SAP,Microsoft, and Oracle: EPR Systems

Freshman (College 1st year) ・Business ・APA ・3 Sources

For many organizations it has always been a challenge to develop business processes, merge divisions and improve decision-making. However, IT has led to tremendous developments and meeting these needs is somewhat straightforward for both small and big business. The ERP (Enterprise Resource Planning) framework is a major progress within the sector, with dramatically improved business-wide IT solutions, despite its implementation problems and high costs. Microsoft ERP, Oracle E-Business Suite, and SAP ERP are today the three most common ERP systems. Each has various characteristics and advantages. Microsoft ERP system currently attracts over 83,000 customers globally. This reason behind its broad customer base is its affordability and user friendliness. Unlike other systems, Microsoft is readily available to users across the globe. The major components that make up Microsoft ERP are the warehouse management, transportation management, budgeting planning, modern point of sale, human resource management, demand forecasting, data management, and E-commerce features. These features enable users to automate warehouse process massively and manage operational cost, access global transportation planning with ease, access budget plan worksheets easily, have real-time inventory and back-office access. Additionally, it enhances forecasting accuracy and helps manage large human resource activities such as benefits, payroll analytics among others (Rashid, Hossain & Patrick, 2002).

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Oracle Cloud ERP is very similar to Microsoft ERP and SAP ERP, except that it is priced at the high end. Oracle is simply an integrated suite of business modules, namely, the Oracle Financial Cloud, Oracle Procurement Cloud, and Oracle Project Portfolio Management Cloud (Shang & Seddon, 2000). The Oracle Financial Cloud offers extensive financial management suite designed in a way that enables an organization to automate, control, and streamline financial processes without incurring too many overhead costs. This ERP system is ideal for small and large businesses seeking subscription based access to Oracles major application, database services, and middleware services. The Oracle Project Portfolio Management Cloud enables companies to access automated solutions that are designed to enhance productivity and promote fast decision making (Shang & Seddon, 2000).

Oracle E-Business Suite has robust features that have enabled it to become one the widely known ERP systems globally. This software allows an organization to automate various processes, so that the manual methods of data entry are no longer required. This platform keeps track of inventory level and automatically creates a purchase order when inventory falls below a certain degree. More so, Oracle ERP system is subscription based and, therefore, affordable to both small and large scale businesses. Oracle comes with a complete suite of applications such as planning and budgeting, financial, risk and control management, inventory, cost management, and procurement. Oracle is modified to suit global standards such as multi-GAAP, multi-language, and multi-currency, and more importantly, it offers a modern user experience for its users (Shang & Seddon, 2000).

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The other popular system is SAP ERP which today has over 35,000 customers in over 120 countries. Currently, SAP is the world’s largest business management software, and some of the features that have kept SAP at the top of the market are that SAP, unlike other software, is customizable to different changes within an enterprise. SAP, on the other hand, focuses its applications on three key areas: resource maximization, cost reduction, performance optimization. This system integrates multiple business apps with each particular app addressing a specific business unit. The integrated applications update, record, and process large transactions in real time and business can configure them to meet varying business needs. There are however three functional areas under this system namely the logistics, human resource, and finance (Al-Mashari, Al-Mudimigh & Zairi, 2003). More so, even though sophisticated and timely to implement, SAP’s architecture is incredibly strong and has a process-centric focus operating in real time communication with all business processes. It is specific industry and business, and any organization can have customized software that suits their employee and consumer base. All these three platforms have enabled organizations to automate and integrate relevant business process and thus to increase productivity and revenue while minimizing costs.

Toyota Company has adopted the SAP ERP, and according to the organization, the SAP system has enabled the organization to improve its operations together with integrating discipline to its business environment. SAP system implementation ensured that the automobile company enhances material, sales and distribution, and warehouse management. ERP has helped the corporation regain control over its business processes a process that has seen it reap quantifiable business benefits since its implementation. Some of the advantages that now accrue to the company are the ability to access and measure the performance of its suppliers accurately, have control in its inventory system. For instance, with ERP system the company has been able to keep its stock based on demand. The other ERP systems are as well used by several businesses large, midsized and small and their benefits are massively felt in and outside the business (Rashid, Hossain & Patrick, 2002).
In conclusion, today’s business environment has become extremely challenging and to remain competitive clarity in all aspects of business is vital. In so doing, best-run organizations have realized the benefits of ERP and are now implementing this software to respond quickly and with more insight to business issues such as human resource, data management, inventory management and so forth. This technology has become efficient, and decision making and other complex processes within an organization have become efficient and effective.

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Al-Mashari, M., Al-Mudimigh, A., & Zairi, M. (2003). Enterprise resource planning: A taxonomy of critical factors. European journal of operational research, 146(2), 352-364.
Rashid, M.A., Hossain, L., & Patrick, J.D. (2002). The evolution of ERP systems: A historical perspective. Hershey: IRM PRESS.
Shang, S., & Seddon, P.B. (2000). A comprehensive framework for classifying the benefits of ERP systems. AMCIS 2000 proceedings, 1005-1014.

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