SAP Business

What is SAP?

SAP stands for Systems Applications and Products in Data Processing.

SAP by definition is also named of the ERP (Enterprise Resource Planning) software as well the name of the company.

SAP Software was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira.

SAP system consists of a number of fully integrated modules, which covers virtually every aspect of the business management.

SAP is #1 in the ERP market. As of 2010, SAP has more  than 140,000 installations worldwide, over 25 industry-specific business solutions and more than 75,000 customers in 120 countries

Other Competitive products of SAP Software in the market are  Oracle, Microsoft Dynamics etc.

SAP centralizes business data, bringing the following benefits:

1.     It eliminates the need to synchronize changes between multiple systems—consolidation of finance, marketing and sales, human resource, and manufacturing applications

2.     It enables standard product naming/coding.

3.     It provides a comprehensive enterprise view (no “islands of information”). They make real–time information available to management anywhere, any time to make proper decisions.

4.     It protects sensitive data by consolidating multiple security systems into a single structure.

What is SAP ERP? Why it is Required?

Following Video will explain the need of an ERP software like SAP in an enterprise

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The very basic question to any beginners is why Enterprise Resource Planning also called ERP is required? To answer this, let’s examine this typical business scenario.

Suppose a client approaches sales team asking for a particular product. The sales team contacts to inventory department to check the availability of the product. To their surprise, sales team found out that the product is out of stock. So next time this don’t happen, they have to introduce a SAP ERP tool.

Before we actually see in detail, what ERP is and how ERP can help in your business process, we will understand how different departments are involved in the whole business process, right from the ordering of the raw material – to manufacturing goods – to delivering final goods to the customer.