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Brief on ERP system giants ORACLE & SAP With Critical Comparison between the two.
SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW

The Enterprise Resource Planning System is a software package that was specially designed to help companies to run their businesses better. It consists of many modules. Each of the modules is used at different departments within one corporation. All those modules are interconnected with each other in one coherent system. Both SAP and Oracle have demonstrated over the last couple of decades that each had sufficient ability to adapt to the changing economic climate during the late 1980's through 1990s. By 2007 Oracle had the third-largest revenue, after Microsoft and IBM. software

SAP is the world's third-largest independent software vendor.
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ORACLE found by Mr. Larry Ellison

Mr. Larry Ellison and his management team have grown Oracle Corporation from a purely database company into a purveyor of software components including middleware, development tools, and ERP/CRM/HRMS. Data Collection Advantage reduces transaction time by more than 80 percent by providing Oracle with accurate information in real time. As became apparent with the acquisition of PeopleSoft in January 2005, Oracle has made acquisitions an important component of a growth strategy. Internet integration means that data collection can be supported across virtually any device that connects to the Internet, allowing Data Collection Advantage to support mobile terminals and desktops in places where corporate networks are not available. The oracle company keeps upgrading and releasing new products into market, new versions releases which serves better than the earlier versions and thus the performance is improved much in later versions and thereby retaining the market growth and thus proves greater satisfaction to the customers using this technology. Thus the advantage of a higher version is that one would have more features and better capabilities. Oracle is a major database which along with its added features passes the ACID test, which is important in insuring the integrity of data. This is very important because data is the heart of any system in organization.
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Data Collection Advantage Transactions for Oracle ERP*  Receiving  Put-away  Inventory transfers  Inventory issues and receipts  Inventory inquiries  WIP moves and completions  WIP issues and returns  Picking  Shipping  Cycle count/physical inventory And many more! * For discrete and process Manufacturing Utilizing Data Collection Advantage for Oracle, companies can quickly gain a competitive advantage through the following:

Fast response to customer demands Direct links to vendors and customers Inventory control throughout the supply chain
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SAP is a product developed and marketed by the German company SAP AG

SAP is a German acronym for "Systemanalyse und Programmentwicklung," which can be loosely translated into "Systems and Application Products." Founded in 1972 by IBM application developers, SAP AG originally developed application products for the European marketplace. The SAP R/3 system runs on virtually any hardware/software platform and can use many different database management systems. • IBM DB2 Express Edition & • Microsoft SQL Server Since SAP is database-independent, the SAP architecture requires the database to be defined as a part of the initial SAP installation. Once defined, the SAP programs (ABAP programs) will generate SQL that is compliant with the target database product. SAP MaxDB is the DBMS developed and supported by SAP AG. It is available for MS Windows, Linux, Unix. Today more than 13,000 SAP customers run SAP MaxDB and SAP liveCache installations, proving SAP MaxDB's reliability, scalability and availability for configurations of all sizes.

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While SAP can be run with many different database products, nearly 85% of SAP customers now choose Oracle because of its dominance in the database marketplace. The SAP R/3 code is written in an interpretive language called ABAP. (ABAP is a German acronym that, loosely translated, means "Advanced Business Application Programming.") The SAP R/3 application offers end users the ability to run their entire business from a single application vendor. Some SAP customers choose to run their entire enterprise from SAP, while others run SAP only for specific business processes, such as manufacturing or finance. When an SAP application is purchased with Oracle, each of the modules is delivered with a complete Oracle schema consisting of thousands of tables and indexes. While SAP is available for many different hardware platforms and operating systems, the majority of SAP systems use Unixbased servers for hosting SAP and the Oracle database.
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ABOUT

The

second-largest software supplier ORACLE was founded in 1977 in the United States and by 1999 the company was serving 5000 clients in over 140 countries. Oracle is well known for their database systems rather than enterprise resource planning system. It is rating as the second ERP package vendor after SAP on the ERP market. Oracle has a reputation as a company with strong software support, a large financial budget and stable position among the competitors. At the same time the corporate culture of Oracle is conservative on benefits from revenues. Which causes such problems as inflexibility and slow implementation of their ERP products. In other words, the company lacks partners and consultants for technical expertise.
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world

ABOUT

The main player on ERP market is the German company SAP (Systems, Application, and Products in Data processing) which was founded in 1972. It was the first time in software history that a company outside of the United States had gained such success. In 1999 SAP had more than twice as many customers as Oracle in 100 countries around the world. Unlike Oracle, SAP decided to work in close collaboration with many other companies. The company success derives from the fact that SAP invests 20 percent of the profit on research and shares 80 percent of the total revenues with their alliance partners. Moreover, SAP has many consultants who provide help and training to their customers. And there are even third party developers who supply a large number of add-in programs that can work together with SAPs products. As a result, customers enjoy more flexible and fast implementation of their ERP systems. There is no doubt about why SAP became a leader.

