P solutions industry with its products being utilized by most large organizations.
Strengths, Weaknesses, Trade-offs and Trends of SAP, Oracle and Microsoft Dynamics
Strengths and Weaknesses of SAP, Oracle and Microsoft Dynamics
SAP enjoys the largest market share in the ER
Strengths-strengths, Weaknesses, Trade-offs and Trends of SAP, Oracle and Microsoft Dynamics
- Vivid visibility to goods-in-transit orders.
- Good compliance with tax regulations and SOX.
- Integrated retail module.
- Good quality assurance and quality control functionality.
- Strong cash management functionality.
- Strong product development functionality.
- In as much SAP is a large and influential company in the ERP solutions market, it does not work exclusively with major commercial enterprises. The company actually has a product that is suited for small businesses, with thousands of consumers that employ less than one thousand individuals.
- The software developed by SAP is extremely intuitive and provides various business intelligence features such as report writings, data storage and dashboards.
- Ease in espousing the Make-To-Order processing (Solvere One, 2016).
- Albeit prices of ERP solutions developed by SAP can vary depending on the features the client requires, SAP tends to be more costly than its competitors which may make it less than ideal solution for small and medium sized business enterprises with restricted IT budgets.
- Picking up the ERP solution provided by SAP can take a while compared to the solutions provided by Microsoft Dynamics and Oracle, though once the basis are learned, it becomes an easy system to utilize (Solvere One, 2016).
Oracle-strengths, Weaknesses, Trade-offs and Trends of SAP, Oracle and Microsoft Dynamics
Oracle provides robust ERP systems with variety of features that have helped make it one of the most popular ERP solutions in the market today.
- Advanced pricing module espouses intricate pricing scenarios.
- Well-built IT architecture.
- Good functionality for production operations.
- Strong accounting and finance functionality.
- E-portal provides for easy interaction with suppliers and customers.
- Better product configurator.
- Oracle ERP solutions can keep track of inventory levels of the business and automatically formulates purchase orders if inventory levels for a certain item falls below a particular level.
- ERP solutions with the ability to integrate several discordant modules seamlessly into one system for ease of utilization. It also enables organizations to automate many of their processes so that manual data entry is no longer necessary. This not only improves efficiency but also ensures data is not lost while eliminating errors.
- Extremely robust, powerful and intuitive ERP systems that can meet the needs of virtually any business (Solvere One, 2016).
- One of the principal weaknesses of Oracle is that it can be less user friendly than some other platforms, especially for small businesses.
- Many modules for the platform that work but do not work as well as they do in other systems (Solvere One, 2016).
Microsoft Dynamics is built on Microsoft infrastructure and syncs easily with other Windows business applications, thus, enabling easy transfer of information across all systems.
- It is multi-lingual and can work with a variety of currencies around the world, making it ideal for international organizations.
- Microsoft Dynamics can sync with other Windows applications; a feature that renders the sharing and transfer of information simple.
- Provides exemplary collaboration features that make it possible for discordant parts of the organization to share information effortlessly.
- Given that Microsoft Dynamics is built on Windows infrastructure, implementing it takes considerably less time than other systems. As such, it has the shortest implementation time of three ERP systems discussed (Solvere One, 2016).
Weaknesses-strengths, Weaknesses, Trade-offs and Trends of SAP, Oracle and Microsoft Dynamics
- Albeit it is regarded as more small business friendly than SAP and Oracle, there have been increasing complaints over the years that the platform has moved towards a model designed for larger organizations, leaving small businesses looking for an ERP system geared more towards small organizations.
- Microsoft Dynamic’s cloud ERP option is lacking compared to that of SAP and Oracle and as a result, many improvements should be made on this front (Solvere One, 2016).
Trade-Offs of SAP, Oracle and Microsoft Dynamics
Functionality vs. Tightly integrated module
While SAP has created a solution principally from the ground up, Oracle and Microsoft Dynamics have grown primarily through acquisition of best-of-breed solutions.
SAP continues to build on and improve its core product offering, but Microsoft Dynamics and Oracle are moving toward fusion. This means that in as much as Microsoft Dynamics and Oracle are more visionary and innovative in their technology direction, it also means that there may be more uncertainty with their product lines.
Flexibility-strengths, Weaknesses, Trade-offs and Trends of SAP, Oracle and Microsoft Dynamics
SAP may be more difficult to alter as business evolves, but Microsoft Dynamics and Oracle are continuing to evince flexibility when it comes to designing products to suit the business operation and management needs of the clients (Panorama Consulting Solutions, 2018)
Trends of Oracle, SAP and Microsoft Dynamics between now and the near future
The competition between SAP, Oracle and Microsoft Dynamics for the ERP market is unlikely to end any time soon. Each ERP vendor demonstrates its own strengths, weaknesses and trade-offs that consequently neutralize the appeal in the ERP system. These three leading ERP vendors may have a relatively even market, but the specifications, acquisition and structure of each product not affects their current status but also determines their future trends. The following are the anticipated or forecasted trends of SAP, Oracle and Microsoft Dynamics in the near future:
- Microsoft Dynamic is likely to gain influence in small and medium organizations or business. This is based on Microsoft Dynamics’ plans to foster its importance and practicability in small and medium organizations. The fact that Microsoft has acquired Axapta, Navision and Great Plains, the company and its ERP product Microsoft Dynamics now appeals to small and medium businesses that have previously utilized the acquired products in their day to day businesses. Given that SAP is suited to handle big organizations, most small and medium sized enterprises are looking for smaller and simpler solutions. The consolidation of Axapta, Navision and Great Plains to form the Microsoft Dynamics platform presents small and medium organizations with a suitable simper ERP system that they can utilize effectively given that they are not yet capable of adopting large and more intricate ERP systems such as SAP.
