Overview of SAP SAP is the enterprise application software market leader, helping companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device, SAP helps people and organizations work together efficiently and use business insight effectively to stay ahead of the competition. SAP applications and services enable more than 232,000 customers to operate profitably, adapt continuously, and grow sustainably (SAP. com, 2013). Strengths
SAP has various amounts of strengths that contribute to their company which make them a top contender in their industry. One of the strengths that SAP has is the functionality of their products. The R/3 System offers you a software solution that covers all commercial processes and transactions commonly occurring in a company or group of companies (Karkhanis, 2013). SAP products are also user friendly. The R/3 System has a uniform graphical user interface for all application areas. SAP has ways for individuals that buy their products to solve their problems their self.
System-controlled customizing procedures allow you to create solutions from a wide variety of prepared application variants to satisfy individual requirements (Karkhanis, 2013). SAP’s [products have very flexible structures. Whether in a departmental organization or on the warehouse or factory floor, change is the only facet of your business that will not vary. Adaptability must be universal, and the R/3 System’s flexible structure and extensive integration helps make that easier. The also has a wide Integration.
SAP’s enterprise-wide R/3 System solutions meet the needs of constantly changing, continually evolving businesses. The R/3 System’s application components are fully integrated. Transaction-related process chains trigger the next activity as needed from engineering to materials management, to production planning, to sales and distribution. The R/3 System’s full integration pulls your enterprise together, promoting data access, flexibility, and productivity. No other product or suite of products provides the R/3 System’s functional links between processes that multiply the power of each person’s work.
SAP also provides real time Information: The R/3 System’s ability to “drill down” to whatever level of detail you need is legendary. More than any other product, the R/3 System provides up-to-the-minute, real-time information wherever and whenever you need it. (Karkhanis, 2013) Weakness One weakness that SAP has is high cost of purchasing and implementing these programs. The company must purchase the software and hardware necessary to run the programs company-wide. Costs include labor costs of internal information technology (IT) employees or external consultants overseeing the process.
Once the company implements the software, employees need to be trained. This involves training each employee in the functions they have access to. Ongoing costs include software maintenance and periodic upgrades (McIntosh, 2013). Another weakness of SAP is the complexity built into the software. Most companies implement one feature or function of the software at a time, allowing employees to gain familiarity with the software before moving forward. The complete implementation process may take several years (McIntosh, 2013).
Opportunities SAPs primary function is to service clients with marketing, investment, business solutions and more. The launch of their new database software SAP CRM powered by SAP HANA is an innovative new tool that gives them a competitive edge (Vance, 2013). Making strategic partnerships is also important for the image and integrity of the company. SAPs new partnerships with brands in sports, art, and entertainment such as the 49ers and McLaren Group F1 Racing are examples of the new developments being taken within the company.
SAPs Emerging Entrepreneurs Initiative creates opportunities for not only the company but up and coming business owners as well. They are investing in “underserved youth” education in order to expand the economic market and equip the students with the skills to be successful. The company’s growing businesses intelligence platform is a great marketing strategy that will open many doors (Wilms, 2012). Threats Other SaaS service providers are offering cheaper prices for their assistance, which can pose a threat to SAPs market.
Customers are becoming more likely to utilize other more affordable forms of help for their investments, etc. (Zolman, 2012). SAPs clients trust them with extremely valuable information such as company security codes and much more. This makes them a prime target for hackers to try and infiltrate the companies system. The number of security vulnerabilities has risen dramatically over time (Nunez). Recommendation #1: SAP must spend time developing new methods and technology that will ensure the security of them and more importantly their faithful clientele. Recommendation #2:
SAP should try to find less expensive data chips with the same or similar processing power. By lowering certain company expenses SAP can possibly lowers consumer prices as well and restore customer loyalty. References SAP (2013). About SAP: Helping the world run better. [ONLINE] Available at: http://www. sap. com/corporate-en/index. epx. [Last Accessed 02 March 2013]. Santosh Karkhanis (2013). Advantages of SAP. [ONLINE] Available at: http://www. karkhanisgroup. com/consulting/sap/sap-implementation/78-advantages-of-sap. html. [Last Accessed 02 March 13]. Kathy Adams McIntosh (2013).
SAP Advantages and Disadvantages. [ONLINE] Available at: http://www. ehow. com/info_8306440_sap-advantages-disadvantages. html. [Last Accessed 02 March 13]. Zolman, S. (2012, October 25). SaaS Providers: A Bigger Threat to SAP and Oracle than they are to each other? NET(net) . Wilms, T. (2012, 11 13). Rethinking SAP: Beyond "Business as Usual". Forbes , 3. Vance, A. (2013, february 21). SAP Speeds Up With its Hana Database Software. Bloomberg Businessweek . Nunez, M. Cyber-Attacks & SAP systems: Is our business-critical infrastructure exposed? Onapsis Securing Business Essentials.
