ERP Evaluation Criteria for SAP, Oracle, and Microsoft Dynamics

Introduction

• Speaker: Eric Kimberling, CEO of Third Stage Consulting.
• Focus: Evaluation criteria for ERP systems: SAP S/4HANA, Oracle ERP Cloud, Microsoft Dynamics 365.
• Target Audience: Fortune 500, 1000, and larger organizations.

1. Product Maturity

• Definition: Technical and functional maturity of the ERP systems.
• Comparison:
  • All three systems are less mature than legacy on-premise counterparts.
  • Maturity affects availability and depth of functionality.
  • General Observation: Oracle Cloud generally has more mature and robust capabilities than SAP S/4HANA and Microsoft Dynamics 365 due to earlier development (Oracle Fusion).

2. Scalability

• Definition: Ability to grow and adapt to business needs.
• Factors:
  • Scalability may mean efficiency and standard processes for some organizations.
  • For others, it may mean flexibility.
• Strengths:
  • SAP S/4HANA excels in driving common business processes and operating models.
  • Oracle and Microsoft Dynamics offer more flexibility and adaptability.

3. Flexibility

• Importance: Critical for high-growth organizations or those in rapidly changing markets.
• Comparison:
  • Oracle and Microsoft Dynamics are more adaptable than SAP S/4HANA.
  • SAP offers multiple hosting options (cloud and on-premise).
• Assessment Criteria: Identify specific business processes requiring flexibility.

4. General Functionality

• Importance: Depends on specific organizational needs.
• Strengths:
  • SAP: Strong financial capabilities (GL, accounts payable/receivable).
  • Oracle: Solid in workflows, enterprise performance management, data analytics.
  • Microsoft: Stronger in CRM functionalities.
• Evaluation Method: Compare functionality with specific organizational requirements and gather quantitative data beyond vendor demos.

5. Maintenance Requirements

• Technology Maintenance: Evaluate the skills needed from IT to support the ERP system.
• Business Maintenance: Understand the competencies required from business users.
• Cost and Risk Assessment: Identify gaps in current support capabilities and potential costs.

6. Cultural Impact

• Importance: Consider how the chosen ERP system affects organizational culture.
• Scenarios:
  • SAP may drive common business models in rapidly growing organizations.
  • Oracle or Microsoft might foster a more flexible and agile culture.
• Evaluation: Assess how each system aligns with current and desired cultural attributes.

7. Implementation Support and System Integrators

• Considerations: Evaluate system integrator options for implementation support.
• General Observations:
  • SAP has large implementers suitable for larger organizations but also mid-tier providers.
  • Oracle and Microsoft have viable options but may differ in quality.
  • Microsoft’s partner ecosystem is fragmented; quality varies significantly among partners.
• Recommendation: Choose implementation partners carefully based on alignment with organizational needs.

Conclusion

• Overall, the information provides a framework for evaluating ERP options among SAP, Oracle, and Microsoft Dynamics.
• Suggestion: Review the 2021 Digital Transformation Report for further insights and best practices in ERP evaluations.