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Organizations seeking an enterprise resource planning (ERP) solution will likely encounter NetSuite and SAP in their search. Both are popular tools that centralize core finance, sales, HR, operations, and supply chain business processes in a single system, driving efficiency and offering robust analytics to back informed decisions.
And while both ERP systems are similar, it’s important to consider the pros and cons of each to determine which one is right for your organization.
Here, explore the key features of each tool and learn how to make a decision based on scale, complexity, and operational control—instead of just a feature list.
What NetSuite and SAP are designed to do
NetSuite and SAP optimize workflows and support cross-functional collaboration by housing several business functions—from inventory to financial management—on a central platform, providing teams with a single source of truth. These ERP solutions also automate routine, redundant tasks, saving human team members from busy work and improving process efficiency. Finally, both tools perform analytics and reporting, giving leaders the data they need to make savvy business decisions.
In addition to their core enterprise resource planning functions, NetSuite and SAP also offer customer relationship management (CRM) modules, supporting optimized front-office, marketing, and sales work, like lead tracking and sales forecasting.
But NetSuite and SAP have different target audiences and ways of working. SAP provides a suite of enterprise-level features that can support even the biggest organizations with complex workflows and massive amounts of data. The platform is highly configurable and can be adapted well to different industries. NetSuite, on the other hand, is a more lightweight—but highly capable—tool that provides quick time-to-value. It's cloud-based, simpler to implement than SAP, and focuses on standardizing workflows.
NetSuite vs. SAP comparison: How each platform shapes daily work
Offering similar ERP solutions, NetSuite and SAP don't look that different on paper, but daily work reveals several key deviations. Here's more on how each tool feels in practice.
- Day-to-day interactions: NetSuite often seems more intuitive for users than SAP, who can easily access data and quickly learn to operate this cloud-based tool. SAP may be able to run more customized workflows, but the trade-off of such extensive data depth and features is that team members feel the platform is dispersed.
- Reporting and visibility: NetSuite offers quick visibility in role-based dashboards, while SAP focuses on deeper reporting that supports long-game business decisions with highly-detailed data.
- Ease of making changes: Because it’s more lightweight, NetSuite often supports more agile changes than SAP. Non-technical users can leverage simple point-and-click tools to update NetSuite configurations, while modifying SAP's setup frequently requires the support of external technical partners to re-code the system.
NetSuite ERP vs. SAP ERP by business scenario
The following real-world business scenarios demonstrate how the NetSuite and SAP ERPs uniquely support daily work.
- Companies consolidating finance, inventory, and reporting into one system: In this scenario, NetSuite offers a cloud-based data portal and user-friendly analytics, while SAP allows organizations to house extensive, complex data in highly customizable dashboards.
- Teams scaling quickly without large internal IT or ERP support: When organizations need to implement an ERP quickly and don't have much internal IT support, NetSuite is the superior option, thanks to the ease of installing, configuring, and using the tool (among non-technical team members).
- Organizations operating across regions with compliance or regulatory pressure: Dispersed companies needing to keep up with compliance regulations will find a solid, quick-to-implement option with NetSuite or a high-powered, customizable option for enterprise-level data through SAP.
- Businesses comparing NetSuite against SAP Business One, ByDesign, or S/4HANA: NetSuite is a clear winner for businesses whose primary concern is ease-of-use and the speed of the ERP solution implementation. But businesses needing deeper data analysis align more strongly with SAP’s options: Business One for small to medium businesses (SMBs), S/4HANA for enterprises, and ByDesign for SMBs (a cloud-based option comparable to NetSuite).
NetSuite vs. SAP for enterprises: implementation and rollout tradeoffs
Another major area of difference between NetSuite and SAP is the speed and method of implementation. Here are a few common pitfalls related to each tool's adoption process.
- Moving too fast: Companies that choose NetSuite for the high speed of implementation may rush through configuration so they can start using the tool quickly. But even this fast process must be supported by documentation of as-is workflows and the careful crafting of future ones.
- Over-customizing: Enterprises implementing SAP have seemingly endless customization options on their hands, but taking advantage of all of them can slow down implementation, leading to high time-to-value—not to mention scope creep. Plus, over-customized tools can be difficult for users to learn, limiting efficiency and even discouraging buy-in.
- Documentation gaps: In both NetSuite and SAP implementations, not having sufficient documentation of existing and new processes can muddle implementations. Without a record of as-is workflows, leaders can't adequately configure improved ones in the new system. And without clear documentation on new ways of working, they have trouble training team members on using the ERP solution. Instead of hitting these roadblocks, take an intentional approach to change management, documenting processes and sharing these references with end users.
- Training debt: SAP configuration and implementation often requires the support of external consultants, which, in some cases, can develop into reliance. When teams lean too heavily on expert support, they can't confidently use the tool on their own, and the organization won't achieve internal ownership.
How Scribe supports NetSuite and SAP rollouts
Process documentation supports planning, configuration, and training during an ERP solution implementation.
And Scribe Capture can provide the clear, user-friendly workflow guides that your organization needs to successfully plan and complete a rollout. Scribe supports NetSuite and SAP implementations every step of the way by:
- Capturing NetSuite and SAP workflows before go-live: Prior to rolling out the tool, Scribe Capture automatically translates new workflows into visually-driven guides teams can use as a learning reference. Subject-matter experts simply run Scribe Capture while executing workflows, and the tool generates polished documentation.
- Turning complex ERP actions into clear, step-by-step guides: Scribe Capture can map even the most complex on-screen actions into step-by-step operational manuals, providing clear single sources of truth for businesses of all sizes. Team leaders no longer have to invest time in creating and reviewing process guides when new workflows emerge or existing ones change.
- Supporting finance and operations training without constant live internal and external support: Centralized process documentation gives teams a reliable asynchronous learning resource. So, they don’t need to rely on live training or external support to resolve routine questions or bring new members up to speed.
- Getting ROI from your investment post-implementation: Quickly take advantage of workflow optimizations and drive better organizational results by efficiently and correctly training end users with Scribe Capture’s ERP operational manuals.
Choosing the right ERP
Get the right ERP for your team by weighing organizational needs over features. Consider:
- Overarching goals: Select a tool that supports the company's high-level goals, like saving human time by automating workflows or improving supply-chain efficiency.
- Stick to your budget: An expensive tool may not pay out in sufficient gains to merit a heavy investment.
- Consult with stakeholders: Invite subject-matter experts and end users to share insights on which tool will actually improve their workflows. They perform the work that the platform will support, and driving buy-in starts with them.
- Consider the learning curve: If you don't have a dedicated tech team, or you want to reduce time-to-value, opt for a user-friendly tool that your teams can begin using almost immediately with little training.
- Check out integrations: If the ERP will need to pull data from other systems you currently use, ensure the tool integrates with them.
FAQs
What is NetSuite's biggest competitor?
Aside from SAP, some of NetSuite's most significant competitors are Microsoft Dynamics 365, Sage Intacct, and Acumatica.
Is NetSuite owned by SAP?
NetSuite is not owned by SAP; it is owned by Oracle, which acquired the tool in 2016.
Who is SAP's biggest competitor?
In addition to NetSuite, SAP's major competitors are Microsoft Dynamics 365 and Salesforce (for CRM functionality).
What are the downsides of NetSuite?
When compared to SAP, NetSuite is considered the more lightweight, easy-to-use tool. But up against even lighter, more user-friendly options (think: the Salesforce CRM), NetSuite can be perceived as a complex tool with a steep learning curve. Other downsides include high fees for add-ons, missing integrations, and less customizability than other platforms.
