Which ERP is better than SAP

Around 77 percent of companies in Germany used ERP systems in 2019. For many companies, the question arises sooner or later which ERP system is best suited to optimize business processes. It is not only the functional scope of the system that plays a role, but also cost factors. Since the establishment of ERP systems is associated with high costs, it is worthwhile to compare different options and solutions.

In this article, we present the most important ERP systems and their providers.

What are ERP systems?

ERP systems are comprehensive programs for supporting and controlling various company processes and resources. In addition to personnel and available capital, this also includes material, means of production, transport routes and communication channels. ERP stands for Enterprise Resource Planning.

The requirements for an ERP system

An ERP system usually supports many different functions. The exact requirements will depend on the needs of the companies using the system. The large range of functions of the ERP system is in itself an advantage, since companies have a central control point (the ERP system itself) for all business areas and processes. This prevents specialized software from being established for individual applications, which leads to a jungle of different programs and providers and is difficult to network with one another.

Diverse areas of application

The areas of application of ERP systems include, for example, the automatic preparation of invoices, notifications, offers and other documents that companies routinely create. ERP systems can also intervene directly in the production of goods. Customers could put their own product together on a company's website using the modular principle. The ERP system records the data via the website, forwards it to production or directly controls the required machines.

How does an ERP system work in day-to-day business?

Another advantage of many modern Enterprise resource planning systems are data storage via the cloud. This is a very efficient solution: Employees can also access important company data from home or during their business trip. This means that you can work from almost anywhere, and all employees are always up to date.

In the following we give you an overview of the most important provider of ERP software and the functional scope of the systems:

Which ERP software providers are there?

  1. SAP
  2. Microsoft
  3. Oracle
  4. Odoo
  5. legend
  6. Myfactory
  7. Infor

SAP

One of the best-known German providers of ERP software is the SAP group. The ERP offer is diverse. For small and medium-sized companies, SAP offers three different systems. SAP S4 / HANA, SAP Business One and SAP Business ByDesign. S4 / HANA is the flagship of the group and is also suitable for larger companies, while Business ByDesign and BusinessOne are specially designed for smaller companies. The scope of Business One and Business ByDesign is essentially similar, but Business ByDesign offers significantly more additional functions.

Both BusinessOne and Business ByDesign are available as cloud-based services. BusinessOne also has an on-premise hosting option. Since Business One is the smaller of the two packages, it is available from around € 10,000 (+ running costs), while Business ByDesign is a lot more expensive with at least € 50,000.

Microsoft Dynamics 365

With Microsoft Dynamics 365, the well-known software giant is also represented on the ERP market. This software offers a lot of functions and solutions and is, so to speak, a hybrid of classic ERP and CRM. Among other things, she supports the areas of sales, customer service, human resources and marketing. The costs are very flexible and depend on the number and type of modules chosen.

Oracle

Oracle also has several ERP products - Oracle ERP Cloud and Oracle NetSuite. NetSuite is a SaaS ERP system with a wide range of functions. It has a cloud option and supports processes in the areas of financial management, production management, warehousing and other business areas, among other things. Net Suite is available from € 99.95 per user per month.

In comparison, NetSuite is the older product with more sophisticated algorithms. However, ERP Cloud is generally more flexible and usually scores slightly better in customer comparisons.

Odoo

Odoo is an interesting alternative to other ERP systems. It has a large selection of over 35 bookable modules and is cheaper compared to other programs. It also advertises a very high level of user-friendliness.

legend

The European company Sage offers three different ERP systems: Sage X3, Sage b7 and Sage 100cloud Plus. X3 is an all-rounder, while b7 specializes in the processes of the manufacturing industry and trade. 100 Cloud Plus is aimed more at smaller companies and can be specifically customized.

Myfactory

Myfactory Cloud supports business processes in companies from the retail, production and service sectors. Customers can choose between a private or public cloud system.

Infor

After Oracle and SAP, Infor is the third largest provider of business software worldwide and, in contrast to its competitors, relies on a larger selection of specialized software for different industries. Infor's ERP systems include Infor CloudSuite Financials, Infor LN, Infor M3, Infor CloudSuite Industrial, and Infor Distribution SX.e.

There is a suitable ERP system for every company

The large selection of different ERP systems is initially daunting for many entrepreneurs who are in the process of making a decision. However, a suitable ERP system is an important success factor, so you shouldn't make a hasty decision. It is all the more important to invest enough time, compare and communicate with different providers.

Originally published June 23, 2020 updated June 23, 2020

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