In the previous blog, we explained clearly what SAP Business One and SAP Business ByDesign are. Now, both have reached new levels of utility and consumer engagement. More and more companies are adopting these enterprise cloud tools to derive various benefits offered to make them future-ready. This is possible to achieve with the introduction of changes that are more responsive to the enterprise’s needs and expectations.

SAP Business One can be considered as the first step towards modernization of organizations in terms of working and response management leading to change in resource management. Though a lot of comparisons have been made regarding their features, here is a deeper comparative analysis of both so that you can decide what would be more beneficial for your business.


1. Financials

The SAP Business ByDesign solution allows:

  • keeping track of important financial information such as payables and receivables, inventory and fixed assets
  • enables streamlining of payment and helps achieve timely liquidity
  • correct calculation of taxes and expenses
  • timeliness and completeness of reporting with a focus on compliance
  • streamlining of period-end closing
  • making financial decisions with added awareness on a daily basis.


SAP ByD period end closing


Almost all these functionalities are available in the SAP Business One too. However, SAP Business ByDesign offers better support for off-the-shelf functionalities.


2. Human Resources

The SAP Business ByDesign offers functionalities like:

  • organization management
  • workforce administration
  • time and attendance and payroll calculation
  • employee self-service
  • easy onboarding
  • policy-compliant purchase requests and approvals process

SAP Business One is one up in terms of deliverability as compared to SAP Business ByDesign. However, the latter proves to be more effective in managing natively supported functionalities.


3. Purchase Management or Procurement

SAP Business ByDesign enables organizations to award self-service procurement abilities to the employees. It helps centralize supplier information and allows everyone to make cognitive decisions using this support. Therefore, the result is better and faster deals and easier negotiation. The user can find full support for:

  • Maintaining a central database for product and price information
  • Streamlining purchase activities of the company
  • Providing buyers real-time information for negotiating

Businesses share that SAP Business ByDesign is better than SAP Business One in this context. 


4. Supply Chain Management (SCM)

The supply chain is the backbone of businesses, especially for those who are into manufacturing and supplying of products. SAP Business ByDesign helps get a clear view of supply networks and suppliers’ chain to get logistics modelling right. Apart from that, the other aspects of SCM easily managed by this suite are:

  • Efficient production of high-quality products
  • Managing production better and streamlining of automated processes
  • Planning and control of matters related to procurement
  • Driving product development in the direction of meeting customer expectations

SAP Business One and SAP Business ByDesign are at the same levels when compared over the functionalities that these offers. Only in procuring part,  SAP Business One has the edge over SAP Business ByDesign.


5. Customer Relationship Management

SAP Business ByDesign has made it possible for the companies to have a cutting edge in their quality of services they extend to customers. The suite strengthens the company internally by bringing better coordination, more accountability and clarity in actions and processes, and helps put up a great show for the customers who find it easy to readily invest their trust in such company. The suite offers management support for:

  • Marketing, sales and service processes
  • Driving customer engagement
  • Personalized campaigns for effectiveness in approach
  • Better lead generation and seamless sales handovers
  • Salesforce automation with improvement in accounting management
  • Easier contact interactions and more readily available touchpoints developments
  • Better tools, easier to use too, for delivering exceptional customer service

Thus, the suite is playing a pivotal role in extending better service to the customers, having its say in all the departments and functions working towards achieving better customer service, resulting in a bigger customer base.


Pointwise Comparison of SAP Business One and SAP Business ByDesign

Actually, if we look closer, both the suites have their strengths in some or other departments of an organization.  The premises where both these suites differ distinctly are:

1. Human Resource Management

If the focus is on developing new organization models, the SAP Business One can contribute as an add-on partner, whereas, the SAP Business ByDesign offers full functionalities support. SAP Business One offers partner support in generating reports regarding filled and available positions, for cataloguing training needs of employees, reporting of layoffs and recalled employees, earnings reporting for user-defined periods as well as for 3 months and 12 months’ timeline.


