SAP Use in Business

by Noland C
Noland Chum

11/26/2010

IS 130

SAP in Business Use

Data is vast information that is crucial in the world of business simply because data is relevant to how businesses run and perform. A major player that is used widely is a system that originates out of Germany. That system is known as SAP and many companies and businesses use SAP that most people are completely unaware of. Businesses that choose to implement SAP have seen huge improvements and benefits. That alone indicates that SAP is a great system to use for businesses who are struggling or have just started up and running. A report from last year will show how SAP had an increase in margin growth and net income. SAP has proven to assist companies and is a pivotal tool for other businesses who are considering whether or not to adapt a SAP system.

An article states that, “SAP is an acronym for Systems, Applications, and Products in data processing and is complicated system to use by one individual alone.”(sap-basis-abap.com). SAP was founded in Germany and has its headquarters in Walldorf.  The article also goes to explain that there are 3 core main functions which are split into Logistics, Financial, and Human Resources. What exactly is SAP and how does it apply to business use? The answer is SAP is an enterprise resource planning software that allows more than one business applications to run.

Some examples of companies who benefited from implementing SAP were Porsche, Lexmark, and even Discovery Channel. SAP was able to help assist Porsche by being able to increase their production lines. From their website it says, “SAP Supply Chain Management allows them to streamline operations, enhance service levels and minimize the need for expensive storage space.”(saprunbetter.com). The website also had shown Lexmark was able to decrease paper usage through their workflow. SAP benefited the discovery channel by letting connect their global operations. According to the website they have over 1.5 billion subscribers in over 180 countries. Another web source has a number of benefits that SAP has to offer by running their ERP. SAP helps align strategies and operations, enhance productivity and insight, minimize costs by increasing flexibility, reducing risk, improve financial management and corporate governance, optimize IT spending, and gaining a higher ROI faster (bos.com).

Another article that encourages the SAP Business Suite can help offer companies and employees these particular benefits. The benefits include enhanced visibility, insight, and decision making, improved efficiency across mission-critical processes, increased flexibility for innovation and expansion, and finally proven, comprehensive support for a long-term competitive edge (12.sap.com). The two web sources have strong similarities on how SAP benefits companies who chose to adapt the SAP system.

SAP has actually been up and running for quite some time. A report from en.sap.info has provided some financial information regarding net income from the 3rd quarter ending in September 2009. The reports show that in the 3rd quarter ending in July 2008 net income resulted in 389. While in the quarter ending in September 2009 net income was 435. The report

may not be recent but in terms of long term, a year ago is still relevant in this case.

SAP can be a complicated system to use but on the other end the system has provided many benefits to the companies that have chosen to use it. Porsche, Lexmark, and National Geographic have already improved their own companies by deciding to use SAP. I personally have used SAP in the past and although it is complex, the system is not impossible to use. Some examples of how SAP was used were to keep track of inventory and by putting in the correct amount of what materials were needed in order to make a product. SAP has shown an increase in net income from last year. SAP has been in use dating back some 10 years ago. SAP can continue to strive in the business world and evolve to becoming an even better system as time progresses.

Citations

http://www12.sap.com/solutions/business-suite/businessbenefits/index.epx Nov 27, 2010

http://www.bos.com.np/index.php?option=com_content&view=article&id=61:benefits-of-using-sap-for-your-business&catid=34:articles&Itemid=72 Nov 27, 2010

http://en.sap.info/sap-reports-strong-margin-growth/4  Nov 27, 2010

http://www.sap-basis-abap.com/what002.htm Nov 27, 2010

http://www.saprunbetter.com/?cid=US3401#p=/en/discovery.aspx Nov 27, 2010