Oracle vs Sap

SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW

vsvs

Brief on ERP system giants ORACLE & Brief on ERP system giants ORACLE & SAPSAP

With Critical Comparison between the With Critical Comparison between the two. two.


The The EEnterprise nterprise RResource esource PPlanning System is a lanning System is a software package that was specially designed to software package that was specially designed to help companies to run their businesses better. It help companies to run their businesses better. It consists of many modules. Each of the modules is consists of many modules. Each of the modules is used at different departments within one used at different departments within one corporation. All those modules are interconnected corporation. All those modules are interconnected with each other in one coherent system.with each other in one coherent system.

Both SAP and Oracle have demonstrated over the Both SAP and Oracle have demonstrated over the last couple of decades that each had sufficient last couple of decades that each had sufficient ability to adapt to the changing economic climate ability to adapt to the changing economic climate during the late 1980's through 1990s.during the late 1980's through 1990s.

By 2007 Oracle had the third-largest software By 2007 Oracle had the third-largest software revenue, after revenue, after MicrosoftMicrosoft and and IBMIBM..

SAP is the world's third-largest independent software SAP is the world's third-largest independent software vendor.vendor.


ORACLE found by Mr. Larry EllisonORACLE found by Mr. Larry Ellison Mr. Larry Ellison and his management team have grown Oracle Corporation Mr. Larry Ellison and his management team have grown Oracle Corporation

from a purely database company into a purveyor of software components from a purely database company into a purveyor of software components including middleware, development tools, and ERP/CRM/HRMS.including middleware, development tools, and ERP/CRM/HRMS.

Data Collection Advantage reduces transaction time by more than 80 percent Data Collection Advantage reduces transaction time by more than 80 percent by providing Oracle with accurate information in real time.by providing Oracle with accurate information in real time.

As became apparent with the acquisition of As became apparent with the acquisition of PeopleSoftPeopleSoft in January 2005, Oracle in January 2005, Oracle has made acquisitions an important component of a growth strategy.has made acquisitions an important component of a growth strategy.

Internet integration means that data collection can be supported across Internet integration means that data collection can be supported across virtually any device that connects to the Internet, allowing Data Collection virtually any device that connects to the Internet, allowing Data Collection Advantage to support mobile terminals and desktops in places where corporate Advantage to support mobile terminals and desktops in places where corporate networks are not available.networks are not available.

The oracle company keeps upgrading and releasing new products into market, The oracle company keeps upgrading and releasing new products into market, new versions releases which serves better than the earlier versions and thus new versions releases which serves better than the earlier versions and thus the performance is improved much in later versions and thereby retaining the the performance is improved much in later versions and thereby retaining the market growth and thus proves greater satisfaction to the customers using this market growth and thus proves greater satisfaction to the customers using this technology. Thus the advantage of a higher version is that one would have technology. Thus the advantage of a higher version is that one would have more features and better capabilities.more features and better capabilities.

Oracle is a major database which along with its added features passes the Oracle is a major database which along with its added features passes the ACID test, which is important in insuring the integrity of data. This is very ACID test, which is important in insuring the integrity of data. This is very important because data is the heart of any system in organization.important because data is the heart of any system in organization.


Data Collection Advantage Transactions for Oracle ERP*Data Collection Advantage Transactions for Oracle ERP* ReceivingReceiving Put-awayPut-away Inventory transfersInventory transfers Inventory issues and receiptsInventory issues and receipts Inventory inquiriesInventory inquiries WIP moves and completionsWIP moves and completions WIP issues and returnsWIP issues and returns PickingPicking ShippingShipping Cycle count/physical inventoryCycle count/physical inventory

And many more!And many more! * For discrete and process Manufacturing* For discrete and process Manufacturing

Utilizing Data Collection Advantage for Oracle, companies can quickly Utilizing Data Collection Advantage for Oracle, companies can quickly gain a gain a

competitive advantage through the following:competitive advantage through the following:

Fast response to customer demandsFast response to customer demands

Direct links to vendors and customersDirect links to vendors and customers

Inventory control throughout the supply chainInventory control throughout the supply chain


SAP is a product developed and marketed SAP is a product developed and marketed by the German company SAP AGby the German company SAP AG

SAP is a German acronym for "Systemanalyse und SAP is a German acronym for "Systemanalyse und Programmentwicklung," which can be loosely translated into Programmentwicklung," which can be loosely translated into ""Systems and Application ProductsSystems and Application Products." Founded in 1972 by IBM ." Founded in 1972 by IBM application developers, SAP AG originally developed application application developers, SAP AG originally developed application products for the European marketplace.products for the European marketplace.

