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What is SAP ERP?
An Enterprise Resource Planning (ERP) system makes it possible for organizations to run within a single system their core processes for finance, manufacturing, human resources (HR), supply chain, services, procurement, and other key business functions.
What is SAP ERP?
An Enterprise Resource Planning (ERP) system makes it possible for organizations to run within a single system their core processes for finance, manufacturing, human resources (HR), supply chain, services, procurement, and other key business functions.
SAP ERP solutions are based on over 40 years of experience across all industries and business sizes. They leverage technology that is constantly updated to build ERP tools that can be constantly updated.
The first official SAP ERP solution was the introduction of mySAP ERP in 2004, although this was based on much of the functionality and experience SAP had gained with the SAP R/2 and SAP R/3 business application software suites. While the mySAP ERP solution was targeted at a smaller audience, SAP ERP Central Component (SAP ECC) was introduced in the same and provided all the core business processing capabilities along with data warehouse and enterprise management capabilities in a single system.
The most recent SAP ERP system, SAP S/4HANA, was introduced in 2015 and was a significant shift for SAP as it runs exclusively on the SAP HANA database. A software-as-a-service version of the solution, SAP S/4HANA Cloud, was introduced a year later in 2016. There is a new major release of the on-premise version of SAP S/4HANA each year, while the cloud editions are released quarterly. SAP has announced that they will end the mainstream maintenance and support of all ERP systems other than SAP S/4HANA at the end of 2027.
SAP started to shift their strategy in 2020 to focus more on the cloud-based software-as-a-service ERP system SAP S/4HANA Cloud. This has been done in conjunction with a shift in messaging toward cloud ERP. While most SAP ERP customers are still running older solutions such as SAP ECC, this focus on cloud ERP has been done in conjunction with RISE with SAP.
The biggest factors impacting organizations’ move to newer SAP ERP systems include the opportunity to re-engineer processes or correct configurations from an older system, the upcoming end of maintenance of existing ERP releases, and a desire to transform existing solutions and create a centralized model and structure.
SAP has many implementation partners that will assist organizations with either their initial SAP ERP deployment or a move to SAP S/4HANA from an earlier ERP release. These range from global solution service partners like Capgemini, Cognizant, Deloitte, and T-Systems to smaller partners like smartShift and SoftwareONE that offer solutions and software to help with migration, as well as partners specializing in the migration process itself like Lemongrass.
What Does SAP ERP Do?
An Enterprise Resource Planning (ERP) system makes it possible for organizations to run within a single system their core processes for finance, manufacturing, human resources (HR), supply chain, services, procurement, and other key business functions. SAP ERP solutions are based on over 40 years of experience across all industries and business sizes. They leverage technology that is constantly updated to build ERP tools that can be constantly updated.
By centralizing key functions like sales, security, analytics, and much more into one SAP system, an ERP can help provide a more interconnected experience for users and business leaders. Relying on an ERP can help standardize security measures, help boost sales performance, making the overall experience better for both users and customers.
Benefits of SAP ERP
SAP ERP systems offer significant benefits to their customers. These solutions are available to organizations of all types and sizes. One of the chief benefits is flexibility. SAP ERPs are easily customizable, both in terms of the applications themselves and how they connect and interact within a network overall. ERPs are available in public and private clouds, so users can have online access to the network from anywhere. They can also be used in on-premise only scenarios, offering users the option to keep their IT and security in-house. ERP systems from SAP centralize critical business functions like planning, analytics, and finance all in one place. This saves employees from significant manual work, allowing them to instead spend their time on more value-added tasks.
Types of SAP ERP Systems
Organizations range in size, operate in different industries, and may have unique business needs, so SAP offers several different ERP solutions to meet these challenges.
SAP’s flagship ERP solution is SAP S/4HANA. Released in 2015, this ERP solution runs exclusively on the SAP HANA database. It features modules like Asset Management, Finance, Human Resources, Manufacturing, R&D/Engineering, Sales, Service, Sourcing and Procurement, and Supply Chain. These modules all have different features and functions to meet the needs of their industry.
The full-scale ERP suite is used by companies of all different sizes and provides organizations with the flexibility to respond to shifting business environments. Recent versions of SAP S/4HANA now feature enhanced technological features like machine learning, automation, AI, and other capabilities.
The primary reason that organizations opt for SAP S/4HANA is its simplicity. The system standardizes and simplifies IT and business processes throughout organizations by acting as the core of the business. It can centralize data access from sources within other SAP systems and outside of SAP. This provides business leaders with end-to-end visibility, enhancing their decision-making capabilities.
SAP S/4HANA relies on SAP Fiori as its user interface, which makes interacting with the ERP system a more personalized and user-friendly experience.
