Workday Financials vs. SAP: A Comprehensive Comparison
ERP Cloud Training Online 
Compare and understand their market positioning, features, & dominance in financial management. Learn which ERP solution best fits your business needs
Introduction
Managing finances is the heart of every business. It ensures that expenses are tracked, cash flow is managed, and regulatory compliance is achieved, improving overall financial decision-making.
Workday Financials: A cloud-based financial management system designed for modern businesses, providing insights in real-time along with automation and scalability.
SAP Financials: An advanced ERP solution with extensive features for financial planning, accounting, and analytics which improves business operational efficiency.
What is Workday Financials?
Workday Financials is the most complete solution for managing accounting, reporting, budgeting, and compliance on the cloud. Decision-making is improved with real-time operational visibility, global reach, and integration of other Workday tools.
What is SAP?
SAP (Systems, Applications, and Products) is one of the leading providers of enterprise software, enabling companies to manage multiple business activities such as finance, human resources, supply chain, and customer relations. Their flagship solution SAP ERP integrates these functions in a single system with real-time data, allowing businesses of all sizes to take advantage of its scalability.
Real-time scenarios where Workday Financials Fit Vs SAP
Both Workday and SAP are well-known names in the enterprise application software market for different reasons, and they have unique histories.
Source: Erp.Today
A. Establishments Dates:
Workday: Workday was Founded in 2005 by David Duffield and Anneel Bhusri, the company came out with its HCM (Human Capital Management) solution in November 2006 and later branched into financial management.
SAP: In 1972, SAP was established and in 1973, the company launched its first-ever financial accounting software, RF (SAP R/1). Community.SAP.com
B. Market Strategic Positioning:
Workday: Workday, a recent addition, has done well among its competitors, especially in the cloud-based ERP industry. Research done particularly on the shareholders of Gartner indicates that Workday controlled the largest slice of the market at 19.6% in 2023, under ERP SaaS revenue. That growth highlights Workday’s dominance in the ERP cloud market
SAP: Having entered the enterprise software market for decades, SAP holds a substantial market for financial management solutions. SAP’s long experience and product range enable it to firmly consolidate its position as a market leader.
While SAP is still the market leader in traditional software for financial management, Workday’s growth signifies its strong market presence and with the cloud-based ERP sector emerging, Workday has positioned itself as a strong competitor.
C. Workday vs. SAP: Market Positioning & Market Domination:
Workday
Market Position:
Workday is a prominent provider of cloud financial management and human capital management software and they recently entered the market of enterprise resource planning systems.
That suggests the company was founded in 2005 and has had reasonable growth considering the market needed ERP solutions. As boundaries between ERP software and HCM software continued to converge, Workday ERP solutions made a rapid mark in cloud computing.
According to Gartner marketing share studies in 2023, Workday topped the listing by having 19.6 percent ERP SaaS revenue in the world. When looking at the claim it becomes apparent that Workday was positioned strongly even when oil prices stopped in 2020 bringing about harsh economic disturbances.
Market Domination:
Their strongest competition is Oracle and SAP, but in the United States, Workday surpassed all of these brands claiming a share of 9.6 percent. According to AppsRunTheWorld, that kept their position on top ground in 2023.
SAP
Market Position:
SAP remains a market leader in the Enterprise Financial Management Solutions category because of its strong foothold in the enterprise software market. The industry is vast, and SAP aims to target many businesses regardless of their size and type through its extensive product portfolio. Their experience, aged tenure in the market and a broad array of products have always kept them in a leading position.
Market Domination:
SAP has a large market share in the ERP industry as it has more customers than its closest competitor by 3x – SAP has also maintained its number one position in Travel and Expense Management Software with 49.6% market share in 2023. (HG Insights) (SAP Concur)
Features Comparison (Workday Financials Vs SAP)
Here’s a side-by-side comparison of Workday Financials and SAP based on key features and capabilities:
Feature | Workday Financials | SAP |
Platform Focus | Cloud-native, evolving, and modern technology adaptable to WFM and HCM business functions. | Comprehensive ERP platform integrated into primary finance, supply, and manufacturing value chains |
Ease of Use | User-friendly, highly adaptable, and seamless integration across HCM and Finance functions for real-time data use. | More complex interface requiring additional training; focuses on deep industry-specific processes |
Deployment Model | Meticulously designed cloud platform with 0% on-premise restrictions and rolls out features on revenue cycle | Both cloud and hybrid deployment of cloud (SAP S/4HANA Cloud) with on-premise options availability. |
Financial Planning | Integrated financial planning and analysis tools for budgeting, forecasting, and scenario modeling. | Capabilities for advanced planning but tends to rely on analytics cloud for SAP more than it should. |
Analytics and Reporting | Reporting in real-time with multi-KPI stem dashboards to drill down into reports. | Comprehensive reports stem feature but add-on customization requires more settings for other modules |
Global Compliance | Support for multi-currency, multi-language, and multilayer global taxation effortlessly compliance use built-in. | Strong global compliance features tailored to large multinational enterprises. |
Updates and Innovation | Cloud provided continuous feature upgrades, with no changes to the system required from users, unlike on-premises. | Required planned upgrades, are less of Workday’s agile model although cloud updates are more frequent. |
Flexibility and Scalability | Very appealing for medium to large corporations operating in sectors that change frequently and at high velocity | Best for big companies with intricate and unchanging workflows |
Training Resources | Available Workday Finance Training courses prepared employees to use the system efficiently. | There is ample training in SAP, but it is usually more difficult because of its scope. |
Integration | Workday lets Financial Management and HCM functions work together on a single platform. | SAP has a modular system which requires more setup to connect finance with other SAP products. |
Cost & Pricing Models (Workday Financials vs SAP)
There is a remarkable difference between Workday Financials and SAP in regard to their cost structures, how they deploy the systems and pricing models. Even if the two companies are considered premium solutions, their distinct architecture, scalability, and target audiences influence their overall pricing significantly.
