The two biggest names in enterprise resource planning software are SAP and Oracle NetSuite. There are, of course, other ERP solutions, but these two brands dominate the enterprise software market.
If you are considering a new ERP solution, both SAP Cloud ERP and Oracle NetSuite are probably on your shortlist. But which solution is right for your organization?
While the decision comes down to the specific needs of your business, there are substantive differences between the two solutions that might help tip the scale. Let’s briefly look at some of those differences.
Both SAP and NetSuite are industrial-strength ERP solutions, able to handle complex operations and businesses large or small. They don’t target the exact same markets, though.
NetSuite is targeted at fast-growing small to medium-sized enterprises primarily, although it scales to meet the needs of larger organizations in certain industries such as ecommerce, software, wholesale distribution, and services. It is a popular choice for businesses that want quick time-to-value and light IT overhead.
SAP Cloud ERP is aimed more at mid-sized and large enterprises, although it also can be a good choice for fast-growing smaller businesses that expect rapid growth. Because SAP is the gold standard for larger, complex operations (think Coca-Cola and BP), one of its strong points is robustness and a clear migration path as an organization grows. SAP is frequently chosen by businesses that plan to scale globally or have complex compliance requirements.
NetSuite is general-purpose. It offers some industry-specific solutions, especially in retail, ecommerce, and services, but it primarily focuses on flexibility instead of specific industry needs. This is in stark contrast with SAP.
SAP takes an entirely different focus. Instead of a blank canvas approach, SAP focuses heavily on preconfigured best practices and industry-specific functionality out of the box. It is strong in manufacturing, supply chain and asset management, finance, and life sciences, among others. While its industry-specific functionality and best practices are robust, it pushes businesses toward these best practices and workflows by default.
NetSuite makes it easy for businesses to extend and customize the ERP backend through the SuiteCloud platform and SuiteScript. It allows for in-system customization, changing the behavior of the ERP, which makes it easy for smaller businesses to customize workflows. The downside of in-system customization is that this can complicate system updates.
SAP keeps the ERP core clean and instead focuses on add-on modules that change system behavior. These can be downloaded from the Business Technology Platform or created with a low-code editor. This approach enforces SAP best practices but makes updates and upgrades substantially easier and thus more frequent.
NetSuite integrates with cloud services and third-party solutions through its online marketplace and a robust API. It has a strong ecosystem built around small to mid-sized business needs, but users report that integrating and importing information from other systems can be challenging.
SAP has APIs and an online marketplace for turnkey integrations as well, but the ERP also benefits from the many other SAP products it connects with natively, such as SAP SuccessFactors for human resources and SAP Ariba for spend management. SAP has a large and vibrant global ecosystem of support partners, too, Navigator included, and users report that just about everything can be integrated with SAP Cloud ERP.
Both NetSuite and SAP come with a range of reporting options and data management capabilities, but this is one area where the two solutions really differ.
NetSuite is good for standard reports, but software reviews site TrustRadius notes that users frequently mention the challenges of creating custom reports and importing data from outside the system. Only 31 percent of NetSuite users view its data and reporting capabilities positively, according to TrustRadius, while 26 percent view it negatively.
SAP is frequently praised for its ability to generate both standard and custom reports, on the other hand. Users also appreciate the speed at which it can process and incorporate data from disparate sources. Half of all SAP Cloud ERP users view its reporting and data management capabilities positively, according to TrustRadius, while only 12 percent view it negatively.
Globalization and compliance are also areas where SAP clearly shines in comparison to NetSuite.
NetSuite offers multi-subsidiary management and is strong for mid-market international operations, but it is far less sophisticated with compliance handling.
SAP, on the other hand, is the gold standard for both multinational operations and compliance. It deftly handles multi-country, multi-entity operations, tax and localization, and it is built for handling even the most complex compliance regimes thanks to its focus on the needs of larger enterprises.
While each solution has its advantages, overall, businesses frequently choose SAP after evaluating both platforms. Among those considering both, TrustRadius found that 86 percent ended up selecting SAP.
Learn more about SAP Cloud ERP and why it might be the right choice for your business by calling one of our experienced ERP consultants at (801) 642-0123 or writing to us at info@nbs-us.com.