The SAP/Oracle Choice re: Integration

With the release of SAP Business Suite 7, the debate about the SAP and Oracle integration strategies has heated up.  Loraine Lawson at IT Business Edge (here) uses two posts by Ray Wang (here) and Dan Woods (here), to contrast the two approaches.

Of course, I agree with Lawson and Woods that the SAP approach is better :-).  I also agree that the Forbes audience — C- or high-level business folks — will eat up the SAP message.  However, IMO, it isn’t quite so simple.  Per a paragraph from Woods’s Forbes piece.

Companies implementing new applications or consolidating many companies must ask which foundation is best: a productized and unified platform for business automation or a collection of products that needs to be integrated. Best-of-breed is another way of saying that the user, not the vendor, is responsible for integration [emphasis mine]. 

My experience is that some firms and industries like to have that responsibility and chafe at having processes “pre-integrated.”  Again, I don’t think that is a great default position — one ends up automating non-differentiating processes nearly from scratch — but many pharma and financial firms in particular have tried to “grow their own.”  It is a legitimate strategy if you are truly creating competitive advantage via custom development and integration.

What SAP has done with the Business Suite and its business process platform strategy is to accommodate that desire to be different.  Enterprise SOA allows such customers to get the benefits of process integration without forgoing the capability to differentiate (by assembling or building enterprise services on top of the platform).

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One Response

  1. […] farms out implementation improvement to partners.  But that may be because I believe in the SAP philosophy of sticking with standard processes whenever possible.  After all, ”there are only so many ways to do accounts […]

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