SAP is an Abbreviation for Systeme Anwendungen Produkte in German language or Systems Applications and Products in English language. It is important to note that there is SAP; the ERP Software Development Company and SAP the ERP software itself. This term can therefore be used to refer to the software company or the software itself. It is a common term whenever you search or read about anything related to ERP. Basically that's what is SAP.
SAP is a company with its headquarters in Mannheim in Germany. It was founded in 1972 by Claus Wellenreuther, Klaus Tschira, Hasso Plattne, Dietmar Hopp and Hans-Werner Hector all of whom were former employees of the International Business Machines (IBM) Corporation. Statistics show that it is the leading company in the whole world in Inter-Enterprise Company for Software in the whole world. It is number four in the world in the World's Largest Independent Software Suppliers ranking.
Statistics indicate that SAP Company has a working fleet of over 27,000 employees stationed and working in various stations and countries all over the world. It has approximately 17,500 customers; a number which has been steadily growing every year in the past and it is expected to continue as such in the future. SAP is listed in the Germany's Frankfurt Stock Exchange (FSE) and the New York Stock Exchange (NYSE) in the United States of America.
At its inception, the founders intended that SAP will provide all its customers with ability of interaction with the same corporate database for various applications. With time, these applications have been redeveloped and redesigned. SAP applications are nowadays used by some of the largest corporations in the world like the Microsoft and IBM in the management and running their businesses. They are also becoming more popular and common in the small and medium business enterprises in various countries across the world.
The SAP company main product is the SAP R/3. The R means Real time while the 3 refers to the three applications it encompasses; Client, Application Server and Database. Before the inception of the R.3, there was the R/2. The R/2 recorded many sales in America, Asia and Europe and has proved to be very useful tool in various businesses and organizations. The SAP R/ 3 is better because it incorporates all the modules required for the successful operations and management of every business. It will be discussed later in details.
Other major products by SAP include Business Information Warehouse, Customer Relationship Management, Human Resource Management Systems, Supplier Relationship Management and Knowledge Warehouse.
SAP Company has also released the SAP Net-weaver which is a technology platform. Under the latest SAP's Web interface mySAP.com, the company has made recast of those products it offers. It has added various modern e-business applications like the Supply Chain Management and the Customer Relationship Management. The foregoing products are for large enterprises and corporations. In appreciation of the important role played by the small and medium enterprises to any economy, SAP has developed specials products for the small and medium sized business like the SAP All in One and SAP Business One. These products are becoming more popular among the SMEs
The SAP applications especially those which are built on the latest and most modern R/3 system are very important the capacity of managing assets and finance. They are also used in managing plants, operations of production and materials, archived documents and personnel among many others. This latest R/3 is which uses client/server model is designed to run on various computer operating platforms and Operating Systems like Windows XP, Windows Vista, Linux, Mac OS and Windows 2000. The R/3 version comes with a comprehensive package which is enabled with internet.
At the present, SAP runs the ABAP (Advance Business Application Programming) which is a 4th Generation (4G) language for programming. It also runs other latest and ultra modern languages for programming like Power Builder, familiar C and the visual Basic. The name conventions for programs supported by SAP begin with zxxx or yxxx.
SAPGUI (SAP Graphical User Interfaces) runs on the Windows, AS 400, UNIX and NT. It is important to note that you can also use SAPGUI 4.x if you use 3.x. This is so because there are no conflicts between the two; SAPGUI is a font end tool. In SAPGUI 4.x, you can easily configure if you want to use the design for 3.x screen or the graphical 4.x Visual design which is very graphical.
So, let have a look at 'What is SAP'. SAP is a software product for Enterprise Resource Planning (SAP ERP) which integrates various applications for businesses. Each of these businesses represents a particular area of business. The applications are used in the processing and therefore update of transactions is done within the appropriate time. This software can be configured to so as to suit the particular needs and interests of the business. The SAP is broadly categorized in to three functional areas namely Logistics, Financial and Human Resources.
This is subdivided into:-
Þ Production Planning: This deals with all matters related to production in business, company or any other entity. It deals with the purchase of raw materials, procurement, internal testing, production controls and limits and on any other issue related to production.
Þ Quality Management: This deals with the management procedures to ensure that the business products are of high quality. Without quality assurance, the customer utility of the products and services of a particular company will decrease.
Þ Warehouse Management: Large businesses store their raw materials and goods in warehouses. SAP offers all the knowledge and information pertaining to the management of ware houses.
Þ Sales and Distribution: Equally important to the foregoing is the sale and distribution of products. Knowledge about sales ensures that there are no loops in the chain of distribution from the manufacturer to the consumer.
Þ General Logistics: General Logistics includes anything else which is not categorized here above or hereunder. SAP offers solutions on the planning for anything related to the functioning and operations of business.
Þ Material Management: Material is a very wide term in business. It is however in most cases defined to mean the tangibles and SAP offers solutions on how to handle and manage all materials in business.
Financial
The financial is further subdivided into:-
Þ Enterprise Controlling: This refers to all the matters related to business enterprise finances.