The SAP R/3 system runs on virtually any hardware/software platform The SAP R/3 system runs on virtually any hardware/software platform and can use many different database management systems.and can use many different database management systems.• • IBM DB2 Express EditionIBM DB2 Express Edition && • • Microsoft SQL Microsoft SQL ServerServer

Since Since SAP is database-independentSAP is database-independent, the SAP architecture requires , the SAP architecture requires the database to be defined as a part of the initial SAP installation. the database to be defined as a part of the initial SAP installation. Once defined, the SAP programs (ABAP programs) will generate SQL Once defined, the SAP programs (ABAP programs) will generate SQL that is compliant with the target database product.that is compliant with the target database product.

SAP MaxDB is the DBMS developed and supported by SAP AG. It is SAP MaxDB is the DBMS developed and supported by SAP AG. It is available for MS Windows, available for MS Windows, LinuxLinux, Unix. Today more than 13,000 SAP , Unix. Today more than 13,000 SAP customers run SAP MaxDB and SAP liveCache installations, proving customers run SAP MaxDB and SAP liveCache installations, proving SAP MaxDB's reliability, scalability and availability for configurations of SAP MaxDB's reliability, scalability and availability for configurations of all sizes.all sizes.


While SAP can be run with many different database products, While SAP can be run with many different database products, nearly 85% of SAP customers now choose Oracle because of nearly 85% of SAP customers now choose Oracle because of its dominance in the database marketplace.its dominance in the database marketplace.

The SAP R/3 code is written in an interpretive language called The SAP R/3 code is written in an interpretive language called ABAP. (ABAP is a German acronym that, loosely translated, ABAP. (ABAP is a German acronym that, loosely translated, means "Advanced Business Application Programming.")means "Advanced Business Application Programming.")

The SAP R/3 application offers end users the ability to run The SAP R/3 application offers end users the ability to run their entire business from a single application vendor. Some their entire business from a single application vendor. Some SAP customers choose to run their entire enterprise from SAP, SAP customers choose to run their entire enterprise from SAP, while others run SAP only for specific business processes, while others run SAP only for specific business processes, such as manufacturing or finance.such as manufacturing or finance.

When an SAP application is purchased with Oracle, each of the When an SAP application is purchased with Oracle, each of the modules is delivered with a complete Oracle schema modules is delivered with a complete Oracle schema consisting of thousands of tables and indexes.consisting of thousands of tables and indexes.

While SAP is available for many different hardware platforms While SAP is available for many different hardware platforms and operating systems, the majority of SAP systems use Unix-and operating systems, the majority of SAP systems use Unix-based servers for hosting SAP and the Oracle database.based servers for hosting SAP and the Oracle database.


ABOUTABOUT The world second-largest software supplierThe world second-largest software supplier

ORACLEORACLE was founded in 1977 in the United was founded in 1977 in the United States and by 1999 the company was serving States and by 1999 the company was serving 5000 clients in over 140 countries. Oracle is well 5000 clients in over 140 countries. Oracle is well known for their database systems rather than known for their database systems rather than enterprise resource planning system. It is rating enterprise resource planning system. It is rating as the second ERP package vendor after SAP on as the second ERP package vendor after SAP on the ERP market. Oracle has a reputation as a the ERP market. Oracle has a reputation as a company with strong software support, a large company with strong software support, a large financial budget and stable position among the financial budget and stable position among the competitors. At the same time the corporate competitors. At the same time the corporate culture of Oracle is conservative on benefits from culture of Oracle is conservative on benefits from revenues. Which causes such problems as revenues. Which causes such problems as inflexibility and slow implementation of their ERP inflexibility and slow implementation of their ERP products. In other words, the company lacks products. In other words, the company lacks partners and consultants for technical expertise. partners and consultants for technical expertise.


