Oracle Vs SAP ERPs(case study)

Contents:

Introduction ERP Software Market SAP Oracle Market Analysis Payback Strategies SAP vs Oracle

Introduction :

An Enterprise Resource Planning System , commonly known as an ERP System, is a set of Business Software tools designed to facilitate the flow of information between all the Departments or Functions within a business.

Major ERP Suppliers

The top Five ERP Vendors :

1. SAP2. Oracle Corporation3. PeopleSoft Inc.4. JD Edwards & company5. Baan International

ERP Software Market Segmentation and Scope

By Deployment1. On-premise deployment2. Cloud deployment By Functions1. Finance2. Human resource (HR)3. Supply chain4. Others

By Verticals1. Manufacturing & Services2. BFSI3. Healthcare4. Retail5. Government Utilities6. Aerospace and defense7. Telecom8. Others

By End User 1. Large enterprises2. Medium enterprises3. Small enterprises

By Geography 1. North America 2. Europe 3. APAC(Asia-Pacific) 

SAP(Systems, Applications, Products in data processing) In 1972 five IBM engineers Hopp, Wellenreuther,

Hector, Tschira and Plattner founded the company called System Analysis and Program Development(SAP).

SAP is the fourth largest enterprise software company in the world.

SAP systems provides end to end solution for manufacturing , financing and costing logistics etc.

SAP competitors are Microsoft Dynamics, Oracle etc.

Oracle

SAP Vs Oracle ERPs

Market Analysis

Payback Period:

ERP sector analysis in 2010

ERP sector highly radical, competitive and changing at very fast pace.

Led by two companies (i) SAP(ii) Oracle

Focus to provide best products and services to their customers Quality , customizable and easy to use applications at a low and

reasonable price. Entry barriers due to economics of scale and learning curve of

current firms.

SAP Strategy

To continue expanding into the small and mid-sized business market.

To focus on partnering with companies instead of acquiring Example: partnership with oracle.

Great customer services and support. Training students at colleges and universities and making

them aware of the varying jobs and carrier in the market. To enhance its technology solutions for ERP systems--- ERP

applications on cell phones.

Oracle Strategy

To acquire companies with expertise in specific industry areas Acquisition of Sun Microsystems – better cloud computing and

virtualization capabilities To simplify its architecture and compete on user friendliness To develop applications that require less training and lower

priced than competitors Focus on customer service and support To enhance its technology solutions of ERP systems.

SAP vs Oracle

Companies prefer SAP because they believe that:I. SAP is committed to research and design.II. SAP provides high level of customer service and functionality with a

high degree of application customization.III. SAP is capable of operating with other products such as databases.IV. SAP is able to deliver better vision and proposal for its application by

not relying on the other companies as much.

Contd...

Those in favor of Oracle believes that :I. Oracle is easy to use and more flexible.II. Oracle’s ability to quick deployment of its application as they don’t

stress on customization.III. The above two reasons make positive ROI to occur faster.IV. SAP requires main four times internal resources and twice the spending

on training than oracle.V. As oracle is coming up with its Fusion Applications it would prove

beneficial to be used with its own database

Oligopoly

An oligopoly is a market from in which a market is dominated by a small number of sellers

Here SAP and Oracle are two major firms competing against each other

Oligopolies can result in collusion which reduce competition and lead to higher costs for consumers.

Decisions of one firm therefore influence and are influenced and are influenced by the decisions of other firms.

Analysis-

SAP’s focus on small and medium sized business and on partnering instead of acquiring has helped it gain the edge over Oracle.

Its policy of great customer service and support has paid off fro the company. Due to the higher complexity and degree of customization SAP proves to be a

costlier affair than oracle which goes in favor of oracle. Oracle with the launch of its fusion application can penetrate in the ERP

market. Even though these two companies are fierce competitors in the ERP domain,

they co-operate each other when it comes to customer to customer service and support for their complimentary products.

They compete on product differentiation and service rather than prices.

“

”

"The old battle between SAP and Oracle is kind of being fought to a draw , The real battle is the old guys vs. the new guys, and every indication is the new guys are winning.

 says analyst Frank Scavo, president of consulting firm Strativa.

A Parth & Shreeraj

Presentation