Benefits of Using SAP for Your Business

Many companies are realizing that SAP solutions have become extremely important to their
businesses. This realization is arising from the fact that many Fortune 500 companies use
SAP systems extensively internally for their daily operations and reporting.
So what exactly does SAP stand for? It is an acronym for Systems, Applications and Products
in data processing.
Over time, many companies start to discover deficiencies in their information systems
architecture. Most legacy business systems were made up of islands of automation separate
systems that handled some core business needs. There may have been systems to handle the
General Ledger, another to handle the sales processes, a separate system to manage the
manufacturing or production processes, etc. Data had to be exchanged between these subsystems in order to generate the reports that various levels of management needed to run their
operations. When there were errors or inconsistencies between these sub-systems, these
flowed on into the consolidation process and skewed the management reports.
SAP ERP systems Business Suite / R/3 and Business One are fully integrated business
real-time systems. They enable transactions to be processed end-to-end and eliminate data
inconsistencies between sub-systems. Many companies replace their old business systems
with the best-of-breed ERP package developed by SAP.
The benefits of using SAP for your business are numerous. SAP delivers systems that are
modern and highly efficient. Their support infrastructure is unparalleled in the software
industry.
In addition, SAP has developed industry-specific ERP solutions that address the needs of
over 28 industrial sectors. SAP is present in more than 120 countries worldwide. SAP has
managed to build up a client base of more than 12 million users worldwide. Those numbers
are estimated to grow as more and more enterprises jump on the SAP ERP bandwagon.
The main business benefit of using SAP is that you get a comprehensive set of integrated,
cross-functional business processes. Here are some other benefits of using SAP:
Align Strategies and Operations
Prior to the implementation of an SAP system, a thorough analysis of the current
environment is done. This is usually referred to as the As-Is analysis. All issues are
identified for rectification during the project. The short, medium and long-term strategies of
the business are identified, clarified and prioritized. All internal workflows are aligned to
enable the eventual effective use of the SAP system. In the next major step, the future state of
the business information system is specified. This is referred to as the To-Be state. It is the
responsibility of the project team and possibly consultants to bridge the gaps between the
As-Is and To-Be states to build a workable project plan.
Enhance Productivity and Insight
The productivity enhancements arising from an SAP implementation can be tremendous.
Data is only entered once. There are no sub-systems to consolidate and verify. Data can be
forwarded to others within the organization by efficient workflows using internal messages,
emails, SMS alerts or other means. Operations can be authorized and passed along for the

next person to process. Employees can process many transactions on their from various
access terminals. This can include leave applications and submission of expense claims. The
overall reporting and analytics environment is enhanced to a level that facilitates operation
management.
Minimize Costs by Increasing Flexibility
In order to improve process standardization, efficiency and adaptability, SAP relies on
enterprise services architecture. SAP extends its business eco-system by extrapolating
transactions, information, and collaborative functions.
Reduce Risk
Solve complex business challenges today with SAP, your trusted partner for long-term
growth, with over 30 years of experience working with organizations of all sizes in more
countries than any other vendor.
Improve Financial Management and Corporate Governance
Financial and management accounting functionalities combined with business analytics
offers the SAP user deep visibility into their organizations. Furthermore SAP increases
profitability, improves financial control, and manages risk.
Optimize IT Spending
SAP integrates and optimizes business processes as well as eliminates high integration costs
and the need to purchase third-party software. Use of SAP incrementally improves cash flow
and reduces costly borrowing.
Gain Higher ROI Faster
A business can deploy SAP by using rapid-implementation techniques which cost less than
half what traditional approaches cost. It is also possible in certain cases for companies to
reduce implementation time and costs by leveraging on preset defaults and prepackaged
versions available for specific industries.

SAP ERP and Its Business Benefits

Software 29 Mar 2013

The popularity of SAP ERP has exceeded the list of Fortune 500 companies and as more and
more companies are in the verge of expansion, its popularity is also expanding. However,
laymen are still lacking a deep knowledge about SAP ERP and often, this ignorance becomes
problem for companies that use this product to manage their key business functions.
Therefore, it is important that people should have at least an elementary knowledge about it
and its various benefits.

What is SAP ERP?

SAP ERP is one of the best-known software products of SAP AG, a German multinational
software corporation. The corporation is into the development of enterprise software that
helps large organizations to manage operations and customer relations efficiently. Among all
the products that it has produced, its Enterprise Resource Planning application along with few
more applications has given it worldwide fame and currently, SAP AG is the market leader in
enterprise applications.
This integrated software solution is a part of SAPs business suites that include four more
enterprise application besides SAP ERP. It was previously known as SAP R/3 in which R
stood for Real-time and 3 stood for the three tier architecture consisting of database
application and client. It primarily offers the following three solutions to enterprises:

SAP ERP Financials

SAP ERP Human Capital Management
SAP ERP Operations

Each solution further consists of several components. For example, SAP ERP Financials
solution consists of components like accounts payable, accounts receivable, risk
management, etc. Besides the solutions and its components, SAP ERP also consists of several
modules like field service, product design and development, accounting, marketing and sales,
and many more. The application uses these separate modules to gather and combine data to
furnish the organization with proper resource planning.
When SAP ERP is implemented correctly in an organization, it is able to get the potential
benefits of the application like reduction in lead time and inventory reduction. However,
there are several business benefits of SAP ERP which are discussed in details.

Business Benefits of SAP ERP

SAP ERP furnishes its clients with a comprehensive set of integrated business processes, and
through optimum utilization of these processes, an organization can leverage the business
benefits of the application. Some of the definite, business benefits of SAP ERP are as
follows:
Increased Flexibility Resulting into Cost Reduction

SAP uses the services architecture of an enterprise to improve its efficiency, process
standardization and adaptability. Further, it also enables organization to extend its
information and collaborative functions to broader communities, which would otherwise cost
a lot. This flexibility in extension helps organizations to save few extra bucks.
Improvement in Financial Management

Through the various components and modules of SAP ERP Financial solutions, this
application helps companies to improve their financial management. With the help of
financial and management accounting functionality along with business analytic, it allows a

person to have better visibility of the organizations financial status. The better visibility
results into better risk management and improved financial control.
Benefits on ROI

Installing SAP ERP through rapid-implementation techniques costs companies half of the
cost of installation through traditional approaches. Further, there are specific industries that
can leverage more benefits on ROI through preset defaults and prepackaged versions that are
available only for them.
Better Alignment of Strategies

Proper use of ERP helps an enterprise run in accordance with the plans and strategies made
by the top officials. It helps employees access the right information in real time and thereby
operating accordingly. Therefore, there is an improved alignment of strategies as well as
operations. Further, SAP ERP also helps an enterprise to identify the concerns early.
Improved Productivity

Proper implementation of SAP ERP results into improved productivity. Through its help, you
can leverage self-services that improve operational efficiency. Data and operations can be
forwarded to employees efficiently, and they can also access important information and
transactions through various access terminals.

SAP ERP has a robust architecture that makes it so beneficial for organizations and helps
them to enhance their service level.