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Essay / SAP - 1105
It makes employers more profitable.ERP (Enterprise Resource Planning) is an interactive system that compiles various data to help optimize resources. In terms of implementation between production and sales, SAP also helps all departments collaborate towards controlling and tracking resources. There are two types of data uses: decentralized and centralized. They normally structure data in a central location shared with different departments. Since the old system used the decentralized system, these effects highlighted the disadvantages which are disparate information generated individually over time, integrating information takes more time and money. Data updates are done inconsistently or have errors in data entry. As a result, all of the above reasons can lead to a lack of timely information, resulting in reluctance towards customer service as well as total revenue and reputation. Following this position, according to Fawzy S and Mohamed AY 1998, Dr. Henning highlights the advantage of SAP that all sections can access data from all resources rather than relying on separate systems for each department or functional area which might not interface with each other. Therefore, all data will be recorded correctly and efficiently and particularly in sales, finance, materials management and human management functions. Apparently, there are the top 5 software aimed at improving the efficiency of the management system, next to SAP, such as Epicor, Infor, Microsoft Dynamics and Oracle, which have approximately more than 50% market share and SAP also has the highest market share. at around 24% ( Panorama, 2012 )3) Challenges and benefits (700 words)Advantages:SAP is based ...... middle of paper ...... report and so on. As a result, it is crucial to carefully evaluate, verify and clarify strategies regarding the engagement of an SAP system during the project pre-planning period. Implementing a SAP or any other ERP system is a challenge for every business, so it takes some time to see long-term improvement. Additionally, they try to avoid method acceleration which is the opposite of the rigidity of SAP. It will therefore be better for users to adopt SAP for medium duration projects. Finally, it is necessary to track the company's objectives and compare the pre-implementation of SAP before the post-period in favor of productivity so that the CEO can evaluate correctly in terms of the chosen system is suitable for size of the company and current resources, so that it can be done. be sure that the new results brought by the SAP system align with the long-term sustainable objectives of the companies.