Every business sets its own objectives, goals, policies, and procedures to function efficiently. It is understandable that present-day 21st-century businesses require innovative technologies with comprehensive functions to fill the gap between business goals, policies, processes, and outcomes. An organization has several departments and teams that have their own goals to meet in order for the organization to succeed.
To successfully run such businesses, numerous departments need to coordinate efforts and there should be an ERP (Enterprise Resource Planning) system that supports them by coordinating and streamlining all the information & communication within the organization. An ERP system is a software package that helps the company’s activities to be carried out smoothly to accomplish various operations and key objectives. ERP software helps to adjust the entire project value chain and also simplifies various critical processes.
In this article, we will try to answer questions like what is SAP, what is SAP ERP, why is it essential for Management students to learn SAP ERP and so on. We hope that you will find this article helpful and after reading it, you will be clear as to what SAP is and why you need to know it.
What is SAP SE?
SAP SE stands for Systems, Applications, and Products in Data Processing. In the year 1972, Wellenreuther, Hopp, Hector, Plattner, and Tschira founded SAP SE in Germany. They are renowned for their enterprise management software to manage business operations and customer relations. SAP system includes various integrated modules, which cover almost all the features of business management. In 47 years of its existence, SAP SE has had over 440,000 customers in over 180 countries with over 25 industry-specific business solutions.
SAP defines its purpose as helping the world run better and improve people’s lives. This way, when their customers have the next big idea to save a species, transform an industry, feed the hungry, support equality, and provide relief worldwide, SAP is able to deliver the right technology to help them run at their best and achieve their vision.
What is an ERP system?
ERP or Enterprise Resource Planning is usually referred to as a category of business management software which is typically a suite of integrated applications. A business organization can use these applications to collect, store, manage, and interpret data from many business activities. ERP is the integrated management of main business processes using specially designed software in real-time.
An ERP software provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system (DBMS). ERP systems track business resources like cash, raw materials, production capacity, and the status of various business commitments like orders, purchase orders, and payroll.
The applications that make up the system share data across various departments like manufacturing, purchasing, sales, accounting, etc. that provide the data. An ERP system facilitates information flow between all business functions and manages connections with outside stakeholders.
Therefore, we can say that an ERP system integrates varied organizational systems and facilitates error-free transactions and production, thereby enhancing the organization’s efficiency.
Characteristics of an ERP System
The following are the defining characteristics of an ERP System:
- An Integrated Software system
- It operates in real-time
- It maintains a common database that supports all the applications
- It provides a consistent look across modules
- Multiple Deployment options are provided like “on-premises”, “cloud hosted”, or “SaaS (Software as a Service)”
What is SAP ERP and what makes it indispensable for businesses?
SAP SE is one of the largest companies developing enterprise resource planning software and related enterprise applications. Over 2,56,000 companies worldwide use SAP in 188 countries with 11000 of them located in India and 63% of the world’s transaction revenue touches a SAP system.
SAP’s ERP system enables its customers to run their business processes, including accounting, sales, production, human resources, production planning, finance and more, in an integrated environment. The integration makes sure that the information flows from one SAP component to another without the need for redundant data entry. It also ensures the effective use of resources, including manpower, machines and production capacities.
The SAP ERP software system, called the SAP ERP Central Component, is the collective term for SAP’s functional and technical modules that enable enterprises to manage business processes through a unified system. ERP Central Component is the on-premises version of SAP and is usually implemented in medium and large-sized companies. For smaller companies, SAP offers its Business One ERP platform.
SAP ERP software has different main modules, which are separated into functional modules and technical modules, each of which has submodules. SAP’s functional modules include:
- Human Capital Management
- Production Planning
- Materials Management
- Project System
- Sales and Distribution
- Plant Maintenance
- Finance and controlling
- Quality Management
It is due to such extensive coverage offered by SAP ERP, by managing all the different elements and processes within a business, that it is so widely used and implemented by successful organizations of all scales. Their expertise and comprehensive solutions ensure that their software suite offers a great utility to clients across all verticals and scales.
Why is SAP ERP training and certification essential for Management Students?
SAP is one of the most sought after certifications in the current business environment. IT professionals and Management graduates acquainted with SAP platforms are demanded in every part of the world and it has been one of the most successful IT & Business certifications recently.
SAP implementation is a complicated process and demands a certain level of knowledge and training for the same. For professionals, it takes years of experience to gain adequate expertise. This is also the reason that modern businesses look out for SAP certified professionals. Companies are not only ready to offer better pay packages but also promise better prospects of promotion and recognition to SAP trained candidates.
In such a business environment, management aspirants can make themselves stand out as something that these organizations need, by pursuing a program that offers SAP training and certification as a part of the management program. In most such scenarios, you will find that only PGDM programs offer enough flexibility to actually include SAP training and certification as a part of their curriculum. You can also choose to go for an independent SAP certification course if your management program does not offer one.
PGDM program at JIMS Jaipur offers comprehensive SAP training and certification whereby students not only learn industry-relevant skills but also improve their employability quotient.
Today, SAP systems define both large scale and small businesses. It is one of the most advantageous ERP platforms that facilitate better functioning of all the aspects of a business. Having a SAP certification enables a management professional to be better prepared for the rising workplace complexities. In some cases, it is not just an advantage but a strict criterion for selection.
So it is highly recommended in today’s competitive business scenario that Management candidates prioritize SAP certification during their postgraduation so that their profile is highly desirable to reputed organizations.