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Brief on ERP system giants ORACLE & SAP

With Critical Comparison between the two.
 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 software revenue, after

Microsoft and IBM.

 SAP is the world's third-largest independent software

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 inSULABH
insuring the
SINGH, MBAintegrity
- IB 1st SEM,of data. This is very important
because data is the heart of any system in organization.
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

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.
 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 Unix-based
servers for hosting SAP and the Oracle database.
 The world 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
 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

 Latest Version 11g  Latest Version R/3

Next Launch :
Oracle E-Business Suite  The client-server concept,
Release 12.1 uniform appearance of
graphical interfaces,
consistent use of
relational databases, and
the ability to run on
computers from different
vendors meets with
overwhelming approval
 For companies whose  For industries that experience
sustainable competitive less dramatic changes,
advantage rests on an ability perhaps SAP is an acceptable
to change direction and adapt solution.
quickly to external pressures,
Oracle Applications, with its
flexibility and configurability, is
a better choice.

 The company with  If the company is limited in

distinguished values which resources and restrained in
creates a competitive time the best solution would
advantage would prefer to be to go for SAP products.
choose the Oracle to build a
unique system that will fit well
to their businesses.
 Oracle Corporation started as a  SAP began its life as an ERP
tools company. company.

 Today Oracle has become a  Today SAP is still an ERP

much different entity. company that some see as
"innovation free,"

Larry Ellison and his The SAP system is a collection

management team have grown of software that performs
Oracle Corporation from a standard business functions for
purely database company into corporations.
a purveyor of software
components including
middleware, development
tools, and ERP/CRM/HRMS.
 Oracle became popular as  The downside of the SAPs
a manufacturer of ERP systems is that the
developing products that SAP vendor forces its
can be easily integrated customers to change or
with other models from adapt their corporate
other vendors, enabling culture to match how SAP
them to build a best of software works.
breed system.

 Oracle offers a strong  Whereas the ERP

enterprise system that is package from SAP can be
able to accommodate scaled from 25 to 1000
more than 1000 users users.
 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.
 NetWeaver technology for SAP user but
 Fusion Middleware 11g with some more investment.
makes its debut  SAP is providing our customers
 Next-generation adaptability with solutions for end-to-end
 Next-generation productivity business processes. With SAP
 Next-generation NetWeaver, your company can
manageability integrate people, information, and
processes within the company and
 Oracle acquires Sun beyond.
Microsystems  SAP and PlaNet Finance will work
 Oracle can now compete together to improve the microfinance
one on one worldwide with sector through a combination of micro
IBM on everything from financing, the use of new technology,
chips to business process and the creation of value-chain
software, particularly with extensions that can help entrepreneurs
solutions made up of at the base of the economic pyramid
integrated hardware- create sustainable business models.
software stacks.
 SAP acquired Business Objects
 Virtual Iron acquisition  Together, SAP and Business
 With the acquisition, Oracle Objects, an SAP company, offers
appeared to be gravitating the industry's most comprehensive
toward a new customer portfolio of business performance
base, given that Virtual Iron and optimization solutions for
caters to small and medium- companies of all sizes.
sized businesses.
 Oracle's decision to raise its list  It is composed of a single, virtual
prices by 15% to 20% is cause for file structure with no subsystems.
concern for both existing and
prospective customers. But there
are opportunities to offset those
hikes, according to industry
 Oracle's new price list, updated  No hardware purchase or
June 16, includes increased pricing maintenance costs.
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  In addition, SAP has released
data collection can be supported “” which is software
across virtually any device that that provides for data interaction
connects to the Internet, allowing and processing connections with
Data Collection Advantage to the Web.
support mobile terminals and
desktops in places where corporate
networks are not available.
 Consistency:  It provides for a "single data entry
The database is transformed from point" where the data entered
one valid state to another valid from any location is instantly sent
state. Illegal transactions aren't to all other appropriate modules in
allowed and, if an integrity the ERP system.
constraint can't be satisfied then
the transaction is rolled back.
 Available in 14 different languages
 Isolation: (German, English, Spanish, etc.)
The results of a transaction are and also incorporates multiple
invisible to other transactions until currency features that provide
the transaction is complete thus essential information processing
increasing the security on data. capabilities for multinational
Once committed (completed), the  It provides check writing capability
results of a transaction are in its Accounts Receivable
permanent and survive future component which very few other
system and media failures and programs offer.
thus ensuring maintenance and
protection of data.
 Banking  Banking
 Communications  Defense & Security
Financial Services

 Healthcare
 Health Sciences
 High Technology  Higher Education & Research
 Insurance  Insurance
 Public Sector  Public Sector
 Retail  Aerospace & Defense
 Utilities  Automotive
AutoVue Enterprise Visualization

 Chemicals
 Business Process Outsourcing
 Customer Relationship Management  Consumer Products
 Enterprise Performance Management  Engineering, Construction &
 Product Lifecycle Management Operations
 Project Portfolio Management  High Tech
 Supply Chain Management  Industrial Machinery & Components
 Transportation Management  Life Sciences
 Financial Management  Mill Products
 Governance, Risk & Compliance Management
 Human Capital Management
 Mining
 Aerospace and Defense  Oil & Gas
 Automotive  Retail
 Chemicals  Tele communications
 Consumer Goods  Media
 Education and Research  Professional Services
 Engineering and Construction
 Industrial Manufacturing
 Travel & Logistics Services
 Media and Entertainment  Utilities
 Natural Resources  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.
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
 Enterprise Controlling (EC)
 Assists in controller tasks.
 Capital Investment Management (IM)
 Assists finance organizations in their capital investments and tracking.
 Controlling (CO)
 Assists the controller organization.
 Treasury (TR)
 Assists with transactions related to the U.S. Treasury.
Human Resources Applications
 The SAP Human Resources (HR) applications are
designed to provide a fully functioning HR system. They
include two primary modules:

 Personnel Administration (PA)

 Assists with all areas of personnel administration, including
applicant tracking and personnel history.
 Personnel Development (PD)
 Assists with training and educational status of employees.

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
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.
 Production Planning (PP)
 Offers sophisticated tools for planning large production environments.
 General Logistics (LO)
 Manages logistics for companies that require large-scale deployment of
goods and resources.
 Sales and Distribution (SD)
 Manages the inventory and distribution of finished goods.
 Plant Maintenance (PM)
 Manages the resources required for large manufacturing plants.
 Quality Management (QM)
 Captures and maintains quality control for manufacturing environments.
 Project System (PS)
 Assists with the scheduling of project tasks and interdependencies between
The SAP R/3 System
 All SAP R/3 applications are delivered in a
three-tier client/server architecture, shown
in Figure.


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