Which solution do you prefer: SAP S/4HANA (Private cloud) or Oracle Fusion (Cloud ERP)?

Question

Hello community, 
I work for a large manufacturing company and am researching ERP solutions.
Now, our company uses SAP-ERP ECC6 and needs to upgrade or reimplement to a new ERP. I would like to compare the functions/features and non-functional features. Our company is in the telco industry. Which topic or item should be of concern? Do you possibly have any Excel templates which you use to compare and score the solutions that you can share?
Thank you for your help.

Manish Chhatbar · Accepted Answer

Hi Wanlaya,  We are SAP consulting company based in Mumbai, India you can visit our website www.inteliwaves.com.

Just to answer your question please find herewith document i have may be helpful to you and will help you in your decision making process.

SAP   S/4HANA vs. Oracle ERP Cloud: Clash of the Titans

When considering new enterprise technologies, many of our   clients consider SAP S/4HANA vs. Oracle ERP Cloud in their ERP software   evaluation process. In fact, our upper mid-market and larger enterprise   clients choose between these two systems on an extremely frequent   basis.
    
    In the most recent rankings of the top ERP systems, it’s not surprising   that both solutions did well. S/4HANA ranked #6 and Oracle ERP Cloud landed   at #3, although they both finished in the top two in terms of market share.   While some might argue they should have finished higher in our rankings,   below are some independent analysis of how these two leading industry titans   compare to one another.

The common strengths of SAP S/4HANA and Oracle ERP Cloud

For some organizations, S/4HANA and Oracle ERP are the best   options because of their common strengths. For example, both products are   capable of scaling to meet the needs of larger, complex, and more diverse   organizations. Companies that operate internationally, have diverse product   lines, and manage supply chains are naturally going to gravitate to these two   solutions. This is why SAP and Oracle have historically had such a strong   foothold in the Fortune 500 space.

The common weaknesses of SAP S/4HANA and Oracle ERP Cloud

For some organizations, SAP and Oracle are a natural best fit   for their needs. However, it is important to also be aware of their   weaknesses. Both products are knee deep in their transitions from   well-established legacy products to these newer flagship products, which is   why both products suffer from a relative lack of functional maturity.

This is true not only related to their own legacy   products such as ECC and eBusiness Suite, but also when compared to more   established products, such as Oracle NetSuite, Plex Systems, and others that   have a jumpstart on migration to the cloud. We see this relative lack of   maturity wreaking havoc on their customers’ ERP implementations as they   navigate the holes and deficiencies in their products. Best of breed ERP   solutions are a common solution to address this problem.

Standardization and harmonization of business processes

SAP is the gold standard when it comes to standardizing and   harmonizing business processes. It has an advantage over Oracle ERP in that   it drives a certain amount of structure and rigidity – for better or for   worse. This is part of what appeals to larger organizations that are trying   to drive a certain amount of commonality throughout their global operations.

The downside of this advantage, however, is that it makes   organizational change very difficult and painful. Anytime you are forced to   accept someone else’s business processes – whether internally or because it’s   just the way the software works – employees are going to resist the changes   in some way. This is why an effective organizational change management plan   is so important for SAP S/4HANA implementations – even more so than   for those implementing Oracle ERP Cloud.

Functional flexibility

On the slip side, Oracle ERP Cloud has the advantage if it is   flexibility that you value. Whether you are a decentralized company with   independent operations or a company that values speed and nimbleness over   structure and standardization, Oracle ERP is going to have the slight edge.

Just as S/4HANA requires effective organizational change   management to mitigate the pains of rigidity, Oracle ERP Cloud   implementations requires effective change management as well – albeit for   different reasons. We often times see the solution’s flexibility mask a   deeper issue: resistance to change. The risk of Oracle ERP   implementations is that even though you can change the software more   easily than with S/4HANA, it doesn’t mean you should.

Deployment flexibility

While most ERP vendors are trying to force its customers to the   cloud – including Oracle – SAP still offers multiple deployment models with   S/4HANA. Rather than requiring a pure cloud or SaaS delivery, SAP allows   customers to choose on-premise, cloud, or SaaS. We find that Oracle on the   other hand rarely offers on-premise options – except where there are   deficiencies in its product and only a legacy on-premise solution will   address those needs.

While SAP may have the advantage in this category, it   also has some liabilities. The company may not require customers to move to   the cloud before they are ready, but they are certainly forcing existing   customers to migrate to S/4HANA before they are ready. SAP’s 2025   deadline is one of the more aggressive mandates that we have seen in the   industry in recent years.

Ease of employee adoption

Feedback from our clients indicate that Oracle ERP Cloud has the   advantage when it comes to ease of employee adoption. The product’s user   interface and flexibility generally make it easier for employees to learn and   use than S/4HANA’s more rigid interface and general structure. This is also   true when it comes to the initial implementation of the software.

