Types of ERP solution / Packages in SAP
There are seven types of packages/solution available when a company plans to implement SAP. I have given a brief about the type of ERP Solution / Packages in SAP and which is the right one to choose based on the Customer requirements.
SAP S/4 HANA (On-Prem)
SAP S/4 HANA Public cloud
SAP S/4 HANA Private cloud
SAP ERP Central Component (ECC) (On-Prem)
SAP Business ByDesign (Cloud)
SAP Business One (On-Prem)
SAP Business One (Cloud)
SAP propose different packages based on customer segmentation. Companies with revenue less than € 300 Million falls under lower general business market, from € 300 Million to € 1 Billion as upper general business market & above € 1 Billion as Large enterprise accounts. Based on cloud buy-in of prospects, SAP proposes Cloud (or) On-Prem solutions.
In the revised context of increased incentives to SAP sales executives, their first choice of the proposal is cloud-based ERP solution. Only when they see a strong resistance to cloud solutions from prospects, SAP propose On-Prem ERP solutions.
Although SAP clearly segments the markets based on the turnover of the organization, there is no thumb rule to propose Business One (or) Business ByDesign (or) SAP ECC (or) SAP S/4 HANA. ERP package selection is based on the IT/Business maturity of the subject matter experts involved in the evaluation of ERP for his/her organization. Engaging with a right (sized) partner gives prospects an advantage of being educated about all this.
Almost all the ERP packages address the core business requirement of any organization irrespective of the vertical they are in. In my opinion, no company implements ERP like SAP (although, were using Tier-2 ERP earlier) and go for innovative applications like big data analytics, digital boardroom or internet of things from Day One. Hence, choosing between different ERP packages is easy. There is clear differentiation among these ERP packages in SAP. Today On-Prem S/4 HANA (or) SAP ECC run by fortune 100 companies are affordable at as low as US$ 40,000 (On-Prem, one-time + 22% AMC). I’ll be glad to assist you with useful materials that help you to choose between these packages for your organization.
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