Reaping the benefits of SAP`s ERP
Founded in Germany in 1972 by five ex IBM engineers, SAP stood for systems, application and products in Data Processing. Making enterprise software that manage the business operations and customer relations, it currently has regional offices in 130 countries. Having customers all over the world, it is still headquartered in its original place in Walldorf, Baden-Württemberg.
As of 2007, SAP has come up with a variety of software solutions including the ability of accessing SAP remotely. It is currently considered to be the third biggest independent software provider by revenue. The corporation currently operates in four main geographic regions, EMEA which is Europe, Middle East and Africa, NA which is United States and Canada, LAC, the Latin America and Caribbean region and APJ which is Asia Pacific and Japan. It has always been focusing mainly upon 25 countries across six industry which are process industries, discrete industries, consumer industries, services industries, public services and financial services. As of now, it offers integrated product sets for mainly fortune 500 and 1000 enterprises along with products and solutions for mid-sized companies and small businesses.
SAP benefitting businesses across the world
To be able to stay ahead in competition, all businesses are using ERP software that would help in increasing the efficiency of their businesses. As far as ERP is concerned, the product by SAP is extensively used and is quite popular mainly because of its features like access SAP remotely. The professionals, too, who have a sound knowledge of the software, can use them extensively across their career path. All the existing departments of a company are benefitted by using SAP. Therefore, be it the finance, HR or even the production and customer care department with SAP all processes would streamline seamlessly. This importance of SAP is dawning across most companies across the world. This is further substantiated by the fact that all major Fortune 500 companies use SAP systems extensively for their internally for management of their daily operations and reporting.
Over time, many businesses realized the lack in their existing information systems architecture. The existing legacy business systems exists in islands of automation – each a separate system that is handling some of the major core business needs. There may be systems that take care of the General ledger, another one to handle all the sale processes, a separate one that would be taking care of their manufacturing and production processes etc. across the company. Now all these systems need to exchange data between them so that the necessary reports can be generated for various level of management. The data collected would help in running a seamless operation across the company. However, whenever there are any kind of inconsistencies or even errors in the data generation by the sub-systems, these move on the consolidated processes and skew the management reports.
SAP ERP systems:The Business Suite / R/3 and Business One are all existing fully integrated business real time systems by SAP. These platforms enable transactions to be processes from end-to-end and eliminate all kinds of data inconsistencies that can exist between the sub-systems. These companies replace their old business systems with the best of breed ERP packages that are developed by SAP and come with features like access SAP remotely.
There are thousands of benefits of using this system for a business, as SAP can deliver solutions that are integrated, updated and highly efficient. Furthermore, their existing support infrastructure is unparalleled in the software industry.
Besides this, SAP has also developed industry specific ERP solutions that would address the need across 28 industrial sectors. One of the major benefits of using SAP is that the user gets a comprehensive set of integrated, cross-functional business processes which also has remote SAP access. The following are other benefits of using SAP across businesses:
Alignment of strategies and operations: Before implementation of a SAP system, a thorough analysis of the existing business ecosystem is done. This is often called the “as-is” analysis in which all the issues are notified for correction during the project. Furthermore, the short, medium and long-term objectives of the businesses are also clarified, and prioritized. The existing internal workflow systems is then aligned to effectual use of SAP system. In the next step, the future of the business information system is specified. This is then referred as the “to-be” state. The gaps that exists between the “as-is” and the “to-be” state is then identified by the project team who then moves ahead with a workable project plan.
Enhancement of overall productivity and insight:There is tremendous amount of productivity enhancements when SAP is implemented in a company especially for its feature access SAP remotely. Here data is entered only once even via remote and there are no sub systems to consolidate and verify. The same data can be forwarded to others within the organization through efficient workflows – using internal messages, SMS alerts and even emails. These operations are then authorized and passed along for the next person to process. The employees are able to process as many transactions as needed through various access terminals. This would also include leave applications and submission of expense claims. The overall reporting and analytics environment is enhanced to such a level that it facilitates the whole operation management.
Minimizing cost by increasing flexibility: So that process standardization improves along with efficiency and adaptability, SAP relies on enterprise service architecture. This enables SAP to extend its business eco-system by extrapolating transactions, collaborative functions and information.
Reducing risk:Now, with SAP once can solve even the most complex of business challenges. SAP along with its features like accessing SAP remotely soon grows to become one of the most trusted partners in the company.
Improvement in financial management and corporate governance:Various kinds of financial and management accounting functionalities combined with analytics offers the users of SAP deep visibility into their organization. SAP help in increasing profitability, improving financial control and managing risks.
