Oracle vs. SAP: ERP Software

William Elcock

Updated · Feb 03, 2021

ERP software is an indispensable resource for businesses. It helps them manage routine activities like accounting, procurement, risk management, compliance, supply chain operations, and enterprise performance management.

ERP benefits

ERP software unites the data from these activities, allowing for it to be managed from a single database. This improves efficiency since the data is centralized and available to all individuals and systems that need it to fulfill their roles. Collaboration is also improved due to the centralized nature of the data. Overall, ERP software helps to create order from chaos. Instead of having scattered bits of data all over the place, accountants, CEOs, and other executives have access to the same data and can be on the same page with this software tool.

While the functionality of ERP tools can vary, here are some of the most common features to be expected:

  • Business-wide integration
  • Real-time operations
  • Centralized database
  • Consistent user experience

The indispensable nature of ERP software can also be seen from the growth of the ERP applications market; it’s expected to reach $97.1 billion by 2024. Many businesses can benefit from ERP solutions. However, ERPs can be difficult to implement so they are typically used by medium-sized and larger businesses. There are ERP solutions available for small businesses that focus mainly on accounting. Here we’ll compare and contrast two of the best solutions available on the market in an effort to help you choose a solution that will work best for your business.

Oracle vs SAP: Key Features

Oracle ERP Software

Oracle offers two cloud-based ERP software solutions. They are Oracle Cloud ERP and Netsuite ERP, which have multiple features that allow businesses to operate more efficiently. They can also be easily scaled depending on the industry and size of business they are applied to.

They are both strong products, but let’s focus on Oracle Cloud ERP. Oracle Cloud ERP is a great fit for businesses in several different industries such as:

  • Consulting
  • Healthcare
  • Finance
  • Manufacturing
  • Marketing

Oracle Cloud is also a complete solution that comes with several different components that will assist with many different business functions, such as:

  • Oracle Financials Cloud
  • Oracle Procurement Cloud
  • Oracle Risk Management Cloud
  • Oracle EPM Cloud
  • Oracle SCM Cloud

Oracle ERP features

Here are some of Oracle ERP software’s key features:

  • Accounting Hub
  • Reporting and Analytics
  • Joint Venture management
  • Revenue Management

SAP ERP Software

SAP, like Oracle, offers more than one ERP application. They are SAP Business One, SAP Business All-in-One, and SAP S/4HANA. SAP S/4HANA is their more powerful and well-known ERP application. It brings several ultra-modern features to the fore such as its use of machine learning to automate and streamline business processes. It also facilitates real-time insights.

SAP Business One and SAP Business All-in-One ERP are by no means weak contenders. SAP Business One is well suited for small to medium-sized organizations. Meanwhile, SAP Business All-in-One ERP solution is more geared towards medium-sized to larger businesses. Both solutions provide functionality that is perfect for small and medium-sized businesses, such as integrated departmental support for finance, sales, supply chain management, project management, and production processes.

Like Oracle’s offerings, SAP’s ERP applications are suitable for a number of different industries. However, they are often used by manufacturers and distributors.

SAP ERP Features

Here are some of SAP ERP software’s key features:

  • ERP for small and medium-sized businesses
  • Financial planning and analysis
  • Automate and streamline finances
  • Integrated risk and compliance management

Oracle vs. SAP: App Functionality

Let’s take a closer look at how the application functionality of the offerings from SAP and Oracle match up with each other. We’ll do this by focusing on 3 key areas. These are accounting, supply chain management, and inventory management.


Both Oracle and SAP offer strong accounting features. You will be able to handle things like accounts payable and fixed asset management with these offerings. However, Oracle’s offerings stand out more here. This is because Oracle goes the extra mile when it comes to compliance and risk management. Oracle’s tools do a better job of preventing occurrences of things like cash leakages and ensuring that an organization sticks to required policies.

Supply Chain Management

Good supply chain management is critical for the smooth running of a business. Oracle and SAP perform equally well in this area. However, both contenders have areas where they shine. SAP shines in the event management department, which gives business executives greater insight into their organizations’ supply chains. Oracle features a better advanced planning system (APS). That means that it’s easier to get a handle on things like costs and resource allocation with Oracle.

Inventory Management

This should go without saying, but inventory management is a critical business activity for businesses that sell physical products. In today’s world, businesses need to ensure that they have enough inventory but not too much. This reduces the risk of having to deal with unsold inventory. This requires a careful balance and careful monitoring. Both allow for real-time visibility of inventory data.

Oracle vs. SAP: Organization Size

Both vendors provide solutions that can work for everyone from medium-sized businesses to multinational corporations, with some small business features too. However, you should note that an ERP will take longer to deploy the larger your business is. Customers fared a little better in terms of ease and time of deployment with SAP. SAP is generally more appropriate for the largest companies out there. With that being said, medium-sized to large organizations should expect a deployment time of between three to six months with both providers.

Oracle vs. SAP: Industry Suitability

Oracle and SAP have shown their prowess at being able to handle the challenges presented by different industries. However, Oracle is better at handling industries that rely heavily on databases.

Final Thoughts: Which One Is the Winner?

This is a close one to call and it really depends on what your business needs most. You will have to carefully consider these needs and then make a choice.

When it comes to accounting, Oracle is better at compliance and risk management. In addition, it is better at accommodating businesses that rely heavily on databases. SAP is generally better for larger businesses and is a little easier to deploy.

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