Join us as we compare two widely known ERP systems. What are the differences between SAP S4/HANA, and MS D365? What is the best option for your company?
What Are SAP S4/HANA and MS D365?
History of S/4HANA
The SAP S/4HANA product was released to much fanfare in February 2015, according to McDermott. This product was written to take advantage of HANA, an operating system that debuted in 2011. S/4HANA stands for Suite for HANA.
In order to complete SAP S/4HANA, the database concept had to be rethought and 400 million lines of code had to be rewritten. In SAP’s opinion, the ERP system has been simplified and made more agile for developers through the changes. Taking advantage of the Internet of Things and Big Data to connect people, devices, and business networks, SAP sees S/4HANA as a means for companies to reinvent business models and generate new revenues.
In a real-time environment, SAP S/4HANA is an ERP software suite based on SAP HANA’s in-memory database. A key component of SAP’s digital transformation strategy is S/4HANA, which enables customers to modify or create new business processes and models. By doing so, companies are able to be more flexible, responsive, and resilient to changing business demands, customer demands, and environmental conditions. A number of functions are handled by it, including assembly processes, manufacturing engineering, quality management, finance, assets, supply chain, sales, and procurement
History of Dynamics 365
The Dynamics 365 solution was announced in 2016 after Microsoft merged its ERP application Dynamics AX with its CRM application Dynamics CRM. As one of the first companies to offer an integrated solution, Microsoft was among the first. You don’t have to select from a variety of options since Dynamics 365 enables all-in-one solutions.
What Is Dynamics 365?
The Microsoft Dynamics 365 software suite provides business users with superior operational efficiencies and breakthrough customer experiences while reducing complexity and increasing agility.
The Microsoft Dynamics ERP suite consists of a variety of business applications. It provides insights based on artificial intelligence to help users run their businesses and improve their results. Through the sharing of data across departments, users can gain a 360-degree perspective of their organization. Furthermore, it provides business and customer insights that help users achieve better results. Customer relationship management and enterprise resource planning are integrated with Microsoft Dynamics 365
Difference between SAP S4/HANA, And MS D365 – Which One Is Better For Your Business Needs?
There are two major enterprise resource planning (ERP) solutions on the market today: SAP S/4HANA and Dynamics 365. Designed by Microsoft, Dynamics 365 combines Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and productivity applications with Artificial Intelligence (AI). An SAP HANA database server stores and retrieves data as requested by applications. The system is made up of a column-oriented, relational database. There are two deployment options: on-premises and in the cloud.
Differences between technologies, a few key factors often come into play
SAP S/4HANA vs. Microsoft Dynamics 365 differ in terms of flexibility
SAP S/4HANA vs. Microsoft Dynamics 365 differ greatly in terms of flexibility. S/4HANA is typically more suited for organizations that are scaling and standardizing operations for global expansion. When business processes are complex and need to be standardized, this approach can be helpful, but for organizations with smaller or fewer complex processes, it might be overwhelming.
As opposed to Microsoft Dynamics, Microsoft Dynamics is usually suitable for smaller organizations that value flexibility over standardized processes. It is usually easier to change software (without customizing it) to meet evolving business needs. In a smaller organization or subsidiary, it’s often suitable because it’s not as comprehensive or robust as S/4HANA.
Microsoft Dynamics 365 and SAP S/4HANA differ in their open architectures
It is generally easier to interface with Microsoft because of its more open architecture. In contrast, SAP tends to have a more closed architecture, which makes integrating it more challenging. When integrating your digital transformation with third-party legacy systems, can be an important differentiator.
SAP S/4HANA, on the other hand, offers a broader and more robust range of functions – so it’s less likely that you’ll need to work with third-party applications. It may, however, be more challenging and complex when you do.
A comparison of SAP S/4HANA And Dynamics 365 Modules And Features
As part of our discrete ERP manufacturing model, we compared hundreds of features across eight core functionality modules. Additionally, we compared the two ERP systems to a standard or benchmarked ERP solution contained in our vast database of ERP solutions for discrete manufacturing, using data from the database. Below you can compare SAP S/4HANA and Dynamics 365 in each functionality area.
1. Financials
Both solutions feature comprehensive financial management modules that can benefit nearly any organization, with SAP S/4HANA having slightly more features in this area.
2. Human Resources
SAP S/4HANA includes more HR features than Dynamics 365, though both products contain above-average human resources toolkits.
