Discover why choosing SAP’s ERP can be beneficial for your business in this article. We will explore the advantages of using SAP’s ERP, key features of this solution, as well as the industries that can benefit the most from it. Ultimately, you will have a better understanding of how SAP’s ERP can help your business effectively manage its business processes and improve profitability.
28/12/2022
Why Choose SAP's ERP for Your Business
6 minutes de lecture
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Today, any company that wants to grow must at some point ask itself which systems to use to manage all its data and other information. And the least we can say is that they have a lot to choose from.
Indeed, for the past twenty years, many technology companies have been involved in the digital transformation market, offering ever more efficient solutions and software.
This is the case with SAP, one of the world’s leading ERP companies, which promises to optimize all of a company’s functions. And with the latest version of its S/4HANA ERP, this promise has become reality.
SAP, the Forerunner of ERP
The German company, founded in 1972, is the leading software company in Europe. Indeed, it succeeds in providing software to companies regardless of their industry or field. This famous software is called Enterprise Resource Planning (ERP).
ERP is considered an essential tool whose performance is often praised by consulting firms. Indeed, ERPs are systems that aim to manage more efficiently the more or less complex resources of the company by proposing a centralized architecture and a system based on a unique repository.
Their appearance is part of a crisis context of functional organization, their goal being to respond and adapt to the needs of companies. This is what SAP has been able to do optimally for several years now, particularly with its latest version, S/4HANA.
Due to the diversity of the software developed, SAP is able to cover all sectors of the company, such as finance, logistics, cybersecurity, human resources, sales, etc., on the basis of a single common system.
SAP is true strategic decision support that is reliable for the top decision-makers of organizations. Its ERP also helps companies become smarter by using new technologies such as Robot Process Automation (RPA), the Internet of Things as well as Artificial Intelligence.
What are the Advantages of SAP ERP?
Although the products and services of the European leader are expensive, they offer real added value for those who have opted for this choice of Integrated Management Software. Indeed, SAP has many advantages:
A complete ERP for all: from finance to HR to supply chain, SAP’s ERP covers all departments and business processes of your company. Although in the beginning, SAP’s ERP was mainly intended for large companies, the German firm has been able to adapt to offer products that are perfectly adapted to small and medium-sized businesses, such as SAP Business
An ERP that adapts to your company and not the other way around. There is no shortage of offers for SAP S4/HANA and there is bound to be one for your company. You can choose from customized or package solutions, on-premises, on cloud or a hybrid deployment. You can also choose between a subscription or unlimited access to the license.
Proven expertise: more than 24 sectors are covered by S4/HANA and SAP does not hesitate to set up partnerships to constantly improve these modules and offer the best functionalities and innovations
But its main strength lies in its modular architecture. Each module represents a department of the company (finance, logistics, human resources…). All these modules are integrated within the ERP and are connected to the central database.
They can therefore exchange information and data in real-time. This facilitates the integration and standardization of processes. Some of these modules can bring you real added value:
- An improved service between the customer and the supplier: S/4HANA offers the facilitated integration of a CRM, C/4HANA. This makes it easier to put customers at the center of the business strategy.
- Improved efficiency of the supply chain
- Optimization of inventory management
- Control and budget planning
- Real-time information
With more than 100,000 employees in over 140 countries worldwide, SAP has proven to its 450,000 customers that its solutions are the best in the market.
Whether it is pharmaceutical, banking, luxury goods, aeronautics, energy, research, building, and many other sectors, SAP has succeeded in enhancing the value of its application suites and services.
How does SAP Differentiate itself from its Competitors?
Oracle
Oracle started out as an enterprise database and then developed its own ERP for organizations. It is a comprehensive and flexible tool offering advanced cloud and Artificial Intelligence features.
This ERP is positioned just behind SAP and innovates to automate manual processes for business users.
There are two main differences between Oracle’s products and SAP’s:
- Flexibility: SAP’s ERP is based on the standardization of processes allowing for overall business growth. Standardization is the keyword for SAP, which can be seen as less flexible than Oracle.
- Technological innovations are present but more stable at SAP. Indeed, although many common technologies are still in the testing phase, SAP has opted for a more efficient Cloud strategy than Oracle. Thus, most of the applications bought by SAP were born in the Cloud. They are therefore more stable and better adapted to the cloud.
Microsoft
Microsoft Dynamics 365 ERP merges ERP and CRM, which are also hosted in the Cloud, which is a real force of proposal to acquire new customers and achieve its growth objectives. It supports the digital transformation of companies by offering nine integrated applications including marketing and customer service.
Its integration into the business user’s Office 365 environment is natural and intuitive. This ERP is ranked 3rd behind SAP and Oracle. It is particularly appreciated for its degree of customization and its easy connection with the Office suite. However, its installation difficulties can be disturbing. Indeed, it is one of the longest ERPs to install (a little more than 2 years in practice) and bugs, especially during the first periods of use, are quite frequent.
The New Version of SAP: SAP S/4 HANA
Seven years ago, SAP decided to improve its database and its interfaces, making them easier to use.
The German firm released S/4 HANA with data better handled and analytical and transactional functions available on a single screen, which helps in decision-making.
With its FIORI applications, in-memory technology for real-time data processing, and the integration of machine learning technologies, S/4HANA is positioned as the innovative ERP par excellence.
As a result, those who were not comfortable using SAP ERP, such as managers and decision-makers, are better able to use it independently to make the best possible decisions.
Want to know more? Read our article dedicated to S/4 HANA on our blog.
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