SAP S/4HANA is not SAP’s only ERP offering. For smaller and midsize businesses, SAP offers Business One. Billed as a “a long-time favorite of smaller firms and subsidiaries of large enterprises” by SAP, SAP Business One also features cloud capabilities on a more affordable scale for businesses with fewer processes to oversee.
SAP also offers midsized firms a more specialized cloud-based ERP suite known as SAP Business ByDesign. Designed to meet the needs of organizations that are scaling rapidly, SAP Business ByDesign also connects core functions across the breadth of an enterprise.
Some organizations still run on SAP ECC 6.0, a legacy system that predates SAP S/4HANA as SAP’s flagship ERP. That ERP system is being phased out as SAP pushes organizations to complete the transition to SAP S/4HANA. Support and maintenance for the legacy SAP ECC ERP will come to an end in 2027, though SAP does offer users the option of using the SAP ECC 6.0 Enhancement Pack 8 through 2030. Yet to make the most out of an SAP ERP system and gain the benefits of flexibility and the full power of SAP HANA, it is recommended that companies make the switch to SAP S/4HANA.
Organizations should perform a self-evaluation and research the different possibilities to determine which SAP ERP benefits would bolster their enterprise processes the most.
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Join SAPinsider to access opportunities for networking and engagement in the dynamic SAP ecosystem. As a member, you will have access to a wealth of valuable resources and content tailored to SAP technologies and best practices like the latest research reports, articles, webinars, and events that will keep you informed and ahead of the curve.SAPinsider membership grants you exclusive access to in-depth analyses, expert insights, and practical guidance that will empower you to navigate the ever-evolving SAP landscape with ease. SAPinsider membership will enable you to remain one step ahead and harness the latest trends, innovations, and strategies to drive your own powerful digital transformations, optimize your SAP investments, and unlock business success.
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adidas group Hits the Ground RunningOct 1, 2013 —
adidas group knows that a simplified IT landscape and reduced operational costs over the next few years will be important in helping the company reach its ambitious goal of reaching €17 billion by 2015. See how adidas group consolidated its business warehouse environment onto a single SAP HANA platform; implementing SAP NetWeaver Business Warehouse 7.3 powered by SAP HANA for enterprise-wide embedded analytics, real-time reporting, and a reduction of TCO and IT operational costs.
8 minute read
Unilever Goes Global with a Transformative SAP HANA ProjectJul 1, 2013 — SAP S/4HANA offers enterprises tremendous potential to go beyond performance and simplicity and deliver significant business value as part of an enterprise-wide digital transformation, but this approach must be understood, considered and incorporated into
by SAP and Partners SAPinsider - 2006 (Volume 7), January (Issue 1)
by SAP and Partners SAPinsider - 2006 (Volume 7), January (Issue 1)
With Colgate-Palmolive increasingly sharing IT project resources around the world, they set out to improve the way they plan, monitor, and measure global IT resources and turned to an SAP application that enables companies to inventory and track resources, skills, and budgets. The result: improved project planning, management, and reporting as well as reduced IT support costs.
Even with its substantial environmental footprint, The Coca-Cola Company is leading the charge around creating more sustainable business processes. What lessons can the rest of us glean from this experience? Jeff Seabright, Coca-Cola’s VP of Environment and Water Resources, answers this question with seven pieces of advice.
When a South African retail chain, Pick n Pay, felt hindered by insufficient legacy systems, it decided to roll out a full ERP system. This profile highlights the company’s impressive IT modernization project — from building a solution around SAP for Retail to improving performance to learning important project management lessons.
Now managing 40 branded hotels, Stonebridge Companies was fortunate to experience growth — but it also faced challenges in managing that growth. Nasim Mansurov, Vice President of IT at Stonebridge, discusses the company’s search for an ERP system and the back-end process improvements it has seen post-implementation.
With more than 180,000 employees and even more data, Accenture faced a challenge: it needed to securely support its employees with accurate, real-time information. Uncover how the company’s ERP Delivery team met this challenge by building a suite of self-service web applications — and what they learned along the way.
ConAgra Foods made the decision to start consolidating its technology years ago — and today its R&D, financial, order management, IT services, data center, and supply chain management operations all run in the same SAP system landscape. So what benefits is ConAgra Foods reaping by moving to a “single version of the truth?” Find out in this deep-dive case study.
Upgrading to SAP ERP 6.0 was a non-event for Bristol-Myers Squibb, chiefly because of the help it received from SAP Enterprise Support. With insights from Michael DiNovi, the biopharmaceutical company’s Director of Application Services, this profile highlights the biggest benefits the company gained from its support agreement, including better risk management, streamlined IT processes, and greater spend visibility.
