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SAP Business One vs SAP Business ByDesign: Choose the Best ERP

Published: Nov 9, 2022  |   | 
sap business one vs sap business bydesign

SAP has extensive experience of over four decades in providing ERP solutions for small and mid-sized industries across different sectors. This German business application development company has successfully integrated technological advancements in future-proof cloud ERP solutions for modern businesses. In this article, we are going to see the difference between SAP Business One and SAP Business ByDesign solutions.

SAP has clearly defined plans for support and growth for both SAP Business One (SAP B1) and SAP Business ByDesign (SAP ByD) solutions. Both of them offer Sales, Service, Inventory, Purchasing, CRM, and Reporting features into a connected business suite. Companies that fall under the categories of core industries including manufacturing, retail, eCommerce, consumer products, and life sciences can leverage the benefits of SAP B1 and SAP ByD.

Whether you own a startup or running a small or mid-sized enterprise, you need to select the right ERP platform for your company. It not only enables you to streamline the business processes but also assists you to centralize the corporate data for anytime access. Let’s start from scratch and get an overview of both these solutions before digging deep into SAP Business One vs SAP Business ByDesign.

Overview of SAP Business One & SAP Business ByDesign

sap business one vs bydesign

Both SAP Business One and SAP Business ByDesign have stable histories. SAP B1 is ideal for 5 to 100 users whereas SAP ByD can be used by 20 to 1000 users at once. Here is a brief introduction to both of these robust ERP platforms.

SAP Business One

SAP Business One has been around for two decades and had remained a stable integrated solution to manage operations for small to lower-mid-sized businesses. As an on-premise system built on the SAP ERP application, SAP B1 can handle processes of accounting, purchasing, sales, inventory, CRM, human resources, and operations effectively. What makes SAP Business One a preferred choice for SMEs is the fact that it can address the fundamental business needs of all types of industry sectors.

SAP Business One is a comprehensive ERP solution that follows the best practices and promotes transparency at every step. Be it production or distribution, sales or inventory, enterprises can drive business growth with the help of actionable insights provided by SAP B1. This solution can streamline workflows and reduce operational costs significantly by providing enterprises with a single solution to all processes.

SAP Business One has different modules for financial management, accounting, analytics, reporting, purchasing, customer relationship management, inventory management, and the like. It is an end-to-end ERP software that offers real-time business analytics with the help of SAP HANA. Users can get clear visibility and complete control over every aspect of different business processes with the help of SAP Business One.

Important Stats
  • Initial Release- 2002
  • Number of Versions- 11
  • Number of Customers- Over 65000

SAP Business ByDesign

It is a single, cloud-based ERP solution that helps fast-growing, mid-sized companies and their subsidiaries. It is an ideal solution for entrepreneurs or business persons who wish to leverage the benefits of large-scale business intelligence solutions without investing in a larger IT infrastructure. As a highly customizable ERP software, SAP Business ByDesign can unify diverse business operations while resolving issues and adding processes as and when required.

SAP Business ByDesign is a pre-configured software to deliver business processes through a single UI (User Interface). Like SAP B1, SAP Business ByDesign also promotes transparency and favors industry best practices while handling operations related to human resources, financials, procurements, customer relationships, and the supply chain. As a comprehensive cloud ERP solution, SAP Business ByDesign enables companies to get rid of paying up-front costs for installation, upgrade, and maintenance.

Important Stats
  • Initial Release- 2007
  • Number of Countries- 144
  • Number of Customers- Over 850

SAP Business One vs. SAP Business ByDesign

Many entrepreneurs consider SAP B1 and SAP ByD as twin solutions for businesses. However, the reality is, both these ERP solutions have some differences. Let’s go through the key aspects of the difference between SAP Business One vs. SAP Business ByDesign.

sap bydesign vs sap business one

  Number of Users

SAP B1:It is useful for small to lower-mid-sized businesses. Five to fifty users can leverage the benefits of SAP Business One easily.