Even though Oracle may have the advantage when it comes to ease   of employee adoption, organizational change is still a very critical   requirement for success. In addition to the reasons mentioned above, Oracle   ERP and S/4HANA require a greater level of discipline, integration, and   general process changes – all which require an intense focus on   organizational change.

Data and analytics

The ability to translate data into information that can   be used for better decision-making is becoming a hot commodity in the   enterprise technology space. For decades, companies have been adapting ERP   systems to gather more intelligence and data, but few have mastered the craft   of knowing how to find value in all that data. This is becoming even more   true in today’s age of internet of things, artificial intelligence, and   shop floor automation and data capture.

With this in mind, Oracle has historically been very strong in   data and analytics, especially since its acquisition of Hyperion years ago.   Its Enterprise Performance Management offering is a strong complement to the   core ERP system, making for more effective reporting, analytics, and business   intelligence capabilities than with S/4HANA.

Alternatives to SAP and Oracle

With this comparison in mind, it is also important to note that   there are many viable alternatives to the SAP vs. Oracle debate. Many leading   ERP systems have become more viable over the years, and there are more   established cloud ERP systems that may be better fits for your organization.

For example, here are a few other product comparisons that are   commonly of interest with our clients, along with a link to each:

SAP S/4HANA vs. Microsoft Dynamics 365

Oracle ERP Cloud vs. Oracle NetSuite

Microsoft Dynamics 365 vs. Oracle NetSuite

Overview of the Top 10 ERP Systems

These and other resources on our website and my YouTube channel   will help you navigate the plethora of options available to you.

SAP S/4HANA vs. Oracle ERP Cloud: Which is better?

As you may have gathered from the above analysis, there is no   clear “winner” in the SAP S/4HANA vs. Oracle ERP Cloud discussion. We have   many clients where S/4HANA is clearly more aligned with their longer-term   vision and strategy, while we find that Oracle ERP Cloud is a better fit for   others. It all comes down to unique needs, strategies, and goals of your   organization.

Please feel free to contact me to pick my brain   on the pros and cons of these and other ERP systems available in the market.   I am happy to be a sounding board as you continue your digital transformation   journey!

`
  SAP S/4HANA   Private Cloud
  SAP S/4HANA   Public Cloud
  Oracle Cloud   ERP
  Why this   matters

True cloud SaaS applications
  Not SaaS, hosted legacy
  SaaS
  SaaS
  True SaaS is essential for the continuous   digital innovation necessary for today’s business environment—without end-of   life issues and implementation disruption.

Complete suite of modular   applications
  ERP-centric but comprehensive set of modules.
  Limited financials and manufacturing   capabilities.
  Full suite of flexible modular SaaS   applications.
  When all modules are built on unified data, you   can optimize processes and analyze data across departments. Modularity allows   for diverse business models and priority-focused implementation.

Continuous innovation across all   applications
  Traditional complex and costly upgrades
  Quarterly SaaS updates
  Quarterly SaaS updates
  Quarterly updates allow continuous innovation   based on the latest technologies.

Budgeting and forecasting across   lines of business and data sources
  Only traditional budgeting and forecasting.   Business planning & consolidation (BPC) will not be supported starting in   2027.
  Only traditional budgeting and forecasting. Will   not be supported starting in 2027.
  Supports connected enterprise planning and   multiple planning approaches.
  Planning and forecasting across functions   leverages all enterprise data and gives you a holistic view of the business.

Ability to anticipate and react   to market conditions and disruptions with scenario modeling
  Limited capabilities to anticipate and react to   market conditions and limited capabilities for scenario modeling.
  Limited capabilities to anticipate and react to   market conditions and limited capabilities for scenario modeling.
  Supports multiple scenario planning approaches.
  Scenario planning prepares organizations for   disruption and unforeseen events.

Embedded risk management across   functions
  Fragmented across multiple application and   technology layers.
  Fragmented across multiple application and   technology layers.
  Pervasive risk management with embedded data   science across the applications and platform.
  Built-in risk management and data science   strengthens financial controls, stops cash leaks, streamlines audit, and   detects emerging risks.

Flexible ledger structures
  Thick ledger
  Thick ledger
  Choice of thick ledger, thin ledger, or   structured federated ledger (subledger accounting).
  A flexible ledger lets users decide how much   data flows into the general ledger based on their business and reporting   needs.

One source of truth for finance   and HR data to improve decision-making
  Legacy application connected to cloud. HR data   is in silos.
  SaaS with multiple acquired disparate HR   modules.
  SaaS solution with a single data model for HR,   finance and other lines of business.
  Unified data avoids overly complex reporting and   analysis. No need for IT to normalize data.

Configurable, not customizable   applications
  Customizable
  Configurable
  Configurable
  Rule-driven configurations and workflow changes   don't require IT support. They also drive security and continuous   optimization without business disruption.