ABOUTABOUT The main player on ERP market is the German company The main player on ERP market is the German company

SAPSAP (Systems, Application, and Products in Data (Systems, Application, and Products in Data processing) which was founded in 1972. It was the first processing) which was founded in 1972. It was the first time in software history that a company outside of the time in software history that a company outside of the United States had gained such success. In 1999 SAP had United States had gained such success. In 1999 SAP had more than twice as many customers as Oracle in 100 more than twice as many customers as Oracle in 100 countries around the world. Unlike Oracle, SAP decided to countries around the world. Unlike Oracle, SAP decided to work in close collaboration with many other companies. work in close collaboration with many other companies. The company success derives from the fact that SAP The company success derives from the fact that SAP invests 20 percent of the profit on research and shares 80 invests 20 percent of the profit on research and shares 80 percent of the total revenues with their alliance partners. percent of the total revenues with their alliance partners. Moreover, SAP has many consultants who provide help Moreover, SAP has many consultants who provide help and training to their customers. And there are even third and training to their customers. And there are even third party developers who supply a large number of add-in party developers who supply a large number of add-in programs that can work together with SAPs products. As a programs that can work together with SAPs products. As a result, customers enjoy more flexible and fast result, customers enjoy more flexible and fast implementation of their ERP systems. There is no doubt implementation of their ERP systems. There is no doubt about why SAP became a leader. about why SAP became a leader.


CRITICAL COMPARISIONCRITICAL COMPARISION

Latest Version Latest Version 11g11g

Next Launch :Next Launch :

Oracle E-Business Suite Oracle E-Business Suite

Release 12.1Release 12.1

Latest Version Latest Version R/3R/3

The client-server The client-server concept, uniform concept, uniform appearance of graphical appearance of graphical interfaces, consistent interfaces, consistent use of relational use of relational databases, and the databases, and the ability to run on ability to run on computers from computers from different vendors meets different vendors meets with overwhelming with overwhelming approval approval


For companies whose For companies whose sustainable competitive sustainable competitive advantage rests on an advantage rests on an ability to change direction ability to change direction and adapt quickly to and adapt quickly to external pressures, Oracle external pressures, Oracle Applications, with its Applications, with its flexibility and flexibility and configurability, is a better configurability, is a better choice. choice.

The company with The company with distinguished values which distinguished values which creates a competitive creates a competitive advantage would prefer to advantage would prefer to choose the Oracle to build a choose the Oracle to build a unique system that will fit unique system that will fit well to their businesses. well to their businesses.

For industries that For industries that experience less dramatic experience less dramatic changes, perhaps SAP is changes, perhaps SAP is an acceptable solution. an acceptable solution.

If the company is limited in If the company is limited in resources and restrained in resources and restrained in time the best solution time the best solution would be to go for SAP would be to go for SAP products.products.


Oracle Corporation started Oracle Corporation started as a tools company.as a tools company.

Today Oracle has become a Today Oracle has become a much different entity.much different entity.

Larry Ellison and his Larry Ellison and his management team have management team have grown Oracle Corporation grown Oracle Corporation from a purely database from a purely database company into a purveyor of company into a purveyor of software components software components including middleware, including middleware, development tools, and development tools, and ERP/CRM/HRMS. ERP/CRM/HRMS.

SAP began its life as an SAP began its life as an ERP company. ERP company.

Today SAP is still an ERP Today SAP is still an ERP company that some see as company that some see as "innovation free," "innovation free,"

The SAP system is a The SAP system is a collection of software that collection of software that performs standard performs standard business functions for business functions for corporations. corporations.


Oracle became popular Oracle became popular as a manufacturer of as a manufacturer of developing products developing products that can be easily that can be easily integrated with other integrated with other models from other models from other vendors, enabling them vendors, enabling them to build a best of breed to build a best of breed system. system.

Oracle offers a strong Oracle offers a strong enterprise system that enterprise system that is able to accommodate is able to accommodate more than 1000 users more than 1000 users

The downside of the The downside of the SAPs ERP systems is SAPs ERP systems is that the SAP vendor that the SAP vendor forces its customers to forces its customers to change or adapt their change or adapt their corporate culture to corporate culture to match how SAP match how SAP software works. software works.

Whereas the ERP Whereas the ERP package from SAP can package from SAP can be scaled from 25 to be scaled from 25 to 1000 users. 1000 users.


