Tuesday, February 3, 2009

SAP R/3 Module and Its Process and Implementation

By Joe Ross

The SAP R/3 is an organisation resource planning system, educated by Systeme, Andwendungen, Produkte in der Datenverarbeitung, or in English Systems, Applications, Products in Data Processing. The corporation is set out of Germany and begun selling to the European market in the mid-80's, subsequently extending to North America, and then worldwide.

Like any enterprise resource planning system, SAP R/3 is fashioned for corporate use. It allows a enterprise to integrate all corporate departments into a individual system that enhances coordination of all aspects of organisation management.

The SAP R/3 is initially installed with certain standard processes activated, and all the several optional works and features turned off, for later on activation as needed. Every Last system requires a customised configuration, which is not included in the cost of purchase and installation.

Modules accessible with the SAP R/3 include: Financial Accounting, Management Accounting, Sales, Distribution, Manufacturing, Production Planning, Purchasing, Human Resources, Payroll, and numerous more (including some industry specific features); this variety of modules makes the system really liable of managing all aspects of organization activities.

SAP R/3 is, at this time, principally used by huge companies, including many Fortune 500 companies. Still, a number of smaller organisations and companies have set out implementing SAP R/3. Micro organisations can gain greatly from the streamlining and coordination SAP R/3 offers, but can too have difficulty budgeting for the high cost of the system. It is fundamental for organizations considering SAP R/3 to take care with their cost benefit analysis, to be sure that a return on investment can be accomplished in a reasonable time frame.

The cost of applying the system is a combining of per-user price, and price of installation, which includes how many work hours installation will take, resource demands, and hardware requirements. As previously mentioned, the costs of configuration is additional, and can well run over 1 million bucks, betting on the size of the organization and complexity of the configuration. Most enterprises use advisers for the customization process, especially if there is already an established with relationship with a consulting firm knowledgeable with SAP R/3.

SAP R/3 does have various competing systems. It's smartest rivals are Oracle Financial (primarily built for financial companies ), and PeopleSoft (which has been bought by Oracle in recent years). Different from its competitors, SAP R/3 provides a form of industry unique answers, and is extending its offerings to include CRM, or customer relations management (Oracle provides a different system for client relations, called Siebel); as well as applying mySAP.com, an internet based customer center, to aid organizations in managing their system.

SAP is not planning on publishing an SAP R/4. Instead, the future of SAP will be mySAP.com, which will incorporate all SAP wares. Presently mySAP.com "sits on-top" of SAP R/3.

A note on SAP's industry specified solutions: until 1994/95, SAP ran a one-size fits all integrated result. Currently they provide 21 Industry Answers; all of which are held on a parallel track, and mixed with their core development. Their internet site includes an Industry Solutions page where you can find data on advantages specific to your industry.

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