SAP ByD: Upper mid-sized enterprises that are looking to scale and manage subsidiaries can use SAP ByD. Anywhere between 20 to 1500 users can utilize this platform.

  Type of Industries

SAP B1: Best fit industry sectors are manufacturing, retail, distribution, eCommerce, trading, and services

SAP ByD: Most useful in manufacturing, construction, software, IT, consulting, chemical, medical, distribution, and services

  Implementation Costs

SAP B1: The implementation cost for SAP B1 ranges between $40k to $200k with the total package costs up to $1700 (limited users) and $3700 (professional users). Other charges include license fees, IT support, security costs, etc.

SAP ByD: The implementation cost for SAP ByD remains between $50k to $200k with the average user cost at $80 per month/user. Also, you need to pay an annual subscription fee and an additional charge for technical assistance.

  Integration & Deployment

SAP B1: It is n on-premise application that is available in the cloud as well. However, it is not a complete SaaS application and does not support multi-company implementation.

SAP ByD: It is a completely SaaS application based on cloud technology. It makes it possible to run subsidiaries and overseas branches while maintaining organizational structure effectively.

  Data Security

SAP B1: As SAP B1 is hosted in the client’s data center, it may be less vulnerable to hacking attempts from remote locations. It is not as secure as the dedicated data centers of SAP.

SAP ByD: As a SaaS system, the security of SAP ByD is the vendor’s responsibility. SAP ByD is hosted in the best data security centers that have advanced encryption standards.

  Multiple Accounting

SAP B1: It does not enable users to get multiple account charts for a single company and interlinking accounting charts.

SAP ByD: It allows multiple accounting charts for one company and interlinking them with financial books or transactions.

  Integration Capabilities

SAP B1: It can be integrated with anything but it requires additional costs for the same. Add-ons are necessary to get intercompany functionality and users need to switch databases to get visibility across various legal entities.

SAP ByD: As a multi-company solution, it offers more than 200 pre-built integrations. Users can get visibility across different legal entities of their businesses using a single sign-on.

Implementation Time: SAP B1 vs SAP Business ByDesign

SAP B1 vs SAP Business ByDesign

SAP Business One

The typical SAP B1 implementation without add-ons takes up to three months. It is because of this solution’s long and proven history as well as a robust SAP Partner network. Here, it is fair to mention that the implementation of industry-specific add-ons can increase the time based on the depth and complexity of add-ons. As SAP Business One is an easy-to-learn platform, the training time is negligible.

SAP SAP Business ByDesign

It normally takes four to eight months to implement because its customized add-ons require extra effort and time to integrate. Compared to SAP B1 add-ons, the same for SAP ByD take more time to integrate. What’s more, SAP Business ByDesign is relatively harder to learn, and therefore, it requires additional time for training. Altogether, it is better to give anywhere between four to eight months for SAP ByD implementation.

Business Process Flexibility: SAP B1 vs SAP Business ByDesign

Here, the basic point to consider in SAP Business One vs. SAP Business ByDesign is SAP B1 is fully customizable and extendable using add-ons, whereas SAP ByD is not customizable but is extendable with the help of add-ons. Let’s understand the difference between these two solutions from the perspective of flexibility.

sap bydesign vs business one

SAP Business One

It offers multiple deployment models and flexibility to keep the necessary processes only. Different deployment models for SAP Business One and S/4HANA include- on-premises, partner-hosted, multitenant cloud, and single-tenant cloud. Also, SAP B1 offers flexibility to switch from on-premise to the cloud simply by changing the license. Companies that face difficulities in meeting hardware or networking requirements can move into the cloud. In a way, SAP Business One remains a cost-effective choice for growing SMBs.

SAP Business ByDesign

SAP ByD offers only one option of a multi-tenant SaaS deployment. In other words, there is no flexibility, and users who want to implement SAP Business ByDesign have to subscribe to the OOTB (Out Of The Box) processes. Apart from this, SAP ByD has a substantial learning curve that requires more time and money in training.

