BRIEF ON ERP-SAP

ERP-SAP

SAP R/3 is the former name of the main ENTERPRISE RESOURCE PLANNING software

produced by SAP AG. It is an enterprise-wide information system designed to coordinate all the
resources, information, and activities needed to complete business processes such as
order fulfillment or billing.

Implementing enterprise resource-planning systems can be extremely painful, and once you have
them up and running they may seem to interfere with the speed and agility needed for electronic
business. Are they a waste? No, but the real advantages aren't always noticeable.

Throughout the 1990s, the majority of large industrial companies installed enterprise resource-
planning (ERP) systems--that is, enormous computer applications allowing a business to handle
all of its operations (finance, requirements planning, human resources, and order fulfillment) on
the basis of a single, integrated set of corporate data. Enterprise resource-planning systems
assures massive improvements in efficiency--for example, shorter interval between orders and
payments, lower back-office staff necessities, cheap inventory, and enhanced customer service.
Encouraged by ERP's potential, businesses around the world invested some $ 300 billion in it
during the decade.

SAP, one of the leading providers of ERP solutions, has thrown its hat into the ERP application
rental ring. SAP ERP applications are available on an outsourced, hosted basis. For a fixed
monthly rental fee, small to midsize companies can now reap the benefits of a top ERP package
without the capital investment and infrastructure needed to implement such a setup in-house.

With the emergence of application rentals, however, any size company can have a top-notch ERP
system even though they don't have the IT resources or capital traditionally needed. This is
because the hardware and software is maintained at the vendor's site and you merely access the
system via the Internet or other connection.

Survey.com reports that recent surveys of the enterprise resource planning (ERP) market have
revealed poor market knowledge or acceptance of the business-to-business e-commerce portal
offered by SAP.

Of respondents at companies currently using or planning to use an SAP ERP system, 31.5
percent have "no knowledge", less than 14 percent are currently evaluating it, and only less than
2 percent are in fact using it.

These results clearly give us an idea about the damage done to SAP ERP's market position by its
reluctance to identify the Internet as an inflection point in the ERP market. SAP ERP is trying
hard to catch up, but these surveys shows that the delay in delivering and uncertainty caused by
changes in the marketing message, may have pushed many customers to choose instead for third-
party solutions to access and make data from SAP ERP transactional databases more extensively
accessible.

Typically, an ERP vendor has established a fixed software rental fee and partners with other
firms that provide processing and implementation service. The ERP vendors also offer a choice
of implementation and customer services options. This means that a single public agency can
acquire the same ERP software from a variety of providers with multiple pricing formats.

Implementation of SAP Oracle ERP Systems is often approached in a Big Bang, let's-do-it-all-at-
once style of approach. Another approach to SAP Oracle ERP system implementation hosting
has agencies replacing existing modules one at a time until the full ERP system is in place. The
underlying theme is to plan long term and select an ERP vendor for a number of years. At the
same time, act short term by implementing financials, or HR/payroll, or maintenance
management, or utility billing one module at a time, as the older systems become obsolete.
Implementations are now being completed in nine months and often can take less time. Four-
month implementations are even possible in smaller agencies.

Implementing erp vendor selection one module at a time has the disadvantage of having to
build interfaces to the remaining legacy systems that will eventually be discarded. On the other
hand, the potential of having to maintain a single technology and work with a single vendor to
obtain a truly integrated system is considered worth the cost in the long run.

The major advantage to SAP Oracle ERP Systems application hosting is that medium and
smaller public entities can obtain the functionality and power of comprehensive administrative
and financial systems at a fraction of the costs of installing and maintaining these systems on
their own.

The most important of these advantages are the following: the opportunity costs associated with
software ownership, its zero residual value, and reduced useful life expectancy. In addition, with
the difficulty that local governments have in attracting and retaining IT staff, application hosting
becomes an even more attractive alternative and one that local government financial managers
should seriously consider.

 SAP  ERP  OPERATIONS

To best serve customers, organizations are focusing more on the agility and speed of delivering
products and services. The efficiency of the entire operational process chain impacts an
organization's ability to serve its customers well. Operational excellence is the ability of an
organization to achieve a high level of customer service, while reducing operating costs. An
organization can then run its business at the speed of change with more agility, from its suppliers
to its customers, no matter which changes occur in the market and in demand.