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CRITICAL COMPARISION
Latest Version 11g Next Launch : Oracle E-Business Suite Release 12.1

Latest Version R/3 The client-server concept, uniform appearance of graphical interfaces, consistent use of relational databases, and the ability to run on computers from different vendors meets with overwhelming approval

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For companies whose sustainable competitive advantage rests on an ability to change direction and adapt quickly to external pressures, Oracle Applications, with its flexibility and configurability, is a better choice. The company with distinguished values which creates a competitive advantage would prefer to choose the Oracle to build a unique system that will fit well to their businesses.

For industries that experience less dramatic changes, perhaps SAP is an acceptable solution.

If the company is limited in resources and restrained in time the best solution would be to go for SAP products.

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Oracle Corporation started as a tools company. Today Oracle has become a much different entity.

SAP began its life as an ERP company. Today SAP is still an ERP company that some see as "innovation free," The SAP system is a collection of software that performs standard business functions for corporations.

Larry Ellison and his management team have grown Oracle Corporation from a purely database company into a purveyor of software components including middleware, development tools, and ERP/CRM/HRMS.

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Oracle became popular as a manufacturer of developing products that can be easily integrated with other models from other vendors, enabling them to build a best of breed system. Oracle offers a strong enterprise system that is able to accommodate more than 1000 users

The downside of the SAPs ERP systems is that the SAP vendor forces its customers to change or adapt their corporate culture to match how SAP software works.

Whereas the ERP package from SAP can be scaled from 25 to 1000 users.

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An organization that needs to be adaptable due to market force changes, industry restructuring, or regulatory/governance requirements must be able to partner with a company that will be equally adaptable in its ERP offerings. A case in point is Dell Computers whose management, in an effort to maintain a competitive advantage, designed innovative manufacturing and distribution processes that could not be accommodated by the existing SAP system. Did Dell upgrade to a new version of SAP? Did it customize the existing SAP installation? No, Dell migrated to Oracle Applications.

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Fusion Middleware 11g makes its debut  Next-generation adaptability  Next-generation productivity  Next-generation manageability Oracle acquires Sun Microsystems  Oracle can now compete one on one worldwide with IBM on everything from chips to business process software, particularly with solutions made up of integrated hardwaresoftware stacks. Virtual Iron acquisition  With the acquisition, Oracle appeared to be gravitating toward a new customer base, given that Virtual Iron caters to small and medium-sized businesses.

NetWeaver technology for SAP user but with some more investment.  SAP is providing our customers with solutions for end-to-end business processes. With SAP NetWeaver, your company can integrate people, information, and processes within the company and beyond. SAP and PlaNet Finance will work together to improve the microfinance sector through a combination of micro financing, the use of new technology, and the creation of value-chain extensions that can help entrepreneurs at the base of the economic pyramid create sustainable business models. SAP acquired Business Objects  Together, SAP and Business Objects, an SAP company, offers the industry's most comprehensive portfolio of business performance and optimization solutions for companies of all sizes.

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Oracle's decision to raise its list prices by 15% to 20% is cause for concern for both existing and prospective customers. But there are opportunities to offset those hikes, according to industry analysts. Oracle's new price list, updated June 16, includes increased pricing for its new 11g database Enterprise Edition (from $40,000 to $47,500 per CPU) and for BEA Weblogic, now named Oracle's lead app server (from $17,000 to $25,000 per CPU). Internet integration means that data collection can be supported across virtually any device that connects to the Internet, allowing Data Collection Advantage to support mobile terminals and desktops in places where corporate networks are not available.

It is composed of a single, virtual file structure with no subsystems.

