SAP ERP

The SAP ERP application is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. It allows for open communication within and between all company functions.

SAP stands for Systems, Applications and Products (Systeme, Anwendungen und Produkte in der Datenverarbeitung, in the original German) in Data Processing. It uses the concept of modules ("individual programs that can be purchased, installed, and run separately, but that all extract data from the common database"). SAP AG, the company that provides the enterprise resource planning solution has upgraded the package and launched it as SAP ECC 6.0 in 2005. ECC stands for ERP Central Component. The purpose of positioning it as ECC is to enable SAP to build and develop an environment of other products that can function upon the foundation of the central component.

SAP's ERP solution includes several modules that support key functional areas - some of them are:

• SAP ERP Financials
• SAP ERP Logistics
• SAP ERP Human Resource Management Systems

The evolution of mySAP ERP

SAP R/3 through version 4.6c consisted of various applications on top of SAP Basis, SAP's set of middleware programs and tools.

When SAP R/3 Enterprise was launched in 2002, all applications were built on top of the SAP Web Application Server. Extension sets were used to deliver new features and kept the core as stable as possible. The Web Application Server contained all the capabilities of SAP Basis.

As a result of marketing changes and changes in the industry, other versions of SAP have been released that address these changes. The first edition of mySAP ERP was launched in 2003 and bundled previously separate products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management (SEM) and extension sets. The SAP Web Application Server was wrapped into NetWeaver, which was also introduced in 2003.

A complete architecture change took place with the introduction of mySAP ERP edition 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction Server were also merged into SAP ECC, allowing users to run them under one instance. Architectural changes were also made to support an enterprise services architecture to transition customers to a services-oriented architecture.

SAP Business Suite

SAP Business Suite is a bundle of business applications that provide integration of information and processes, collaboration, industry-specific functionality, and scalability. SAP Business Suite is based on SAP's technology platform called NetWeaver.

Built on an open, service-oriented architecture (SOA) – and powered by the SAP NetWeaver technology platform, SAP Business Suite offers companies an opportunity to transform business processes efficiently and integrate business processes that enable them to compete more effectively in their industry.

SAP Business Suite has five constituents:

Critical success factors

In order to successfully implement SAP in an organization, there are several things that are of great importance:

1) Choose the correct SAP Consultants to have the correct blueprint. An SAP Consultant is a professional who has the skills to speak to the managers of a company and help them creating the blueprint. For this the SAP Consultant has the business skills of the business area he/she is working with, and also masters this area on SAP. For example, if this is SAP FI (accountancy) Consultant, this person is an expert on accountancy and payments, gained through experience or by the corresponding studies at the University. Also this person knows SAP FI because has gained by the corresponding training, or the course on the SAP Partner Academy or similar. Benefits: As this person knows about Accountancy he or she will understand the needs of the business and will bring it into reality. Screening Methods to Find the Right SAP Consultant

2) SAP R/3 implementation is not an IT project, in fact is an Organization Project impacting all levels of a company. So it is very important to get the support from all the people that are involved in implementing SAP, but more important the participation and commitment of all levels, specially managers, of the company.

3) The Blueprint is the keystone used as the lighthouse who must guide the whole project. A blueprint should never be a merely mapping of IT systems. In fact a blueprint is bringing the strategy of a company into execution through defining its processes across all business areas. Many projects have failed because the focus was on having people with SAP knowledge, but with no business skills and so defining something that works...wrongly. Just remember, processes must change across time, and a manual error automated could be repeated infinitely.

4) Always consider changing the way things have been done before implementing SAP. "This has always been done like this and the Consultant should replicate it on SAP" is the start of a big problem. SAP many times could save you time and money as it allows your organization to automate many processes.

5) Test the SAP hardware and software rigorously by testing your business processes, and to ensure that the end-users are ready to use SAP before going live, because there are many known projects that failed because of a lack of support and SAP knowledge.

6) Design and execute a Change Management Program by communicating as early as needed all the information that end users should have to accept the new technology and designing and executing a training plan in order to reassure a knowledge base within the organization