What Is SAP?


SAP is one of the most powerful and popular ERP solutions. It offers organizations the platform to store their data centrally, and access it easily from anywhere so as to make better and faster decisions. The following article delves into the significance and benefits of SAP ERP for organizations. Read on to know.

Systems Applications and Products (SAP) is one of the first Enterprise Resource Planning (ERP) solutions that was developed. The name of the company that developed the software was the same as the solution, i.e., SAP. Essentially, SAP is a data processing software that comprise of a full suite of integrated modules. These modules cater to the data processing needs of the different functions or departments of an organization.

What Is SAP?

SAP is one of the highly rated ERP solutions in the market, besides Microsoft Dynamics, Oracle, etc. The company, till date, has more than 75,000 satisfied customers in over 120 countries worldwide.

Why is ERP Needed?

Every organization, big or small, comprise of different departments such as Finance, Marketing, Sales, Customer Services, etc. On a day to day basis, these departments need to exchange data and communicate with each other. In fact, the success of every organization lies in being able to communicate effectively, and exchange data through these departments as well as with outsiders such as third party vendors, customers and outsourcers.

And, this is exactly what SAP helps organizations do – communicate effectively through more accurate and faster data exchange. Based on the manner in which data is exchanged and communications are carried out, there are two types of organizational data management systems, namely Decentralized and Centralized.

  • Decentralized System – As the name suggests, in a decentralized organizational system data and communication generated in a department is maintained and managed locally. In other words, one department does not have access to the data in another department.
  • Centralized System – Contrary to a decentralized organization framework, in a centralized organizational framework data is maintained in a single, central location, which is accessible to all other departments.

SAP helps organizations maintain and manage their data locally so that it’s accessible to every other department. Hence, SAP solutions off the following benefits:

  • Eliminates redundancy, discontinuity and duplication of data.
  • Makes information accessible in real time, across different locations and departments of an organization.
  • Provides better control over the processes of a business.
  • Reduces overhead costs to boost profit, enables effective human resource management, reduces material costs, promotes equality, improves inventory management and increases productivity.
  • Improves customer service and customer interaction, thereby boosting throughput.

SAP ERP solutions are used by large global organizations across the world to make management and decision making easier, thereby increasing profitability and market share. Organizations using SAP solutions can consider SAP training courses such as SAP ABAP associate certification courses, SAP accounting training courses, etc. to train their workforce and generate increased ROI from their SAP ERP.