vs

Brief on ERP system giants ORACLE &

SAP
With Critical Comparison between the
two.
SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
 The Enterprise Resource Planning System is a
software package that was specially designed to help
companies to run their businesses better. It consists
of many modules. Each of the modules is used at
different departments within one corporation. All
those modules are interconnected with each other in
one coherent system.

 Both SAP and Oracle have demonstrated over the last

couple of decades that each had sufficient ability to
adapt to the changing economic climate during the
late 1980's through 1990s.

 By 2007 Oracle had the third-largest software

revenue, after Microsoft and IBM.

 SAP is the world's third-largest independent software

vendor.
SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
 ORACLE found by Mr. Larry Ellison
 Mr. Larry Ellison and his management team have grown Oracle Corporation
from a purely database company into a purveyor of software components
including middleware, development tools, and ERP/CRM/HRMS.

 Data Collection Advantage reduces transaction time by more than 80 percent

by providing Oracle with accurate information in real time.

 As became apparent with the acquisition of PeopleSoft in January 2005, Oracle

has made acquisitions an important component of a growth strategy.

 Internet integration means that data collection can be supported across

virtually any device that connects to the Internet, allowing Data Collection
Advantage to support mobile terminals and desktops in places where corporate
networks are not available.

 The oracle company keeps upgrading and releasing new products into market,
new versions releases which serves better than the earlier versions and thus
the performance is improved much in later versions and thereby retaining the
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
more features and better capabilities.

 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
important because data is the heart of any system in organization.
SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
Data Collection Advantage Transactions for Oracle ERP*
 Receiving
 Put-away
 Inventory transfers
 Inventory issues and receipts
 Inventory inquiries
 WIP moves and completions
 WIP issues and returns
 Picking
 Shipping
 Cycle count/physical inventory
And many more!
* For discrete and process Manufacturing

Utilizing Data Collection Advantage for Oracle, companies can quickly

gain a
competitive advantage through the following:

 Fast response to customer demands

 Direct links to vendors and customers

 Inventory control throughout the supply chain

SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
SAP is a product developed and marketed
by the German company SAP AG
 SAP is a German acronym for "Systemanalyse und Programmentwicklung,"
which can be loosely translated into "Systems and Application Products."
Founded in 1972 by IBM application developers, SAP AG originally developed
application products for the European marketplace.

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

 Since SAP is database-independent, the SAP architecture requires the

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

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

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

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

 The SAP R/3 code is written in an interpretive language called

ABAP. (ABAP is a German acronym that, loosely translated,
means "Advanced Business Application Programming.")

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

 When an SAP application is purchased with Oracle, each of the

modules is delivered with a complete Oracle schema
consisting of thousands of tables and indexes.

 While SAP is available for many different hardware platforms

and operating systems, the majority of SAP systems use Unix-
based servers for hosting SAP and the Oracle database.
SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
 ABOUT
 The world second-largest software supplier
ORACLE was founded in 1977 in the United
States and by 1999 the company was serving 5000
clients in over 140 countries. Oracle is well known
for their database systems rather than enterprise
resource planning system. It is rating as the second
ERP package vendor after SAP on the ERP market.
Oracle has a reputation as a company with strong
software support, a large financial budget and
stable position among the competitors. At the
same time the corporate culture of Oracle is
conservative on benefits from revenues. Which
causes such problems as inflexibility and slow
implementation of their ERP products. In other
words, the company lacks partners and consultants
for technical expertise.

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

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

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

 CRITICAL COMPARISION

 Latest Version 11g  Latest Version R/3

Next Launch :
 The client-server concept,
Oracle E-Business Suite uniform appearance of
Release 12.1 graphical interfaces,
consistent use of relational
databases, and the ability
to run on computers from
different vendors meets
with overwhelming
approval

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

 For companies whose  For industries that
sustainable competitive experience less dramatic
advantage rests on an ability changes, perhaps SAP is
to change direction and an acceptable solution.
adapt quickly to external
pressures, Oracle
Applications, with its
flexibility and configurability,
is a better choice.
 If the company is limited in
 The company with resources and restrained in
distinguished values which time the best solution
creates a competitive would be to go for SAP
advantage would prefer to products.
choose the Oracle to build a
unique system that will fit
well to their businesses.

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

 Oracle Corporation started  SAP began its life as an
as a tools company. ERP company.

 Today Oracle has become a  Today SAP is still an ERP

much different entity. company that some see as
"innovation free,"

Larry Ellison and his

management team have The SAP system is a
grown Oracle Corporation collection of software that
from a purely database performs standard
company into a purveyor of business functions for
software components corporations.
including middleware,
development tools, and
ERP/CRM/HRMS.

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

 Oracle became popular as a
manufacturer of developing
products that can be easily
integrated with other
models from other vendors,
enabling them to build a
best of breed system.
 Oracle offers a strong
enterprise system that is
able to accommodate more
than 1000 users
 Whereas
 The downside of the
SAPs ERP systems is
that the SAP vendor
forces its customers to
change or adapt their
corporate culture to
match how SAP software
works.
the ERP
package from SAP can
be scaled from 25 to
1000 users.

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

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

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

  NetWeaver technology for SAP user but
 Fusion Middleware 11g makes with some more investment.
its debut  SAP is providing our customers with
 Next-generation adaptability solutions for end-to-end business
 Next-generation productivity processes. With SAP NetWeaver,
your company can integrate people,
 Next-generation manageability information, and processes within the
company and beyond.
 Oracle acquires Sun
Microsystems  SAP and PlaNet Finance will work
 Oracle can now compete one on together to improve the microfinance
one worldwide with IBM on sector through a combination of micro
financing, the use of new technology,
everything from chips to and the creation of value-chain
business process software, extensions that can help entrepreneurs
particularly with solutions made at the base of the economic pyramid
up of integrated hardware- create sustainable business models.
software stacks.
 SAP acquired Business Objects
 Virtual Iron acquisition  Together, SAP and Business Objects,
 With the acquisition, Oracle an SAP company, offers the
appeared to be gravitating industry's most comprehensive
toward a new customer base, portfolio of business performance
given that Virtual Iron caters to and optimization solutions for
small and medium-sized companies of all sizes.
businesses.

