Automated system is the term that is buzzing everywhere now. The business processes are not the exception as all business owners are seeking cost-effective solutions to implement automated business processes.
The evolving technologies gift us cutting-edge tools every decade. ERP is such type of automated technology that makes business processes seamless and centralized.
A study reveals that 95 % of businesses see improvement in business processes after ERP implementation. 82 % of them receive ROI forms within their expected timeframe.
How do you choose the right ERP solution if you wish to implement ERP? ERPNext solution and SAP, which one should you choose? Let’s learn it by studying their points of comparison
ERPNext vs SAP: Things You Should Know
Choosing an ERP system is a very confusing task, especially when you are new to ERP technologies. Don’t worry, keep reading and come out of the confusing zone.
What is ERPnext Solution?
ERPnext is a free and open-source ERP system from an Indian SAAS company named; Frappe Technologies. It helps users to streamline all business processes across all departments of a single organization. It is a centralized system that records and maintains of core functionalities of a business process from a single dashboard. From sales, purchase, human resources, inventory, Finance, and accounts to CRM, administration, project management, manufacturing to website management -it documents all resources and data.
Features of ERPnext
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Compatibility:
ERPnext is like an online tool or web application. It is compatible with various devices and platforms.
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Easy UI:
The user interface in ERPnext is easy to use and access.
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Flexibility:
ERPnext is an easy-to-customize tool as it does not need any programming.
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Support Multi:
Currency Based Operation: Its accounting and billing features can deal with multi-currency calculation models.
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Efficient Sales and CRM:
It can manage multiple sales and CRM activities with several companies and generate effective reports.
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Website Builder:
With the ERPNext solution, brands can effortlessly design, develop, and manage their websites. This feature turns ERPNext for ecommerce business a reliable tool.
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Seamless Project Management:
From project, planning organizing, and collaborating to analyzing, it makes every single detail of a project manageable.
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Functions:
ERPNext offers separate modules for each of the core functionalities of business processes. It includes accounting, CRM, sales and purchase, HR and Payroll, and others.
Also Read: What Issues Does ERPNext Address in Businesses?
What is SAP?
SAP refers to a globally renowned ERP software system. It is a German company named SAP SE, once which was called ‘System analyse Programmentwicklung’ or System Analysis and Programme Development. This software streamlines business functions with a centralized data management system. Hence SAP allows users to keep complex data easily manageable. With the integration of AI and machine learning, SAP takes the UX experience of ERP software to the next level.
Features Of SAP
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Financial Management
From accounting to asset and cost controlling, bank reconciliation to asset management, from asset tracking to report analysis, it offers all.
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Sales and Customer Management
Its sales and customer management module includes services such as customer and service management. It offers seamless campaign marketing campaign management and tracks lead activities also.
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Purchase and Inventory Control
This module manages data and creates reports on procurement, and accounts payable. It includes management of warehouse accounts and cost management of the supply chain and logistics department.
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Business Intelligence
SAP comes with several intuitive tools to speed up decision-making. It includes automated metrics analysis, interactive analysis, and customized report creation.
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Analytics and Reporting
The intuitive design of the dashboard and real-time analytics are tow the most powerful features in SAP.
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Industry Specific Capabilities
From services, manufacturing, retail, and wholesale to professional consultation services, SAP offers customized features to all needs.
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Mobility
SAP Business One sales app which is accessible on both Android and iOS, creates convenience for the sales team. [Resource: SAP]
ERPNext vs SAP: Can ERPNext Replace SAP?
No, the ERPNext solution can not replace SAP because their target customer base is different. ERPNext is a good fit for small and medium-term enterprises. On the other hand, SAP is a great ERP solution for MNCs or large or growing medium-scale organizations.
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On Premise and Cloud Hosting
Frappe ERPNext can be deployed on premises or hosted on cloud services. So, yes, your business can get that flexibility of making choices based on its budget and other relevant requirements.
