SAP: What is it? All about SAP

A short form of Systems, Applications, and Products in Data Processing, SAP is the biggest business software from Germany. 80% Fortune 500 companies use it. Thus, enterprise software developed by SAP company acts like a benchmark. It is one among the most crucial as well as leading providers of Enterprise Resource Planning (ERP) and data administration solutions with the widest tools for managing businesses and operations. 

Types of SAP 

There are two classes of SAP. These include: 

• Functional SAP: This mainly deals with a specific business process and field. Some of the examples of functional SAP are: 
• FICO- Financial Accounting and Controlling 
• MM-Material Management 
• SD-Sales and Distribution 
• HCM-Human Capital Management 
• Technical SAP: Technical SAP has to do with technical dimensions of SAP systems. This includes: 
• Basis: System Administration and Configuration, : Advanced Business Application Programming, BI/BW: Business Intelligence/ Business Warehouse. 

This paper on SAP ERP starts with defining what an SAP ERP is. Literally, it is an Enterprise Resource Planning. Actually, it could be said to be nearly a system software that would assimilate all the basic functions of a business into one sole system. Under one roof, it encompasses purchasing, production, material management, sales, marketing, finance, and human resources. So, the very first company which thought of standardizing solutions toward an overall business management was SAP. 

Core SAP Modules,

• FICO: Financial Accounting and Controlling It is an accounting system of monetary transactions, which finally includes reporting as well.  
• Human Capital Management (HCM): Controllers of HR activities, dealing with payroll and human resources.  
• Material Management (MM) Controllers acquiring to pay overseeing all the materials and stock 
• PM: Plant Maintenance Controllers maintenance, servicing, or replacement of the equipment's  
• PP: Production Planning Formulates and controls the production sequence  
• QM: Quality Management Controls quality and compliance products   
• SD: Sales Distribution Controls the sales process and orders, etc

Advantages of SAP   

• Standardization: It standardizes all the business processes of an organization. 
• Interoperability: It is controlled with other systems and can also be employed for enterprise-wide management.   
• Flexibility: It caters to the organizational needs and boundaries of transactions 
• Functionality-Richness: It offers high functionality to serve enterprise-specific organizations and government organizations.  

Weaknesses of SAP 

The system is too pricey to have the software, hardware for implementation, IT personnel, consultancy from third parties, staff training, and practice of maintenance. 

Complexity is increasing: The more of some kinds of SAP, and the system as a whole will take years to be fully adoptive since most of the period of implementation takes years. 

Most marked SAP Versions 

• SAP R/1: The one that aged; During the 1970's  
• SAP R/2: The big one; Its launch was in the 1980's   
• SAP R/3: Much more observant in the sense that it was designed way back during the 1990's and can therefore be typified as a three-tier architecture. 
• SAP HANA: It is an in-memory database; this is an application in the new generation that allows for a faster process and analytics in real time.

Conclusion 

This blog will make you aware about SAP, its characteristics of service, definition, advantages achieved from using SAP, versions, and much more. Such services are very helpful to business organizations that want to bring an end to their unfruitful activities and working procedure. Further help or even detailed help can be achieved through consultancy services and online support which may take you to proper implementation of SAP and its practice.