The Development Of Sap Essay

2364 words - 10 pages

SAP
What is that? What is that? Many people may be bewildered after watching one of the company's limited television commercials - the same question jokingly asked in the ING commercials a few years ago. And the acronym SAP, should not be confused for "soon as possible" or the white liquid that sips from the back of a tree, either. SAP stands for Systems, Applications, and Products in Data Processing. In this highly advanced technological era, it is almost unimaginable for companies not to implement systems such as SAP’s so as to boost their Information Systems. Since the global community has 'gotten much smaller', than say fifty years ago, it is imperative that companies design their ...view middle of the document...

Curran xxv).
The real strength of SAP is the ease at which its software allows Information Systems to work cohesively with Business Engineering. Companies have to design their Information Systems with some level of "proactive" capabilities. Today, consumers are very urbane and demanding. It is critical that companies not design its systems within a set technology but one that is flexible to changes and problem solving processes. In other words, e-Commerce has actually forced companies to rethink the way they develop Information Systems. Curran and Ladd believe that "consumers have turned the tables on companies and now force them to rethink and adapt to their world" (Thomas A. Curran xv). Sensibly and strategically, companies are adhering to this level of demand by the very people who are the reasons for the existence of those businesses, anyway.
SAP has made a concerted effort to focus its packages around the idea of Business Engineering (BE) which originated from Business-process Reengineering (BPR). Many believe BE is a method for changing the way a company works. Noteworthy, "the main objective of BE is to optimize business processes. BE ensures that the key steps in business processes are as efficient, responsive, and service-oriented as possible" (Thomas A. Curran 6). Burleson claims that "the system has become very popular because it provides a complete solution to standard business requirements such as manufacturing, accounting, financial management, and human resources" (Burleson 1). In addition, "organizations have introduced enterprise systems in order to reduce problems associated with legacy systems, cope with year 2000 challenges, offer the firm greater competitive advantages, compete globally..." (Lau 2). The notion suggests that having an effective Enterprise Resource Planning system is vital for any viable business in this day and age. Consequently, Lau believes there are some questions which need to be answered before implementing a SAP like ERP. She believes that management need to fully understand its current business processes, and whether it can make implementation decisions in a timely manner. Is management ready to undertake drastic process reengineering efforts for dramatic outcomes? Is there a willingness to make any changes in the structure, operations, and cultural environment...? (Lau 128).
With the influx of so much data stemming from the moving from simple applications to online applications, a spider web of systems and data was created (McDonald 17). McDonald goes on to suggest that with the arrival of spider web came many difficulties, such as redundant data, integrity problems, and complexity with making changes (McDonald 17). He reiterates the relevance and the importance of ERPs such as SAP’s by stating, "Operational processing was done out of an ERP system like SAP, and informational processing was done out of a data warehouse, which became the ‘"single version of truth"’ for the corporation at the most...

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