The Efficiency of Systems Applications Products - Research Paper Example

Major Research Project on SAP Introduction SAP, an acronym for Systems Applications Products is an audit of a computer system from SAP that is meant to make operations around the business environment easy and to wide depths. The relationship between the business and client environment is recently becoming wider and the incorporation of a single unit of management considered the remedy to congestion and delays (Carmel, 1997). Throughout the project, the credibility, efficiency, flexibility and suitability of SAP will be discussed critically by evaluating the real-time applications of SAP to fitting the ever expanding world of business and the extent to which it has challenged the minds of software developers and users. Overview of Sap. Systems Applications Products audit was originally developed to provide customers with an ability to socialize and interact with a common database for complex and comprehensive range of applications. The applications have been assembled from the original idea of SAP to fit the modern world, hence most of the largest companies such as Microsoft use SAP products in their businesses (Temponi, 2010). SAP comprises of several modules such as marketing and sales, product design and development, human resources, finance and accounting, utilities for marketing and sales and production and inventory control. Having all these modules combined in one software of which to some extent can be modified to fit the business targets, SAP ERP software collects, combines, analyses and generates data from the separate entities as one collective report that can easily be read and understood. The single generated report enables organizations or companies to have definite planning and overall scheduling of tasks. In a white paper review (2009), SAP is viewed by a number of scholars as a software that can be altered to suit different businesses, requires a system of order in that duties are well defined to avoid crashing of modules and programs as well as ensuring that data coming into the SAP is clearly mapped to ensure high levels of integrity. Due to high usage of software-related programs in running of businesses, the use of SAP requires high levels of control to ascertain the reconciliation with external environment as well as controlling the flow of information to avoid bursting the sensitive accounts that might lead to breakdown of the whole system (Ades & Glaeser, 1995). Companies or organizations using SAP require that they have the development system, the test system and the production system. This forms a definite data flow to ensure that in collaboration of the modules, the expected goal is achieved within a short time. Other ERP systems in the commercial industry include the Oracle and PeopleSoft. Challenges and benefits of SAP Benefits of SAP Flexibility SAP combines several well integrated modules such SAP-FI, MM, PP, SD and others at once and relatively generating a single result, thus reducing the hustle to work out various entities separately before combining into a single entity. On the other hand, when using this software, it is easy to modify it in order to fit the expectations of a company or an organization and easy to process user transactions though the software looks complex. The flexibility Sap allows users to get information at any point and being expensive in purchasing the whole software at once, it can easily be bought in pieces of programs and then advanced as the business expands or per the requirements of the entities (Ades & Glaeser, 1995). Through SAP, variety of businesses can be efficiently and effectively operated within a single integrated information system. The software can be customized and can run on six different platforms like SAPu2019s R/3 (Williams, M. D. 2003). Real time Due to versatility and complexity of SAP, it has the capability of combining and managing other software systems into one management system. This allows easy integration of tasks around the business environment and ensures that relevant information reach all the departments in time to enable proper decision making. The use of SAP reduces the workload of manually planning for activities which consumes a lot of time delaying the processing of data hence data inconsistence avoided. Enhance productivity and insight The usage of SAP in a business brings about tangible results in that the production ratio is high since data is put into the system once and can be forwarded to other levels in a smooth workflow using the social media available (Osterle, 1998). Operations can be carried in different sections and passed along to other levels within the firm for processing, ensuring high output ratio within a short time. Employees can as well process their own transactions from various terminals and at the same time generate a final data of their activities. Improves corporation, governance and financial management Integration of various systems into a single unit, financial crises is reduced and the flow of finances within the firm controlled. This ensures that reports on financial usage are accessible from any terminal and the SAP system stores any entry made at any given time. On the other hand, management is easy since all the source information required is accessible at one point and information distribution is on time (Osterle, 1998). Doing everything under a system reduces the act of supervision since the system has the ability to monitor any transaction and generate a report at the end. Optimization of IT spending SAP integrates and makes maximum use of the available IT systems, hence optimizing business processes. This ability cuts down the integration expenses by eliminating the use of