Preview

Cost Benifit Analysis Sap

Satisfactory Essays
Open Document
Open Document
10692 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cost Benifit Analysis Sap
Cost Structure Benchmarking – Oracle vs. SAP Apps.

Cost Structure Benchmarking Oracle vs. SAP Applications

© RAAD Research GmbH 2009 - Status: 01/28/2009 - Slide: 1

Cost Structure Benchmarking – Oracle vs. SAP Apps.

Introduction Software Costs Implementation Costs Support, Maintenance, Operation IT Budgets Conclusion

© RAAD Research GmbH 2009 - Status: 01/28/2009 - Slide: 2

Cost Structure Benchmarking – Oracle vs. SAP Apps.

Introduction
The comparison of costs and benefits constitutes a deciding factor for companies looking for an appropriate ERP supplier. For Companies, the economic and flexible use of software is particularly important in order to free funds for additional investments, not least in further IT products. Providing for this is also the explicit goal of most ERP suppliers, like Oracle and SAP, for instance. Nevertheless, RAAD studies conducted in 2008 show that many SAP customers consider the costs for implementing, customising, and operating SAP software as very high. From this perspective, the objections against the planned increase of SAP’s maintenance fees is quite understandable. The general feeling that SAP products are too expensive to purchase and operate has also spread among the non-SAP customers of Germany’s small and medium-sized businesses. Here, the predominant opinion is, that SAP is too expensive and too complex. However, RAAD Studies show that SAP’s products and price models are largely unknown to the decision makers. These opinions are therefore based on preconceptions. To date, no comparable studies are available regarding Oracle customers in the German-speaking countries. But Oracle also had to suffer criticism concerning maintenance costs and customer support in the past. (http://www.computerwoche.de/heftarchiv/2006/47/1216914/) Despite the criticism directed at both software suppliers, a structured analysis comparing cost types and cost influencing factors of Oracle and SAP systems in respect to

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The company is reengineering the company’s Intranet/Information systems and enterprise resource planning (ERP) system. The upper management has chosen to implement SAP to connect all aspects of the company; accounting, manufacturing, aircraft services, supply inventory, and customer resource management (CRM). Implementing this new information system (IS) will allow the different parts of the company to operate as one, by allowing the various modules in SAP to communicate and exchange data. SAP will replace all of the outdated and splintered software the company currently uses by allowing easier communication between the departments and the programs that are used. The change was started about three years ago and will be completed in about two years for a total of five years to complete and be fully implemented. Connecting all of the different departments will save a tremendous amount of money for the company. Reengineering the IS systems will allow the sales department and customer representatives more easy access to the customer’s information, such as current and future orders, current aircraft service status or new aircraft delivery time; thereby increasing the customers value and customer…

    • 464 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    An ASRS (Automated storage and retrieval system) consists of a variety of computer-controlled systems for automatically placing and retrieving loads from defined storage locations. This type of system is utilized majorly for companies with a very high volume of loads being moved into and out of storage. The benefits of an ASRS system include reduced labor for transporting items into and out of inventory, reduced inventory levels, more accurate tracking of inventory, and space savings (Wikipedia, 2014).…

    • 1107 Words
    • 4 Pages
    Better Essays
  • Better Essays

    C. Annamalai, T. Ramayah, (2011) "Enterprise resource planning (ERP) benefits survey of Indian manufacturing firms: An empirical analysis of SAP versus Oracle package", Business Process Management Journal, Vol. 17 Iss: 3, pp.495 - 509…

    • 1050 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    These applications not only require technological changes, but also require fundamental changes in the way a business operates. Costs include software, database tools, consulting fees, personnel costs, training, and maybe hardware costs. A business’s old system may not be compatible with the software. Constant maintenance and monitoring is required with an enterprise system. These systems are maintained and monitored by people which can be the most costly part of any information system. A business will have operating problems and losses with a new enterprise system because they do not understand how much organizational change is required. Understanding how your business will use the data and how the data will be organized in customer relationship management (CRM), supply chain management (SCM) is necessary. Using a reliable consulting firm to help an organization understand what they need, what to expect the system to accomplish for them, and what will be needed for management of the system could save thousands of dollars. There will be organizational changes along with the investment of the new software. These systems will be a costly expense if companies do not know how to use them, or prepare their employees for the new procedures and roles that will be required of…

    • 645 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Accg250

    • 1901 Words
    • 8 Pages

    Watch for hidden infrastructure costs. (Beatty, R.C., 2008, p.106) The cost of ERP upgrade is not only software and labor-related cost, but also hidden costs exist. Even there is new functionality add to the competitive value of the product, however, it may cost to upgrade some infrastructure hardware to running those new functionalities. This cost cannot be ignored by planning to upgrade ERP. For example, if organizations upgrade from SAP R/3 version 3 to version 4, it cost 87%CPU speed, 72% memory requirements and 33% storage space. It may lead the organization change the computer and storage, which is significant cost more.…

