SAP S/4HANA vs. Oracle Fusion Cloud ERP: An Independent Comparison of ERP Systems

Summary

In this video, Eric Kimberling, CEO of Third Stage Consulting, compares two of the most prominent ERP systems—SAP S4 Hana and Oracle Fusion. He outlines key differences between the systems, including their level of standardization versus flexibility, their database and analytics capabilities, and how their strategies have evolved over time. While SAP focuses on a more standardized approach with additional best-of-breed solutions, Oracle Fusion offers more customization and is built on a unified platform. The video also discusses market positioning, adoption challenges, and the importance of selecting the right system based on an organization's needs.

Takeaways

• 😀 SAP S4 Hana and Oracle Fusion are the two most common ERP systems for large enterprises, and the choice between them depends on your organization's specific needs.
• 😀 SAP S4 Hana is typically more rigid and standardized, ideal for organizations that value consistency and efficiency across their operations.
• 😀 Oracle Fusion is more flexible and customizable, making it better suited for organizations that need adaptability and decentralized operations.
• 😀 SAP's S4 Hana platform focuses on real-time data processing and efficient memory usage, while Oracle Fusion excels in Enterprise Performance Management and data analytics.
• 😀 SAP has evolved into a 'best-of-breed' provider by acquiring and integrating other solutions like SuccessFactors, Concur, and Ariba to complement S4 Hana.
• 😀 Oracle Fusion represents a unified platform, incorporating Oracle’s strong database and data analytics capabilities, with a more holistic approach to ERP solutions.
• 😀 SAP offers two key go-to-market strategies: 'Rise' for large enterprises to migrate to S4 Hana, and 'Grow' for small to mid-market organizations using the cloud version of S4 Hana.
• 😀 Oracle competes in the mid-market with both Fusion for larger organizations and NetSuite for smaller companies, offering flexibility depending on your company’s size and needs.
• 😀 Both SAP and Oracle require significant change management efforts, as both systems are fully re-implemented for the cloud, and the transition may be easier within the same vendor ecosystem.
• 😀 Oracle Fusion is a more mature product with over a decade of development, while SAP S4 Hana is a newer solution and continues to develop additional capabilities to match its competition.

Q & A

What is the main difference between SAP S4 Hana and Oracle Fusion?

The main difference lies in the level of standardization versus flexibility. SAP S4 Hana is more rigid and standardized, making it suitable for organizations looking for consistency across operations. Oracle Fusion, on the other hand, is more flexible, allowing for easier customization to meet specific business needs.

Which system is better for organizations that value consistency and economies of scale?

SAP S4 Hana is better suited for organizations that prioritize consistency and operational efficiencies. Its standardized approach helps scale operations with a uniform set of processes across the enterprise.

How does Oracle Fusion offer more flexibility compared to SAP S4 Hana?

Oracle Fusion provides a more flexible toolset that allows for easier configuration and customization. This flexibility can be advantageous for decentralized organizations or those with unique business requirements, although it also introduces risks associated with over-customization.

What are some of the strengths of Oracle in data analytics?

Oracle has a long history of strength in Enterprise Performance Management, business intelligence, and overall data analytics. This is partly due to acquisitions like Hyperion, which have been integrated into Oracle Fusion to enhance its data capabilities.

How do SAP and Oracle differ in their go-to-market strategies?

SAP has adopted a dual strategy with 'Rise' for helping existing customers migrate to S4 Hana and 'Grow' to target the mid-market with a multi-tenant cloud version of S4 Hana. Oracle, in contrast, has focused on Oracle Fusion as a unified platform and has acquired NetSuite to target the mid-market segment.

What is SAP's 'Rise' and 'Grow' strategy?

'Rise' is SAP’s initiative to assist its existing customer base in migrating to S4 Hana by providing best practices and technology solutions to ease the transition. 'Grow' targets the mid-market, offering a more affordable and accelerated implementation process for smaller organizations.

Why is Oracle Fusion considered more mature than SAP S4 Hana?

Oracle Fusion has been in development for over a decade, making it a more mature product compared to SAP S4 Hana, which is relatively newer and still catching up in some areas of functionality and cloud capabilities.

Which system should an organization choose if it’s focused on strong data management and analytics?

Oracle Fusion would be the better choice for organizations prioritizing data management and analytics, due to Oracle’s deep expertise in data-driven solutions and its integration of powerful tools like Hyperion for enterprise performance management.

How does the choice between SAP S4 Hana and Oracle Fusion depend on company size and market focus?

For larger enterprises and those with complex operations, SAP S4 Hana may be a better fit due to its standardized processes. However, for mid-market organizations, Oracle Fusion or even Oracle NetSuite might be a better choice, with NetSuite providing a cost-effective option for smaller businesses.

What challenges might organizations face when implementing SAP S4 Hana or Oracle Fusion?

Both systems require complete re-implementations, which can be complex and resource-intensive. Organizations transitioning from legacy systems (either SAP or Oracle) may find it slightly easier to adapt, but the process will still involve significant organizational change management, training, and new system adoption efforts.