independent separate software systems (Gargeya, 2005). Challenges of SAP Risk of project failure The SAP implementers have a fear that during testing of the efficiency and sustainability of the project, negative results may be obtained due to uncertainty of the criteria for testing, necessity of resources, estimation of testing budgets, how detected defects will be managed and other related factors. Lack of involving other business related professionals to give ideas during implementation to reach at a condensed system has great effects on the inability of the SAP system to work properly since all the key entities are not taken into account (Jiao, 2011). Existence of a locked relationship by contract and manageability with vendor Osterle states that a SAP system does not provide an optimum solution to change of vendors at will but ties the company to a given vendor until the tender period expires. It is not easy to swap vendors especially where the costs are very high causing a threat of business failure in cases where the business encounters a loss or management differs with the maintenance team (Osterle, 1998). Returns on SAP investment might take too long to be realized In cases where the implementation of SAP in a business poses inconsistence and experiences sudden failures, Jiao argues that the business might end up working under a loss scale at the expense of maintaining the system or the system users might be slow articulating and familiarizing themselves with the system slowing the flow of entities hence slow income (Jiao, 2011). Recommendations In adopting the use of SAP system technology, two scholars, Baskerville, R. and Pries-Heje, J. (2001) put forward that the IT and software developers have to put in place mechanisms for ensuring a smooth working of all the modules installed without causing crashing of the software. This can be effected through thorough evaluation of the business ventures in which to install the system, the workload the system can be able to do at a specific time and the availability of a skilled management team. Implementation is the most crucial section in making a system sustain its operations over a wide range therefore; it is the obligation of all other stakeholders to be involved to give in their ideas, efforts and relevant information surrounding the business environment. It is not a reality to implement a system into place without estimating the cost of maintaining or the change in products within the market (Pries-Heje, 2001). A system is better placed in an environment that has prior knowledge and skills on how to handle, maintain, use and modify it, with the help of the respective companies and organizations, it is important to carry out customers and employees needs case study to identify areas that need to be polished (Osterle, 1998). All the companies and organizations should use of a single vendor to supply and maintain the system and all its modules to avoid leakage of consistence created by unclear information of the installed modules (Williams, 2003). Lastly, the use of SAP system can really create loopholes for individual gains in that knowledgeable employees might take an advantage of changing the system to generate revenue with minimal suspicion from the control office. The SAP developers have to ensure high security to avoid deflection of operations and interference from unauthorized persons. This will enhance the integrity of the information fed into the system and the reports generated to give accurate data. Conclusion SAP being the oldest system around the business world, has greatly brought into light the way in which businesses are conducted and made it easy to foster global attachment. Though it has to a greater extent succeeded in empowering the IT sector and improving the working efficiency, a lot remains wanting in making the system fully tangible. It is evident that if the SAP system is effectively implemented according to the business structure, lots of benefits are reached at but the inability to reconcile all the stakeholders from the business field, IT sector and government policies have detrimentally affected the extent to which the system works. References Adam, F. and ODoherty, P. 2000. Lessons from Enterprise Resource Planning Implementations in Ireland - Towards Smaller and Shorter ERP Projects, Journal of Information Technology,14(4): 305-316 Ades, A. F., & Glaeser, E. L. (1995). Trade and circuses: explaining urban giants. The Quarterly Journal of Economics. Baskerville, R. and Pries-Heje, J.2001. A multiple-theory analysis of a diffusion of information technology case, Information Systems Journal, 11(3): 181-210 Beynon-Davis, P. and Williams, M. D. 2003. The diffusion of information systems development methods, Journal of Strategic Information Systems, 12(1): 29-46. Carmel, E. 1997. American Hegemony in Packaged Software Trade and the "Culture of Software”, The Information Society, 13(1): 125-142. Dolmetsch, R., Huber, T., Fleisch, E. and Osterle, H. 1998. Accelerated SAP: 4 Case Studies, IWI-HSG -Universitat St Gallen, St. Gallen. Gargeya, VB 2005, ‘Success and failure factors of adopting SAP in ERP system implementation’, Business Process Management Journal, Vol.11, No.5, pp501–516, Retrieved 17/04/2014. In White Paper Review, Industry Week OCT 2009, ‘ERP Best Practices: The SaaS Difference, Plex Systems, Retrieved 21/04/2012.Malhorta, Jiao, C. (2011). "Investigating information systems research in Canada". Canadian Journal of Administrative Sciences 29 (1): 3–24. doi:10.1002/CJAS.214. Temponi, C 2010, ‘Critical decisions for ERP integration: Small business issues’, International Journal of Information Management, Vol. 30, Issue No.1, Pages 28–37, 21/04/2010, Science Direct. Serenko, Alexander; Read More