SAP ERP

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ERP
Developer(s) SAP AG
Written in C, C++, ABAP/4
[1]

Type ERP
Website SAP ERP
SAP ERP or SAP ECC
[2]
is enterprise resource planning software made by the German
company SAP AG. SAP ERP incorporates the key business functions of an organization. ECC
(ERP Central Component) is software version, released as ECC 5.0 in 2004.
Contents
[hide]
1 Overview
2 Development
3 Implementation
4 Deployment and maintenance costs
5 SAP Basis
6 ERP advantages and disadvantages
7 See also
8 References
9 External links
Overview[edit]
SAP ERP is the name of the applications in the SAP Business Suite (and SAP Business All-In-
One software). It contains the following:
[3]

SAP ERP Financials:
Accounts Payable
Accounts Receivable
Accounting and Financial reporting
Risk management
Regulatory Compliance
Cash Flow Monitoring
Travel Management
SAP ERP Human Capital Management:
End-user Maintenance
HR and Payroll
HR Process Management Software
HR Reporting
Labor Force Analysis
Job placement
Recruitment and Training
Talent Management
SAP ERP Operations:
Procurement and logistics
Product development and manufacturing
Sales and service
Operations analytics
Development[edit]
SAP ERP was built from modules comprising the former SAP R/3. SAP R/3 through version 4.6c
consisted of various applications on top of SAP Basis, SAP's set of middleware programs and
tools. When SAP R/3 Enterprise was launched in 2002, all applications were built on top of
the SAP Web Application Server. Extension sets were used to deliver new features and keep the
core as stable as possible. The Web Application Server contained all the capabilities of SAP
Basis.
As a result of marketing changes and changes in the industry, new versions of SAP have been
released. The first edition of mySAP ERP was launched in 2003 and bundled previously separate
products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management (SEM) and
extension sets. The SAP Web Application Server was wrapped into NetWeaver, which was also
introduced in 2003.
A complete architecture change took place with the introduction of mySAP ERP edition 2004. R/3
Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The SAP
Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction Server
were also merged into SAP ECC, allowing users to run them under one instance. Architectural
changes were also made to support an enterprise service architecture to transition customers to
a services-oriented architecture. SAP HANAwhich is a combination of In-memory software and
hardware can improve data processing at extremely high speeds.
Implementation[edit]
SAP ERP consists of several modules, including utilities for marketing and sales, field service,
product design and development, production and inventory control, human resources, finance
and accounting. SAP ERP collects and combines data from the separate modules to provide the
company or organization with enterprise resource planning.
Although there can be major benefits for customers of SAP ERP, the implementation and training
costs are high. Many companies experience problems when implementing SAP ERP software,
such as failing to specify their operation objectives, absence of a strong commitment or positive
approach to change, failing to deal with organizational differences, failing to plan the change to
SAP ERP properly, inadequate testing, inadequate training. All these factors can mean the
difference between having a successful implementation of SAP ERP or an unsuccessful one.
If SAP ERP is implemented correctly an enterprise can go from its old calculations system to a
fully integrated software package. Potential benefits include efficient business process, inventory
reduction, and lead time reduction.SAP ERP provides an integrated solution that incorporates the
key business functions of an organisation.
An article in the IEEE Transaction on Engineering Management journal reports an industrial case
in which senior management successfully dealt with a troubled SAP R/3 implementation in an
international fast moving consumer goods (FMCG) company during 2001 and 2002.
[4]
>
Deployment and maintenance costs[edit]
Effectively implemented SAP ERP systems can have cost benefits
[citation needed]
. Integration is the
key in this process. "Generally, a company's level of data integration is highest when the
company uses one vendor to supply all of its modules." An out-of-box software package has
some level of integration but it depends on the expertise of the company to install the system and
how the package allows the users to integrate the different modules.
[5]

It is estimated that "for a Fortune 500 company, software, hardware, and consulting costs can
easily exceed $100 million (around $50 million to $500 million). Large companies can also spend
$50 million to $100 million on upgrades. Full implementation of all modules can take years,"
which also adds to the end price. Midsized companies (fewer than 1,000 employees) are more
likely to spend around $10 million to $20 million at most, and small companies are not likely to
have the need for a fully integrated SAP ERP system unless they have the likelihood of
becoming midsized and then the same data applies as would a midsized
company.
[5]
Independent studies have shown that deployment and maintenance costs of a SAP
solution can greatly vary depending on the organization. For example, some point out that
because of the rigid model imposed by SAP tools, a lot of customization code to adapt to the
business process may have to be developed and maintained.
[6]
Some others pointed out that
a return on investment could only be obtained when there was both a sufficient number of users
and sufficient frequency of use.
[7][8]
Deploying SAP itself can also involve a lot of time and
resources.
[9]

SAP Basis[edit]
After extensive developments in SAP, it is now divided into 2 subgroups stating Basis into one
and Security into other(Previously Basis consultants used to work on both basis as well as
Security issues).
To know more precisely the broad difference between SAP basis and SAP security, it is worth
looking into the searchsap website.
[10]

The different Certifications that can be done on SAP can be checked from SAP official
website.
[11]


ERP advantages and disadvantages[edit]
Advantages
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
[5]

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
Disadvantages
Locked into relationship by contract and manageability with vendor - a contract can hold a
company to the vendor until it expires and it can be unprofitable to switch vendors
if switching costs are too high
Inflexibility - vendor packages may not fit a company's business model well and
customization can be expensive
Return on Investment may take too long to be profitable
Implementations have a risk of project failure
[5]