What is SAP?

SAP is a management information system (an ERP) used by companies to integrate the various business processes. How so? Managing business resources and planning tasks. SAP is currently the most popular ERP used by companies. In this article, we will learn more about what is SAP and how it works.

SAP is rated as one of the four largest software companies in the world, after Microsoft, IBM, and Oracle. It is the largest company focused on providing Enterprise Resource Planning (ERP) software solutions. The main product of the company is SAP R/3.

“R” in SAP R/3 symbolizes “Realtime” data processing, and 3 symbolizes a three-level application architecture consisting of a database, application server, and client.

SAP R/3 , RDBMS (Relational Database Management System) has also been available to use the aftershocks of Oracle, Microsoft SQL, Informix servers.

SAP R/3 has an interface that supports EDI (Electronic Data Interchange) and Office software.

Key packages include :

(APO) Advanced Planner and Optimizer,

(BW) Business Information Warehouse,

(CRM) Customer Relationship Management,

(SRM) Supplier Relationship Management,

(HRMS) Human Resource Management Systems,

(PLM) Product Lifecycle Management,

(XI) Exchange Infrastructure

(KW) Knowledge Warehouse.

More than 91,000 copies of SAP have been installed at more than 28,000 companies, according to a report. More than 12 million people are using SAP in over 120 countries around the world.

SAP is an Enterprise Resource Program (ERP)

ERP is the general name given to integrated management systems that enable efficient use of resources such as labour, machinery and materials required for the production of goods and services in Enterprise Resource Planning (ERP) enterprises.

ERP collects data from all parts of an organization under a single computer system and provides joint data sharing of different departments.

What is SAP?

SAP (Systems, Applications and Products) was founded in 1972 by five former IBM employees in Walldorf, Germany. The full name of this company is SAP AG.

It is designed to meet the demands of all-grown companies, from small and medium processes to global companies, and in a competitive environment that becomes more difficult every day, it has a great advantage for the organisations.

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Why is it preferred?

Among the reasons why SAP is preferred and has grown so much has been the great ethics of a company meeting all its needs. 22 different sector-specific applications and modules such as Financial Accounting, Management Accounting, Sales, Distribution, Production.

SAP modules include:

SD-Sales & Distribution: helps improve the efficiency of operational activities related to the process of managing customer orders (sales process, shipping and billing)
MM-Materials Management: help carry out the procurement process and inventory management
PP-Production Planning: assist the planning and control process rather than the production activities (manufacturing) of a company.
QM-Quality Management: helps check the quality of processes across the entire logistics chain
PM-Plant Maintenance: a solution for technical system administration and repair process
HR-Human Resources Management: integrate HR processes ranging from registration applications, employee administration, time management, financing for travel, to the process of paying employees’ salaries
FI-Financial Accounting: Includes standard accounting cash management (treasury), general ledger and consolidation for financial reporting purposes.
CO-Controlling: Covers cost accounting, starting from cost center accounting, cost element accounting, and profitability analysis
Management: Assisting the management of the entire fixed assets, including the process of traditional asset accounting and technical assets management, to investment controlling.
PS-Project System: Integrate the entire project planning, workmanship and control process.

Who are the competitors?

Oracle Finance is one of the closest competitors to SAP.

Advantages:

It is value addition, where the company can combine and develop all the applications that exist and is needed by the company.

It connects all production lines and all departments in the company. SAP R/3 is a very dynamic software, where all menus and program views can be customize using ABAP programming language according to the company’s needs.

It has an integrated module and can be broken down as needed.

One of the advantages of SAP R/3 is the creation of user interfaces using other programming languages such as JAVA, PHP, Visual Basic, ASP, VB.net, Lotus Script, Delphi and so on.

Weakness:

Expensive cost

SAP’s weakness in its implementation is the completeness of data entry and the time limit that demands the discipline of its users.

Sap application design is more functional and not imaginative, so it cannot be used intuitively (not user friendly). Many of SAP’s great features become ‘hidden’ due to the difficulty of the user in intuitively understanding this application.

Conclusion

SAP is able to provide complete solutions in all business dimensions. All you have to do is customize the type of SAP that will be implemented to your business. The transition is now easier to do in accordance with the growth and development of the company. SAP is proven to be able to provide flexibility in growth so that small and medium enterprises will get very significant benefits from this software.

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