As discussed on previous
pages, the SAP Supply Chain Systems are commonly integrated within ERP Systems.
Oracle is the first system to compare with SAP Systems because Oracle
shares market leadership with SAP and has the most comparable products
(Kimberling, 2014). Similar to SAP, Oracle serves large organizations, such as
Heinz Corporation (Kimberling, 2014). Another technology that is comparable and
competitive with SAP is Microsoft Dynamic. Unlike Oracle and SAP, market
share for Microsoft Dynamic is significantly less (9%) within the industry
(Clash of the Titans, 2014). Microsoft Dynamics is known for having the
shortest implementation duration which may be intriguing to companies that are
on time constraints (Clash of the Titans, 2014). Infor is the third competitor
and specializes in specific supply chain functions which may be intriguing to
customers like Heinz Corporation (Software Insider, 2015).
All of the above systems are ERP systems that share commonalities
and differences. Certain systems have strength in the Supply Chain Management
area. Below we compare and contrast the value and the risks of the four ERP
systems that will enhance the Supply Chain function within the Heinz Warehouse.
6.1 Competitive
Comparison
The following
information will compare how long it will take to implement Oracle, SAP,
Microsoft Dynamic and Infor. SAP plans to fully implement the software in
an estimated fifteen months and the real time is around 19 months (). Oracle’s
full implementation estimation is around 20 months, but the real
time will be implemented in 24 months. 21 months is the predicted
implementation for Microsoft Dynamics, but the real time is 24 months. Infor
has the lowest estimated implementation time and the real time of full
implementation differs by 1 month.
Image 7
The chart above shows the implementation duration for all four
companies. Infor implementation shows a decrease in the prices from the planned
to the actual prices that companies will pay. Infor costs less than the other
three ERP (around $1,500,000).
Image 8
SAP, Oracle and
Microsoft Dynamics demonstrate a rising cost between planned and actual total
cost of ownership (above image). All four systems have an average cost around
$2,000,000.
6.2 Value
All the databases are ERP systems but they all have different
characteristics. These different characteristic allow the software to add
improved and enhanced value to the Heinz Warehouse. Oracle system has JD
Edwards that perfectly supports the SCM. JD Edwards is a integrated
applications suite of Comprehensive ERP software (Oracle, 2014). This software
embodies Oracle’s best characteristics and adds value because of the
flexibility of the software. Microsoft Dynamic adds value to the company
because it is supported by the largest network of more than 10,000 partners.
This network develops extended, industry-specific functionality beyond the core
products. Infor provides value to the Heinz Warehouse with machine
learning directly integrated into Infor applications. Infor uses all data
provided from Heinz. This is a big problem with companies that have data and
lack the knowledge on how to use it.
6.3 Competitive Risk
Risk is one of the biggest worries of companies when they evaluate
ERPs. SAP, Oracle, Microsoft Dynamics and Infor have some level of risk. Since
2010, all the ERP have been decreasing levels minimum levels of the technical
factors. ERP systems have similar rates in terms of technical risk. However,
when it comes from human factors risk levels are quite different. Picking the
wrong software, and lack of training are some of the most common human risk
factor. SAP and Oracle specially developed some extra tool to mitigate the risk
in their implementation.
Microsoft Dynamics has the biggest disruption for go-live at 71%, Oracle’s disruption is 61%,
and SAP is the third one with 57%. The lowest level is Infor with 47%. (Clash
of Titans, 2015).
6.4 Competition Conclusion
After considering all
the ERP systems, Team SCM decided SAP is the best fit for the Heinz warehouse
in relation to Oracle, Microsoft Dynamic and Infor. All the ERP systems are
competitive and show advantages, however, SAP has the biggest advantage for real
time of implementation. Although SAP is an expensive ERP, it is the leader in
the market and its price is lower than Oracle. SAP adds more value to Heinz
Corporation compared to the other competitors.
References
Kimberling, Eric. (2014). TechTarget: SearchSAP. Retrieved from http://searchsap.techtarget.com/feature/SAP-vs-Oracle-Who-comes-out-ahead
Software Insider. (2015). ERP Software: Compare. Retrieved from http://erp.softwareinsider.com/compare/131-218/Infor-ERP-vs-SAP-ERP
Clash of the Titans 2014. An Independent Comparison of SAP,Oracle,Microsoft Dynamics and Infor (2015). Retrieved from http://go.panorama-consulting.com/rs/603-UJX-107/images/Clash-of-the-Titans-2016.pdf?mkt_tok=3RkMMJWWfF9wsRoluKrLZKXonjHpfsX57ewtXK63lMI/0ER3fOvrPUfGjI4CS8ZiI+SLDwEYGJlv6SgFTLDGMbVqwrgMWxY=
Oracle. (2014). JD Edwards Enterprise One. Retrieved from http://www.oracle.com/us/products/applications/jd-edwards-enterpriseone/overview/index.html
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