SAP
is the world leader in enterprise applications in terms of software and
software-related service revenue. Based on market capitalization, it is the
world’s third largest independent software manufacturer supporting all sizes of
industries helping them to operate profitability, grow sustainably and stay
ahead of the competition in the market.
What is ERP?
Enterprise
Resource Planning (ERP) is software that is built to organizations belonging to
different industrial sectors, regardless of their size and strength.
If
you are new to SAP and want to take SAP BASIS training online course, join SAP Trainings Online.
The
ERP package is designed to support and integrate almost every functional area of
a business process such as procurement of goods and services, sale and
distribution, finance, accountings, human resource, manufacturing, production
planning (SAP PP), logistics & warehouse management.
Business process
integration
Every
business, regardless of the industry they belong to, require connected systems
with efficient information flow from one business process to another. Business
Process Integration (BPI) plays an important role in overcoming integrating
challenges that allows organizations to connect systems internally and
externally.
Business
Process Integration (BPI) allows:
- Automation of business processes,
- Integration of systems and services,
- Secure sharing of data across numerous applications, and
- Automation of management, operational, and supporting process.
The
following illustration shows an overview of various business processes running
in an enterprise and how they are integrated.
Evolution of ERP
During
early phases of development, integrated solutions were designed for particular
process areas such as:
Material
Management − the integrated system was known as Material Requirement Planning
(MRP)
Manufacturing
− the integrated system was known as Manufacturing Resource Planning
However
none of the integrated systems came with a complete solution for an
organization covering major business process areas. In early 1990’s, the
Gartner Group first used the acronym ERP.
By mid–1990’s, ERP systems addressed all the core enterprise functions.
Functions of ERP
An
ERP system typically performs the following functions:
- Supports the integrated business process inside the organization.
- Improves capital planning and helps in executing organizational plans and strategies.
- Helps speed up the decision-making process over the analysis of accurate data.
- Helps extend the business network to wider domains, expanding the products and services to reach more customers, suppliers, and partners.
- Identifies operational risks to improve governance.
- Provides protection against organizational data breaches and security threats to leakage of information.
- Makes the organization adaptable to the rapid changes in the business process according to the needs.
- Gives long-term profit by providing means to increase the customer base.
Functional areas
ERP is a business management software is usually a suite of
integrated applications that a company can use to collect, store, manage, and
interpret data from many functional areas including:
Financial Accounting − Deals with financial
transactions and data.
Human Resource − Deals with information related to
employee of an organization.
Customer Relationship Management − Deals with
capturing and managing customer’s relationship, facilitating the use of
customer experience to evaluate the knowledge database.
Sales and Distribution − Deals with order placement,
delivery, shipment and invoicing.
Logistics and Warehouse Management − Deals with
storage of products and shipment.
Manufacturing and Material Management − Deals with
the production and production planning activities.
Supply Change Management − Deals with the movement of
products, storing, managing, and controlling supplies.
Advantages of ERP
By integrating the business processes, the ERP offers the
following advantages:
- Saves time and expenses.
- Allows faster decision-making by the management, utilizing the data and reporting tools designed in the systems.
- Single data source and sharing of data among all the units of an organization.
- Helps in tracking every transaction that takes place in an organization, from starting till end.
- Provides synchronized information transfer in between different functional areas such as sales, marketing, finance, manufacturing, human resource, logistics, etc.
Disadvantages of ERP
It is not always easy to incorporate ERP in an organization.
ERP suffers from the following drawbacks:
- Sometimes business processes critical to an organization are to be re-engineered to align them with an ERP solution.
- Cost of complex integration can be very high.
- Switching from one ERP solution to another increases the implementation cost even further.
- End-users are to be trained for their daily operations.
- Customization is not preferred.
ERP Packages
Many
companies develop and implement various ERP packages according to their budget
and requirements to help them meet their business needs and run their business
efficiently.
SAP Trainings Online is a unique SAP training platform which provides learners with real time
project and case studies included in course content. SAP
Trainings Online designed SAP BASIS training program based on present day
industry requirements which makes the learners future ready and strengthens you
to go challenging with industrial demands. We provide training in many
countries India, USA, UK, Canada, Australia, New Zealand.
Register
with us for free demo: www.saptrainingsonline.com/student-registration
For more
details visit: www.saptrainingsonline.com
Email: contact@saptrainingsonline.com
Contact: India
+91 9052775398 USA +13152825809
