SAP has been the backbone of many enterprises’ data and processing operations. For companies looking for enterprise resource planning (ERP) software, SAP’s systems have been one of the most widely used by organizations.
However, over the last few years, the number of ERP software solutions has grown, and there’s now a wide range of alternatives to SAP. With core business functions such as finance, data management and production built on your ERP, all enterprises should take time to choose the best ERP for their needs.
But how do you know which SAP alternative is right for you? In this article, we’ll explore the key features offered by the best ERP products on the market right now. We’ll also explain how you can modernize your ERP system without fully switching away from SAP products. Read on to find out more.
What to look for in a SAP alternative
Selecting the right ERP has the power to transform your business operations, bringing improvements to your organization’s data management and productivity. However, with hundreds of SAP alternatives on the market, you’ll need to know what to look out for when switching. Here are the most important ERP features to consider:
1. Integrations
When you’re switching your ERP software, you need to take into consideration how it will work with the existing software that your organization uses. This is especially important when it comes to data integration, as being unable to communicate data between systems will severely hamper your productivity.
This means that you should identify the ERP integration capabilities of each prospective ERP solution, allowing you to see how easily you’ll be able to use APIs to link the ERP with your existing software solutions.
2. Functions
Most businesses switch to a SAP competitor because of the specific functions offered by other ERP providers, which can make them more suitable for specific industries. For instance, ecommerce organizations might look for supply chain management functions built into the ERP.
Create a list of the functions that you’d like to have, allowing you to compare the offers from each ERP provider and see the value of each for your specific requirements.
3. Cost
As with any business change, you’ll have to consider the expenses of the move. As well as the overall cost of the new ERP system, take into account the cost of migrating your services and implementing the new system across your organization. This will have to be compared to the expected ROI provided by your new SAP alternative.
4. Implementation
On top of its cost, you should think in more detail about the implementation process required by your SAP alternative. This is often supported by specific software that comes with the ERP system, which can help you to streamline the implementation process.
However, implementing a new ERP system will be a challenge – especially if the system presents a significant change from your legacy operations. You’ll probably have to produce training modules as you build your employees’ capacity to make the most of the new system. The quicker and simpler the implementation process, the better.
5. Growth
As your enterprise grows over the next few years, you’ll need to make sure that your ERP continues to grow with you. This means the software has to be scalable – look for additional software upgrades that can support your organization as you grow.
SAP alternative software: 5 competitors to consider
Now that you know what SAP alternative features to look out for, let’s examine the various options that are currently on the market. With so many competitors of SAP, we’ve put together this list of 5 best SAP alternatives to consider for your enterprise:
Oracle NetSuite
Particularly popular with finance and ecommerce enterprises, Oracle NetSuite integrates a large suite of applications within its ERP. Their solution focuses on accounting, inventory management, order processing and supply chain management.
What makes this system so well-suited to financial operations is the fact that its revenue recognition is aligned with key accounting standards, such as ASC 606, while also having specific functions that are designed to manage financial compliance. These systems are also largely automated, meaning that many financial processes can be completed automatically.
However, NetSuite can incur significant costs, especially as its integration can be quite expensive compared to SAP integration – you might need to manually code some of the integrations with third-party applications. This is on top of its base application costs, which start at $1599 per month, and its user licenses at $120 per user per month.
Microsoft Dynamics 365 Business Central
Microsoft’s Dynamics 365 Business Central tool is a SAP competitor built with smaller businesses in mind. It is cloud-based, meaning that it does not require significant amounts of existing technology infrastructure to work effectively. Business Central uses a subscription model, costing $70 per user per month.
One of its biggest benefits is that it’s a Microsoft product, so its interface will be familiar and easy to use for most employees. It also allows for seamless integration with other Microsoft services, such as Office 365. This means that data transfer between these apps and your ERP will be easier than ever.
However, Business Central can be difficult to customize. While it offers a high degree of functionality in its basic package, making it especially attractive to smaller companies, this can’t be easily built upon with extra functionality without additional programming. Your organization will have to check that its desired features are included in the system.
SYSPRO
SYSPRO is an ERP software that is particularly popular in the electronics, industrial, and food sectors. It automates business functions such as inventory management and monitoring data analytics from across the enterprise, with its reporting functions particularly popular. Offering a wide range of features, it helps to boost decision-making and productivity.
SYSPRO is easily scalable (due to its high degree of customizability), which means that it can rapidly respond to changes in your business context. However, this fact also contributes to one of its big downsides: the steep learning curve for new users. As it is highly customizable, businesses can be overwhelmed by its interface during the implementation phase.
To use SYSPRO, prices vary from $150 to $250 per user per month. This is on top of the implementation costs, which can be more expensive than other ERP alternatives due to the complexity of integration and data migration in the SYSPRO system.
Acumatica
Acumatica was designed to be a highly flexible ERP that works effectively with any industry, but it is especially geared towards the distribution, manufacturing, and ecommerce industries. Its core features include sales forecasting, inventory and manufacturing management, and automated financial reporting.
