At SC Silver Consultancy, we understand how overwhelming it can be to choose the right SAP ERP solution, especially for small and midsize businesses. In this blog post, we aim to make that decision easier for you by offering a SAP ERP solutions comparison, breaking down the various options available. Our goal is to help you navigate through the complexities of SAP’s ERP offerings so that you can make an informed decision that best suits your business needs.
With years of experience as SAP consultants, we frequently work with clients who are uncertain about which ERP system is the right fit. The key question we often hear is how to differentiate between SAP S/4HANA Public Cloud, SAP Business ByDesign, and SAP Business One. Each of these solutions has its own strengths and limitations, and knowing the distinctions between them is essential in making the best choice for your company. Selecting the right ERP system can be a pivotal step in your company’s digital transformation journey, enhancing operational efficiency, scalability, and long-term growth potential.
In this post, we’ll break down each ERP solution, highlighting their core features, deployment models, and the types of businesses that would benefit most from each. For example, SAP Business One is designed for smaller enterprises looking for an affordable, easy-to-implement ERP solution. Meanwhile, SAP Business ByDesign is a more flexible, cloud-based option, ideal for growing midsize companies that need more integration. On the other hand, SAP S/4HANA Public Cloud is geared toward businesses with advanced needs, offering real-time data insights, automation, and cutting-edge innovations without the complexities of a fully customized system.
While SAP does offer the SAP S/4HANA Private Cloud, designed for large enterprises that require complex, fully customizable ERP solutions, we’ll primarily focus on the more accessible options for small and midsize businesses. In particular, we find that SAP S/4HANA Public Cloud often strikes the best balance between advanced functionality, cost-efficiency, and ease of implementation.
By the end of this blog post, you’ll have a clear understanding of the SAP ERP solutions available to your business. Our SAP ERP solutions comparison will help you make an informed choice that aligns with your business goals, ensuring a smoother path to digital transformation and long-term success.
Overview of SAP ERP Solutions
1. SAP S/4HANA Public Cloud
- Target Audience: Growing small and midsize companies, and even larger enterprises with simpler needs.
- Deployment: Public cloud (SaaS).
- Key Features:
- Built on SAP’s S/4HANA in-memory platform, offering advanced real-time analytics, AI, and machine learning capabilities.
- Full ERP functionality across areas like finance, supply chain, procurement, production, and sales.
- Highly scalable—as your business grows, so can your ERP without the need for major reconfiguration.
- Multi-tenant SaaS model where you share the infrastructure, but your data remains private.
- Regular, automatic updates managed by SAP, ensuring you’re always running the latest version without additional effort or cost.
- Licensing: Subscription-based model, calculated by user count and additional modules needed.
- Industries Served: Broad, from manufacturing and retail to services and high-tech industries.
UI:
Source:https://www.sap.com/products/erp/s4hana.html
2. SAP Business ByDesign
- Target Audience: Midsize companies or subsidiaries of larger enterprises.
- Deployment: Public cloud (SaaS).
- Key Features:
- Provides a comprehensive, end-to-end ERP suite with built-in best practices for finance, CRM, supply chain, and HR.
- A lower-cost alternative for businesses that want cloud ERP with good out-of-the-box functionality but don’t need the extensive scalability or complexity of S/4HANA.
- Customization is more limited compared to S/4HANA Public Cloud, but it is adaptable through extensions.
- Cloud-based and subscription-based like S/4HANA Public Cloud, with automatic updates handled by SAP.
- Licensing: Subscription-based, but with lower entry costs compared to S/4HANA.
- Industries Served: Broad, but best suited for companies with straightforward, standard processes (manufacturing, professional services, etc.).
- Side Notes: SAP Business ByDesign was launched on September 19, 2007, originally under the code name “A1S.” Since its release, it has been enhanced through quarterly updates. In 2022, rumors circulated that SAP intended to discontinue Business ByDesign. However, SAP denied these claims, confirming in December 2022 that Business ByDesign remains a globally recognized cloud ERP solution, available for purchase and implementation without an expiration date.
UI:
Source: https://www.sap.com/products/erp/business-bydesign.html
3. SAP Business One
- Target Audience: Small businesses or those with simpler business models.
- Deployment: Available both on-premise and in the cloud, offering flexibility in terms of deployment options.
