Data is the core of business now. However, data is recognized if it is accurate, organized, and accessible. Here, SAP ERP system comes into place. Moreover, as business grow more, the complexity increases as well in all departments. In this blog, it will talk about why having SAP ERP system is the standard for global enterprises as well as the benefits of having it. Furthermore, the pricing of having one and a comparison between SAP and Odoo ERP systems.
What is SAP ERP System
To understand SAP ERP system, we must understand what is the meaning of the word SAP itself. SAP stands for system, applications, and products in data processing. Furthermore, SAP is a global German software organization that managed to gain a global market share in this industry. ERP itself means enterprise resource planning which manages all business functions in the company. When we combine both words whish is SAP and ERP, we get SAP ERP system which is a software that allows companies to manage their core business functions easily within a single unified platform. Instead of having an application for each business function, SAP connects them all in one platform.
Is SAP an ERP System
Yes, SAP is an ERP system. Moreover, SAP is in fact the leading company in ERP software providers. ERP itself is the category and SAP is a strong brand in this category.
What is the evolution of the SAP ERP system
When people say SAP ERP system, they are mainly referring to SAP S/4 HANA which is the latest version of the system and it works on a database called SAP HANA. It gives instant data processing, and that means that businesses can process data instantly and get insights immediately rather than doing in manually and that enhances decision making.
What are the core benefits of SAP ERP System
Now it is time to know why most global multinational companies use SAP. The benefits are beyond simple recording. They include:
- Real time data and visibility
- Global compliance and scalability
- Automation
- Security
Real time data and visibility
The main benefit is that all data is in a unified single platform. Moreover, there is no more arguing which one has the right excel sheet. Furthermore, management can have instant data to make decisions on faster and gives them instant data on where the business is going and how well it is performing.
Global compliance and scalability
SAP is made for multinational companies and organizations because it supports every language and compliance laws in all countries. Moreover, if a company is expanding to another country, they don’t have to worry about compliance issues in the other country because SAP ERP system makes it easier for them to do the transition and be compliant.
Automation
Automation in the system increases the productivity of employees. Moreover, it frees time for them to focus on strategic growth and business strategies rather than doing simple manual tasks that automation can do easily and fast.
Security
In this era, cyber threats have become more and more threatening. However, SAP invests a lot in security and that secures the sensitive data of the companies and the access can only be by certain employees.
How much does SAP ERP system cost
This is one of the most common questions asked when thinking on SAP ERP implementation. That is due that the system is highly customizable for each business needs and requirements. There won’t be a certain price that can be said but we can break this area down to two categories. This includes:
- SAP business one
- SAP S/4 HANA
The SAP ERP system can be divided into two categories based on whether the company requiring SAP is SME or a global company.
SAP business one
This type is for SMEs and is the best choice for them.
- License Type: Usually priced per user.
- Cost: Cloud versions can start around $100 to $150 per user, per month.
- Implementation: A basic and simple setup might cost between $20,000 and $50,000 in consulting fees.
SAP S/4HANA
This type is best for global ad multinational companies.
- License Type: Often based on full use equivalents (FUE) or subscription tiers
- Cost: Subscriptions often start at $3,000 to $4,000 per user, per year for full access.
- Implementation: For a global corporation, implementation costs can range from $500,000 to several million dollars, depending on the complexity and customization required.
What is the difference between SAP and Odoo
When choosing an ERP system, SMEs are mainly confused whether to choose SAP or Odoo. Moreover, both are excellent ERP systems but they serve different needs and requirements. Let’s compare both:
- Simplicity vs. complexity
- Customization
- Target market
Simplicity vs. complexity
SAP is designed to handle massive and large amount of data so it is mainly made for complexity and complex business requirements. However, Odoo is all about simplicity, it is known for being interface friendly and the apps approach. Furthermore, in Odoo, the business can start with one app and grow more and add more apps in the future.
Customization
There is a difference between SAP ERP system and Odoo ERP system, where Odoo is an open source which means developers have the chance to tailor the codes. However, in SAP, it is proprietary which means that is it vey configurable. Moreover, it means that there is a need for certified SAP consultants to make changes in the system which adds to the overall costs.
Target Market
Choose SAP, if the company is a large and multinational one or if it is an SME that has complex business requirements. However, choose Odoo if the company is an SME which is looking for an affordable ERP system that is easier to use.
Is an SAP ERP System Right for You
The transition to SAP is a significant change and a large investment in both time and money. In order for you to decide think about these questions that will help you choose whether to get the system or not:
- Is our current system holding back our growth?
- Do we have data silos where different departments can’t talk to each other?
- Are we struggling with international compliance or complex supply chains?
If you said yes to these answers, then getting SAP is the best option in order to get the benefits of the SAP ERP system such as enhanced productivity and faster decisions. Moreover, the benefits that the company will get will outweigh the costs.
Why partner with EcoTech to do the implementation
Choosing to implement the system is one the biggest decisions and transitions that the company will face so, it needs a trusted partner to make it a seamless transition. The partner also has to understand the unique needs and requirements of your business. EcoTech is a trusted SAP partner that will make this transition easy and seamless for your business and will match all your business needs and requirements. Moreover, EcoTech has 20 years and more experience in this field and this makes it the perfect company to entrust the implementation process with. Furthermore, EcoTech will handle all the customization that your business needs easily. EcoTech will help you maximize the most value from your investment and make it worth it ensuring long term success.
Ready to redefine your digital boundaries? Reach out explore, innovate, and grow with EcoTech. Book your free demo now!
