What is System Application and Product (SAP) ? Definition and Application

The SAP program is well known by many companies in the world. This system really helps novice business people to manage various company needs. Then, what exactly is SAP? Is there any difference with the current erp system?

So, consider the following review to get to know more about SAP and how to use SAP for your business.

Get To Know SAP (System Application and Product in Data Processing)

SAP (System Application and Product in data processing) is an application for processing data on various resources for the business interests of a company.

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Initially, SAP was the name of a multinational company in Waldorf, Germany. The SAP system created by the company as a business management system and is known throughout the world. This is what makes SAP known and used by companies and agencies in Indonesia.

The main resource components of SAP consist of finance, logistics and human resources modules. These three components can be further divided into dozens of modules, so it is important for companies to use SAP.

Then, what is the difference between SAP and ERP? According to the focus given, SAP is an application that has interaction with other systems, while  the ERP system  is an application for managing all business processes, from accounting, marketing, payroll, to  human resource management .

Types of SAP Software

SAP software has various types, including:

1. SAP Business Suite or R/3

SAP R/3 is the main and first product from SAP. The SAP Business Suite system is designed with programs tailored to the wishes of prospective users and uses the ABAP programming language.

This SAP can help  small businesses  with low costs and a relatively short time.

2. SAP All-in-One atau A1 (SAP IS)

SAP All-in-One is a derivative of SAP R/3. Just like before, this SAP is tailored to prospective users with the ABAP programming language.

This SAP also has a  best practice framework  that is intended for medium to large scale businesses.

3. SAP Business One or B1

SAP B1 is the most economical product from SAP. This module from SAP can be used for all types of companies.

The advantage of SAP Business One is that it has an Add On Module, an implementation time span of 3-6 months, and can be used by small and medium scale companies.

4. SAP S/4 HANA

SAP S/4 HANA is an ERP system with HANA as the database that runs it. This SAP is specifically dedicated to HANA memory, so it cannot be run on other databases.

Released in 2015 as a successor to the SAP Business Suite, SAP Hana is used to solve more complex problems and manage larger amounts of data and is available in the cloud.

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Examples of Companies Using SAP in Indonesia

The use of SAP is growing very rapidly. In Indonesia, SAP was first used by PT Krakatau Steel in the 1990s, PT Astra International and other multinational companies.

Here are some examples of national companies using SAP, including:

  1. Garuda Indonesia
  2. PT PLN (Persero)
  3. PT Pertamina
  4. PT Telkom Indonesia (Persero) Tbk (Telkom)
  5. BMW Indonesia
  6. PT Bank Central Asia Tbk; and many more

Usually SAP software users are large companies that have a global market. Companies need to purchase or pay licenses every year if they use SAP. This is what makes SAP an expensive category.

When is the application of SAP in a company

The SAP application is a data management that is in demand and needed by companies. SAP is widely used by companies and government agencies as a reference for compiling company financial reports.

In addition, the application of the SAP module is needed by companies to increase the speed and consistency of business running well. By using SAP, you can monitor various divisions in the company. This SAP product can increase your company’s productivity and profit.

Currently, SAP products can also be replaced with alternatives that are more cost effective and easy to maintain through ERP software. This ERP system has also begun to be used by the company’s business operations.

Not only multinational scale companies,  ERP implementation in SMEs  can also be done. Growing companies are using ERP to keep up with global competition. Therefore, choose an ERP product that is your business solution.

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How to use SAP

The use of the SAP program is adapted for different levels. Generally, companies will use the services of a SAP consultant or an IT expert to use the SAP program through the GUI (Graphical User Interface).

The GUI presents the SAP program for users to enter data and read information in the company database. It is necessary to have training in advance to use SAP correctly. You can learn how to use SAP through  this course .

Unlike SAP, ERP systems are able to manage cloud-based business system integration, so data is more secure. In addition, ERP is also relatively cheaper compared to SAP costs.