- Key Features:
- Core ERP functionalities that cover financials, inventory management, sales, purchasing, and CRM, making it ideal for businesses with less complex operations.
- Available on SAP HANA or SQL databases, providing some flexibility in terms of infrastructure.
- Customization is possible through add-ons and extensions, but not as scalable or robust as the other solutions.
- Lower total cost of ownership, making it an attractive option for small companies that don’t need a highly advanced ERP.
- Licensing: Either perpetual licenses for on-premise or subscription-based for cloud deployments.
- Industries Served: Suitable for a variety of industries, especially small businesses in retail, distribution, and services.
UI:
Source: https://www.sap.com/products/erp/business-one.html
Comparing the Three Solutions
Now that we’ve outlined the key features of each ERP solution, let’s look at a comparison based on several critical factors.
Aspect | SAP S/4HANA Public Cloud | SAP Business ByDesign | SAP Business One |
---|---|---|---|
Target Audience | Growing small and midsize companies, larger enterprises with simpler needs | Midsize companies, subsidiaries | Small businesses with simpler processes |
Deployment | Public cloud (multi-tenant SaaS) | Public cloud (multi-tenant SaaS) | On-premise or cloud (flexible) |
Licensing Model | Subscription-based | Subscription-based | Perpetual or subscription-based |
Functionality | Full ERP suite with advanced analytics, AI | Comprehensive ERP, but less scalability | Core ERP, fewer advanced features |
Customization | Limited, but extensible via SAP BTP | Some customization via extensions | Customizable through add-ons |
Scalability | High, suitable for global operations | Medium, for growing companies | Limited, best for small businesses |
Industry Focus | Broad industry support | Broad, but geared towards simpler processes | Best for retail, services, distribution |
Cost | Medium to high, depending on needs | Medium, lower than S/4HANA Public Cloud | Low to medium, depending on deployment |
Advantages and Disadvantages
SAP S/4HANA Public Cloud
- Advantages:
- Full ERP capabilities with AI, machine learning, and real-time analytics.
- Highly scalable, making it suitable for businesses planning to expand.
- Regular updates ensure you’re always up to date.
- Strong integration with other SAP products (e.g., SuccessFactors, Ariba).
- Disadvantages:
- Higher cost compared to Business One or ByDesign.
- Limited customization compared to on-premise or private cloud solutions.
SAP Business ByDesign
- Advantages:
- A cost-effective solution for midsize companies.
- Ready-to-go industry best practices make it easier to implement.
- Public cloud deployment with automatic updates, reducing IT overhead.
- Disadvantages:
- Less scalable and flexible than S/4HANA Public Cloud.
- Customization options are not as robust.
SAP Business One
- Advantages:
- Lower cost with flexibility in deployment (on-premise or cloud).
- Ideal for small businesses needing core ERP functions.
- Easy to customize through add-ons.
- Disadvantages:
- Limited functionality compared to S/4HANA Public Cloud and ByDesign.
- Not as scalable for larger or fast-growing businesses.
Why SAP S/4HANA Public Cloud is Often the Best Choice
For small to midsize businesses seeking an ERP solution that can support their growth without the high cost and complexity of a large enterprise solution like SAP S/4HANA Private Cloud, the SAP S/4HANA Public Cloud is often the ideal choice. Here’s why:
- Scalability: As your business expands, S/4HANA Public Cloud can grow with you, providing a flexible and scalable platform.
- Cost-Effectiveness: While it’s more expensive than SAP Business One or ByDesign, the advanced features and cloud benefits (such as regular updates and reduced infrastructure costs) make it worth the investment for companies looking to future-proof their operations.
- Advanced Features: The AI and machine learning functionalities built into S/4HANA make it far superior when it comes to handling complex business processes and delivering real-time insights.
At SC Silver Consultancy, we specialize in helping businesses identify the right SAP ERP solution to fit their unique needs. Whether you’re looking for implementation support, upgrades, or ongoing assistance, we can guide you through every step of your SAP journey. If you’re considering an SAP ERP solution and need expert advice, feel free to contact us for a personalized consultation.
Conclusion
Choosing the right ERP is crucial for driving business growth and operational efficiency. While all three solutions—SAP S/4HANA Public Cloud, SAP Business ByDesign, and SAP Business One—offer excellent functionality, S/4HANA Public Cloud provides the scalability, flexibility, and advanced features necessary for many small to midsize companies aiming for long-term success.