Aspect | Workday Financials | SAP |
Pricing Model | The subscription-based SaaS pricing model has estimates that range from $100 to $500 per user every month. | Initial license fees paired with modular pricing. First-time users can expect to pay between $3,000 to $10,000 per module, and additional fees for every user afterwards. |
Deployment Costs | Because of its cloud-native approach, implementation expenses go from $250,000 to $1M. | On-premise setups are notably more expensive, but this changes when considering the deployment of SAP S/4HANA Cloud. You can expect to pay between $500,000 and multi-millions for on-premise setups, but with the Cloud, you can expect lower prices. |
License Costs | With your subscription, comes the added benefit of updates and support, all while paying from $100,000 to $500,000 yearly for mid-sized businesses. | Additional fees are put in place for ERP, add-ons, and maintenance contracts which drives up the cost significantly for large enterprises. They can expect to pay $1M to $10M+ depending on licensing costs. |
Total Cost of Ownership (TCO) | Constant and Predictable costs by using the subscription model over time. TCO estimated alongside the five-year margins tends to fall between $500K – $2M. | Complex pricing structures coupled with other integrations and upgrades, as well as maintenance make TCO higher. Over five-year margins, TCO tends to fall between $2M to $10M+. |
Scalability Costs | Easier for growing businesses to adopt; additional users can be added for $100 – $300 per user each month. | Adding new users usually includes purchasing more licenses and configuring additional modules. Costs range, but usually, these modules can get very expensive. |
Implementation Costs | Implementation expenses are relatively lower and the time frame is also cut down drastically because of Workday's cloud-based model. These costs usually tend to fall between $500K – $2M. | On-site or hybrid implementations are typically more expensive and take more time. These costs usually exceed $1M to $5M+. |
Support & Maintenance | This is fully comprehensible in the subscription fee, which includes free updates and innovations that are directly integrated into the system. | These expenses incur a separate contract for support/maintenance, aggravating the yearly costs for on-site systems; support contracts cost 18-22% for licensing fees annually. |
Key Differences: Workday Financials vs. SAP
Feature | Workday Financials | SAP |
Cost Predictability | Subscription-based; includes updates and support | Varies by deployment type; additional costs for updates/support |
Upfront Investment | Lower; The SaaS model avoids large initial expenditures | Higher for on-premise; requires licensing, hardware, and infrastructure |
Pricing Transparency | Transparent; fewer hidden costs due to an all-in-one cloud model | Complex; depends on modules, customization, and deployment type |
Flexibility | Standardized pricing and functionality | Highly flexible for large enterprises, but at higher costs |
Brands and real-world case studies using Workday Financials and SAP
A number of companies were able to put into place Workday Financials and SAP Solutions as per their requirements and were successful in overcoming the challenges with appropriate solutions to improve their financial operations.
Workday Financials:
Franklin Templeton:
Challenge: Administering and controlling intricate and large investment portfolios ranging across a particular region with its regulations.
Solution: Workday Financials automated more complex financial processes and allowed access to a view of financial information that is central and real-time, thus, improving reporting accuracy and regulatory compliance. Source
SAP:
American Airlines:
Challenge: Handling hr and finance tasks for the organization’s global workforce in remote locations.
Solution: SAP solutions unified HR and financial systems that existed before incorporating functional approaches to insights, decision-making, and user satisfaction. Source
These case studies show how companies from different sectors capitalized on SAP and Workday Financials to improve financial performance. Although the principles of system integration, reporting timeliness, scalability, and other customary practices were as problematic as they were at the beginning, with a few workarounds, the results are heightened productivity, better integration, and improved decision-making.
