Systems Applications and Products in Data Processing

2232 Words Mar 5th, 2013 9 Pages
SAP stands for Systems Applications and Products in Data Processing.
It was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira.
SAP by definition is also name of the ERP (Enterprise Resource Planing) software as well the name of the company.
SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business management.
SAP is #1 in the ERP market. As of 2010, SAP has more than 140,000 installations worldwide, over 25 industry-specific business solutions and more than 75,000 customers in 120 countries
Other Competitive products in market are Oracle, Microsoft Dynamics etc.
What is an SAP- ERP? Why it is Required?
Following Video will explain the need of an ERP
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* Once the raw material is available ,the shop floor department suddenly realize they are short of workers * They approach the HR , who in turn hire temporary employees at higher than market rates. Thus LABOR Cost Increases. * The production planning department fail to update the finance department on the materials they have purchased. * The finance department defaults the payment deadline set by the vendor causing the company loss of its repute and even inventing a possible legal action. * This is just a few of many a problems with decentralized systems. * Some Major problems with the decentralized system are - * Numerous disparate information systems are developed individually over time which are difficult to maintain * Integrating the data is time and money consuming * Inconsistencies and duplication of data * Lack of timely information leads to customer dissatisfaction , loss of revenue and repute * High Inventory , material and human resource cost. * These are some major drawbacks for which we need a solution. Well the Solution lies in Centralized Systems ie. ERP. * In a company ,with Centralized System of Information and Data Management 1) Data is maintained at a central location and is shared with various Departments. 2) Departments have access to information or data of other Departments. * Lets look at the same business process again to understand how a Centralized Enterprise
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