Features: SAP B1 vs SAP Business ByDesign

Let’s understand the difference in features between sap business bydesign vs business one. It will help you select the most suitable platform for your company.

sap bydesign vs business one

SAP Business One

SAP Business One offers a lean set of modules that builds the core of ERP. These modules are financial management, procurement, sales management, CRM, inventory management, production management service management, excel integration, and the like. Users can get a dashboard, embedded analytics and excel integration along with the basic functionality of multi-company process management.

SAP Business ByDesign

SAP Business ByDesign has all the features mentioned above. Apart from these modules, it offers project system management, multi-level material bills, user-defined KPI reporting, timesheet integration, travel expense fields, and a built-in workflow. It also provides users with the functionality to incorporate multiple companies under a single platform. In other words, SAP Business ByDesign has all the features given in SAP Business One with more detail.

Which is The Best For Your Business: SAP B1 vs SAP Business ByDesign?

sap bydesign vs business one

SAP Business One and SAP Business ByDesign are robust, mid-market ERP solutions with slightly different functionality and scope. On one hand, SAP Business One addresses the needs of small to mid-sized companies that seek core ERP capabilities. Companies with limited budgets for ERP integration also opt for SAP Business One as it is a cost-effective solution. On the other hand, SAP Business ByDesign meets the larger requirements of enterprises. Companies that want an ERP solution that takes care of subsidiaries and manage multiple legal entities opt for SAP Business ByDesign.

You May Also Like: SAP Business One VS NetSuite – ERP Comparison – Choose the Right ERP Software

Apart from having a slight difference in functional area, SAP Business One and SAP Business ByDesign have sophisticated project management capability with high scalability.

How Silver Touch Helps to Implement SAP Business One

As a trusted SAP Partner, Silver Touch assist our clients to leverage the key benefits of SAP Business One through end-to-end services. We offer SAP Business One Cloud solutions and mobility solutions along with customized add-ons to enhance its functionality. We serve all the industry sectors like BFSI, healthcare, manufacturing, education, retail, public sector, food & beverages, wholesale, etc.

Irrespective of the industry sector, we can implement add-ons successfully in your enterprise to meet complex business requirements and procedures. We also provide our clients with excellent SAP B1 License consultation and procurement services. We offer SAP Business One licenses for on-premise, HANA, and on-cloud.

Conclusion About SAP Business One and SAP Business ByDesign

In a nutshell, the choice of SAP Business One and SAP Business ByDesign largely depends on the diversity and size of your business. Your objectives and long-term goals with priorities also matter in the choice of ERP platforms. For example, if your SME needs a multi-tenant SaaS solution with broad ERP features and functionality, you should go for SAP Business ByDesign, But, if your company seeks an ERP solution with all core features, seamless functionality and options of integrating on-premise or on the cloud, then SAP Business One can fit well.

You can host SAP Business One on SAP HANA to get the benefits of the cloud and access to some exclusive features in a cost-effective way.

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FAQs About the SAP Business One and SAP Business ByDesign

What is the difference between SAP Business One and SAP Business ByDesign?

SAP Business One (SAP B1) and SAP Business ByDesign are mid-market ERP solutions to meet slightly different business requirements. SAP Business One has core ERP features whereas SAP ByDesign has the capability of handling multiple legal entities in a single database.

How much does SAP ByDesign cost?

The most basic monthly subscription package for SAP ByDesign costs $22 per user. You can add additional core users to it at $120 per month and advanced users at $217 per month.

Why SAP Business One is the best?

Higher visibility and more control over the order-to-pay cycle are two major characteristics of SAP Business One that make it superior to other available ERP solutions.

What are the benefits of using SAP Business One?

Improved collaboration, enhanced data management, increased data security, higher scalability, and customization are some of the key business benefits of SAP Business One.

More Resources About SAP Business One