Careful Planning Leads To Successful SAP Implementation

Some of you may wonder what SAP implementation is all about. Many of you might have heard of SAP but have too little information of how it will be useful or what is its connection with people in the first place.

A Brief History

SAP was founded in 1972 by five German nationals who were former IBM engineers. Initially, the acronym stood for System Analysis and Program Development but was later revised to Systems, Applications and Products in Data Processing. SAP has partnered with educational institutions where it donated licenses to over 1,200 UAP members. UAP stands for University Alliance Program, a program intended to teach students an in-depth knowledge of SAP software both theories and learning applications alike.

Performance in the Market

Acclaimed as the world's biggest business software company, SAP focuses on Enterprise Resource Planning (ERP). ERP is a software application used to automate information within the organization. The system integrates both internal and external management information covering finance, sales, operations and customer management areas. All information is maintained in a repository bin called database.

SAP is also the leader for Customer Relationship Management (CRM), Supply Chain Management (SCM) and Product Lifecycle Management (PLM) solutions. These three are among the five enterprise applications in SAP's Business Suite. ERP is another. The other one is Supply Relationship Management (SRM). All these five enterprise applications are widely used nowadays. Aside from ERP, the other four applications have special and specific functions. CRM is used for the acquisition and retention of customers and in gaining marketing and customer insight. PLM helps organizations manage all product related information. SCM is best applied when the company aims to outsource some or all of its manufacturing and service processes. SRM enables organizations to smoothly procure from suppliers with a well managed transaction.

SAP implementation

SAP implementation is the entire process of ERP application in the organization. Successful SAP implementation may only be defined in detail by the specific organization employing the ERP system. However, there are best practices already implemented by some organizations that could help other companies in their planning and execution of the SAP software.

Organizations who have successfully implemented SAP identified the following factors to be critical in the success of SAP implementation:

1. Choosing the right SAP consultants to facilitate creation of the right blueprint.
In selecting for SAP consultants, consider the background and level of expertise of the person. Choose the person whose mastery is aligned with the area that you wanted to establish (i.e., accounting, marketing, sales, etc.)

2. Involvement of all people across the organization.
SAP is not a project by the IT department or the IT personnel only. It is a cross-functional program involving all levels of the organization. Top management has to ensure to get the participation and commitment of the people, especially managers who are handling critical areas.

3. Blueprint defined.
The blueprint should clearly define all processes within the organization, including business strategies and directions. Any process change that may not be integrated into the SAP could fail the entire system.

4. Series of Trial and Error Tests.
Before the SAP is implemented it is always advised to test the SAP hardware and software rigorously. Ensure that the end users are ready to use the system in order to achieve a perfect SAP implementation.

5. Change Management Program.
Changes are normal while technology is evolving. A planned SAP implementation must be backed with a solid Change Management Program to address and communicate changes where they occur.