Which ERP system is more profitable for you - Oracle or SAP?

What is an ERP system? It is a system designed to plan, manage and monitor all key processes and resources in a company. In addition, it streamlines, refines and above all automates business processes. It can cover basically all divisions or departments of a company such as finance, warehousing, manufacturing, human resources, distribution and more.

If you opt for a truly robust ERP solution that covers all of the above areas, you need to plan for a larger-scale, long-term investment. Which ERP system should you opt for so that your initial investment doesn't go to waste? We will present the arguments in the following lines. David Kazda, Director of the ERP division, shares them in an interview.

Is it even possible to compare Oracle JD Edwards and SAP S/4 HANA ERP systems 1:1?

As mentioned above, it's not completely easy - like the differences between Macs and PCs. In terms of functionality, these systems are virtually comparable. Both are among the best systems on the market and both have decades of development behind them. This makes them both perfectly tuned over the many years of development. In terms of functionality alone, these products are the best on the market.

On a comparable level is the ERP system Microsoft Dynamic AX. Then there are many other local systems in the Czech Republic, but they have a much shorter history and are usually characterized by limited functionality. They mostly deal with accounting transactions or universal processes and are so-called "box" systems. However, Czech companies like to use them and can be satisfied with more limited functions. However, these systems have one major problem - if a company grows and has additional branches or wants to operate in more countries (even just Slovakia), it has to use several different systems at the same time.

Both SAP and JD Edwards are inherently ready for companies to use them globally. In other words, you have one system, one server environment, but you have an "unlimited" number of companies in it. The largest Oracle JD Edwards installation is a system that has over 140,000 users from hundreds of companies tied to the parent company.

If we continue with the basic comparison, both SAP and JD Edwards are designed for international companies to meet different legislative requirements. Which is an extremely important feature, as although it may be the case that even within the EU many things have been harmonised, this is not entirely the case. For example, the Intrastat report looks completely different in each country, even though it is dictated by EU legislation. And there are other reports, VAT control declarations, VAT statements, etc. - not only are they in different languages, but they also have a different logical structure in different countries across the EU.

Coming back to the user functionality, JD Edwards is currently available to users in most of the world's languages, including Czech, and SAP is similarly well positioned. When we compare it to local systems, if the system supports any other language at all, it is usually only English. Therefore, as soon as it happens that a company is Czech, but foreigners work in the management, these systems may encounter a lack of language user interface.

Both ERP systems have a front-end in the form of web applications. Both can be run on a mobile phone.

Both systems offer the possibility of detailed auditing. I.e. you know exactly who has done what where in the system. Everything can be easily traced and nothing can ever be permanently removed, records are made of everything. It is also very easy to set up who has access to what and who has permission to perform various actions. Monthly reports can be generated on everything.

Implementation, differences and documentation

Implementing an EPR system for a larger company is a one, two, sometimes even three year project. It is a huge investment in the tens of millions of crowns. And once a company deploys a system, it usually doesn't change it.

SAP has a shorter roadmap to support. JD Edwards guarantees support for the latest version of the system until at least 2034. Older versions will be supported by Oracle as long as the customer pays maintenance fees. In that case, they will also receive all security patches and nothing will force the client to change the system. Customers know that they can continue with their existing ERP system for the next 10 years without further investment and are assured of full support from Oracle.

When implementing both JD Edwards and SAP systems, the implementation partner matters a lot. For example, we at Algotech know the local environment, we know what processes are popular in the Czech Republic, but we can also recommend to companies how they could handle a particular process differently. We know from experience that there is a more efficient way that we can set up in the system. And although our customers are mostly in the Czech Republic and Slovakia, we have a lot of experience with foreign projects, which we have already implemented in many countries (Hungary, Romania, Serbia, Bulgaria, Belgium, USA, ...). Therefore, we know that it very much depends on how the project is handled and that it may look different in different locations.

Algotech consultants created the first Czech translation of JD Edwards in the early days, which has continued to develop since then. Algotech's most experienced ERP consultants have been working on the subject for over 30 years. As a result, we are able to get the most out of Oracle JD Edwards ERP.

In contrast, SAP S/4 HANA is relatively new - the entire core has been reprogrammed from the ground up. The JD Edwards data core has been stable for 40 years and is still expanding. There has never been a time when Oracle "threw it away" and did it again.

Most customers use SAP S/4 HANA from the cloud only; JD Edwards can also be run on-premise or in hybrid mode. There is still a definite problem with the cloud that a lot of companies don't have complete control over it. For example, companies with a production line that runs down to the second can't afford even the slightest outage, which can run into the many millions.

The documentation for both systems is in local languages. But at Algotech, we also offer to train you on how to work in JD Edwards so that you don't have to study anything lengthily yourself and can use the system effectively right away.

What are the biggest advantages of JD Edwards over other ERP systems?

Some have already been mentioned, let's summarize the advantages of JD Edwards in points:

• The core system has over 40 years of development behind it - it is stable and reliable.
• Support guarantee - at least 10 years for the latest version, even lifetime support for older versions.
• JD Edwards can be in the cloud if you don't want it - a benefit for manufacturing companies or sites with unstable connectivity.
• Sophisticated implementation methodology - proven for years and used by all partners worldwide. For large-scale projects, this methodology is one of the best available.
• Full customization from a user perspective - Oracle offers a sophisticated system and methodology to effectively customize the ERP system. The development tools are efficient and offer a wide range of modification options. The company does not have to customize the application, but the system will customize the company. Oracle also invests heavily in the user interface to make the tool easy to work with for the users. In SAP, the keyboard shortcuts are based on German, which can be confusing for some users.
• All in one - dozens of companies can be put into the system , even in different countries.
• Consolidation of financial data - especially when multiple companies are in one system - can also be accounted for in different currencies. This is also a potential advantage once the changeover to the euro has taken place.
• Listening to users - customers can send their requests and suggestions for improvements to Oracle. If there are many of the same requests, Oracle will add them to new versions of the product.
• Suitable for manufacturing and construction industries - construction companies, automotive and other manufacturing companies. This is where the power of JD Edwards and the features that other systems do not offer in a standard system will come into play,

• And one more interesting fact that may also make your decision easier: for a long time, SAP was Oracle's biggest customer. In fact, until the S/4 version of HANA, it used a database from Oracle.

   

Final summary

Oracle guarantees to develop and maintain all its ERP systems in parallel - EBS and NetSuite in addition to JD Edwards. The vendor will not merge these systems in any way, nor will it force customers to migrate to anything new. If you're happy with what you have, you can have it for virtually unlimited time.

We are an Oracle partner and we implement the Oracle JD Edwards ERP system in Czech and foreign companies in the USA, Germany, Romania or Hungary. We have always completed 100% of ERP system implementations and migrations. We have an experienced team and we do not only sell the product, but mainly our experience from many successful projects. Contact us - we will be happy to arrange a meeting with our clients as well, where you can check the quality of our work.