For many organizations, the SAP ERP Operations solution has become the software backbone
that contributes to excellent performance supporting end-to-end operational processes in all key
areas: procurement and logistics execution, product development and manufacturing, and sales
and service. This excellence is a culmination of SAP's experience over more than 30 years, with
thousands of successful customers in more than 25 industries.

With SAP ERP Operations, your organization can realize its full efficiency and cost-
effectiveness potential. With smoother day-to-day operations, you can maximize your
profitability, free up resources and budget so that you can invest more in innovation. Gaining
competitive advantage, you can look toward the future, and operate as a best-run business over
the long term.

Some of the issues deserving attention in SAP ERP Market are as follows:

Corporate move and reactions to SAP ERP

SAP has been constantly improving its products and flushing them in the market. Any advanced
version from the company will witness a vast improvement from the predecessor. This practice
has been constantly encouraged in the company. However the users are adopting another plan of
action. They choose to integrate the applications by purchasing software programs from some
other company .Such a software will meet the requirements of the particular function in the latest
version of SAP) in the place of the advanced SAP version. This saves them money without
having to make any compromise on the functions covered.

Awareness

While the earlier paragraph presents the steps executed by companies in reaction to SAP and
ERP in response to the latest version it ought to be understood that the awareness among
companies regarding the same are not upto the mark. The decision of the companies to go for
third party software programs cannot always be justified. There are instances wherein the
companies won't be able to capitalize on the added features if they don't move to SAP ERP for
the selected functions. This factor is not understood by a vast majority of companies. They select
to stick to their own practices. Even in that case they fail to understand that the troubles (if any)
are the consequences of not implementing SAP ERP. It is not the question of who is to be
blamed for not creating the required awareness but the question of when is it going to be created
and how. The sooner they are created greater are the chances for better results. This calls for lots
of efforts from everyone in realizing the dreams of sap erp enterprise.

SAP becomes the savior of computer associates International

Computer associates International a victim of a scam involving huge amounts of money has
chosen to implement SAP in order to put the systems in proper place and establish practices to
ensure accountability. Their choice of SAP in replacing the enterprise operations is backed by
the fact that SAP has provided exemplary services and that there is not a single enterprise
operation that has remains untouched by the company. The special features of SAP ERP
enterprise are believed to help the companies in tracking down valuable information and as well
monitor the performance in a concise manner.
Strategic alliance with Microsoft Corporation

Mendocino is ERP software developed by SAP in collaboration with Microsoft. This product
aims to make use of Microsoft's presence in computers viz through non ERP applications like
Windows and others. Needless to mention the special features of SAP has been given due
coverage and duly compiled. Another advantage of this common software is that it brings
together some applications which would not have otherwise been possible. This is believed to
ease SAP ERP enterprise operations.

SAP continues to be the leader in Indian Market

SAP and ERP remains the favorite choice of Enterprises in India a nation with full promises for
IT education, skills and manpower. This remains true irrespective of the fact whether IT
experiences an upward or downward trend in the country. They are poised to penetrate many
segments and attract more customers given the increasing awareness and demands and
competition to thrive at par with the market standards. SAP ERP market is also competitive.

SAP unearths flaws in accounting

SAP and ERP also hit the headlines when it was implemented in a shipping company. SAP not
only helped the company in rectifying the accounting practices but also helped to do away with
procedural delays and other inherent errors that remained unnoticed for a considerable period of
time. The software initially pointed out the discrepancies in data transfer from departments
which affected one another and the final accounting figure.

SAP chosen for back office operations

SAP ERP integration is not solely restricted to process mechanizations and error rectifications. It
can as well handle many or little small process/processes in a routine manner. This has become
evident on its implementation in the systems of Jet Blue Airlines for the sake of managing the
back office operations. The depth of operations undertaken by SAP ERP and its strength become
the judging factors when it comes to the question of performing functions like this.

On Southcorp's choice from SAP to Oracle

This company suddenly moved to the software provided by oracle and JDEdwards from SAP.
However sources reveal that the decision had nothing wrong to point on SAP. They had to
restructure and hence they accepted the offer to move to a new solution. Moreover their
functions did not require to be dealt only by particular software.

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