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SAP ERP Software Analytics:-

SAP stands for Systems Applications and Products in Data Processing.

SAP, by definition, is also name 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 business management.

Global Business Trends:-


SAP is the world’s largest enterprise applications software company - as
measured by software and service-related revenue - with 172,000 customers
around the globe. Unlike many of its competitors, SAP has mostly grown
organically and has just a few significant acquisitions under its belt. Much of
SAP’s customer base consists of very large enterprise accounts. However, they
have made significant gains in the small and medium enterprise (SME) market
with their Business All-in-One, Business ByDesign and Business One product
lines.
SAP offers a wide range of enterprise resource planning (ERP) applications
including customer relationship management (CRM), financial management,
human capital management, product lifecycle management, and supply chain
management. They also have a large network of partners (i.e. the SAP
Ecosystem) that provide unique integration and customization offerings for
specific markets. For example, Et Alia has developed CREW All-in-One for the
construction industry, which is built on SAP Business All-in-One.
In addition to its ERP products, SAP offers several business analytics
applications as part of its BusinessObjects product line. BusinessObjects is one
of SAP’s more notable acquisitions which was announced back in 2007. This
acquisition pushed SAP into the business intelligence (BI) leaders circle with
IBM, Oracle and Microsoft. They are reinforcing their position with recent
innovations such as SAP HANA, their in-memory technology that allows
organizations to run queries from multiple data sources in real time.

The whole process that is followed by SAP business unit.

1. Client contacts the sales team to check the availability of the product
2. Sales team approaches the Inventory department to check for the
availability of the product
3. In case the product is out of stock, the sales team approaches the
Production Planning Department to manufacture the product
4. The production planning team checks with inventory department for
availability of raw material
5. If the raw material is not available with inventory, the Production
Planning team buys the raw material from the Vendors
6. Then Production Planning forwards the raw materials to the Shop Floor
Execution for actual production
7. Once ready, the Shop Floor Team sends the goods to the Sales Team
8. Sales Team who in turn deliver it to the client
9. The sales team updates the finance with revenue generated by the sale
of the product. Production planning team update the finance with
payments to be made to different vendors for raw materials.
10.All departments approach the HR for any Human Resource related issue.

Process Scrutiny and Data Handling:-

Based on the manner in which communication and data exchanged is


managed. Enterprise systems can be broadly classified as

1) Decentralized System

2) Centralized System which is also called as ERP.

SAP is a market leader in providing ERP (Enterprise Resource and Planning)


solutions and services. In this chapter, we will try to understand more on ERP
and where it should be used. In addition, we will learn the implementation
techniques of ERP along with the ERP packages available in the market.

SAP ERP consists of several modules, including Financial Accounting (FI),


Controlling (CO), Asset Accounting (AA), Sales & Distribution (SD), Material
Management (MM), Production Planning (PP), Quality Management (QM),
Project System (PS), Plant Maintenance (PM), Human Resources (HR).[6] SAP
ERP collects and combines data from the separate modules to provide the
company or organization with enterprise resource planning.
Typical implementation phases:[7]

 Phase 1 – Project Preparation


 Phase 2 – Business Blueprint
 Phase 3 – Realization
 Phase 4 – Final Preparation
 Phase 5 – Golive Support
Companies planning to implement or upgrade an SAP ERP system should pay
strict attention to system integration to save their SAP ERP implementation
from failure. With system integration in place, data flows move completely and
correctly among various SAP ERP components, thereby not only streamlining
business processes but also eliminating or minimizing redundant data entry
efforts.[8]

Salient Features of SAP ERP:-

 Allows easier global integration (barriers of currency exchange rates,


language, and culture can be bridged automatically)
 Updates only need to be done once to be implemented company-wide
 Provides real-time information, reducing the possibility of redundancy
errors
 May create a more efficient work environment for employees[10]
 Vendors have past knowledge and expertise on how to best build and
implement a system
 User interface is completely customizable allowing end users to dictate the
operational structure of the product

Hence,

The Functions and Processes in SAP ERP are operated Successfully.