Implications of SAP

1. customer relationship management

- create positive image on company's interactivity
- enhanced customer flow

SAP has the capability to increase the customer relationship management (CRM) within a
company to grow and become more sought after. The implication of the system is improved
image of company’s interactivity and enhanced customer flow. To start with, the image of a
company can directly influence how a company is perceived by the general public. This will
affect several bodies to reconsider the choices made to interact with said companies, take
sponsors and other companies for example. SAP as a system can improve many aspects of
CRM for a company in the form of accessibility, respondents and flexibility. The system
allows a faster method to interact with customers, giving them a good impression that the
company works fast. In the industry, “Time is money” and the more time spent on responding
to a customer could sabotage the opportunity. Employees are now able to respond to a
customer in real-time and receive insights on whatever is needed. This creates an enhanced
customer flow and improves the image of the company. These customer interactions are also
managed by using the system, and it will ease the workload of understanding what the
customer wants. For example, a customer could ask to understand more about a specific
operation within the company and the employee can respond with set answers that have been
made for the specific request.

2. financial management
- consolodation and efficient access to financial details
- predict future business models and increased revenue streams

Next, SAP can consolidate and increase financial management’s efficiency. The implication
of this point is that the system can help sort and make financial data more accessible and
open for viewing. Continuing it, this system can use what’s consolidated to predict future
business models and increase its revenue streams using these models. SAP can be used to
analyze data in large- or small-scale operations, and financial data is sensitive and needs to be
sorted out properly otherwise it can be exploited. Improper financial management can lead to
blackmail and corruption in the company. The system can help in consolidating the financial
data of a company. It takes in the net income of the company even with many minus aspects
such as taxes, expenses, maintenance and operations, and compiles it all together and
calculates from there. Each expense is its own category, and the system can help in moving
this data much more accurately. From all this, the system can be used to predict future
business models for the company to use and predict the direction of operation. With the
financial data all consolidated, the system can generate a flow graph based on the income
flow of the company in intervals and calculate a business model that pertains to the
company’s actions. Although it is not always guaranteed to achieve the goal, a business
model is used to assume that the company will make a profit. The system can help improve
the accuracy of the business model with its consolidated funds, as it investigates all aspects of
the financial system and takes it all into account. This will ensure that no part of the financial
management is overlooked, and it improves the company’s financial situation.

3. inventory management
- inventory details are more accurate
- more efficient order-to-pay cycle is created

Finally, SAP can improve inventory details and create a more efficient order-to-pay (OTP)
cycle. To this point, the system can also consolidate inventory details. This includes multiple
departments, and it can access all of it. A trained employee can review the inventory of the
company in specific departments and lessen their workload as the consolidated inventory is
easier to access. The inventory can also include the item’s details, and the details can also be
consolidated down to its serial number and origin. This makes searching for any specific item
much more efficient and less time-consuming. Using the system can also help in the hardware
section, as it can sort items in specific areas of the warehouse, making it neater and more
organized. Using the previous point of SAP, it can also use predictive analytics and assume
the inventory model to be used by the company. This can help if the activity in the company
increases, and the inventory must follow suit with the increased flow. Using models created
by the system, the company can safely assume the size of their inventories and be prepared to
face the sudden influx of activity. Not being prepared can subject the company to slow
operations and less output from the company, while conversely being overprepared can
subject the company to overspending and create a net loss in revenue as items have expiration
dates. Using the inventory models, a more efficient OTP cycle can be created to future
improve the inventory management of a company. A faster OTP cycle will improve inventory
management in the form of input and output of assets within the warehouse and the receipts
from the customers. For example, if a customer wanted to order 10 items from a company but
by using the system, the number of items that are left is 9 and an employee can respond
quickly to the customer’s request.