Today's businesses are more dynamic than ever before. Every business wants to present itself in the best possible light, draw in the most qualified clients, and increase revenue.
It's easier said than done, though!
It takes more than just the correct talent to manage talent, increase customer retention efforts, and gain access to many operations at various levels. Software for enterprise resource planning, or ERP, is required to optimize operations and information flow.
Because they efficiently increase productivity, manage resources, and make data-driven decisions that support ERPs' role in operational optimization, ERP systems are an essential component of businesses.
SAP and Odoo: The Top Two ERPs
Odoo and SAP are two major vendors that have disrupted the industry like no other, according to our exploration of the ever-changing world of ERP software. The competition between these two ERP suites in 2024 will be more thrilling than ever because of their frequent improvements.
So let's take a closer look at these two ERPs and how they assist businesses boost output, simplify processes, and create new growth prospects.
The Value of Selecting the Appropriate ERP for Your Company
Due to the popularity of both programs, many businesses are unsure about whether to use SAP or Odoo for their operations. But regardless of the ERP suite, it's critical to recognize how important it is to select a system that works for your company.
Let's examine the importance of selecting an appropriate ERP for your business in more detail:
Improved Visibility and Insight
ERP software provides top management with access to vital business activities by compiling data from numerous departments.
Decision-makers can monitor daily operations, fix inefficient processes, and spot growth opportunities thanks to the enhanced visibility.
Improved Analytics and Reporting
Organizations may forecast, plan, budget, and update internal and external stakeholders, including shareholders and investors, on the state of operations with the use of accurate and comprehensive reporting.
ERPs give your team a single analytics and reporting solution for all processes, which helps big data and business operate together seamlessly. Without the need for several spreadsheets and emails, it allows your team to examine and contrast capabilities across departments.
Increased Performance and Efficiency
ERP systems connect several departments, facilitating teamwork. Your team will find it easier to produce excellent work and reach their maximum potential if they can work together more effectively.
When properly implemented, an ERP software stack streamlines or automates tedious manual tasks, freeing up your employees to concentrate on tasks that generate income. And what else? ERP systems can also support overall corporate alignment and the adoption of industry best practices.
More robust data security
By restricting input to a single system, ERP software improves data security. It eliminates the pathways that a hacker could use to get in and take data.
Compared to the option of merging data from many systems, ERP solutions—whether on-premise or cloud-based—offer a higher degree of security. Additionally, the majority of ERP software runs on a single database system, enabling centralized backups of your sensitive and important data.
Better Management of the Supply Chain
An ERP suite's feature-rich workspace offers a number of noteworthy supply chain advantages and is essential to creating and sustaining an improved supply chain management procedure.
Comparison: Odoo vs. SAP
Even though SAP has been around for a while, only major businesses could utilize it due to its high cost. However, the introduction of OpenERP Odoo, which was free to use, revolutionized how small and medium-sized enterprises operate today.
Even SAP has released a number of ERP packages in recent years that cater to small and medium-sized enterprises. You could therefore become perplexed about which ERP software is best for you.
Examine the differences between Odoo ERP and SAP in order to make your decision.
Frequency of eCommerce orders
Could you calculate how many eCommerce orders your store typically receives each day and whether it is within 100? If so, you might want to think about going with Odoo ERP. The program can handle a significant volume of data with ease while being open-source.
Additionally, the Odoo Community version is a better option if you are a small business unit and don't handle a lot of orders every day. Additionally, you can always upgrade to the Enterprise edition or modify it for improved performance if your company grows in the future.
However, SAP would be a better option if you are a huge corporation or enterprise. Sites like Amazon, which processes millions of orders every day, utilize it because it can manage a lot of data. The program is the most dependable, despite its tendency to be slow when handling large amounts of data.
Time and effort required to deploy Odoo and SAP
Python and Javascript, two widely used technologies with a low learning curve, are used to write Odoo. Additionally, the Odoo ERP software has several modules, which facilitates implementation. These modules have unique characteristics and, because of their straightforward user interface, are simple to implement.
However, hiring Odoo developers allows you to modify your ERP software and do more. They are able to incorporate software tailored to your particular requirements.
The technology behind SAP is more complicated than that of Odoo. Even though it offers many modules, such as Odoo, using them is difficult. To learn how to operate with SAP, you will need to receive expert training from SAP developers.
To work with the platform, a SAP developer must be proficient in C, C++, Java, and SAP's proprietary programming language, ABAP. As a result, there is a steep learning curve and difficulty in locating experienced SAP developers.
Options for hosting
You can install Odoo or SAP on-site or on a private or public cloud server, depending on your preference. On the other hand, you can install Odoo ERP on your servers for free using the Odoo community version. Alternatively, you can use the Odoo server for a cost if you choose the enterprise edition.
In contrast, you will be required to pay the license cost for SAP if you decide to use it. Keep in mind that there would be no extra expenses for server upkeep.
Switching to updated ERP versions
Do you feel at ease moving all of your data to one ERP version and then back to the other when a newer version is released?
Odoo is a better option than SAP if you can tolerate your ERP system being updated and migrated frequently. Odoo ERP is always adding new features and functionality to its modules to enhance your workflow.
In October 2024, for example, the most recent version of Odoo 18 was made available. Additionally, companies are already switching to Odoo 18 in order to take advantage of the new capabilities. It is feasible because of the Odoo interface's ease of use and ease of updating to the most recent version.
Although it works best for a new company, it might not be the best choice for a big, established company. Coca-Cola, for instance, now operates in more than 200 nations and must manage terabytes of data.
Because of its backward compatibility, SAP is a better option in this situation. As a result, every time an update is released, you are not required to migrate all of your data or code.
Fixing errors
In the rivalry between Odoo ERP and SAP, Odoo may be a better option for companies when it comes to problem fixes. The platform provides you with free access to a vast developer community because it is open-source. Anytime there is a developmental problem, you can turn to them and get assistance as soon as you can.
However, SAP is proprietary software, therefore you will need to rely on your development team or SAP support team if you encounter any implementation-related problems.
The difference between the features can be seen in the comparison table provided on : https://www.odoo.com/page/odoo-vs-SAP-business-one
Factors to Consider When Selecting Between SAP and Odoo
Consider your company's size, financial constraints, and industry requirements while choosing between Odoo and SAP.
Odoo's modularity, lower installation costs, and quicker deployment can be advantageous if your company is new or tiny. Because of its flexibility, you can grow as you go without having to make a big upfront investment.
However, if you work in a highly regulated industry (like banking or healthcare), you will need to apply complex procedures and data compliance. For these companies, SAP's strong infrastructure can be a fantastic choice.
Additionally, it's best to ask yourself a few questions if you're still unsure between the two possibilities, specifically:
- What features is the business in need of?
- Will the software be able to change as the business expands?
- How much does it cost to implement and how much does it cost each year?
- When is the software expected to be operational?
For smaller businesses or those just starting out with ERP solutions, Odoo provides a scalable and affordable option that can be customized as needed.
Odoo's modular approach, which steadily adds new features as companies grow, may also be advantageous to medium-sized businesses. Large enterprises benefit greatly from SAP's enterprise architecture, especially those in sectors that demand strict data compliance, all-encompassing support, and global operations.
Lastly, SAP is better suited for large corporations that need significant ERP functionality, while Odoo is best suited for adaptable, cost-conscious businesses.