    • 1901 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Baum, David and others. “Oracle 25 Years of Technology Innovation.” Oracle Magazine, November/December, 2001, pp. 65-82.…

    • 26520 Words
    • 107 Pages
    Good Essays
  • Powerful Essays

    Erp Implementation

    • 8034 Words
    • 33 Pages

    Enterprise Resource Planning (ERP) software systems are implemented in major corporations because of their unique design which enables the integration of information across the functional areas of a business. Implementations of ERP software, such as SAP or Oracle, are most commonly documented in the manufacturing sector. This case study, however, describes the implementation of ERP in an institution of higher learning. In particular, issues pertaining to implementing SAP in a university structure, measuring the return on an ERP investment in an educational institution, and managing organizational change are discussed. [Article copies are available for purchase from InfoSci-on-Demand.com] Keywords: Change Management; Enterprise Resource Planning; Higher Education…

    • 8034 Words
    • 33 Pages
    Powerful Essays
  • Powerful Essays

    This paper is an attempt to understand why TS Group chose JDE over SAP, SYSPRO, and Microsoft Dynamics. Within this paper all four ERP products (JDE, SAP, SYSPRO and Microsoft Dynamics) are evaluated for their strengths and weaknesses. From this evaluation a hypothesis is made as to why TS Group preferred the JDE ERP system. Considering any consultants available for these products, an argument is presented as to which constituents (stakeholders) had the most influence on this decision.…

    • 1800 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Oracle is the world’s most complete, open, and integrated software for a business worldwide. Oracle has an astounding e-business package that gives the most all-inclusive, integrated business applications. The applications provided are the most adaptable in a business proposal; most of the customers place their focus on the strategy of the application which also has the most complete business portfolio. The business areas of the Oracle include:…

    • 1381 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Cost Benefit Analysis

    • 2359 Words
    • 10 Pages

    References: Hallegatte, S. (2006). A cost-benefit analysis of the New Orleans flood protection system. Center…

    • 2359 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Fated4Life

    • 971 Words
    • 4 Pages

    a. Organizations with concerns about the high cost of ERP and uncertain benefit may choose to purchase ERP services that are accessed through the internet (save the purchase price, hardware costs, and maintenance and upgrade expense)…

    • 971 Words
    • 4 Pages
    Powerful Essays
  • Best Essays

    I declare that the work attached is my own, original work. I acknowledge that copying someone else’s assignment or essay, or part thereof, is wrong, and declare that this is my own work. All sources used in this work have been correctly referenced, using the Harvard system of in-text referencing. The work does not contain any sections that can be regarded as either a cut-or-paste technique, as a mere translation, or as “mono-phrasing” (work taken from a single source). I realize that a research argument has to be constructed, and declare that my text is a reflection of the integration of relevant sources. Further, I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is your own. Additionally, I have not allowed and will not allow anyone to copy my work with the intention of passing it off as his/her own work.…

    • 2904 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    01 Cost Analysis

    • 2361 Words
    • 26 Pages

    1-1 Learning Objective 1 Identify and give examples of each of the three basic manufacturing cost categories. 1-1 Classifications of Manufacturing Costs Direct Materials Direct Labor Manufacturing…

    • 2361 Words
    • 26 Pages
    Powerful Essays
  • Good Essays

    Nibco's Big Bang

    • 974 Words
    • 4 Pages

    In 1994, after a significant strategic planning effort took place, NIBCO Inc., decided to implement a plan to, “Go Live” with a new SAP program. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) The reasons behind NIBCO’s decision to implement and ERP System are those that are familiar to other companies who have made the same decision. One of the key conclusions from the strategic planning that led to the ERP implementation was that the organization could not prosper with its current information systems. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) They systems that they were currently using had evolved into a patchwork of legacy systems and reporting tools that could not talk to each other. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) The lack of systems communications were due to the fact that over the years, NIBCO had a manufacturing package that ran on Hewlett Packard and an accounting system that ran on IBM and a distribution package that was repackaged to run on IBM. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012)The differences in the systems over the years led to lack of digital communication between the systems. Not only were the systems not communicating with each other, there was also concerns about being able to grow the company and become more global without an integrated information capability. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) Another reason why NIBCO decided to implement a SAP system was because the systems development staff spent most of their time building custom interfaces between the systems, trying to resolve the disconnects between them. The information systems people were not particularly happy a lot because the systems would blow up on regular bases due to the ad hoc changes that were often made. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) Even though there were several different legitimate reasons for NIBCO to implement a SAP system,…

    • 974 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Cost Benefit Analysis

    • 1167 Words
    • 5 Pages

    A prevalent issue in our society that often makes me question my own moral standards is the topic of intellectual property rights, as it relates to music downloads via the internet. In recalling my youth, I remember when this issue was of no concern to major record labels that produce and distribute musical compositions. Originally, there was not a convenient or cost effective way for the consumer to make copies of vinyl records. When the magnetic cassette tape became the industry standard, the technology was now available for the masses to produce copies of their purchased music for distribution.…

    • 1167 Words
    • 5 Pages
    Good Essays

Related Topics