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

 Oracle's decision to  It is composed of a single,
raise its list prices by 15% to 20% is virtual file structure with no
cause for concern for both existing subsystems.
and prospective customers. But
there are opportunities to offset
those hikes, according to industry
analysts.
 Oracle's new price list, updated June
16, includes increased pricing for its
new 11g database Enterprise Edition  No hardware purchase or
(from $40,000 to $47,500 per CPU) maintenance costs.
and for BEA Weblogic, now named
Oracle's lead app server (from
$17,000 to $25,000 per CPU).
 Internet integration means that data
collection can be supported across
virtually any device that connects to
the Internet, allowing Data Collection
Advantage to support mobile
terminals and desktops in places  In addition, SAP has released
where corporate networks are not “MySAP.com” which is
available. software that provides for
data interaction and
processing connections with
the Web.

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

 Consistency:  It provides for a "single data
The database is transformed from entry point" where the data
one valid state to another valid entered from any location is
state. Illegal transactions aren't instantly sent to all other
allowed and, if an integrity
constraint can't be satisfied then appropriate modules in the
the transaction is rolled back.  ERP system.

 Isolation:
The results of a transaction are  Available in 14 different
invisible to other transactions until languages (German, English,
the transaction is complete thus Spanish, etc.) and also
increasing the security on data.  incorporates multiple currency
features that provide essential
 Durability: information processing
Once committed (completed), the capabilities for multinational
results of a transaction are corporations
permanent and survive future
system and media failures and
thus ensuring maintenance and  It provides check writing
protection of data. capability in its Accounts
Receivable component which
very few other programs offer.

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

 INDUSTRIES  INDUSTRIES
 Banking  Banking
 Communications  Defense & Security
 Financial Services
 Health Sciences
 Healthcare
 High Technology  Higher Education & Research
 Insurance  Insurance
 Public Sector  Public Sector
 Retail
 Utilities
 Aerospace & Defense
 AutoVue Enterprise Visualization
 Automotive
 Business Process Outsourcing  Chemicals
 Customer Relationship Management  Consumer Products
 Enterprise Performance Management  Engineering, Construction &
 Product Lifecycle Management Operations
 Project Portfolio Management
 Supply Chain Management
 High Tech
 Transportation Management  Industrial Machinery &
 Financial Management Components
 Governance, Risk & Compliance Management  Life Sciences
 Human Capital Management  Mill Products
 Aerospace and Defense  Mining
 Automotive
 Chemicals
 Oil & Gas
 Consumer Goods  Retail
 Education and Research  Tele communications
 Engineering and Construction  Media
 Industrial Manufacturing
 Media and Entertainment
 Professional Services
 Natural Resources
 Travel & Logistics Services
 Utilities
SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
Wholesale Distribution
 Oracle is used for almost all large
application and one of the main
applications in which oracle takes its
major presence is banking. In fact ten
of the world’s top 10 banks run Oracle
applications this is because oracle offers
a powerful combination of technology
and comprehensive, pre-integrated
business applications, including key
functionality built specifically for banks.

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

SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW
 Financials Applications
 The SAP Financials applications contain all of the functionality
needed for enterprise-wide financial management. The
modules within the Financials applications include the
following:
 Financial Accounting (FI)
 Provides a complete financial accounting solution, including
income statements, balance sheets, journals, ledgers, and all
areas of financial accounting.
 Enterprise Controlling (EC)
 Assists in controller tasks.
 Capital Investment Management (IM)
 Assists finance organizations in their capital investments and
tracking.
 Controlling (CO)
 Assists the controller organization.
 Treasury (TR)
 Assists with transactions related to the U.S. Treasury.

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

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

 Personnel Administration (PA)

 Assists with all areas of personnel administration, including
applicant tracking and personnel history.
 Personnel Development (PD)
 Assists with training and educational status of employees.

These systems handle all of the mundane HR

tasks, such as personnel and payroll, and also a
number of more esoteric HR functions, such as
seminar and convention management.

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

 Logistics Applications
 The SAP Logistics applications include SAP's most popular modules.
Logistics was the first area of entry for SAP. This includes virtually
every area of manufacturing, from the initial acquisition of raw materials
to the delivery of finished goods. The modules in this area include the
following products:
 Materials Management (MM)
 Manages raw materials, inventory, and all aspects of goods manufacturing.
 Production Planning (PP)
 Offers sophisticated tools for planning large production environments.
 General Logistics (LO)
 Manages logistics for companies that require large-scale deployment of
goods and resources.
 Sales and Distribution (SD)
 Manages the inventory and distribution of finished goods.
 Plant Maintenance (PM)
 Manages the resources required for large manufacturing plants.
 Quality Management (QM)
 Captures and maintains quality control for manufacturing environments.
 Project System (PS)
 Assists with the scheduling of project tasks and interdependencies between
tasks.

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

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

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

 The three layers are:
 Presentation layer
 The PC-based GUI interface that is used by
the end-user community.
 Application layer
 The SAP application servers that service
requests for data and manage the interface
to the presentation layer.
 Database layer
 The actual DBMS that communicates with
the application servers to fulfill their
requests for data.

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

THANK YOU !

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