Critical Analysis of SAP Systems Adoption in Business Organizations

This process reduced not just customer’s satisfaction but also profit; there is a need for a financial information management to integrate all their business processes. SAP (System Applications Program) was introduced to the company to ensure efficient communication among the different modules of the business process.

The case shows the implementation of SAP ERP solution in NIBCO, a manufacturer of pipe and fittings, a mid-size manufacturer with about 3,000 employees and revenue over 460 million USD. The company

The IT staffs were certain that the existing SAP software will provide all necessary computer support. They believed that even if the SAP would not fit their business processes precisely, it may be an investment that provides greater long-term flexibility and better solutions to the company’s problem.

Derynck, R., & Hutchinson, T. (1998, November 01).Integrating real-time systems with corporate information systems. Retrieved from http://www.hpl.hp.com/hpjournal/98nov/nov98a4.pdf

c. To manage sales and inventory, UA recently adopted a new SAP system which will make future product expansion easier.

I feel that the changes made in SAP will stay in place for years to come.  Now that steps have been gathered to analyze large amounts of employees, customers, and sales data being generated by companies it will enable SAP to create new processes and applications that will strength

H. C. Stark Inc. invested in the SAP R/3 Enterprise Resource Planning software for the company but, only the finance dept. uses the software while the production, scheduling, shop floor scheduling and raw material orders and are still processed manually. These departments still believe in using the paper method of processing the transmittal of the sales orders from customers to the operations department. This process is longer than incorporating the software to accomplish the same tasks. Starck doesn't make full use of the functions in SAP R/3. In fact, schedule misses were mostly due to equipment failure. Mike from the sales dept stated there was an "informational

In order to alleviate its server capacity constraints, speed its data retrieval process and reduce the number business systems used, Williams-Sonoma should upgrade to Windows 2000, purchase new servers and implement the SAP program. SAP is a customized program package that integrates a company 's supply chain. It 's primary function is the ability for order management, sales and distribution to communicate electronically with the financial systems and controls by providing real-time information for decision making. The system is fast, user friendly and most importantly real-time. It is beneficial because it reduces human error, improves productivity, improves data

The company had been using a shared-services vision, where purchasing, finance, and information resources were provided via shared services that left the divisions with the customer-facing work. Therefore, Mead used the entire suite of SAP modules except human resources and installed a recent module, Advanced Optimization Planning (AOP), which handles all planning and scheduling. However, SAP was not the perfect solution as it unified the company, but it was a large and complex system and it required strict adherence to its rules. ERP was experimental in 1995; reverse auctions and Web applications were experimental in 2002. Implementing ERP has leveraged resources and central design and thus solved many of the problems and issues the company used to struggle with. ERP helped in easy decision-making as if a business unit wanted to make a change, they needed to have conversations with the others, in terms of what was good for the whole. "The answer might not be reached as quickly, but it is a more effective answer," states McGrane. Standardization and globalization has forced real business discussions to occur as well as

SAP provides businesses scalable and customizable solutions for all aspects of your clients' businesses, from production to marketing and Human Resources to finance reporting. Moreover, SAP products and applications will allow your clients to operate at peak efficiency levels, with better communication and faster decision-making. Therefore, the

As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system.

The SAP/ERP package can contain software for Human resources including accounting/payroll software or IT software such as ticketing systems where customers can place service calls to have tech support correct a technical issue remotely or physically. In addition to integration of the company 's information, providing e-business related services such as the use of online bill pay/inquires, using electronic media to contact existing customers, and election web-based information services for customers will help Bandon improve business operations and its customer support if the company uses SAP for its ERP package (SAP, n.d.).

Plan frequency and planning horizon depend on the specifics of the industry. Short product life cycles and high demand volatility require a tighter S&OP planning than steadily consumed products. Done well, the S&OP process also enables effective supply chain management. However, what we have observed in Gabriel is that excessive dependence on platforms like SAP ERP 6.0 have made the process totally system driven in nature. They have their own advantages and disadvantages. On one hand, all the plans get generated automatically by the system and users are required only to input data at various levels. On the other hand, at times system itself becomes a hurdle because employees are losing their efficiency in planning and data management. In such situation system down time at these companies’ leads to huge loses and disrupts entire work flow. These companies have limited practise of maintaining hard copies of data thereby making the whole process totally dependent on IT and Software infrastructure and platform. Huge fees are paid for backhand support for SAP ERP

ERP, which is an abbreviation for Enterprise Resource Planning, is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with the core business processes of a corporate house to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components; Business Management Practices, Information Technology and Specific Business Objectives.

SAP Americas is a subsidiary of SAP AG, overseeing the company's business operations in the U.S., Canada, Latin America and the Caribbean. SAP has 115 companies with research and development facilities in Germany, Turkey, Canada, China, Hungary, India, Israel, Bulgaria and North America. In addition, SAP have laboratory centers in France, Sofia, Hungary, Sao Leopoldo, Brazil, Palo Alto, California, Bangalore and Gurgaon, India, Ra' Anana and Karmiel, Israel, Vancouver, Canada and Shanghai, China. SAP targets six industry sectors including consumer industries, discrete industry, financial services, process industries, public services, and service industries. SAP focuses on vertical industries, such as media, which helps provide growth as these industries expand. A potentially large area of growth could come in the relatively new services-oriented architecture (SOA), which enables the customers to link and connect its various applications. SAP expects its SOA, called NetWeaver, to be well received by its large installed customer base. Many of the industries SAP operates in are fragmented in terms of the software brands used. SAP offers more than two dozen industry solution portfolios and more than 550 resolutions for small and mid-size companies. SAP primary marketing areas are products, consultation and training. A significant part of SAP AG's success is making it easy for customers, partners, vendors, and the