Researchers: implementation projects of Oracle quicker and more productively than SAP

The consulting group Panorama Consulting Group conducted a research of the main software products of two largest world large-scale rather ERP- vendors, corporations SAP and Oracle. The companies conduct tough competitive struggle two decades, and for this period both proved the capability to follow the changing realities of world economy and customer needs. However, between vendors and their products there are also distinctions which were set by experts during the independent research.

Market positions

Historically SAP acts as ERP vendor whereas a flagman line of Oracle initially were the DBMS applications. Oracle entered the market of ERP by several significant absorption, having purchased JD Edwars,Siebel CRM, PeopleSoft and others.

According to Panorama Consulting from 2005 for 2009, the leading vendor in the world market among clients of all industries and scales of business in total is SAP, occupying about 32% of the market. Other shares are distributed as follows: 30% belong in total to the companies, small in comparison with leaders, another 23% are occupied by Oracle and 14% - Microsoft.

During the research 1600 of the Panorama Consulting ERP projects it is also established that SAP is the system which is the most often included in "short lists" of implementations. So when choosing the ERP system of the SAP solution among others are considered most often. Frequency of mentioning of systems in "short lists": 20.4% - SAP ERP, 14.9% - Microsoft Dynamics, 9.8% - Oracle E-Business Suite.

Nevertheless, for the solutions selected finally from "short lists" the picture looks in a bit different way. Among selected for projects on the basis of "short lists" of systems in the first place Oracle PeopleSoft is – it became a basis for 66.7% of the selected projects. Then Oracle eBusiness Suite – 54.2%, SAP - 54.1%, Infor – 38.5%, Oracle JD Edwards – 37.5% follows.

Explaining such difference in data experts made the following hypothesis: the fact that SAP solutions most often join in "short lists", is explained by a strong brand of the company and a steady position the market. However, the frequency of the final choice for benefit of the systems of Oracle demonstrates that these solutions provide to clients the most complete functionality.

Satisfaction

Both clients of SAP, and clients of Oracle, have rather high level of satisfaction from the used software products, researchers of Panorama Consulting found out. The index of customer satisfaction of SAP makes 72%, Oracle – 74%.

Implementation speed

Analysts of Panorama Consulting established that many companies have not the corresponding realities of representation concerning the speed of implementation of ERP projects. It is established that the number of the projects of SAP which did not meet the deadline determined in advance makes 39.4%, similar number of projects of Oracle – 35%. At the same time the average project duration of SAP is 13.8 months that 0.8 months longer, than at the main competitor. At the same time 50% of projects according to Oracle manage to be completed in time that almost twice more, than at SAP.

Investments

The research showed that most the companies initiating the ERP project is made by payments for implementation within 2-3 years if to be more precisely, then the average term makes 2.7 years. At the same time investments into projects based on SAP and Oracle take the period significantly above an average in comparison with solutions of all other vendors, at the same time a difference between directly SAP and Oracle not basic. "SAP has a little more predictable period of payments", - it is specified in a research.

There is also more worrying fact: both clients of SAP, and clients of Oracle showed inability to properly check expenses on implementation. More than 50% of the studied projects eventually were beyond the initial budget as among implementations of one, and other system.

Effect of implementation

In the report of Panorama Consulting it is said that clients of Oracle more often feel the expected effect of ERP system implementation: among them bigger number of the companies achieved at least 50% of the planned improvements.

Comparison of solutions

SAP and Oracle have strong and weaknesses everyone if to consider them solutions in relation to the specific vertical markets and scales of business. So, in the report Oracle is said that SAP solutions often allow to automate large-scale complexes of business processes at the expense of one solution, and, on the contrary, provides scalability of solutions due to modularity of the systems.

Also in a research the rating of functionality of ERP systems from SAP and Oracle made on the basis of questioning of clients of the company is provided. Respectively the strongest functional units at this or that vendor are highlighted with green color in the table.

"The choice between SAP and Oracle is not just the choice between black and white", the resume says. Depending on strategic priorities and tasks of the specific company of the solution of this or that vendor will have strong and weaknesses.