One solution for small, midsize,   and large companies
  SAP positions different solutions based on   company size. SAP Business ByDesign for small/midsize and the S/4 HANA   products for large enterprises.
  SAP positions different solutions based on   company size. SAP Business ByDesign for small/midsize and the S/4 HANA   products for large enterprises.
  Single solution to support small, midsize, and   large companies. Capabilities can be deployed as needed.
  A single solution means no need to migrate if   the company grows or requirements evolve. You can deploy the same   applications across HQ, subsidiaries, and business units regardless of size.

Gene Hammons · Answer

Hey Mr. Panjahong - there are many templates and scoresheets to compare software available, but most are not focused on where you need to be. At this point, you need business analysts to examine the business process at your company. Yes, Telcos have some similarities, but more often, each has different ways of doing business. For example, with B2B we might see 1,000 transactions daily whereas B2C might be working with 40,000 transactions hourly - and whether or not this describes your facility or not is not consequential as long as you understand that the microseconds of difference between how one software performs versus the next could be millions in value over the years. Doing business process analysis, especially if your analysts have ERP backgrounds, will highlight the areas of key concern for your company. And start the software architecture best suited to addressing those concerns. Then, your evaluation is focused on these key metrics and becomes manageable. I could send you past clients' requirements ranging from a 20-page spreadsheet with nearly 100 questions per tab, to a retailer that thought they had a comprehensive 25-requirements list (in an hour we had it up to 125). But the reality is, probably neither of those templates would be of any real value. Go build your business case - it's the first step to succeeding in a very complex, yet critical situation.

Which solution do you prefer: SAP S/4HANA (Private cloud) or Oracle Fusion (Cloud ERP)?

2 Answers

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`	SAP S/4HANA Private Cloud	SAP S/4HANA Public Cloud	Oracle Cloud ERP	Why this matters
True cloud SaaS applications	Not SaaS, hosted legacy	SaaS	SaaS	True SaaS is essential for the continuous digital innovation necessary for today’s business environment—without end-of life issues and implementation disruption.
Complete suite of modular applications	ERP-centric but comprehensive set of modules.	Limited financials and manufacturing capabilities.	Full suite of flexible modular SaaS applications.	When all modules are built on unified data, you can optimize processes and analyze data across departments. Modularity allows for diverse business models and priority-focused implementation.
Continuous innovation across all applications	Traditional complex and costly upgrades	Quarterly SaaS updates	Quarterly SaaS updates	Quarterly updates allow continuous innovation based on the latest technologies.
Budgeting and forecasting across lines of business and data sources	Only traditional budgeting and forecasting. Business planning & consolidation (BPC) will not be supported starting in 2027.	Only traditional budgeting and forecasting. Will not be supported starting in 2027.	Supports connected enterprise planning and multiple planning approaches.	Planning and forecasting across functions leverages all enterprise data and gives you a holistic view of the business.
Ability to anticipate and react to market conditions and disruptions with scenario modeling	Limited capabilities to anticipate and react to market conditions and limited capabilities for scenario modeling.	Limited capabilities to anticipate and react to market conditions and limited capabilities for scenario modeling.	Supports multiple scenario planning approaches.	Scenario planning prepares organizations for disruption and unforeseen events.
Embedded risk management across functions	Fragmented across multiple application and technology layers.	Fragmented across multiple application and technology layers.	Pervasive risk management with embedded data science across the applications and platform.	Built-in risk management and data science strengthens financial controls, stops cash leaks, streamlines audit, and detects emerging risks.
Flexible ledger structures	Thick ledger	Thick ledger	Choice of thick ledger, thin ledger, or structured federated ledger (subledger accounting).	A flexible ledger lets users decide how much data flows into the general ledger based on their business and reporting needs.
One source of truth for finance and HR data to improve decision-making	Legacy application connected to cloud. HR data is in silos.	SaaS with multiple acquired disparate HR modules.	SaaS solution with a single data model for HR, finance and other lines of business.	Unified data avoids overly complex reporting and analysis. No need for IT to normalize data.
Configurable, not customizable applications	Customizable	Configurable	Configurable	Rule-driven configurations and workflow changes don't require IT support. They also drive security and continuous optimization without business disruption.
One solution for small, midsize, and large companies	SAP positions different solutions based on company size. SAP Business ByDesign for small/midsize and the S/4 HANA products for large enterprises.	SAP positions different solutions based on company size. SAP Business ByDesign for small/midsize and the S/4 HANA products for large enterprises.	Single solution to support small, midsize, and large companies. Capabilities can be deployed as needed.	A single solution means no need to migrate if the company grows or requirements evolve. You can deploy the same applications across HQ, subsidiaries, and business units regardless of size.

Which solution do you prefer: ﻿﻿SAP S/4HANA (Private cloud) or Oracle Fusion (Cloud ERP)?

2 Answers

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Which solution do you prefer: SAP S/4HANA (Private cloud) or Oracle Fusion (Cloud ERP)?