No hardware purchase maintenance costs.

or

In addition, SAP has released “MySAP.com” which is software that provides for data interaction and processing connections with the Web.

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Consistency: The database is transformed from one valid state to another valid state. Illegal transactions aren't allowed and, if an integrity constraint can't be satisfied then the transaction is rolled back.  Isolation: The results of a transaction are invisible to other transactions until the transaction is complete thus increasing the security on data.  Durability: Once committed (completed), the results of a transaction are permanent and survive future system and media failures and thus ensuring maintenance and protection of data.

It provides for a "single data entry point" where the data entered from any location is instantly sent to all other appropriate modules in the ERP system. Available in 14 different languages (German, English, Spanish, etc.) and also incorporates multiple currency features that provide essential information processing capabilities for multinational corporations It provides check writing capability in its Accounts Receivable component which very few other programs offer.

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INDUSTRIES
                            

Banking Communications Financial Services Health Sciences High Technology Insurance Public Sector Retail Utilities AutoVue Enterprise Visualization Business Process Outsourcing Customer Relationship Management Enterprise Performance Management Product Lifecycle Management Project Portfolio Management Supply Chain Management Transportation Management Financial Management Governance, Risk & Compliance Management Human Capital Management Aerospace and Defense Automotive Chemicals Consumer Goods Education and Research Engineering and Construction Industrial Manufacturing Media and Entertainment Natural Resources

INDUSTRIES  Banking

Defense & Security Healthcare  Higher Education & Research  Insurance  Public Sector  Aerospace & Defense  Automotive  Chemicals  Consumer Products  Engineering, Construction Operations  High Tech  Industrial Machinery Components  Life Sciences  Mill Products  Mining  Oil & Gas  Retail  Tele communications  Media  Professional Services  Travel & Logistics Services  Utilities SULABH SINGH, MBA - IB 1st SEM, ABS-LUCKNOW  Wholesale Distribution
 

& &

Oracle is used for almost all large application and one of the main applications in which oracle takes its major presence is banking. In fact ten of the world’s top 10 banks run Oracle applications this is because oracle offers a powerful combination of technology and comprehensive, pre-integrated business applications, including key functionality built specifically for banks.
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Financials Applications

The SAP Financials applications contain all of the functionality needed for enterprise-wide financial management. The modules within the Financials applications include the following: Financial Accounting (FI)

Provides a complete financial accounting solution, including income statements, balance sheets, journals, ledgers, and all areas of financial accounting. Assists in controller tasks.

Enterprise Controlling (EC)

Capital Investment Management (IM)

Assists finance organizations in their capital investments and tracking. Assists the controller organization. Assists with transactions related to the U.S. Treasury.
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Controlling (CO)

Treasury (TR)

Human Resources Applications

The SAP Human Resources (HR) applications designed to provide a fully functioning system. They include two primary modules:

are HR

Personnel Administration (PA)

Assists with all areas of personnel administration, including applicant tracking and personnel history. Assists with training and educational status of employees.

Personnel Development (PD)

These systems handle all of the mundane HR tasks, such as personnel and payroll, and also a number of more esoteric HR functions, such as seminar and convention management.
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Logistics Applications

The SAP Logistics applications include SAP's most popular modules. Logistics was the first area of entry for SAP. This includes virtually every area of manufacturing, from the initial acquisition of raw materials to the delivery of finished goods. The modules in this area include the following products:  Materials Management (MM)

Manages raw materials, inventory, and all aspects of goods manufacturing. Offers sophisticated tools for planning large production environments.

Production Planning (PP)

General Logistics (LO)

Manages logistics for companies that require large-scale deployment of goods and resources. Manages the inventory and distribution of finished goods. Manages the resources required for large manufacturing plants. Captures and maintains quality control for manufacturing environments. Assists with the scheduling of project tasks and interdependencies between tasks.

Sales and Distribution (SD)

Plant Maintenance (PM)
 

Quality Management (QM) Project System (PS)

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The SAP R/3 System Architecture

All SAP R/3 applications are delivered in a three-tier client/server architecture, shown in Figure.

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The three layers are:

Presentation layer

The PC-based GUI interface that is used by the end-user community. The SAP application servers that service requests for data and manage the interface to the presentation layer. The actual DBMS that communicates with the application servers to fulfill their requests for data.
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Application layer

Database layer

THANK YOU !

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