Pros and Cons of Workday Financials & SAP
Both Workday Financials and SAP are powerful platforms for enterprise financial management, but they cater to different needs and priorities. Here's a breakdown of their pros and cons:
Feature | Workday Financials | SAP |
Cloud-Native Platform | Yes – Built for the cloud with continuous updates and scalability | Cloud and on-premise options available |
User-Friendly Interface | Intuitive and easy to navigate, reducing the learning curve | Complex UI, steeper learning curve |
Real-Time Insights | Instant analytics and customizable dashboards | Requires additional modules for advanced analytics |
Integration | Unified platform for financial management and HCM | Integrates with multiple business functions like supply chain, operations |
Flexibility & Adaptability | Highly adaptable, ideal for mid-sized to large enterprises | Customizable for complex enterprise needs |
Global Compliance | Supports multi-currency, multi-language, and international regulations | Built for global operations, with extensive industry-specific compliance |
Industry-Specific Features | Limited; may require customizations for niche industries | Extensive industry-specific functionality |
Deployment Options | Cloud-only | On-premise, cloud, or hybrid |
Customization | Limited compared to SAP | Highly customizable for unique business needs |
Implementation Time | Faster than SAP, but requires planning and change management | Long implementation times, especially for large enterprises |
Cost Structure | Subscription-based model, predictable costs but higher over time | High initial investment for on-premise; additional costs for add-ons |
Training & Adoption | Workday Finance Training available for easy upskilling | Requires extensive training due to system complexity |
Total Cost of Ownership (TCO) | Lower TCO due to cloud-based infrastructure | Higher TCO due to maintenance, hardware, and customization costs |
Real-time scenarios where Workday Financials Fit Vs SAP
Below is a detailed explanation of real-life business examples in which Workday Financials & SAP do the best work in conjunction with Workday Finance Training and how it impacts adoption.
Workday financials Live Scenarios:
Scenario: Rapid Scaling In A Cloud-First Business
Example: A tech company plans to set up operations in several countries across continents. They are looking for a multi-national business financial information system with multi-currency accounting, worldwide regulatory compliance, and HCM systems integration.
Why Workday Financials? Workday provides a unique solution with its cloud platform which greatly enhances infrastructure scalability. Their businesses report global taxes and meet requirements for global expansion without additional growth restrictions.
Workday Finance Training: Enables finance teams to adapt quickly to the system's features with great reporting capabilities ensuring smooth interface transition.
SAP Real-Time Scenarios:
Scenario: Complex Supply Chain Management
Example: A multinational corporation in manufacturing is dependent on thousands of vendors and distributors around the world which makes their supply chain very complex.
Why SAP?: With specific industry modules including supply chain management and production planning, SAP specializes in ERP systems that sustain complex operations.
How ERP Cloud Training May Help You
For companies making the transition to cloud-powered ERP systems such as Workday Financials, ERP Cloud Training is necessary. It greatly accelerates adoption while improving reporting and analytics, and automates tasks to improve the financial process by reducing errors.
Training enhances the interplay between finance and HR, facilitates adherence to international regulations, and ensures finance professionals have a leg up on the competition. Most importantly, it allows them to optimize as Workday Financials change.
Additional advantages are quick adoption of the system, better allocation of the organization's resources, improved accuracy of the finances, real-time checks, and improved compliance. In the end, any resources geared toward ERP Cloud Training are useful in enabling teams to take full control of Workday Financial Management for better efficiency and decision-making.
Conclusion
Workday Financials is a purpose-built, state-of-the-art, cloud-based solution aimed at agility, ease of use, and delivering real-time financial insights. While SAP is dependent on complex legacy systems that are on-premise, Workday boasts effortless updates as well as easy-to-follow workflows and automation that greatly reduces the overhead for IT.
The need for complex and maintenance-intensive customizations, like what SAP provides, is eliminated by Workday’s innovative approach, which integrates seamlessly with the pre-existing HR and planning functions of any organization. For companies looking for innovative, flexible, efficient, and user-friendly options for managing finances, Workday is strategically positioned to replace the ageing and burdensome traditional ERP systems.
Categories: : Workday Finance Training
Frequently Asked Questions
Is Workday compatible with SAP?
Workday can integrate with SAP via its financial and HR management tools and SAP’s extensive ERP modules, where data exchange between systems is possible.
Is Workday better than SAP?
Workday is superior to most SAP competitors when the company’s priorities are human resources and finances. Workday dominates SAP in these areas as Workday is cloud-oriented, agile, and perfect for addressing HR and financial needs. But if a business’s focus is on supply chain and manufacturing, then SAP provides a broader resource planning suite ideal for massive enterprise organizations.
Can Workday and SAP work together?
Certainly. With hundreds of companies, linking both systems enhances overall efficiency in business operations. SAP is great for managing a company's operations while Workday excels in finance and HR.
Relative to SAP, which platform can be described as more economically friendly, Workday or SAP?
For SAP’s larger technology-based firms, features are more robust which comes at the cost of efficiency in implementation while Workday provides ease in setting up for less complex businesses making it more friendly for them.
Will Workday ERP be able to replace SAP ERP completely?
Within finance and human resource aspects, Workday can substitute SAP, however, as there is a need for more extensive processes in supply chain, acquisition, and production work, it lacks the ability to substitute outright. The dual System Approach makes anything possible between SAP and Workday.