An organization that needs to be adaptable An organization that needs to be adaptable due to market force changes, industry due to market force changes, industry restructuring, or regulatory/governance restructuring, or regulatory/governance requirements must be able to partner with a requirements must be able to partner with a company that will be equally adaptable in its company that will be equally adaptable in its ERP offerings. A case in point is Dell ERP offerings. A case in point is Dell Computers whose management, in an effort Computers whose management, in an effort to maintain a competitive advantage, to maintain a competitive advantage, designed innovative manufacturing and designed innovative manufacturing and distribution processes that could not be distribution processes that could not be accommodated by the existing SAP system. accommodated by the existing SAP system. Did Dell upgrade to a new version of SAP? Did Dell upgrade to a new version of SAP? Did it customize the existing SAP installation? Did it customize the existing SAP installation? No, Dell migrated to Oracle Applications. No, Dell migrated to Oracle Applications.


Fusion Middleware 11g Fusion Middleware 11g makes its debutmakes its debut Next-generation adaptability Next-generation adaptability Next-generation productivity Next-generation productivity Next-generation Next-generation

manageabilitymanageability

Oracle acquires Sun Oracle acquires Sun MicrosystemsMicrosystems Oracle can now compete one Oracle can now compete one

on one worldwide with IBM on one worldwide with IBM on everything from chips to on everything from chips to business process software, business process software, particularly with solutions particularly with solutions made up of integrated made up of integrated hardware-software stacks. hardware-software stacks.

Virtual Iron acquisitionVirtual Iron acquisition With the acquisition, Oracle With the acquisition, Oracle

appeared to be gravitating appeared to be gravitating toward a new customer base, toward a new customer base, given that Virtual Iron caters given that Virtual Iron caters to small and medium-sized to small and medium-sized businesses. businesses.

NetWeaver technology for SAP user NetWeaver technology for SAP user but with some more investment.but with some more investment. SAP is providing our customers SAP is providing our customers

with solutions for end-to-end with solutions for end-to-end business processes. With SAP business processes. With SAP NetWeaver, your company can NetWeaver, your company can integrate people, information, integrate people, information, and processes within the and processes within the company and beyond. company and beyond.

SAP and PlaNet FinanceSAP and PlaNet Finance will work will work together to improve the microfinance together to improve the microfinance sector through a combination of sector through a combination of micro financing, the use of new micro financing, the use of new technology, and the creation of technology, and the creation of value-chain extensions that can help value-chain extensions that can help entrepreneurs at the base of the entrepreneurs at the base of the economic pyramid create sustainable economic pyramid create sustainable business models. business models.

SAP acquired SAP acquired Business ObjectsBusiness Objects Together, SAP and Business Together, SAP and Business

Objects, an SAP company, offers Objects, an SAP company, offers the industry's most the industry's most comprehensive portfolio of comprehensive portfolio of business performance and business performance and optimization solutions for optimization solutions for companies of all sizes. companies of all sizes.


Oracle's decision to Oracle's decision to raise its list prices by 15% to 20%raise its list prices by 15% to 20% is cause for concern for both is cause for concern for both existing and prospective existing and prospective customers. But there are customers. But there are opportunities to offset those opportunities to offset those hikes, according to industry hikes, according to industry analysts.analysts.

Oracle's new price list, updated Oracle's new price list, updated June 16, includes increased June 16, includes increased pricing for its new pricing for its new 11g database11g database Enterprise Edition (from $40,000 Enterprise Edition (from $40,000 to $47,500 per CPU) and for BEA to $47,500 per CPU) and for BEA Weblogic, now named Oracle's Weblogic, now named Oracle's lead app server (from $17,000 to lead app server (from $17,000 to $25,000 per CPU).$25,000 per CPU).

Internet integration means that Internet integration means that data collection can be supported data collection can be supported across virtually any device that across virtually any device that connects to the Internet, allowing connects to the Internet, allowing Data Collection Advantage to Data Collection Advantage to support mobile terminals and support mobile terminals and desktops in places where desktops in places where corporate networks are not corporate networks are not available. available.

It is composed of a single, It is composed of a single, virtual file structure with no virtual file structure with no subsystems.subsystems.

