Businesses across all sectors can benefit from having the right software solutions in place, and there’s no example better than enterprise resource planning (ERP) systems. These advanced software solutions are designed to collect, organize, and analyze key business information across all departments. They provide insight and controls, automate many business processes, and integrate disconnected systems to make it easier for companies to function at maximum efficiency.
SAP’s ERP Systems
SAP is one of the top software manufacturers in the field of ERP. Deciding to work with this industry leader is only the first choice business owners and management teams need to make, though. The next step is comparing systems from SAP to determine which one of them will best meet the company’s immediate and long-term goals.
SAP offers two ERP solutions. The first is known as SAP Business One. It’s designed primarily with the needs of small to mid-sized businesses (SMB) in mind, which means that this ERP system will facilitate growth to a certain extent in start-ups and businesses that are still in the process of expanding.
The second ERP solution offered by SAP is simply named SAP ERP. While both are versions of enterprise resource planning systems, SAP ERP is more in line with what business owners and executives expect from an ERP solution. It’s designed with larger companies and corporations in mind, making SAP ERP a good fit for businesses that are looking to manage further expansion.
When to Choose SAP Business One
SAP Business One is most appropriate for small to mid-sized businesses with smaller budgets and less complex organizational structures. It offers:
- ∙ Basic financial management features.
An HR Module
A manufacturing management module
Inventory control tools
Purchasing management features
Quality management features
Sales management tools
A basic product technology module
Unfortunately, some experts suggest that these key modules as presented in SAP Business One do not necessarily compare favorably to those offered by other ERP products. That said, SAP Business One is a viable option for smaller businesses that don’t need the kind of robust suite of tools and features designed for much larger competitors.
When to Choose SAP ERP
Any business that is in the process of rapid expansion or plans to scale up significantly should opt for SAP ERP rather than SAP Business One. This more comprehensive suite of tools is designed to facilitate rapid company expansion.
SAP ERP contains the same eight modules described above for SAP Business One. However, each module has a wider array of features and technologies designed to make managing operations and growth at large corporations easier.
The primary drawback of SAP ERP versus SAP Business One is its increased cost. Pricing shouldn’t be any business’s top priority when it comes to ERP systems, though, because a well-designed software solution will address inefficiencies, boost growth, and improve a company’s bottom line. It can thus be argued that SAP ERP provides a greater long-term return on investment.
How to Make the Right Decision
The choice of what ERP system to adopt is a vital decision for modern businesses of all sizes. Anyone tasked with making this decision should take the time to investigate not just SAP systems but the full range of ERP software solutions available. There’s plenty of information online about each system and its primary benefits and drawbacks, but those who are having trouble deciding which will be the right fit should know that hiring a consultant is the most straightforward way of determining the best path forward.
