SAP represents a suite of enterprise resource planning (ERP) solutions that allow businesses to better manage their operations. These solutions place high importance on data and analytics to provide actionable insights for companies. This information can be valuable in almost any industry to gain better visibility of operations and supply chains, helping organizations reduce inefficiency and enhance productivity.
We are focusing today on two ERPs provided by SAP. These are known as SAP B1 and SAP S/4 HANA. Both solutions integrate various functions that can be useful for automating processes, reducing cost, and optimizing operations. Additionally, both use SAP HANA as a basis for in-memory database technology.
Despite their similarities, some key differences make each suited for different applications and businesses. Continue reading for a breakdown of each solution and where the key differences lie between them.
SAP Business One
SAP B1 tends to be the solution of choice for smaller businesses. Generally, the functionality provided by SAP B1 makes it ideally suited for companies with limited financial resources buthigh growth potential. This solution is an affordable one, but it still offers complete scalability for companies that use it.
Businesses can choose to implement the entire suite of functionalities offered by SAP B1 or opt for a more modular approach and only integrate select items that suit their needs. Organizations can choose to add on new modules when using SAP B1, as and when needed, thus promoting the scalability of operations as they expand.
In terms of pricing, SAP B1 is billed on a monthly subscription basis. The cost depends on the number of users in an organization.
Overall, SAP B1 is a unique ERP solution that can operate on both SAP HANA and Microsoft SQL servers. This makes the software highly customizable to the needs of individual businesses, allowing them to tailor their ERP to their specific requirements. The scalability of the solution allows smaller enterprises or subsidiaries up to 500 key users to integrate new functionalities as they grow and mature.
SAP S/4 HANA
SAP S/4 HANA is a cloud-based ERP solution that was designed to be used by larger, more stable businesses that are often international in scope. This solution comes with a higher cost than SAP B1 but provides more functionalities as a result.
SAP S/4 HANA integrates every function that a business might need to optimize its operations and manage supply chains. These functions allow businesses to introduce comprehensive data analysis and predictive analytics into their business model.
This solution enables companies to do this by seamlessly integrating emerging technologies like the internet of things (IoT), artificial intelligence (AI), machine learning, and Big Data. The application of these innovative technologies in a business setting allows organizations to significantly enhance operational agility and efficiency.
SAP S/4 HANA is typically best suited to larger businesses or headquarters with substantial financial resources. Additionally, it is less geared towards rapid expansion and more useful for highly complex companies with an existing base of operations and consolidated operational strategies.
While both SAP B1 and SAP S/4 HANA can deliver comprehensive ERP solutions for businesses, there are some crucial differences between the two. These differences influence which option is the best choice for individual companies with varied requirements.
First, one crucial difference is highlighted by the scale of the company that each is tailored to. SAP B1 is best suited for organizations with under 500 employees but growing rapidly. On the other hand, SAP S/4 HANA is designed for corporations with more than 500 staff members and that are established and stable.
The billing and cost of the solutions is another critical difference that can influence which option is suitable. SAP B1 operates on a monthly billing schedule, and the cost is scaled relative to the number of users within an organization.
While SAP S/4 HANA Enterprise edition's pricing also depends on how many people will be using it, other factors influence the other available packages. For example, the Service edition and Professional services edition are billed based on the revenue from projects and an organization's expenditure. Therefore, the specific package influences the cost businesses can expect to incur when using SAP S/4 HANA.
Which Should You Pick?
As discussed above, the scale of your organization, its goals and available resources can influence which option is best.
However, other factors can also play a role in the decision-making process. Organizations in some industries tend to be more complex and will often operate on an international scale. This means that the more substantial suite of functionalities provided by SAP S/4 HANA can deliver more significant benefits in terms of operational management.
Yet, if your company is adapting ERPs based on needs, SAP B1 can be a perfect choice in the scope of a Tier 2 strategy.
Using be one solutions For Your Global Rollout
be one solutions aims to be an effective partner for the integration and rollout of SAP in your business. With a great deal of experience and expertise in the global implementation of SAP ERP solutions for businesses of all sizes, be one solutions ensures that the entire process of SAP integration is smooth and successful.
Whether you opt for SAP B1 or SAP S/4 HANA, we, as SAP rollout experts, offer support throughout the entire rollout process. From the initial template for integration, to pilot runs, development and round-the-clock support after the ERP solution has gone live, be one solutions will help your organization with its goal of improving operational management.
With support available for both SAP software models, we are the ideal choice to ensure that your SAP rollout is a success, regardless of the size of your organization, where it is situated or what its specific goals are.
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