2. Financial Management and Budgeting

SAP Business ByDesign provides add-on partner support when the companies need increasing or decreasing overheads with percentage as input for a specific set or group of accounts.

SAP Business Bydesign Actual cost

3. Purchase Management

Tracing support for PO commitments on the basis of the accounting time period is available with SAP Business ByDesign.


4. Inventory Management and Forecasting

SAP Business One has ample features to offer full support for this activity. It allows the use of statistical tools to forecast the demand trends, study changes in seasonal demand structure and that during the promotion time when the demand is expected to be on the higher side.

Supply chain management SAP Business ByDesign


SAP Business ByDesign Vs SAP Business One – More Facts

SAP Business ByDesign has lots of points in its favour; most of those actually tell about its reach in internationally present organizations and also explain the reason behind it. To quote a few important ones are:

  • Suite in a Box

    It is ‘Suite in a Box’ with lots of functionalities provided in a streamlined manner. Thus, the companies get a readymade solution for most of the functions they perform on a day-to-day basis. Additionally, the important decisions of the annual or longer time frame can also be made using the tools available in this suite.

    Also Read: What is SAP Business ByDesign?


  • In-house Product

    Taking cues from SAP Business One’s success, SAP developed in-house product SAP Business ByDesign. Thus, they are involved right from its designing to implementation and deployment. This means the companies get to enjoy SAP-level support and quality in the product when they choose to have SAP Business ByDesign for their operational purposes.


  • No. of Users

    SAP Business ByDesign is able to accommodate up to 500 users per suite. On the other hand, SAP Business One has an upper limit of 50 people per suite.


  • Updates

    SAP Business ByDesign gets updated quarterly enabling its better compatibility with the everchanging structure of device pool in the organization. Whereas, SAP Business One cannot be updated after implementation. Furthermore, every new feature addition comes with the cost.


  • Data Centres

    SAP Business ByDesign is operated using three data centres that employ storage and resource allocation techniques strengthened further with security solutions like bulletproofing and Advanced Encryption Solution. The safety and security of company data which is actually a big concern are available in abundance in SAP Business ByDesign. Nevertheless, it’s missing in SAP Business One where a third party or partner’s data centre is employed.


  • Multi-premise Implementation

    Multi-premise implementation is another facility that makes SAP Business ByDesign a practical solution for ever-expanding businesses. All subsidiaries, overseas branches and other entities indirectly making a part of organizational structure are brought under one system of SAP Business ByDesign. The multi-company implementation is not possible in SAP Business One. It works as an add-on which makes new entries a bit cumbersome to add.


  • Cost

    The cost structure of SAP Business ByDesign comprises of only three things – subscription cost, implementation cost and optional cost of partner’s support. Thus, it is easy to account and certainly cost-effective than SAP Business One that involves cost components like license cost, implementation cost, security & maintenance, power and space, and IT personnel cost.


The Advantages of SAP Business ByDesign

There is a sizeable market that still believes in using average enterprise software suites and has found all functionalities required. Having said that, the SAP Business ByDesign is on its way to having a bigger market share. SAP, the parent company, is employing all analytics-based solutions to understand the needs and trying to incorporate the features with a focus on all-round improvement.


The world is moving in the direction of AI, predictive modelling and machine learning. Data insights have become a thing of paramount importance. These tools of the present times considered useful and more appropriate when they are capable of handling data and derive working strategies from them. SAP Business ByDesign is moving steadily in the direction of embracing AI and is developing extensions of the services and newer features in line with the companies’  work and administration culture.

Bottom Line

As mentioned before, SAP Business ByDesign was designed keeping SMEs or small to mid-sized businesses in mind. Therefore, it’s certainly meeting the expectations and exceeding in some cases too. The success of this suite is making to the tech news all around the world. Moreover, the stamp of SAP and its full involvement in the development and maintenance of this suite, in addition to using company-owned data centres and etc.

Most importantly, SAP Business ByDesign offers the credibility and eases the companies look for along with the road map designed to ensure continuous improvement of the technologies and functionalities.

If you want to explore SAP Business ByDesign then contact us to discuss your business needs.

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