Enterprise Resource Planning: Oracle/SAP Group Members: Tiffany Arredondo Qingwan Chen Kristina Gatchalian Sophia Lee Ricardo Ortiz
Enterprise Resource Planning:Oracle/SAP
Group Members:Tiffany Arredondo
Qingwan ChenKristina Gatchalian
Sophia LeeRicardo Ortiz
History of Oracle
• Oracle was founded in 1977
• Oracle was originally known for database systems
• Oracle grew it’s ERP systems through organic growth as well as acquisitions of other management systems• Major Acquisitions:
• JD Edwards• PeopleSoft• Sieble CRM
• Oracle’s ERP System is called Oracle Applications
History of SAP
• SAP AG- Systems, Applications and Products in Data Processing
• SAP was started in 1972 in Germany
• Released its first ERP product (R/2) in 1979 – originally a mainframe-based centralized database
• In 1992 redesigned R/2 and released R/3 as a client/server software
• R&D efforts have enhanced newer versions of R/3 to include internet functionalities and other enhancements
Enterprise Resource
Planning SystemIs a business management software that allows an organization to use a
system of integrated applications to manage the business and automate many back office
functions.
Most ERP systems use a unified database to store data for various
system modules
ERP Benefits
ERP Limitations
Oracle
• 420,0000 customers in 145 countries
• Two types of purchase options:• Fully Integrated Stack• Modular Solution
• 3 ERP System Softwares• Oracle E-Business Suite• PeopleSoft• JD Edwards
• Oracle Fusion
SAP
• Over 100,000 customers in 25 industries
• Connected with many third-party developers who provide add-on programs to enhance SAP’s own applications and software
• 4 Core ERP Systems:• SAP Business All-in-One• SAP Business One• SAP ByDesign• SAP ERP
Market Share
Short Listed and Selection Rates
Oracle vs. SAPORACLE SAP
Total Cost of Ownership $2.7 million $2.2 million
Difference between Planned and Actual Total
Cost of Ownership
17% increase 5% increase
Implementation Duration 23.4 months 19.5 months
Functionality Achieved 74% of functionality achieved
50% of functionality achieved
Operational Disruption at Go-Live
60% occurrence 57% occurrence
Length of Disruption 30% for 2-4 weeks 25% for 3-6 months
Scalability Flexible Consistent and Standardized
Oracle and SAP Customers
SAP
• Often used in automotive industry• Manufacturing costs - 15%• Overall selling costs - 13%• Schaidt Technologies
Oracle
• Asiana Airlines• Improved business operations
Key Performance Indicators
KPI’s - tools and targets to measure performance towards a goal
• Plotting progress• Before ERP implementation & after
• inventory costs• return rate• order fulfillment rates
“You do not control what you do not measure”
Questions & Answers