For years, electrical products distributor Summit Electric Supply watched its transaction volumes rise and experienced unhindered growth; but in 2004, the company’s aging legacy system began to show signs of stress. This customer profile relates Summit’s journey of evaluating and implementing an ERP system — and the ensuing benefits and the big lesson learned after going live with SAP ERP.
After eight years of using its custom-built spend performance management reporting system, the giant consumer products company Colgate-Palmolive decided to replace it. Uncover not only why the business made the change, but how it did so by implementing SAP BusinessObjects Spend Performance Management to reap impressive benefits — including enhanced reporting, empowered end users, and reduced dependency on IT.
As a military aircraft provider, Lockheed Martin works with suppliers ranging from large technology firms to small, niche companies with limited IT infrastructure. In this SAP customer profile, Lockheed offers insights and tips on successful supplier collaboration, including a look at its decision to implement a portal-based environment in order to make access to its new SAP ERP system as streamlined for suppliers as possible.
Burton Snowboards is not just a snowboard company — it has also expanded into skateboard and surfboard products and, as a result, watched its global network of offices, retailers, and manufacturers grow. But with this expansion, Burton realized that it needed to improve its systems for inventory, supply chain, purchasing, and customer service. Uncover Burton’s inspiring story of preparing for an upgrade to SAP ERP 6.0 — and building a strong and “simple, standard, supportable” foundation.
You may know it for its dazzling circus performances, but Cirque du Soleil, at its core, is a business—and it has relied on SAP solutions for the past decade to manage its rapid growth. From accommodating the financial complexities of a global business to keeping up with an increased demand for costumes, SAP solutions like SAP ERP Financials have helped Cirque du Soleil optimize and review business processes while collecting valuable business data.
You may know it for its dazzling circus performances, but Cirque du Soleil, at its core, is a business—and it has relied on SAP solutions for the past decade to manage its rapid growth. From accommodating the financial complexities of a global business to keeping up with an increased demand for costumes, SAP solutions like SAP ERP Financials have helped Cirque du Soleil optimize and review business processes while collecting valuable business data.
To produce its cutting-edge semiconductors and microprocessors, high-tech giant Intel needs the very latest manufacturing equipment — and those tools don’t come cheap. In this article, read how Intel used SAP technology to pay suppliers sooner and dramatically improve its discount capture rate for capital purchases from ~50% to over 95%, exceeding the corporate goal, and resulting in millions of dollars in cost savings each year.
Nu Skin, a developer and distributor of health and beauty products, has employees in 28 different countries around the world. Previously, no centralized HR system existed to collect employee data or provide standardized HR reporting. Now, Nu Skin utilizes SAP ERP Human Capital Management -- and its journey to go-live is one that is truly unique.
Kraft Foods was in the midst of an enterprise-wide SAP implementation and the business realized that the best way to expand the benefits of the company’s SAP rollout was to deploy user-friendly BI applications. See how the business created a four-point plan that has served as their secret recipe for success.
LEGO building blocks have become so popular that the company decided to expand its product line to capitalize on increased growth. To make sure its legacy product development system did not hold them back, LEGO has embarked on an implementation of SAP Product Lifecycle Management, with the transition to the application broken up into four distinct phases.
To ensure employees are properly trained, businesses must provide education through materials, in-person instruction, or online training, as well as make sure employees are up to date on certifications. For General Mills — a business that employs 39,000 people worldwide — this is a tall order. To standardize employee training in the supply chain area, the company implemented SAP Enterprise Learning and RegLearn from hyperCision.
When Grupo Modelo took the step to become a more process-oriented organization, a key objective was to make sure the business processes and rules were consistent company-wide. Standardizing organizational processes would give the brewer more insight into operations, but would also create challenges specifically related to risk management.
Fleet management company ARI manages the entire life cycle and operation of a fleet vehicle for its customers, from up-front specifications and acquisition through resale, which generates a tremendous amount of transactional data. To help ARI manipulate data to spot trends and develop proactive solutions to challenges the data might reveal, the company implemented SAP BusinessObjects Explorer with SAP HANA.
In late 2011, Colgate-Palmolive implemented SAP HANA CO-PA Accelerator as a test project to enhance its profitability analysis reporting. With significant time savings on numerous brand profitability analysis processes, the company then decided to move its business warehouse and trade promotion management solutions onto the SAP HANA platform.
Unilever’s 10-year plan to double its business is ambitious to say the least, and the company knows it needs to do more than simply put additional products on the shelves. Learn how Unilever took the initial steps toward this goal and significantly reduced the time the business spent on month-end financial close processes, financial analysis, and product cost forecasting processes.
9 minute read