What is SAP ERP System – An In-thoroughness Overview and Definition

What is SAP ERP System – An In-thoroughness Overview and Definition

Gone are the days when a typical office ecosystem consisted of separate computer systems in each department. When the efficiency and convenience of linking these systems together was discovered, the concept of interfacing was born. It is quite difficult to imagine how businesses today can run without an interlinked computer system.

Now, one of the most effective ways of creating the link between the hardware and software systems within a business organization is by SAP ERP systems. Did you know that in 120 countries, there are already more than 10 million users?

Before delving deeper into the reasons why businesses are choosing SAP ERP over other types or brands of system, here is a quick definition of the term.

ERP SAP stands for Enterprise Resource Planning Systems, Applications and Products in Data Processing. Back in 1970, five IBM engineers set up the SAP AG Company which stood for Systeme, Anwendungen und Produkte in der Datenverarbeitu.

The SAP AG of today serves the United States, Australia, Asia Pacific Japan, in addition as European, Middle Eastern and African countries.

The Aim of SAP ERP Systems

The aim of SAP ERP systems is to unify and organize all data and processes within a business organization. This can be done by routing all the data and processes to perform in one organized function, by attempting to inject integration into the system. A shared denominator of most ERP systems is the use of a unified database for data storage and other system modules.

One good example of the application of the SAP ERP system is the integration of the accounting and payroll sustain roles within an organization. If these two departments are functioning separately, there may be complications to the business processes and conflicts when it comes to the rules that they implement.

With the help of SAP ERP systems, these problems can easily be resolved. What it does is to provide a smooth flow between the financial functionalities implemented within the accounting department, onto the payroll department.

In other words, the dominant goal of SAP ERP systems is to unify the business processes within one organization, allowing for a smooth change from one phase to the next.

A Wide range of Benefits from SAP ERP Systems

To have a deeper understanding of how important SAP ERP systems are to a business organization, here are its benefits:

– It provides real-time information about the business processes within a company.
– Administrators and employees can easily keep track of the latest business processes updates, in addition as any changes implemented.
– SAP ERP systems provide a progress monitoring system where the performance on each operational area can be seen. This way, the progress or decline thereof in a particular project can be observed.
– It provides efficiency and unification within a business organization.
– It paves the way for long-term planning for the future growth of the business.

Examples of SAP ERP Systems Applications

Here is a quick run by of the multitude of applications:

1. Financials

– General Ledger
– Cash Management
– Account Payable
– Accounts Receivable
– Fixed Assets

2. Projects

– Billing
– Costing
– Time and Expense
– Activity Management

3. Customer Relationship Management

– Sales & Marketing
– Commissions & Service
– Call Center sustain
– Customer Contact

4. Human Resources

– Payroll
– Training
– Benefits

All in all, SAP ERP systems are a truly exceptional innovation in the business world.

No matter which application you use SAP ERP systems for, you can rest assured that a more unified, efficient, technical and cost-effective business course of action will be implemented.

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