SAP: installation, advantages and disadvantages (2005)

Résumé du document

SAP is the worldwide leader in integrated software companies. It was created in 1972 by 5 ex-executives of IBM. SAP's turn over was 8,5 million in 2005, and continues to raise. Net income is 1,5 billion. In the ERP market, SAP has 12 million users, and more than 100,000 licences set up. The market share of the company is 62%. What is SAP? It is an ERP (Enterprise Resource Planning). That is to say, a software which manages at least three important functions of a company with only one data base. ERP appeared at the beginning of 1990. It was the answer for the big companies users, who wanted to have only one software based on only one IT system, in order to manage all the data they needed to be more efficient in there job. As a result, the users wanted to be able to answer rapidly to the requests of their bosses, their customers and their suppliers. I will explain why people, through the years, needed SAP, then I will give details on how SAP become real, then I will focus on the advantages and disadvantages of SAP. I will describe the steps of SAP installation, the direct result of SAP application (the good and bad results within the company) and finally, I will apply the general information to a company. Why companies needed SAP?

Extraits

[...] After the implantation of SAP, companies will need to lunch supply chain projects by taking care of customers and suppliers. II APPLICATION TO DEVANLAY LACOST Interview of a user (Selima Maaroufi : except production purchaser) Why did you choose to set up SAP in your company? We wanted to set up an ERP in the company in order to develop IT system. And we choose SAP because 40% of the worldwide companies use SAP and 39% in France. We wanted to be more efficient in our management. [...]

[...] More big is the variation more long and expensive the project will be, and the company will takes more risk. - An efficient and welded project team, composed of all the department concerned representatives. - A good evaluation and a risks management during all the project - To adapt all processes to be the closest with the organisation of SAP, in order to have a maximum of return on investment. An application of the right managing way will be the principal source of this return. [...]

[...] Adding to that, the capture errors spread rapidly in the different functions of the company and because there are all related, a small mistake can have dramatic consequences. So we can imagine the stress created in a worker who is not use to the system. This pressure is raise because of the system tractability. So we can easily find the person who did the mistake. We can say that employees have more responsibilities in there job because the capture has to be correct at the right moment in order to permit the other process participant to do there job. [...]

[...] All users have to feel comfortable with the use of SAP in order to be more involved in the development of the project. Ideally, the project will have to be followed from the analysis to the implantation by a consultant in order to have an external vision of the company. Who are the actors of SAP trainings? Training is one of the key of a good implantation. The actors are the consultant and the key users. Trainings are usually for all the employees of the company. It is a lot of work to organize those trainings. [...]

[...] But after, they all agree to say that the company works better thanks to SAP. In reality, don't forget that with SAP all the company is more efficient. How to establish SAP ? Before lunching such a project, SAP first has to develop company performances and to apply this kind of software; you have to create new processes, to delete other and to change the organisation. The preconditions are: A. Identify the real needs in order to be sure you need this ERP: - External needs: market pressure? Competition? [...]