areas like extensibility- web applications, workflow and reporting. The net applications of Oracle are so flexible that the business's IT department can personalize the net application. For an example a web application called iProcurement can be used in such a way that someone logging from any part may get the proper information which is suitable for them. Yet another example of Oracle's web software is iExpense. By using this application many business used it to modernize their business operations related to staff costs and reimbursements. Also iExpense can be an application which is very simple and simpler to work than any SAP software.

Evaluation and Conclusion-

Here we will discuss whatever is the better product of the two, some feels that SAP is better but on the other hand many support Oracle. Both SAP and Oracle have some positive as well as negative items, so by analyzing the two we will finally conclude our report based on some points-

Which merchant to select-

According if you ask me Oracle is better than SAP, so one should choose Oracle for the business, as by learning the comparability above we can certainly examine that oracle out beats SAP in every most all the domains. We mentioned many characteristic of both and finally we can say that Oracle is the better of both and we ought to select Oracle to apply in our company.

Why to choose Oracle, on what basis-

Now as we've figured Oracle is preferable to SAP, just how we reached to the final result, what were the reason why. Some of the reasons are that Oracle applications are easy to use and can be deployed efficiently in short timeframe. As discussed many times its program are highly adaptable and configurable. SAP basically is an closed circuit which is too massive to take care of, on the other palm Oracle solution are user-friendly and also programmer friendly and and yes it is open and will be offering all the interfaces to numerous application, so it is at profit in comparison with SAP. Also one of the primary reasons is the fact the full total cost of possession (TCO) of Oracle is significantly less than SAP and also working on Oracle applications is simpler than focusing on SAP applications. The positive point for Oracle is that its implementation has considered less time and also better value. Oracle was proven in 2004 and since 2004 they have occupied over 30 other companies as part of its strategy. Also when customer review was used then also the result was positive for Oracle and customer were content with Oracle then SAP. Also the profit in the past time has increased 33% for SAP which is much less than Oracle which is 47%. So we've seen both and lastly we can say that Oracle have a better offering because of its customer. (SAP vs. Oracle applications???, 2011)

Does size or domains influence the decision-

No, according if you ask me these factors aren't of much importance that they can influence your choice to select the ERP deal. Whether it's a small or large business or it might be manufacturing industry or a service industry their working and goal is almost same. Everyone wishes to have more profit, attract more customers, reduce its cost, want to fulfill the customer, and want easier work. These are the basic goals of any organization or corporation only they could differ in a few extent however, not much difference is out there between them. SAP and Oracle applications are created in such a way they are suitable for virtually all the companies so size and domains doesn't subject in selecting the ERP offer only the matter is considered on quality, cost, simplicity etc.

We should choose a complete ERP assembly or we have to follow customizations from the vendor-

According to it, if one has to select an ERP offer one should choose for customization from the sellers rather than installing the full ERP package. The reason behind this is the fact that if we go for a full ERP set up then we have to allow what that ERP package gives and will be offering us. It may have many things which we don't want or it could miss something which is necessary by us. Also we must use it regarding to its producer as he has designed it corresponding to him and keeping the entire set of customers at heart. As the bundle is not made for an individual but also for all the clients who can buy it so that it will hold the features and applications based on the common use of men and women and not in line with the specific use. But if we decide for customization from the suppliers, than we have lots of benefit. As it is manufactured in line with the individual's choice, so one can make changes in it. He can add and delete application corresponding to his use. It is made matching to his standards and based on the need of the organization. Also its working is defined according from what an organization want. So we may easily analyze hare that which one is better and we can say that customization from distributors is preferable to full ERP unit installation and the reasons for this we've already given above.

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