No hardware purchase or No hardware purchase or maintenance costsmaintenance costs..

In addition, SAP has released In addition, SAP has released ““MySAPMySAP.com” which is .com” which is software that provides for software that provides for data interaction and data interaction and processing connections with processing connections with the Web. the Web.


Consistency: Consistency: The database is transformed The database is transformed from one valid state to another from one valid state to another valid state. Illegal transactions valid state. Illegal transactions aren't allowed and, if an aren't allowed and, if an integrity constraint can't be integrity constraint can't be satisfied then the transaction is satisfied then the transaction is rolled back. rolled back.

Isolation: Isolation: The results of a transaction are The results of a transaction are invisible to other transactions invisible to other transactions until the transaction is until the transaction is complete thus increasing the complete thus increasing the security on data. security on data.

Durability:Durability:Once committed (completed), Once committed (completed), the results of a transaction are the results of a transaction are permanent and survive future permanent and survive future systemsystem and media failures and and media failures and thus ensuring maintenance and thus ensuring maintenance and protection of data. protection of data.

It provides for a "single data It provides for a "single data entry point" where the data entry point" where the data entered from any location is entered from any location is instantly sent to all other instantly sent to all other appropriate modules in the appropriate modules in the ERP system.ERP system.

Available in 14 different Available in 14 different languages (German, English, languages (German, English, Spanish, etc.) and also Spanish, etc.) and also incorporates multiple currency incorporates multiple currency features that provide essential features that provide essential information processing information processing capabilities for multinational capabilities for multinational corporationscorporations

It provides check writing It provides check writing capability in its Accounts capability in its Accounts Receivable component which Receivable component which very few other programs offer. very few other programs offer.


INDUSTRIESINDUSTRIES BankingBanking Communications Communications Financial Services Financial Services Health Sciences Health Sciences High Technology High Technology Insurance Insurance Public Sector Public Sector Retail Retail Utilities Utilities AutoVue Enterprise Visualization AutoVue Enterprise Visualization Business Process Outsourcing Business Process Outsourcing Customer Relationship Management Customer Relationship Management Enterprise Performance Management Enterprise Performance Management Product Lifecycle Management Product Lifecycle Management Project Portfolio Management Project Portfolio Management Supply Chain Management Supply Chain Management Transportation ManagementTransportation Management Financial Management Financial Management Governance, Risk & Compliance Governance, Risk & Compliance

Management Management Human Capital ManagementHuman Capital Management Aerospace and Defense Aerospace and Defense Automotive Automotive Chemicals Chemicals Consumer Goods Consumer Goods Education and Research Education and Research Engineering and ConstructionEngineering and Construction Industrial Manufacturing Industrial Manufacturing Media and Entertainment Media and Entertainment Natural Resources Natural Resources

INDUSTRIESINDUSTRIES BankingBanking Defense & Security Defense & Security Healthcare Healthcare Higher Education & Research Higher Education & Research InsuranceInsurance Public SectorPublic Sector Aerospace & Defense Aerospace & Defense Automotive Automotive Chemicals Chemicals Consumer Products Consumer Products Engineering, Construction & Engineering, Construction &

Operations Operations High Tech High Tech Industrial Machinery & Industrial Machinery &

Components Components Life Sciences Life Sciences Mill Products Mill Products Mining Mining Oil & Gas Oil & Gas Retail Retail Tele communicationsTele communications Media Media Professional Services Professional Services Travel & Logistics ServicesTravel & Logistics Services UtilitiesUtilities Wholesale Distribution Wholesale Distribution


Oracle is used for almost all large Oracle is used for almost all large application and one of the main application and one of the main applications in which oracle takes its applications in which oracle takes its major presence is bankingmajor presence is banking. In fact . In fact ten of the world’s top 10 banks run ten of the world’s top 10 banks run Oracle applications this is because Oracle applications this is because oracle offers a powerful combination of oracle offers a powerful combination of technology and comprehensive, pre-technology and comprehensive, pre-integrated business applications, integrated business applications, including key functionality built including key functionality built specifically for banks.specifically for banks.




