Why Are Companies Investing Billions in SAP Implementation? (2024)

Business

April 17, 2021Last Updated: April 7, 2023

25

The Systems, Applications, and Products (SAP) system from SAP AG is recognized as the market leader in ERP, application software, analytics, supply chain management, human capital management, master data management, data integration, and more. Around 88,000 companies select SAP over other ERP options. With 100+ innovation and development centers, 102,400 employees, and market-leading implementation partners like Wipro and Oracle, SAP customers include 92% of the Forbes Global 2000 companies and 98% of the 100 most valued brands. But what is so special about this ERP implementation that separates it from the crowd? Why do businesses like National Grid, Siemens, and American Airlines opt for this ERP and consider it a strategic investment?

To find the answer, let’s look at some underlying challenges faced by enterprises today-

  • SMEs have limited resources and need to balance business value with functionality, support, and costs.
  • Even though BI, performance management, and analytics are quickly gaining traction, businesses still struggle to go beyond basic reporting and analysis.
  • Increased adoption of mobile, Big Data, and social networking have gaslighted the need for high-end data management.
  • There is a growing demand for cloud adoption and/or migrating legacy applications to cloud-based options that provide flexibility in terms of usage and costs.

SAP enables this adaptation journey with people-centric cloud applications that cross the traditional boundaries of enterprises.

<<SAP USP>>

More than the basic ERP

SAP has garnered some positive reviews and around 7.7% share of the global enterprise applications market due to its mature operation policies, faster gain on higher ROIs, enhanced productivity with controlled risks, and smooth flexibility with attenuated costs. Different organizations across industries have turned to SAP for several reasons like faster access to information, intelligent insights, elimination of department silos, and more. The market is filled with examples like National Grid, Whirlpool, Coca-Cola, and Nike that have leveraged the benefits of SAP implementations to transform their business.

Everything from ERP and CRM to procurement and supply chain management is packed in a simple SAP solution implemented by vendors like Wipro, AWS, Oracle, etc. –

  • Engage Potential Customers With A Woocommerce SEO Agency

    February 26, 2021

  • The Power of SEO: Why Online Marketing Gurus Are Your Ultimate Choice

    October 10, 2023

Scalable data management
SAP can accumulate scattered data from multiple sources in one place and organize and centralize information for future business access.

Support

With the best software support services in the industry, SAP, and Algorithm provide peace of mind about your organization.

Customizable features

Through strong partner relationships and an open ecosystem, SAP provides the choice and flexibility to find the best fit software.

Cost

SAP offers 23% lower implementation costs per component and 9.3% lower total software, service, and support cost per user than its competitors.

Security and risk controlSAP has the global certification from the British Standards Institute to ensure that consumers’ privacy rights are protected.Real-Time ERPSAP supplies real-time intelligence through the in-memory of SAP HANA (High-Performance Analytic Appliance). ERP SAP HANA allows the access of data from any source in real-time.Advanced AnalyticsSAP has been recognized as a leader across its portfolio of services by Gartner, including ERP and Digital Core, BI Platforms, and Corporate Performance Suites.

<<Case Studies>>

Creating Impact Across Industries

Let’s how market leaders are leveraging SAP-

  1. To simplify complex and disjointed processes and also speed up access to information, Siemens started using SAP and recently migrated to the SAP HANA. This shift led to increased productivity through more rapid processes and real-time data insights, lowered costs for both hardware and data-processing centers, and improved business integrations and continuity. SAP transformed the Siemens business with added benefits of 24% reduction in the size of its database, 60% increase in productivity, and as much as 90 times faster reporting performance.
  2. Being one of the world’s largest airlines, American Airlines was struggling with global processes and multiple outdated systems of HR/payroll that resulted in inconsistent business. It was hampering the record management of over 335,000 employees, retirees, and non-employees. Deloitte helped them implement a single, unified global SAP HANA Enterprise Cloud solution to transform the employee experience. Its best-in-class features and future-proof capabilities enabled the airlines to adopt a “people-first” culture and drive digital processes for enhanced employee experience.
  3. A UK-based electricity and gas utility major, National Grid, implemented a cloud-based procurement system to boost its supply chain efficiency. SAP SCM was integrated with SAP ERP to facilitate National Grid’s transition. With the help of Wipro as an implementation partner, the solution was delivered to 600 vendors through SAP Supplier Self Services. In the end, it replaced the non-scalable, heterogeneous, on-premise procurement system with an integrated, cloud-based platform that supported supplier growth plans and improved collaboration.

<<Conclusion>>

The Best-Run Businesses Run SAP

A fully operational SAP ERP software with its tremendous potential to positively impact businesses offers promises not to be ignored. When implemented strategically, it can prove to be a major positive turnaround that can amp up the business game across industries like utilities (eg. National Grid), CPG (eg. Coca-Cola), and aviation (eg. American Airlines). However, companies need to strategize the project by understanding the business cases unique to their domain and organization, analyzing the situation and the resources, and implementing correct planning and execution using a suitable methodology. Therefore, it is wise to partner with an experienced provider like Wipro or Oracle to help you make the transition effectively and seamlessly.

