Thursday 7 December 2017

SAP ERP System

Introduction
SAP an acronym for Systems, Applications, and Products in Data Processing, refers to software that has wide range of applications in enterprise resource planning (ERP). This ERP software was founded in 1972 by a company called SAP SE, in Germany, specifically Walldorf. The software has since grown to be a core provider of client or server business solutions that makes its reputation (Blue Ocean Systems par. 1). Currently, the SAP R/3 which is an enterprise software suite for open server systems has created a foundation of new standards that provide management of business information.

SAP ERP is divided into three entities including quality assurance, production and development environments (Blue Ocean Systems). The development entity or system is majorly concerned with implementation task. The production entity on the other hand, handles all daily businesses and the quality assurance achieves the final testing prior to transportation to the production environments (Blue Ocean Systems par. 1).
SAP ERP has encountered a lot of changes pursuant to the changes in technology, market and industry changes. For example mySAP ERP was released in 2004. Later in 2013 the SAP ERP version 6.0 was released, combining within itself SAP ECC (Enterprise Core/Central Component). Mishra (78) notes that SAP ERP consists of several modules and can be tailored or configured to meet specific organizational needs. The modules include human resource, finance and accounting, inventory control, product design, development as well as production, and marketing as sales among others (Blue Ocean Systems par.3).
SAP ERP fills the gap of software requirements of most firms and organizations both mid-size and large. Over 120 countries use SAP, translating to over 12 to 13 million users globally. With SAP ERP being the bandwagon, the statistics are projected to increase (Blue Ocean Systems par. 4).
Advantages of SAP ERP System
There are numerous advantages that are conferred by SAP systems. The major benefit of using SAP is that it brings a comprehensive set of integrated and cross functioning business activities.  SAP has the advantage of integration. Through this it reduces the threat of data redundancy during data entry as well as associated errors. This is ensured by the real time provision of information. Additionally, it can also be integrated with the World Wide Web, thus optimizing the business of a given organization. This is because in such arenas the business is able to exploit e-commerce to its advantage. The business is assured of expansion up to the global level (Blue Ocean Systems).
SAP ERP also provides a variety of modules that have diverse functions compared to other forms of ERP (Mishra 85). Additionally, there are specific operations that form the core of SAP that are not available in other ERP softwares making it an obvious choice by specific industries. These capabilities include configuration and customization. SAP reduces the cycle time for processing customer requests (Mishra 85; Blue Ocean Systems par. 5). This is because it supports within itself a variety of customer support functions such as order processing, delivery, billing, and customer related inquiries. On the same note, it also facilitates employee and supplier activities such as HR, payroll and learning, information exchange and payment processing.
SAP has the capability of increasing flexibility and stability of the IT infrastructure capability. This is because it houses reliable platforms, modern technology and it is customizable and configurable altogether. The accuracy and efficiency of SAP is amazing. There are parameters that govern entry of data twice into the system (Mishra 86). This reduces the chances of wrong entry whether intentional or for malicious purposes. SAP is also secure in terms of managing data of an organization. This is because it is guarded by multilayered security systems as well as strategies by the users (Mishra 87).
The software is very easy to use being that each and every organization can tailor the user interface to meet their user requirements that is it can be personalized. As a result the productivity of the user is enhanced twofold (Blue Ocean Systems par. 6). Being relatively old software in the market, there is assurance of its proficient qualities in different organizations based on the aforementioned statistics. Additionally, SAP also offers analytical insight that enables the users to prepare and distribute the purchase analysis wherever and whenever it is needed.
SAP enables a firm to gain high ROI at a faster rate. This is because it has a rapid implementation technique that does not cost much compared to other ERP models (Blue Ocean Systems par. 9). There is also an added advantage of reducing implementation time and cost through leveraging on the already implemented systems.
Based on the HR capabilities of SAP, the organizational workflow will be ensured as well as alignment with the organizational strategies (Blue Ocean Systems par. 5). This is because the employees will be able to learn, access, and exchange information, have value added responsibility and be satisfied. This boosts the employee morale. The organization can also easily manage the interdepartmental data all in one platform (Mishra 86).
Conclusion
SAP ERP application is used within different organizations for various purposes. The application has had a long history tracing its root back to Germany. The latest version of the software is SAP ERP 6.0 released in 2013. SAP has a number of advantages compared to other ERP systems simply because it does what other systems cannot do all in one platform. With the benefits in an organization, the statistics of people as well as countries using SAP is very high, and projected to rise exponentially. SAP ERP is the best solution for organization aspiring to catch up with technology, market and the industry at large.

Works Cited
Blue Ocean Systems. "Benefits of Using SAP for Your Business." SAP EAcademy Nepal| Home | SAP R/3 and SAP Business OneTraining. Blue Ocean Systems, 2014. Web. 24 Feb. 2015. <http://bos.com.np/index.php?option=com_content&view=article&id=95:benefits-of-using-sap-for-your-business&catid=34:articles&Itemid=5>.
Mishra, Alok. "Achieving Business Benefits from ERP systems." ResearchGate - Share and Discover Research. IGI, Global, 2008. Web. 24 Feb. 2015. <http://www.researchgate.net/profile/Alok_Mishra5/publication/259486796_Achieving_Business_Benefits_from_ERP_Systems/links/0deec52c3122b5634e000000.pdf>.


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