When you are considering ERP software to integrate and streamline your business’s finances, HR, and other processes, SAP is an option that you will frequently come across. For well over a decade, SAP has been the ERP system of choice for all types of industries. This trend is expected to continue in the coming years .
This raises two important questions. What sets SAP apart from other ERP systems currently available? Why is it one of the most widely used ERP systems in the world ? To answer these questions, here’s a brief look at how SAP compares to other ERP software.
1. SAP can fit any size business, from the smallest company to a Fortune 500 company
Unlike some other ERP systems that are geared for use by companies of a specific size, this is not the case with SAP. Instead, they offer a diverse line of ERP platforms that are known for being incredibly consistent. They offer an all-in-one solution with a straightforward implementation process. Additionally, transitions are easy as a company grows and expands.
SAP also offers multiple cloud solutions and it integrates straight out-of-the-box with complementary services, such as Google and PayPal. This is uncommon in the world of ERP systems. All of these are things, as well as the fact that SAP offers plenty of flexibility for growth, are things that small businesses can greatly benefit from. At the same, SAP offers the functions and capabilities needed by the world’s largest companies. In fact, almost 80% of Fortune 500 companies use SAP, including Johnson & Johnson, Pfizer, and Phillip Morris .
2. It is also ideal for any business
As mentioned above, SAP works with all types of industries, which isn’t always the case with ERP systems. Businesses that are implementing a new ERP may not know exactly which functions and modules they need. SAP has a wide selection for a custom fit without having to pay for customization. Businesses also benefit from SAP’s integration. When changes are made to one module, other modules are immediately updated.
3. It does not offer unnecessary functionality
All ERP systems require training and time for your staff to learn how to use it. The simpler the system, the shorter the learning curve will be. Some ERP systems, such as Oracle, to offer too many functions for most businesses. Many of them are unnecessary which makes training more difficult and complicated. While SAP offers all the functions a business needs, it keeps them streamlined so the users does not become confused.
4. When compared to other ERP systems, SAP offers the quickest financial payback and shorter implementation time
SAP is the second most expensive ERP system to implement (Oracle is first). However, it does provide the quickest financial payback (around nine months) when compared to other ERP systems . For businesses using SAP, this results in faster financial benefits. At the same time, SAP has established a significantly shorter implementation period than its counterparts, which also facilitates quicker success.
5. SAP usually requires less customization than other ERP systems
When compared to its competition, SAP has a reputation for its impressive out-of-the-box functionality. This results in minimal, if any, need for customization, which can slow down the implementation period. However, it is worth noting that SAP does provide plenty of customizable solutions that will suit all types of business if needed.
Currently, SAP rates very high when compared to other ERP systems. Of course, other vendors, including Oracle and Infor, are continually looking to make upgrades and changes. SAP will have have to work hard to stay ahead of the competition, or they could be surpassed in the future.
Don’t fret, contact Panorama Consulting Solutions to help with your ERP selection.