April 17, 2021Last Updated: April 7, 2023

25

Why Are Companies Investing Billions in SAP Implementation? (2024)

FAQs

Why do the companies usually choose to implement SAP? ›

As compared to other players in the market, SAP software reduces your IT costs because of rapid deployment. SAP users enjoy almost 23% lower implementation costing than the competitors. This helps businesses to allocate funds on innovation for business growth.

Why do so many companies use SAP? ›

SAP software helps you track and understand profit ratios, sales margins and metrics the company can use to set goals. This eliminates the need for manual processing and provides more accurate business data.

Why do companies buy SAP? ›

By centralizing data management, SAP software provides multiple business functions with a single view of the truth. This helps companies better manage complex business processes by giving employees of different departments easy access to real-time insights across the enterprise.

What are the benefits of implementing SAP? ›

Automation. SAP enables the automation of workflows and makes processes streamlined. Data from processes like account management, order management and vendor management flows automatically according to the approval and rejection guidelines defined in the system.

Why is SAP so successful? ›

One of the biggest advantages of SAP over other technologies is its ability to seamlessly integrate with other systems and applications, providing a unified view of an organization's data and enabling faster decision-making.

Why SAP is better than competitors? ›

SAP has ERPs solutions in multiple options, each tailored to meet the needs of providing small and large enterprises alike with all the warehouse management, real-time reporting/analytics/forecasting, finance and accounting, workflow automation, CRM, HR and manufacturing features that you'd need to drive your business.

Why is SAP booming? ›

With the growing demand for goods and services in India, businesses are increasingly looking to adopt technology solutions like SAP to improve their operations and gain a competitive edge. The SAP business in India presents numerous opportunities for professionals and businesses alike.

Why SAP is so important today? ›

As the world becomes increasingly digital, companies are turning to advanced technologies to streamline their operations, and SAP is such business application software that helps organizations of all sizes to manage their operations in various areas, including finance, supply chain, human resources, and more.

What is the main purpose of SAP? ›

SAP helps companies and organisations of all sizes and industries run their businesses profitably, adapt continuously, and grow sustainably. The company develops software solutions that are used by small businesses, midsize companies, and large corporations.

Why is SAP important in industry? ›

It helps organizations build and maintain strong customer relationships by providing tools for managing customer data, sales leads, and marketing campaigns. Manufacturing and Production: SAP supports manufacturing processes by providing tools for production planning, quality management, and plant maintenance.

Who are the biggest investors in SAP? ›

Largest shareholders include Capital International Investors, AWSHX - WASHINGTON MUTUAL INVESTORS FUND Class A, Fmr Llc, Fisher Asset Management, LLC, Eagle Capital Management Llc, Harding Loevner Lp, Morgan Stanley, Clearbridge Investments, LLC, Windacre Partnership Llc, and HLMIX - Harding Loevner International ...

Why is SAP highly paid? ›

In the case of SAP, the supply of SAP experts is decidedly less from the perspective of an enterprise. This, in turn, increases the demand of trained SAP professionals in the market. Thus, the employers are ready to pay the extra to achieve the need of highly trained SAP employees. 3.

What is the purpose of SAP implementation? ›

SAP implementations are projects to integrate enterprise resource planning software into an organization, and they aren't easy to manage. Why? Because they're big decisions to make for your business!

What is the success rate of SAP implementation? ›

Another research, a survey across 105 companies for the Uncovering the factors that drive success for SAP customers study from SAP advisory service Resulting IT, found that only 36% felt their SAP project kept to its original plan, and just under half (48%) said their project failed to achieve business objectives.

What is the impact of SAP implementation? ›

Increased efficiency by 10-16% Reduced procurement costs by 7-16% Reduced stock levels by 7-75% Enhanced quality control and significant reduction of production times.

What is the purpose of company in SAP? ›

A company is the smallest organizational unit for which individual financial statements can be drawn up according to the relevant commercial law. A company can contain one or more company codes. You cannot use the prefix SAP at the beginning of your company name.

Why do people choose SAP? ›

Most IT graduates and professionals choose SAP for a variety of reasons, some of which include the following: Challenging Work: Many choose SAP software for the challenge. Companies, businesses, government agencies, and others look to SAP consultants to help in solving problems and meeting organizational objectives.

Why is everyone using SAP? ›

Global Reach: SAP is used globally, making it suitable for multinational companies. Its standardized processes and global support allow organizations to manage operations consistently across different regions.

Top Articles
Latest Posts
Article information

Author: Otha Schamberger

Last Updated:

Views: 6501

Rating: 4.4 / 5 (75 voted)

Reviews: 90% of readers found this page helpful

Author information

Name: Otha Schamberger

Birthday: 1999-08-15

Address: Suite 490 606 Hammes Ferry, Carterhaven, IL 62290

Phone: +8557035444877

Job: Forward IT Agent

Hobby: Fishing, Flying, Jewelry making, Digital arts, Sand art, Parkour, tabletop games

Introduction: My name is Otha Schamberger, I am a vast, good, healthy, cheerful, energetic, gorgeous, magnificent person who loves writing and wants to share my knowledge and understanding with you.