And guess what? The cloud service option especially brings special cost advantages for small and mid-sized businesses that often got triggered due to a single overhead cost increase. On the other hand, the on-premises installations give complete access to the infrastructure.
On the other hand, Except for SAP S/4 HANA, no other SAP option offers the privilege of choosing between cloud and on-premise hosting. So, ERPNext is a clear winner at this point.
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Functionality and Scale
ERPNext offers separate modules for each of the core functionalities of business processes. It includes accounting, CRM, sales and purchases, HR and Payroll, and others. So, just think about it: it caters to the need for an ERP solution to manage business operations and vital processes, and it is free of cost since ERPNext is an open-source platform. So, you don’t have to bear license fees, unlike high-cost ERP software.
Its modular system also fits SMEs’ requirements for a scalable system. ERPNext implementation does not need to entail complex processes; it’s simple and quick. Features like real-time and automated dashboards and reporting also enhance SMEs’ decision-making efficiency in core and complicated areas.
In short, ERPNext will be a complete package for SMEs and a problem solver for all technical and strategic hurdles.
In contrast, SAP is better for large enterprises or fascinating words suit high complex needs of those Fortune 500 companies! Jokes apart! But, to be honest, SAP is built for a global scale. SAP data system can handle vast volumes and meet complex processes. It also complies with multinational regulations. For industries like manufacturing, automotive, oil and gas, pharmaceuticals, finance, logistics, and more, SAP is a great match.
SAP’s Business Technology Platform (BTP) enables businesses to use AI, ML, IoT, and analytics seamlessly. This gives Fortune 500 the ability to forecast trends and automate decisions.
SAP has a vast network boasting certified partners, developers, and consultants across the world. It offers global support for making innovation much more accessible. Plus, SAP offers industry-specific depth; it’s not a generic solution.
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Mobile Accessibility
ERPNext comes with an intuitive user interface that creates an impressive mobile experience. You can easily access ERPNext on mobile devices as well as on tablets. So, when in a hurry, you can just have a look at reports or the latest updates or complete any pending task at your fingertips.
Whereas with SAP Fiori mobile app makes mobile accessibility easier for its users. It facilitates easy application development with a great user experience that creates convenience in real terms. It also enables an agile process focused on quality and performance.
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Future Road Map and Innovation
As the market demand shifts towards predictive analysis and AI-driven automation, we will see more innovative and intelligent features in ERPNext. This will enhance the efficiency of decisions as businesses get more accurate predictions for demand forecasting and financial and operational planning. Its valuable real-time and predictive analysis insights will also help ambitious enterprises make the most of the opportunities and market gaps.
On the flip side, SAP is investing in AI, IoT, and blockchain. This shift helps businesses automate tasks and make smarter decisions. Moreover, companies can become more aligned with goals by unlocking real-time insights.
As the global focus shifts to environmental, social, and governance, SAP offers sustainability management tools, carbon footprint trackers, and supply chain transparency features.
The SAP Integration Suite is evolving to connect multi-cloud, hybrid, and third-party apps effortlessly. This creates a connected ecosystem for enterprises using multiple systems.
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Cost
For small and medium-range organizations, ERPNext is a more cost-effective solution than SAP. On the contrary, for large-scale SAP will be a prudent choice.
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Customization And Integration
SAP and ERPNext, both provide a wide range of customization and easy integration options. However, customization and integration with ERPNext are straightforward. On the other hand, integration and customization in SAP’s vast ecosystem are complex.
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Support and Maintenance
SAP provides a comprehensive support system, whereas ERPNext provides community support to users.
Final Words:
Both ERPNext and SAP offer different features that can significantly benefit your business. Both solutions have their own distinct strengths and target markets.Want to Implement an ERP System? Can’t decide which option is best for you? Don’t worry, we are here for you. Get our free consultation today! Drop us a message and our team will get back to you.
