• Benefits of SAP over other ERP systems

    Posted on 21-09-22 by Admin

    Huda Altaee is a Delivery Consultant specialising in roles in ERP Systems at Clear Edge Search & Selection.  Here she reviews the benefits of SAP over other ERP Systems.

    Enterprise Resource Planning (ERP) is an enormous and growing business. It predominately acts as the brain of a company’s technology system, connecting each feature and department of a business, including but not limited to product development, manufacturing, marketing, sales & HR.

    ERP systems benefit all those that use it from the implementation team to the client organisations that integrate it to the end users who benefit from the simple user interface. It helps gain visibility, enhance productivity and operational efficiency by decreasing costs and increasing competitiveness.

    What ERP system is the right one for your business?

    SAP stands for Systems, Applications & Products in Data Processing. It is developed by a German-based company that bears the same name. SAP’s most prominent feature lies in its service-oriented architecture, making it accessible to all business sizes and types.

    Finding a SAP partner is also easy to accomplish with accredited vendors stationed across more than a hundred countries. In 2020, it ranked 22nd in the Forbes list of the world’s most valuable brands.

    Who can use SAP? 

    SAP can be used within a company of any size. Some of the other ERP systems can only be used in certain sized businesses, but with SAP, it is utilized in almost all dimensions and areas of the business.  It provides a complete solution with a direct implementation process, where the transitions are easy alongside the growth and development of a company.

    For small sized companies significant benefits can be achieved as it is a system that provides a lot of flexibility for growth. This is due to the numerous cloud solutions and its connections with complimentary services such as Google & PayPal, which isn’t common in ERP systems.

    For large organisations it offers functions and competencies required for the daily running of a business. Almost 80% of fortune 500 companies use SAP as a platform, including Pfizer, Johnson & Johnson, and Philip Morris.

    Is SAP  easy to use?

    SAP does not provide any redundant functionality and is constantly developing. Staff training on the system is usually very quick and efficient as the system is straight forward.

    Few ERP systems, like Oracle, provide numerous functions many of which are not relevant for every organisation, resulting in unnecessary functionality which can prolong training, making learning more complex and challenging, not only wasting time but money.

    SAP provides the functions according to business requirements, keeping it simplified so there is no confusion. SAP is continuously providing new versions of the software. This is to keep up to date with modifications in the industry and better appeal to the audience using it.

    SAP contains a custom fit integration without having to pay for specific add on or functionalities. Another advantage being that when one module is modified the other modules sync and update instantly.

    What industries can use SAP?

    SAP is perfect for any industry and has guidelines for each industries best practice. Not all ERP systems can work with all industries, while SAP can work with almost all types of industries and business structure.

    The majority of companies integrating a new ERP system do not know what functions they will need. The industries best practice with SAP confirms that organisations stay equivalent to the opposing organisations within the same sector, decreasing costs & risks as well as time. Risks are decreased as everything is implemented the same across the board, you know what to expect with the product.

    How easy is it to implement SAP?

    SAP has a clearly defined roadmap of the full cycle. These roadmaps act as a reference point during implementation. Each area is segregated into various phases (project preparation phase; business planning phase; understanding phase; concluding preparation phase; the go live and support phase).

    Each of these phases are further broken up into a more comprehensive step by step guide. Alongside the roadmap, SAP has an implementation assistant who helps execute the implementation approach. The implementation assistant is created using different tools and templates, keeping everything simple and easy to follow along to.

    Is there a cost benefit to using SAP?

    SAP has a shorter implementation time and the fastest financial payback. It is the second most expensive ERP system after Oracle, however, it provides the fastest financial payback in the industry.

    According to research conducted by the Panorama Consulting Group, the average time it takes for companies to see a return on investment on an ERP system is 2.7 years, but the average time it takes for SAP to show these benefits is only nine months. Also, the implementation time is shorter than its equivalent, thus enabling faster success.

    To sum up…

    SAP has several benefits and supports companies to integrate and simplify their various business processes. It is a worldwide solution, that will continue to grow.


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