3. Manufacturing Management
The SAP S/4HANA ERP has a marginally more robust manufacturing management module than Dynamics 365.
4. Inventory Management
In a head-to-head comparison, Dynamics 365’s inventory management module has marginally fewer individual features than SAP S/4HANA.
5. Purchasing Management
The two ERPs both have more purchasing management solutions than the average ERP, and SAP S/4HANA has slightly more than Dynamics 365.
6. Quality Management
SAP S/4HANA and Dynamics 365 both come with comparable quality management modules.
7. Sales Management
Dynamics 365’s sales capabilities align with the industry average, while SAP S/4HANA features an above-average sales management module.
8. Product Technology
SAP S/4HANA boasts considerably more product technology features than Dynamics 365.
Benefits of SAP S/4 HANA and MS D365
SAP S/4 HANA
Enhance Business Processes:
SAP S/4 HANA automates several business processes while optimizing the rest through intelligent automation, artificial intelligence (AI), and robotic process automation (RPA). It relieves employees of mundane tasks so that they can focus on identifying areas for improvement instead of doing repetitive work. The system, for example, replenishes stock automatically based on demand.
The ability to reinvent business models:
Incorporating best practices with innovative capabilities allows users to reinvent their business models. Take your business to the next level by creating customized products or offering subscription-based billing.
Analytics-Driven Decisions:
Users are able to make informed decisions based on real-time company data, embedded analytics, and a conversational interface. It has a user-friendly interface with visual reports and a context-aware digital assistant.
Become Adaptable:
Using SAP S/4 HANA, users can adapt to a rapidly changing industry. Its flexibility in pricing and quoting, as well as real-time profitability analysis, enables users to identify changes quickly and manage them appropriately. As a result of the situation handling functionality, users are notified when a situation arises and suggest solutions.
Accelerate User Adoption:
Through openSAP and the SAP Learning Hub, users can learn about their ERP system and onboard. With multiple learning opportunities available through online platforms, users can find something that matches their learning style.
Increased Efficiencies:
Employees are equipped with the tools for enhancing their productivity and performance with automated business processes. Additionally, these tools reduce human error, saving time, and money, and improving the bottom line of businesses.
Ease of Use:
Based on SAP Fiori technology, the system has a responsive design, is intuitive to use, and is designed to be simplistic. Using any device enables personalized and role-based user experiences.
Centralize Data:
A single, unified memory system keeps all data instead of several disconnected databases. Having all the data in one place makes it easier to analyze large volumes of data quickly.
MS D365
Improve Win Rates and Conversions:
A lead scoring model based on advanced models allows you to filter out customer favorites.
Increase Response Rates:
Provides support for members of the team to meet, email, and collaborate with prospective customers, increasing response rates.
Shows How Customers Interact:
This tool helps sellers improve their response times by letting them see how customers read their emails.
Unifies Data:
Provides improved relationship management by integrating with Linkedin Sales Navigator.
Track Contacts:
Shows relationships and contacts through interactive organization charts.
Personalize Sales Documents:
Ensure that sales documents are personalized and that sellers are collaborating with you.
Reduce Time Spent on Content:
The sales enablement feature recommends relevant content and seller training.
Streamline Workflows:
Make workflows and planning easier with tools such as SharePoint, Outlook, and Excel. Furthermore, it is capable of augmenting predictive forecasting.
Promote Accountability:
Engages users in better analysis and pipeline tracking through snapshots and flow visualizations.
Additionally, A summary of the pros and cons of MS D365
Pros:
- The product integrates smoothly with other Windows applications since it is Microsoft’s product.
- A multilingual system capable of supporting multiple currencies – very useful for international businesses.
- Easy-to-use interface.
Cons:
- Having only cloud-based deployment options can limit some businesses.
A summary of the pros and cons of SAP S4/HANA
Pros:
- A powerful BI solution with great features for data storage, report creation, and reporting
- It is ideal for standardizing business processes.
Cons:
- SAP can be a bit more time-consuming to master than Dynamics 365
All in all, I believe that both ERP systems are excellent options and neither one is perfect. In order to make the right decision, you have to consider the needs of your business and only your business. In the end, comparisons and opinions on the internet are helpful, but ERP system implementation success depends on matching business requirements with system specifications (and experienced professionals).
Due to our experience, R Personify knows how hard it can be to recognize or meet business needs, and we are able to help. Our expert specialists will help you find out what your company needs and give you advice on selecting the right system during workshops.
Please do not hesitate to contact us if you have any questions
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