Optimization of overall IT spending:It helps in integrating and optimizing all business processes along with elimination of high integration costs and the need for purchasing third party software. One who uses SAP incrementally understands that it improves overall cash flow and reduces costly borrowing.
Improve ROI faster:Businesses can deploy SAP by using various rapid implementation techniques, which would be inexpensive, than the cost of most traditional approaches. It is also possible in certain companies to reduce implementation time and costs by leveraging on preset defaults and prepackaged versions available for specific industries.
ERP benefits for business
Before moving on to the benefits of a software, one needs to understand that like brain needs to have information of the body and its strength, weaknesses and abilities to function properly, ERP works on the same functionality. ERP or Enterprise Resource Planning is a system that is similar to the brain in our body as it integrates different departments or functions across the company in a centralized manner.
ERP solution from SAP contains the abilities like access SAP remotely, and can maintain information and business processes for a variety of business functions including supply chain management, manufacturing, financials, human resources and even customer relationship management. Before the development of ERP systems, most departments across organizations had its own customized applications. To cite an instance, the human resource department, the payroll department and financial department came with their specific applications which resulted in creation of information silos. The information silos barred from company management from decision making, as information needed to be collected and this delayed the whole process. Since the ERP had a common database, it allowed every department to function, store and access information real time. Any integrated ERP system would provide solutions related to HR, project management, HR, financial, production, accounting, materials management, sales, quality and distribution processes.
ERP comes with multiple features that allows it to provide accurate and updated information across multiple functions making it one of the indispensable to enterprises. To cite an instance, let’s take an example like a customer order. Before ERP applications came into precedence, once the order was placed it usually followed a paper trail across departments – with details of the order being copied and entered into applications. The manual process was not only prone to various kinds of errors and delays, the order shipment also got delayed in the process. With ERP and its features like accessing SAP remotely, the customer needed to place order only once and the information would be available in subsequent departments. Once the order has been entered, inventory is checked and if not available, it raises a purchase order which is used by production team to manufacture the item and by the finance team to issue the necessary invoice. The produced goods then come back to the inventory where they become available for delivery. A single platform wherein the company can understand all demand and supply can actually be used to anticipate customer requirements and even forecast future demands. This shortens lead time, reduces the overall costs of production and ensures customer satisfaction.
The biggest advantage of ERP along with its access SAP remotely, is the fact that people across departments have access to all relevant information. As soon as it finishes in one department, the ERP system would move it forward to the next concerned department which is defined in its workflow. To be able to understand the status of the order, one can simply login to the ERP system and track it. Besides providing all these benefits, ERP systems provides low cost of ownership and savings mainly because it is a standardized application that is capable enough of handling different business functions. With ERP systems implemented across functions, the management can now receive consolidated information from sales, inventory and receivables at the same time.
Improved visibility:Due to the centralized nature of the platform, any enterprise can track inventory levels on a daily basis, including transit and future consignments that are to be received. This visibility allows the enterprise to control their working budget requirements to a great extent. The transparency in the processes also allows the organization to operate according to their strategy while empowering them to make faster decisions that would help them grow faster.
Reduction in operating costs of the business:One of the biggest benefits other than the access SAP remotely is the reduced operating costs. This means lower inventory control costs, lower production costs and lower marketing costs. Since ERP prevents duplication of information, and not reinventing the wheel for common business processes, the opportunities for cost reduction and value added tasks leads to increased margins.
Standardizing various business processes:Most of the available ERP vendors design the products based on standard business processes which are again based on industry best practices. Organizations use these processes then to standardize themselves. The consistency allows a consolidated view of the business across the distributed enterprise, which enabled organization to drive continuous improvements, streamlining the operations and building a healthy synergy between departments and functions.
Improved compliance: With ERP installation, besides having accessing SAP remotely, organizations can enforce compliance related to different regulations which are industry specific.
What does ERP entail?
Installation of ERP just for its benefits is not enough, for one needs to understand what it entails. ERP platform requires a huge amount of planning, coordination and support to enable a business to reap benefits. To understand better, it is important to appreciate that the heart of any ERP system is information – and if it is entered incorrectly, the system cannot deliver the necessary results. Besides access SAP remotely, one needs to know that ERP is also about process – therefore, if the employees of any enterprise resist the best practices of the industry, they would undermine the usage of the software resulting in bad ROI.
Furthermore, implementation of the software changes the way people work in an organization, wherein top management`s proactiveness is dependent on complete information and insights derived from them. A proper change management initiative lowers the potential risk of an ERP implementation, through various comprehensive communication and training process. To be able to reap the complete the benefits of ERP including access SAP remotely, it is advisable for the organization to partner with competent, proven service providers who have thorough knowledge of its technical functions for its successful implementation.