SAP Business One vs SAP Business ByDesign

There are still some people who SAP mainly with software solutions for large corporations. This completely overlooks the fact that with SAP Business One and SAP Business ByDesign there are two ERP software packages on the market that address SMEs. But why two ERP offerings for SMEs at the same time? Obviously there is a need in the market, as both ERP solutions have been operating successfully there for years.

SAP Business ByDesign and SAP Business One delineated upwards

One thing can be said with certainty. Conceptually and technologically, both software packages have little in common with the solutions for the big players in industry. S4/HANA is not only in a different league in terms of functional depth and complexity. The concepts behind it are very different. Last but not least, the costs to be applied are in other hemispheres. It does happen that a customer is offered a different solution from different sources. SAP Business One SAP Business ByDesign and S4/HANA. These are often scenarios that are intended to bring subsidiaries in larger groups into an SAP landscape. Conceivable with all SAP tools, but with a completely different approach.

How tall do you have to be?

You can see: Size does not matter

SAP Business One can and is used in companies of very different sizes. The two-person company that starts with a starter package can in no way use the full functionality. It still makes sense at this stage. On the ERP side, you are prepared for growth. Because there are companies that use SAP Business One that have 1000 and more employees.
SAP Business ByDesign is also defined by SAP for companies that are at least not at the lower end of the SME spectrum. However, the cloud solution can be rented for five users or more and is sometimes used in companies with "only 20" employees.
You can see: Size does not matter.

Only cloud and can cloud

ByDesign is exclusively operated in Software as a Service (SAAS) mode, which is provided by SAP.

There is a clear answer to the question of which operating models the respective ERP package can be used with, at least in the case of SAP Business By Design. Software as a Service (SAAS) Operation provided by SAP.
SAP Business One has more options to offer here. The ERP software can be installed and operated on your own domestic servers. This task can also be handed over to an IT and/or hosting service provider. But SAP Business One can also be obtained from the cloud. This can be done either directly from SAP or from special SAP partners such as SAP Business One. Cloudiax. Amazon Google and Microsoft also have a special offer for SAP Business One based on their respective cloud services.

HANA and can HANA

For ERP packages started as it SAPHANA did not yet exist, or at least was not ready for the market. SAP Business One used an MS-SQL database as a purchased product with "Microsoft genes". SAP Business ByDesign was developed as an in-house product by SAP on its own technical platform.
SAP Business One was actually the first SAP product to be allowed to use SAP's InMemory technology after the market launch of HANA. A little later, however, SAP Business ByDesign was ported to the HANA platform.
SAP Business One is still available for both database technologies and this flexibility pays off for one or the other customer.

International as you would expect

70,000 installations worldwide, address accordingly many countries that have their own legal requirements for business software.

SAP is a global company and addresses the world market. Naturally, the software of the world market leader is internationally oriented. The two ERP solutions in this comparison differ in terms of the number of country versions and interface languages.

The fact that SAP Business One has a slight lead here is probably due to the meanwhile high distribution of the ERP software. More than 70,000 installations worldwide address many countries that have their own legal requirements for business software. There are now 50 country versions that have been implemented directly by SAP. In total, SAP Business One is used in 170 countries. Where no special country version exists, either the version of another country is suitable or such a version has been adapted by SAP partners. The software has now been translated into 28 languages.

SAP Business ByDesign has 20 country versions that are delivered directly by SAP. SAP partners have already adapted the software to local requirements 46 times. SAP has delivered 12 languages so far.

SAP Business One and SAP Business ByDesign functions

In both cases we are dealing with a fully integrated and extended ERP software.

If one wanted to describe the depth of functions of both ERP packages in this article, the attempt would go too far. Too many functions in too much variation. In both cases, we are dealing with fully integrated and expanded ERP software. These address almost all areas of a medium-sized company. Both solutions start in the process already in marketing and sales, and have extensive CRM functions integrated. All processes in purchasing and sales are supported. Logistics and production are supported just as much as service processing. At the heart of the applications is a finance with integrated financial accounting and cost accounting.
SAP Business One and SAP Business ByDesign follow clearly different strategies in how they take their users by the hand and guide them through the processes.

Adaptability and extensions

Quite clearly: SAP Business ByDesign should rather be oriented towards what is available. While there are customisation possibilities for the cloud software, it is in the nature of things that the freedoms in the cloud are limited. A lot of customisation contradicts standardisation and increases challenges in terms of updates and upgrades. So one tends to rely on concepts that position additional functions in software outside the application. These should then be integrated via interfaces.

SAP Business One has different tools for customisation. These are integrated tools for customising up to a Software Development Kit (SDK). These can be used to develop your own integrated modules. However, even with SAP Business One there is a trend towards outsourcing additional functions to so-called "customisers". Loosely Coupled Solutions. SAP Business One is responding to the trend towards ever greater networking with its own integration server.
SAP Business One has a slight advantage with regard to the already existing extensions. The higher penetration of the software naturally also generates more demand for Add ons and industry solutions. In other words, the choice is large. Over 450 extensions are known.

Conclusion: Two for the middle

So SAP Business ByDesign and SAP Business One both address the mid-market. However, the middle is broad by nature. And indeed, even after a closer look, it is not easy to draw up a catalogue of criteria that supports a clear demarcation. Although SAP tries to define it in terms of company size, the nature of the SME landscape is that it is diverse. It does not mean that companies work or are organised in the same way, even though they are active in the same sector, are of a similar size and work the same market. Also the goals and strategies or short-term reasons for the ERP project can be completely different.

If a company is looking for a lot of freedom and flexibility in the implementation of its processes within an ERP, it is more likely to turn to SAP Business One.

However, a fundamental strategic difference can be identified. If a company is looking for a lot of freedom and flexibility in the implementation of its processes within an ERP, it is more likely to turn to SAP Business One.
Instead, if you are in a hurry and can rely on more specifications based on best practices then SAP Business ByDesign is more likely to come into question.

So for whom is SAP Business ByDesign and for SAP Business One (ideally) suited? This must be analysed precisely for each company!