Unlike ERPs such as SAP, Acumatica is built on an open platform, so it easily integrates with third-party systems and can be quickly customized to meet your needs. However, it’s designed for mid-sized businesses, so might not be well-suited for larger enterprises.
Acumatica offers a flexible pricing structure which is based on both volume and functionality. While its standard plan begins at about $1000 per month, its higher packages are negotiated according to your specific business needs.
Sage Business Cloud X3
Designed by Sage, one of the biggest ERP developers in the world along with SAP, Business Cloud X3 is targeted at larger enterprises rather than simply SMBs. It’s a modular system that can be redesigned and customized according to your changing business requirements and growth.
One of its best features is its financial management systems, which allow you to automate the tracking of assets throughout your enterprise. However, the Business Cloud X3 interface can be challenging for new users, while its implementation phase can be difficult to manage. Its costs depend on your specific needs, requiring a quote tailored to your company.
What if you want to keep your SAP legacy system?
Although a wide range of ERP alternatives exist, choosing another system isn’t the only option available if you want to modernize your legacy ERP framework. After all, switching from the SAP system you’re already familiar with can incur a significant amount of disruption and bring huge challenges with implementation.
If you want to keep (at least for now) your legacy SAP system while also bringing it up to date with the modern, cloud-based digital landscape, OpenLegacy has the solution for you:
SAP integration with OpenLegacy Hub
OpenLegacy Hub provides an all-in-one platform that allows you to integrate your SAP ERP with any third-party cloud application, helping to bring your ERP operations to the cutting edge of digital transformation. Compared to migrating your entire operations to a new ERP, it is a much faster and easier option.
Simple APIs and microservices are built into the OpenLegacy Hub architecture, which transfer data from your SAP system to third-party services. These API connectors can be reused, drastically reducing development and maintenance costs. They also bypass the IDoc format, transferring data quickly and easily.
OpenLegacy Hub can be implemented by following a simple guide to SAP ERP integration without any special expertise or costly advisors, which can come with migration to an SAP alternative.
Its SAP connectors also support all SAP data types and all RFC parameters, and can be fully orchestrated with non-SAP resources – making it far more effective than existing SAP tools.
One of the main benefits of OpenLegacy is its speed: SAP processes can be translated through an API within minutes, with its microservices often deployed within days. This means that your enterprise can transform your digital architecture rapidly, powering growth and increased productivity.
OpenLegacy AI Powered Chat for SAP
On top of the well-established benefits provided by OpenLegacy Hub, one of their newest solutions has the potential to transform how your enterprise works with your legacy SAP systems. OpenLegacy AI Powered Chat for SAP uses generative AI technology to transfer data from legacy software without needing to implement an in-depth data migration solution.
It works through a chat and voice interface – such as that used in AI-powered chatbots like ChatGPT – which monitors and interacts with the SAP systems. You can then use this interface to receive answers and insights about the operations in your legacy architecture, while also executing transactions – all through a simple language request.
As it’s built using the best AI natural language technology, OpenLegacy AI Powered Chat for SAP is able to pick up on the smallest nuances to give you the most relevant answers and transactions. Its intelligence allows it to work across multiple SAP modules, providing reasoned answers quickly and with minimal effort.
This intuitive and rapid solution enables your enterprise to easily complete transactions with little development cost and without any training required. It’s also highly extensible and scalable: it can be deployed on any cloud system and works with other ERPs and data sources as well as SAP.
Why pick a SAP alternative when you can choose SAP integration with OpenLegacy?
Simply maintaining your existing legacy SAP system without any upgrades or integrations isn’t always an option for enterprises that are looking to grow. However, choosing the right ERP for your business is not easy – especially given the high costs and difficult implementation challenges that come with migrating to a new ERP.
This is why OpenLegacy’s solutions are best for many businesses. You can easily integrate it into your modernized digital architecture, without having to ditch your legacy SAP software. As a result, you don’t have to worry about picking a SAP alternative.
With the new OpenLegacy AI Powered Chat for SAP, you can make the integration process easier than ever, by harnessing the power of generative AI. This will further cut costs and increase the speed of your integrations.
There’s no need to choose a SAP alternative with OpenLegacy. Try a demo of OpenLegacy Hub today to see its benefits for yourself.
FAQs
What is an ERP?
ERP stands for enterprise resource planning. It’s a software system used to support your entire business operations, including inventory management, finance automation, and more.
Why do some enterprises stick with legacy ERPs?
Migrating to a new ERP system brings significant disruption to your enterprise, with many systems requiring new training and a large amount of onboarding time. Some enterprises might also want to stick with legacy ERPs because of the costs involved with migrating.
What’s the difference between an ERP and a CRM?
ERP systems largely support back-office functions, including finances and supply chain operations. CRMs focus on customer-related issues such as marketing, sales, and customer service.
Why might an enterprise want an alternative to SAP?
Alternatives to SAP might be cheaper or offer features that are better suited to a company’s needs, while modernization initiatives might require a system that can be integrated with third-party cloud systems. However, much of this can be achieved by continuing to use SAP with OpenLegacy Hub.
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