The goal of SAP is to build a single, integrated application that spreads across whole business activities, say, from storage management, sales, to accounting, financial management and CRM. The target for SAP is mostly small-to-middle sized company (SME, in short).
The goal of Microsoft is similar to above. However, Microsoft has a higher focus on the usability. Comparing the interface of two systems:
Pic a. SAP One Demo Picture
Pic b. Microsoft Dynamic Demo Picture
Usability Comparison (Microsoft Wins)
SAP shows a simple, easy to use interface. Click on the left module (e.g. Inventory, Account Receivable) menu shows a clear input form on the right.
Microsoft Dynamic places various modules, e.g. work tasks, customers in an organized way. User can instantly see all related information at once. For example, you can view the customer background while preparing the sales order for him. Of course, the user needs some training and practice before they can apply this integrated interface. However, Microsoft Dynamic outweighs SAP is user-interface design.
Feature Comparison (SAP Wins)
Undoubtedly, SAP is more experience than Microsoft as it starts ERP Business for SMEs much earlier than Microsoft. So under longer time of tests and application in real industry, the function modules, e.g. warehouse, sales order, are more mature and comprehensive than Microsoft Dynamic NAV. So SAP is better in functionality.
Costing Comparison (Microsoft Wins)
Comparing the pricing of an ERP system is not an easy job. As SAP and Microsoft are selling the systems through many partners and channels, the price is not directly opened to public.
The costing of ERP is estimated based on software licensing, implementation, hardware, and maintenance. In easy terms, how many people using the system, how many components included, will affect the final budget. A search on Internet suggested that the SAP’s costing calculation is more complicated and expensive than Microsoft Dynamic. So Microsoft Dynamic has advantages over the selling strategy.
Available Edition (SAP Wins)
The number of available edition in SAP is more than that of Microsoft:
- SAP: Business One, Business ByDesign and Business All-In-One.
- Microsoft: Dynamic NAV
Although more editions do not suggest that it will always be better, the final performance and usability will judge. SAP’s diversity in edition has a clearer goal than Microsoft, say, Business One is one integrated system for small company. ByDesign is tailor-made for special field, with a much different business work flow, while All-In-One is a highly mature and comprehensive system for mid-size company.
Conclusion
IN SHORT, although two ERPs offer very similar features and functions, SAP outweighs Microsoft in the way that it is a more mature system under longer years of tests and applications. Microsoft Dynamic’s strategy will be more focus on the usability. It can be easily seen from the user-interface design and lower-pricing marketing.
Regarding a startup company, an ERP system is indeed an essential element. It just likes the table, chairs and other office equipment which cannot be missed. Imagine a company without a proper way of storage management, it will soon find itself lost in how many stocks remain. Is there enough stock for next season? If a new customer makes 200 pieces order, is there enough in warehouse for selling. Every moment of hesitation cost your money invisibly. In worst case, your company misses opportunity and goes bankrupt. So ERP is not a thing that can be missed. Even a small boutique shop, it will still need a way for tracking stocks and accounting. Papers and Books are out-dated in this information age.
ERP answers are well-organized and logically presented. Your comments on the major differences between SAP and Microsoft Dynamics are valid and insightful.
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