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SAP Introduction

SAP is a leading enterprise resource planning software provider founded in 1972 in Germany. It offers various ERP software products that help organizations automate core business processes through a centralized system. ERP software provides a single source of truth by coordinating data flow between business functions and streamlining operations. Some key SAP ERP products include SAP ERP, SAP CRM, SAP SCM, and SAP S/4HANA.

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76 views

SAP Introduction

SAP is a leading enterprise resource planning software provider founded in 1972 in Germany. It offers various ERP software products that help organizations automate core business processes through a centralized system. ERP software provides a single source of truth by coordinating data flow between business functions and streamlining operations. Some key SAP ERP products include SAP ERP, SAP CRM, SAP SCM, and SAP S/4HANA.

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saurabh.rai83
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ERP

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SAP Introduction
 SAP, which stands for Systems, Applications, and Products in Data Processing.
 It is a leading enterprise resource planning (ERP) software suite.
 SAP SE is a German based software company founded in 1972, by Wellenreuther, Hopp, Hector,
Plattner, and Tschira.
 Apart from ERP software, the company also sells database software and technology cloud-
engineered systems, and other ERP software products.

Here are some of the products of SAP.


 SAP ERP (Enterprise Resource Planning)
 SAP CRM (Customer Relationship Management)
 SAP PLM (Product Lifecycle Management)
 SAP SCM (Supply Chain Management)
 SAP SRM (Supplier Relationship Management)
 SAP S/4HANA (Enterprise Resource
 Planning on-premise and cloud)
 SAP Business ByDesign (SME Cloud Enterprise Resource Planning)
 SAP Business One (B1 on HANA) (Small enterprise Enterprise Resource
Planning)
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Out off all the above ERP is the main product of SAP.

ERP Stands for Enterprise Resources Planning.

What is ERP?
ERP stand for Enterprise Resource Planning is a type of software system that helps organisations automate and
manage core business processes (such as accounting, procurement, sales, manufacturing, services, inventory
management etc.) for optimalperformance. ERP software coordinates the flow of data between a
company’sbusiness processes, providing a single source of truth and streamlining operations across the
enterprise. It’s capable of linking a company’s financials, supply chain, operations, commerce, reporting,
manufacturing, and human resources activities on one platform.

Evaluation of ERP
In older day Manufacturing Requirement Planning (MRP-II) and Material Requirement planning (MRP) are
used before ERP is evolved. MRP and MRP-II does not have integration between the different business unit.
ERP is evolved from MRP-II and MRP-II was evolved from MRP. In the 1960’s, the concept of ERP was limited to
the fact that Organizations wished to integrate all departments and functions in order to increase revenues. The
emphasis was initially on inventory control and inventory management. During the 1970’s the focus shifted to
Material Requirement. Gradually, the concept of ERP was introduced to Distribution Management activities
during the 1980’s. It was in the 1990’s that efforts were made to integrate all functions of an Organization.
This stemmed from the fact that businesses were becoming increasingly complex and the concept of ERP had
to be evolved to meet business needs.
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ERP is also called as Centralized System.

Centralized Database: ERP systems use a single database to store and manage data related to various
business processes. This eliminates the need for multiple databases scattered across different departments.

Decentralised System:
In decentralized system data is maintained locally at the individual departments level.
Departments do not have access to information or data from other departments.

What are the problems company face in decentralised system?


1. Data Inconsistency
2. Lack of Coordination
3. Difficulty in Information Sharing
4. Duplication of Efforts
5. Inefficient Resource Utilization
6. Limited Visibility Across Departments
7. Increased Risk of Errors
8. Challenges in Decision-Making
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9. Delayed Response to Changes
Well, the Solution lies in Centralized
Systems i.e., ERP.

How centralized system provides solution?


• It eliminates the duplication, discontinuity, and redundancy in data
• Provides information across departments in real time.
• ERP System provides control over various business processes
• Increases productivity, better inventory management, promotes quality, reduced material cost, effective
human resources management, reduced overheads boosts profits
• Better customer interaction and
• increased throughput. It also improves customer service
• Hence, a centralized enterprise
• management system is required.

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ERP Providers

• SAP
• Oracle
• Microsoft Dynamics
• Infor
• Epicor
• Sage
• NetSuite
• Workday
• Salesforce
• IFS (Industrial and Financial Systems)

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Other ERP Providers SAP
 Diverse market shares among different  One of the largest market shares globally
providers  Known for high customization capabilities
 Varies in terms of flexibility and  SAP implementations often require longer
customization time
 Implementation timelines may vary widely  SAP is known for its comprehensive and
complex structure
 Varies in complexity based on the provider
 SAP implementations can be relatively
 Costs vary based on the provider and expensive
features
 SAP provides solutions for a wide range of
 Some ERP providers cater to specific industries
industries  SAP offers cloud solutions like SAP
 Cloud offerings vary among ERP providers
S/4HANA Cloud

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