- Building on the first trend, it is safe to assert that SAP will struggle to gain influence in small-sized enterprises. This is due to the fact that SAP is perceived as a more intricate ERP system that makes it difficult for small organizations to choose SAP as their preferred ERP system despite key components of SAP such as SaaS and cloud opening up to small sized enterprises. Given that small organizations continue to grow each day through start-ups with many people seeking self-employment or entrepreneurial ventures, the potential of ERP software in the small business market is huge since small businesses will be seeking simpler software management solutions as they grow. As such, SAP should contemplate this as a problem in the future and design simpler ERP solutions to appeal to the small business market.
- One thing that is vivid from the descriptions of the first two trends is that SAP is suited for large organizations due to the complexity of its product. In this regard, SAP is poised to continue remaining important and valuable in large business enterprises. Unlike the Microsoft Dynamic platform that comprises of products that have been acquired by Microsoft, SAP prides itself in building its own product up from the ground up. This consistency and originality of SAP is one of its major strength as an ERP system for large enterprises. Thus, as SAP appeals to large organizations currently, the trend is likely to continue in the near future. Nonetheless, this complexity and consistency of SAP is also its weakness when it comes to appealing to small and medium sized enterprises of the importance of its global software. In as much as SAP will struggle to appeal to small and medium sized organizations, this will not dent its grip in the market since companies will still seek consolidated and standardized ERP systems for their business operations and management in the near future. Therefore, SAP will continue to appeal to the organizations, especially with the continued globalization and advancement of technology.
- While SAP and Microsoft Dynamics continue to develop their platforms to appeal to and suite the business needs of large organizations and small sized organizations respectively, Oracle enjoys the advantage of having the opportunity to penetrate and appeal to both business markets. As such, Oracle is poised to stay in the middle of the field of ERP systems in terms of suitability of its products to middle sized organizations. Oracle’s products, that is, ID Edwards and E-Business Suite do not have the largest market share when it comes to the small and large business enterprises markets. However, these products are effective when it comes to meeting the business operations and management needs of medium sized organizations which are situated at the middle of the field. The flexibility exhibited by Oracle enables it to develop products suited to meet discordant industry demands and which are relevant to different businesses in different industries. Based on this understanding, Oracle continues to aggressively design products for its customers that suit their unique business needs, operations and management and standardize them into a single platform which the consumers can utilize easily. These actions in designing unique ERP systems decidedly keep Oracle in the middle of the field.
- SAP, Oracle and Microsoft Dynamic may be targeting different business markets in the form of large organizations, middles sized organizations and small organizations, business processing and organizational change management will remain critical for all the three ERP systems vendors in the near future. In as much as ERP systems improves the business operations and management of organizations, vendors such as SAP, Oracle and Microsoft Dynamics have historically underinvested in business process reengineering and organizational change management; a mistake that has resulted in the failure of their projects. As technological advancement continues to take a simpler trajectory and penetrate more organizations across the world, it will be crucial for SAP, Oracle and Microsoft Dynamics to implement these ERP products for more project managers since it has become easier for these project managers to mistakenly overlook prominent success factors (Panorama Consulting Solutions, 2018).
In as much as SAP, Oracle and Microsoft Dynamics will occupy discordant positions in the market in the near future, there are two things that are constant. First, SAP, Oracle and Microsoft Dynamics will continue to occupy or possess solid positions in the market. Second, the success or failure of the ERP systems developed by SAP, Oracle and Microsoft Dynamics will be determined by people and process issues in the near future rather than the technology itself.
Panorama Consulting Solutions. (2018). ERP Software Clash of the Titans: SAP vs. Oracle – Panorama Consulting. Panorama Consulting Solutions. Retrieved 15 March 2018, from https://www.panorama-consulting.com/erp-software-clash-of-the-titans-sap-vs-oracle/
Panorama Consulting Solutions. (2018). SAP vs. Oracle vs. Microsoft Dynamics:What to Expect in 2020- ERP 2020. Panorama Consulting Solutions. Retrieved 15 March 2018, from https://www.panorama-consulting.com/sap-vs-oracle-vs-microsoft-dynamics-what-to-expect-in-2020/
Solvere One. (2016). SAP vs. Microsoft Dynamics vs. Oracle. Solvere One. Retrieved 15 March 2018, from https://www.solvereone.com/pages/sap-vs-microsoft-dynamics-vs-oracle/