The full form of SAP is Systems, Applications and Products in data processing. Quite a few Fortune 500 companies have implemented SAP system and use it extensively for the day to day operations and reporting purposes.
The reason why most of the businesses started adopting and implanting SAP was because of the limitations and problems associated with existing IT infrastructure. Most of these systems were made up of disjointed systems- a separate system for every business function and department. As they had multiple systems for handling different departments like finance, HR, operations and supply chain different reports in varying formats got generated. The miscalculations and inconsistencies between these sub-systems affected the consolidation process and led to wrong representation of the management report.
SAP in comparison is a system that brings together the diverse business functions. SAP Business suite/ R/3 and Business one is real time business systems that integrate different sub-systems and makes it possible to process transactions end-to-end. It also leads to minimization of error. A lot of companies frequently replace their old and inefficient IT infrastructure with state of the art SAP ERP system.
Not only is SAP a highly efficient system the support offered by SAP services is also quite exceptional.
Below are some of the advantages of using SAP
- Well-aligned strategies and business processes: Implementation of SAP involves an exhaustive assessment of the existing ecosystem. Short and long term goals of the business are identified and the processes streamlined and workflows aligned to ensure effective deployment and usage of SAP.
- Enhance productivity and insight: SAP improves the productivity in an organization. As data is entered only once into the system, there are no discrepancies. It is easy to share date with the other functions in the organization through various means like email, reports, internal messages etc. As it is highly participative in nature it allows employees also to easily become a part of it and run enquiries on their own.
- Cost minimization: As the business does not have to spend on unnecessary fragmented IT infrastructure, the cost is reduced as the purchase of an integrated ERP system is more economical in comparison.
- Reduce risk: As there is a well aligned and integrated ERP system in place potential business risk is minimized.
- Improve financial management and corporate governance: As business analytic is combined with financial and management accounting the user is able to analyse and process business information better. SAP also helps the business user in managing risk and increasing profitability.
Rapid implementation of SAP in the organization helps the business in controlling its rising expenditure, restructuring its business processes and driving efficiency.
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