Financials ApplicationsFinancials Applications The SAP Financials applications contain all of the The SAP Financials applications contain all of the

functionality needed for enterprise-wide financial functionality needed for enterprise-wide financial management. The modules within the Financials management. The modules within the Financials applications include the following: applications include the following:

Financial Accounting (FI) Financial Accounting (FI) Provides a complete financial accounting solution, including Provides a complete financial accounting solution, including

income statements, balance sheets, journals, ledgers, and all income statements, balance sheets, journals, ledgers, and all areas of financial accounting. areas of financial accounting.

Enterprise Controlling (EC) Enterprise Controlling (EC) Assists in controller tasks. Assists in controller tasks.

Capital Investment Management (IM) Capital Investment Management (IM) Assists finance organizations in their capital investments and Assists finance organizations in their capital investments and

tracking. tracking. Controlling (CO) Controlling (CO)

Assists the controller organization. Assists the controller organization. Treasury (TR) Treasury (TR)

Assists with transactions related to the U.S. Treasury. Assists with transactions related to the U.S. Treasury.


Human Resources ApplicationsHuman Resources Applications

The SAP Human Resources (HR) applications are The SAP Human Resources (HR) applications are designed to provide a fully functioning HR designed to provide a fully functioning HR system. They include two primary modules: system. They include two primary modules:

Personnel Administration (PA) Personnel Administration (PA) Assists with all areas of personnel administration, including Assists with all areas of personnel administration, including

applicant tracking and personnel history. applicant tracking and personnel history. Personnel Development (PD) Personnel Development (PD)

Assists with training and educational status of employees. Assists with training and educational status of employees.

These systems handle all of the mundane HR These systems handle all of the mundane HR tasks, such as personnel and payroll, and also a tasks, such as personnel and payroll, and also a number of more esoteric HR functions, such as number of more esoteric HR functions, such as seminar and convention management. seminar and convention management.


Logistics ApplicationsLogistics Applications The SAP Logistics applications include SAP's most popular modules. The SAP Logistics applications include SAP's most popular modules.

Logistics was the first area of entry for SAPLogistics was the first area of entry for SAP. This includes . This includes virtually every area of manufacturing, from the initial acquisition of virtually every area of manufacturing, from the initial acquisition of raw materials to the delivery of finished goods. The modules in this raw materials to the delivery of finished goods. The modules in this area include the following products: area include the following products: Materials Management (MM) Materials Management (MM)

Manages raw materials, inventory, and all aspects of goods Manages raw materials, inventory, and all aspects of goods manufacturing. manufacturing.

Production Planning (PP) Production Planning (PP) Offers sophisticated tools for planning large production environments. Offers sophisticated tools for planning large production environments.

General Logistics (LO) General Logistics (LO) Manages logistics for companies that require large-scale deployment Manages logistics for companies that require large-scale deployment

of goods and resources. of goods and resources. Sales and Distribution (SD) Sales and Distribution (SD)

Manages the inventory and distribution of finished goods. Manages the inventory and distribution of finished goods. Plant Maintenance (PM) Plant Maintenance (PM)

Manages the resources required for large manufacturing plants. Manages the resources required for large manufacturing plants. Quality Management (QM) Quality Management (QM)

Captures and maintains quality control for manufacturing Captures and maintains quality control for manufacturing environments. environments.

Project System (PS) Project System (PS) Assists with the scheduling of project tasks and interdependencies Assists with the scheduling of project tasks and interdependencies

between tasks. between tasks.


The SAP R/3 System The SAP R/3 System ArchitectureArchitecture

All SAP R/3 applications are delivered All SAP R/3 applications are delivered in a three-tier client/server in a three-tier client/server architecture, shown in Figure. architecture, shown in Figure.


The three layers are: The three layers are: Presentation layer Presentation layer

The PC-based GUI interface that is used by The PC-based GUI interface that is used by the end-user community. the end-user community.

Application layer Application layer The SAP application servers that service The SAP application servers that service

requests for data and manage the interface requests for data and manage the interface to the presentation layer. to the presentation layer.

Database layer Database layer The actual DBMS that communicates with The actual DBMS that communicates with

the application servers to fulfill their the application servers to fulfill their requests for data. requests for data.


THANK YOU !THANK YOU !

Date post:	15-Nov-2014
Category:	Documents
Upload:	sulabhsingh85
View:	54 times
Download:	4 times

Oracle vs Sap

Documents