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Why Do SMEs Prefer SAP Business One To Its Competitors


While SAP Business One is one of the most sought-after ERP solutions for MSMEs, it faces fierce competition in the market. Deciding on the best ERP for your organization requires understanding current requirements and future plans. The choice of ERP  depends on team size, commonly faced pain points, cost, etc.

SAP Business One vs. Odoo

Odoo, built on a modular structure, is an open-core suite of business apps that can be installed on-premise and in the cloud. Here, each app covers a single business function and is installed based on requirements. The most recently released version of Odoo adds quality, maintenance, PLM, and offers expanded MRP and MES functionality.

Against SAP Business One, Odoo streamlines financial management. However, the SAP Business One dashboard sweeps the board with robust supply chain management, sales cycle management, CRM solutions, and product life cycle management. While Odoo can automate quite a few business functions, it has limited features. 

Odoo has carved a niche amongst startups due to first-mover’s advantage, but SAP Business One is now catching up. However, while Odoo and SAP Business One may be expensive at the outset, SAP Business One gives a greater ROI in the long run. 

SAP Business One vs. Tally

Tally ERP is an expanded version of the basic Tally accounting software. While Tally integrates well with various domains like Accounting, Finance, Inventory, Sales, Purchase, Manufacturing, Payroll, Costing, Job Costing, and Legal Compliance, etc., it is yet to develop into a fully integrated software. 

With a high-end encryption communication channel and superior protection, SAP Business One is trusted by over 60,000+ customers globally for its security.

While the Tally software safety protocols ensure that nobody gets access to the data, it requires frequent user-level administrative intervention due to the user-wise tolerance limits. Additionally, Tally has no mobile apps. SAP Business One has developed apps for both Android and iOS that can be accessed using the same licenses. 

Whereas, with its automated data validation system, SAP Business One simplifies data handling and validation for different functions. Tally, unfortunately, does not have an advanced search option and crashes frequently when running large volumes of data. SAP Business One is equipped with a Google-like search facility capable of fetching data in a matter of seconds. 

SAP Business One mitigates potential errors by automatically checking entered values based on the combination previously configured. Tally, however, does not possess any smart feature of data substitutions. SAP Business One is built to provide the relationship map for every transaction.

The cost of ownership, implementation, and maintenance is higher in SAP Business One against Tally software. However, with a built-in analytics tool to create dashboards and KPIs on the go, SAP Business One is an enterprise-ready software.

SAP Business One vs. Oracle Netsuite

Oracle NetSuite is a strictly cloud-based ERP, whereas SAP Business One offers the choice of an on-premise or hybrid deployment. This is particularly important for those companies that are still transitioning to the cloud from physical servers. With optional cloud upgrades, SAP Business One allows them to be planned based on business needs.

Netsuite provides off-the-shelf manufacturing management solutions which is a win against SAP Business One. However, in the case of inventory, purchase, and quality management, Netsuite is dependent on third-party application platforms, whereas SAP Business One independently disperses the tasks. 

The NetSuite starter edition is a significantly scaled-down cloud ERP with nothing much apart from financial features. For instance, essential features like CRM are an add-on. This necessitates purchasing more software which increases its price. 

The subscription-based payment option offered by Oracle Netsuite is enticing against SAP Business One’s upfront payment for the license. Oracle NetSuite’s licensing model is complex and works out to be more expensive.SAP Business One licensing is based on the number of users and the core platform, while Oracle NetSuite payment terms are a year in advance.

However, a barebones cloud ERP solution requires several features which increase its overall price. SAP Business One offers a comprehensive system from the beginning, including essential business features that will be required in the future.  

This allows SMEs to turn on the modules and business functions as per need without buying additional software or extensively transforming the original system configuration

SAP Business One vs. Sage

SAP Business One is favorable for SMEs in terms of scalability, whereas Sage is more useful for large-scale corporations. With an agile framework, Sage is best suited for large companies looking to reach a consistent compound annual growth rate (CAGR). SAP Business One was designed exclusively for SMEs and allows for growth and scaling-up.

Sage provides more comprehensive inventory and sales management features than SAP Business One. However, SAP Business One offers a higher level of customization and dependability in accounts payable-related functions than Sage.

SAP Business One offers basic enterprise-class software features that serve MSMEs well in back-office tasks and improve business operations. In contrast, Sage is designed with native functionality for manufacturing, distribution, etc, and adds enormous value to process manufacturers. 

Overall SAP Business One is much more user-friendly and scalable when compared to Sage.

The Road Ahead

When choosing an ERP for your SME, it is important to not be swayed by the lowest price tag. In most cases, unbelievably low prices will require essential features to be added on, which will rapidly increase the costs. Hence, choosing an ERP solution must be done keeping in mind the specific requirements of your company.  

Mobility, scaling-up, access, and security are some of the factors that influence your decision, particularly with an increase in the number of smartphones users. It is essential that your vendor understands these requirements and helps you meet them. 

With an increasing number of smartphone users, it is essential to not compromise on mobility or security. 

SAP Business One is designed to cover all business operation needs for SMEs ranging from CRM to manufacturing and is capable of being deployed both in the cloud or on-premise. It is best suited for SMEs looking to scale their operations and offers structured business operations while improving productivity and efficiency.

About Akshay Software Technologies Limited

Founded in 1987 and based in Mumbai, India, Akshay Software Technologies Limited is one of the leading SAP Business One Silver Partners that provides SAP Business One ERP Consulting, Implementation, Support, and License resale. With the experience and the expertise to successfully power the digital transformations of SMEs across various industries, Akshay Software is committed to helping businesses leverage the opportunities of the future.

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