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What is SAP? Advantages and Disadvantages

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What is SAP? Advantages and Disadvantages

What does mean SAP? 

SAP is a German multinational company, whose full name is System Analysis and Program Development. This company is producing enterprise resource planning ERP software and in the world, there are more than 220 million cloud users of SAP. This software program is also preferred by many corporate companies in our country.

Why SAP Is Preferred?

SAP is a software that provides end to end solutions for certain areas such as financial, logistic, distribution, and inventories. The information about these areas enables managers to make the best decisions professionally and also helps companies catch international standards in their business areas. Due to all processes gathered in it’s structure, it gives us the most efficient answers. Consequently, SAP helps to minimize the expenses of the company while producing a solution to a problem. 

If we give an example of the usage of SAP, let’s assume that there a is a clothing company. This company manufactures, imports and exports these clothes. This company needs the stock knowledge of products, stock tracking, used materials, personnel knowledge and other information that are necessary to accomplish these processes. This is the part that SAP software program takes over the process. Thanks to its a centralized system, every information in SAP can be seen and used from another module. If there were a decentralized system, the products that are not available could have been sold and that would cause bigger problems. As it was stated above, SAP ERP provides solutions for certain areas. Therefore this program consist functional and technical modules.

SAP Functional Moduls :

  • FICO – Finance & Control
  • PP – Production Planning
  • MM – Material Management
  • SD – Sales & Distribution
  • HR – Human Resource
  • CRM – Customer Relationship Management

 

SAP ERP  Technical Modules :

  • SAP Basis
  • SAP Security
  • SAP ABAP
  • SAP NetWeaver
  • SAP Fiori
  • SAP Solution Manager

SAP’s Advantages:

With the usage of SAP, the data loss are reduced and the security of data increased. Also everything that is being done on the program are being saved into the cloud so that another time they can be used immediately.

Experience: SAP has over 40 years of experience and therefore this company has it’s own strategy to improve itself and also support new sectors.

Consistency: The data in the SAP are highly consistent. If there is no external intervention the user get the same result from different reports with the same criterion. 

Rules: SAP has very strict rules and they aren’t changeable. However thanks to these rules the results are always trustworthy and correct.

SAP’s Disadvantages:

SAP has too many advantages but like every program, it has also challenges.

The high cost of ownership: With high license and maintenance fees, SAP brings sometimes more costs than domestic software for small companies.

High Personnel Cost: In addition to the above costs, having a team that knows SAP within the company will also return as an additional burden to the companies because companies should pay for every personnel that uses SAP.

The difficulty of Use: Due to too much data entered and the screen is uniform, users are generally not satisfied with the SAP screens. Especially they expect SAP to do the operations with a single button but this situation is against the usage of SAP because of the above-mentioned rules.

User Trainings: Due to the situations mentioned above, companies may experience difficulties in using and learning SAP, which may cause problems at least in the first transition or personnel changes. Therefore they may need consulting.

SAP CONSULTING:

After purchasing SAP software, companies want this software to meet their needs correctly. At this point, SAP consultants come into play. To understand and analyze the processes of companies, to identify missing or defective points, to ensure that companies use the correct processes by taking into account global standards, to identify the points that the current SAP software does not meet the needs and to determine the necessary improvements, to manage the company’s SAP transition and to ensure that this transition is made in a healthy way. Providing training to users in companies and supporting companies related to the project are among the duties of SAP consultants.

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