The Transition from SAP to Odoo

The popular ERP software SAP R/3 won't be supported for much longer, which means even loyal SAP customers need to look for a reasonable alternative. The process of finding a suitable solution to replace SAP R/3 can be particularly challenging for small- and medium-sized companies.

In this guide, we share more about these challenges and offer solutions for these businesses by suggesting a transition from SAP to Odoo.

Expected Challenges with SAP

SAP R/3 is no longer supported. Working with software that is not maintained is not an option in the ever-changing business world. Therefore, companies that rely on this software have no choice but to switch to a newer software variant or a software alternative with a similar scope of offerings.

Switching to the latest software from SAP, SAP 4/HANA, is equivalent to a new business. Even if the latest software generation comes from the same house, businesses shouldn't expect a quick switch to the newest version. In fact, the complexity of implementing the new version is equivalent to implementing completely new software.

SAP 4/HANA is designed for large corporations. The level of effort for implementation and its functions and operating options are all geared to the needs of this core target group — not small, medium-sized, and growing companies. So far, there have been no adaptations of SAP 4/HANA for these companies.

SAP has a monopoly position with large corporations. The brand is well-known, and that is no coincidence because if you look at the corporate landscape, there are hardly any alternatives for large corporations. But it's a different story for small- and medium-sized companies: They don't have to rely on the software but can instead look for alternatives that are cheaper, more flexible, and better suited to their business needs.

Current Requirements for ERP Software

Integration

ERP software alone is not enough. Business owners rely on a smooth-running integration with CRM, e-commerce, web platforms, project management, and more to ensure the sustainability of their enterprise software.

Adaptability

In a constantly changing business world, flexibility is the most important thing for any company to remain marketable and customer-focused. Fast adaptation options are therefore essential.

Usability

Not only does employee satisfaction and motivation increase when the software is up to date and easy to use, but the right software can drastically reduce processing times. And by optimizing processes, internal costs can also be reduced.

Digitalisiation

The business world has long been digital — and that is expected. Keeping pace with new features and technologies, such as paperless office, Internet of Things, artificial intelligence, Industry 4.0, and others, is essential to remain agile and strong competitively.

Costs

In addition to the demands on the software and the service of the provider, cost also plays a decisive role. Small- and medium-sized companies may find it hard to afford the SAP offering because here, too, the costs are oriented toward that of large corporations.

Odoo vs. SAP - A Comparison

Branding

SAP is well known and does everything it can to remain that way. For example, its revenues from customers are often reinvested in marketing. Therefore, SAP's brand awareness is being strategically built up and expanded with a large contribution from the company itself.

Odoo, on the other hand, relies on organic customer recommendations. This is already paying off: The growth rate for Odoo has been +60% per year in recent years, which is overwhelming. And, all the more impressive since Odoo is not yet a well-known brand.

Industries

SAP offers strong industry solutions. The software provider provides core competence in its ERP functions but weakens in other functions.

Odoo is a complete business management solution, so it offers much more than just ERP functions. Even though Odoo itself is weak in industry solutions, we at OBS have developed solutions for various industries and can thus compensate for possible weaknesses with Odoo with our offering.

Features

SAP's strongest functions are found in finance and accounting. Here, the software giant clearly leads with its offering.

Odoo is catching up here. At OBS, we are even developing targeted modules to supplement this area with useful functions to bolster the Odoo offering.

Technical Quality

Projects that are processed with the SAP software require a lot of software expertise. As a result, due to the clear but also rigid conception of the software, new business processes may have to be created, and internal restructuring may be required.

Odoo has always been a platform of excellent technical quality. Nevertheless, this aspect is also improved with each new version. In the open-source software market, Odoo is considered a favorite because of this.

Pricing

SAP is focusing on new sources of revenue in addition to the ones it has. For example, customers are now billed according to consumption. Overall, the price calculation is oriented towards the budget of large corporations. Both hardware and implementation costs are in the upper price segment.

Especially in the long run, Odoo can shine with more cost-effective licensing offers. Compared to SAP, costs can be saved by a factor of two. The implementation costs alone are also significantly lower — without sacrificing quality or service.

User Interface

The SAP user interface offers you a lot of information. You have to be prepared to be confronted with a rather crowded screen. The user is put in charge here to get an overview on their own.

Odoo makes tracking all processes particularly easy with its simple and user-friendly interface. All information about each work step, each order, and each assigned employee is displayed in a clear and structured manner.

Dive deeper into the topic

Tobias Hammeke provides exclusive insights into the comparison between Odoo and SAP from the strategic perspective of business management positions — also taking into account the rapid global changes. Gain valuable first-hand insights from our customers.

Learn more about your individual requirements and options for switching to Odoo.

Trust in our broad experience.

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