Þ Investment Management: This refers to all the strategies of managing investments and this is very important for any business.
Þ Treasury: This refers to the point or place where all the finances and revenues are stored.
Þ Financial Accounting: This deals with all the matters relating to payments to the company and to third parties. It includes monitoring the expenses and incomes and expenses of the business and recording them as required in the books of accounting.
Þ Controlling: This refers to the control of expenditures and credits. The credit limit may be the debts which the company owes or those which it is owed.
It is further sub-divided into:-
Þ Personnel Development: This refers to the motivation and encouragement of the employees. It also seeks to ensure that there is cooperation and understanding between the employer and the employees because a business can only operate effectively if there is such a cooperation and understanding. It includes internal training of the employees to increase their productivity.
Þ Personnel Administration: This refers to the management of the employees. It includes the ways of disciplining, dismissing and ensuring that the employees feel free to work in an environment where they are not over worked or, threatened or pressurized. Administration is always done according to the internal company rules and the labor laws in force at the time.
The importance of SAP
The importance of SAP varies depending on the context in which it is analyzed. It is good for finance managers, IT students, government IT, employee relations agencies, businesses, companies, colleges, and universities; the list is endless because it almost includes everything. The following is a diagrammatic illustration of some of the importance of SAP
The company has also released the SAP All In One and SAP Business One which are proving to be invaluable tools for the managements of SMEs. Everyone will explain his or her importance of SAP language differently. Only two aspects of SAP will be discussed here: its importance in education and to students pursuing business related courses in particular and the importance of the R/3 solutions.
SAP Importance For Students Studying Business Related Courses
If you have ever wanted to realize your dreams of becoming a great entrepreneur, manager, innovator or any other title you need, just combine SAP training with something like MBA Finance, MBA Entrepreneurship, Information and Technology, Accounting or any other business related training at one of the business training colleges or universities. Some business training institutions are offering the SAP modules without modifying or adding anything and they are producing highly qualified and competent graduates.
Students use the SAP in the management of projects which are similar to what they are being trained to do in the real job market. Most of the firms dealing with finance, accounting, tax, consulting and advisory, Human Resource, Outsourcing, Research and Development, Business Services Contracting, procurement, credit etc are now requiring that their prospective employees be trained on SAP.
Students who are trained on SAP are likely to secure jobs faster than those who are not trained in it. The SAP modules offer training for the present and future world. They include everything which businesses survive to move at pace with the modern technological advancement, changing consumer tastes, changing government policies and increasing competition.
SAP offers pragmatic solutions for business. It makes what seems difficult to handle one of the easiest daily tasks. This is the reason why it is being utilized by most entities regardless of their size, profitability, nature of business of the product and revenues market share.
As a student studying anything related to business, you must be trained to see opportunities where others cannot. This is how successful businesses cut and preserve their market niche. They undertake great research and innovation and they offer what the customers need and even before they ask for it. This is what SAP has exactly done. Persons trained on SAP are now demanded highly by employers. The most experienced lucrative salary packages because of their outstanding contribution to their employers. As a student, this is where you should aim at.
SAP specifically helps students or businesses wherever possible through the following
Reduction of Costs: SAP has integrated various resources and this has the effect of reducing the costs of those businesses which want to come up with their resource system. It teaches students on how to save and manage business revenues effectively and efficiently. As the company reduces its costs, its revenues increase and also profits will increase. This is the aim and target of every business.
Re-Engineering Business: This refers to the situation in which a business makes an update of all its procedures by integrating SAP in to its business operations and management. Students who study business re-engineering in the Enterprise Resource Planning courses at the SAP modules or other business class units are likely to be preferred by employers who need update of their business management via re-engineering. Most businesses are expected to demand re-engineering as they seek to reinvent them selves in order to move at pace with the modern technology.
Real-Time Management: SAP lets the users track all the changes in the resource as and when they happen. Real-Time updates are very vital and critical in enabling the users make quick decisions in case of any change. This means that students can work on their assignments more efficiently. Even to the businesses, SAP increases efficiency and this is the reason why it is among the most preferred ERP solutions by most businesses all over the world.
Management Overview: SAP gives students an insight and overview of how businesses are managed in a modern way. It also helps those already in management and undertaking further studies to improve their management expertise. The modules represent the real trends in the modern market volatile market of doing business. Undertaking SAP studies is one of those steps which you can take to bring positive changes through out the rest of your life.
Your knowledge, expertise and skills will be constantly demanded by businesses. The well established ones will seek to maintain and preserve their market share. The recently established ones will be looking for the right professionals to pass to the customers all the real time information their agendas, products and services and their differences with the already existing products and services.
Automated Accounting: Because SAP uses real-time information, all accounting is done very quickly and this saves the finance mangers and accountants a lot of time. It therefore ensures frugal financial management of all the financial in flows and outflows. Since all the operations of the business are oiled by money, the entire productivity of the business will improve because everything is properly accounted for.
The Importance of SAP R/3
SAP Company has made great strides and popularized itself by designing the SAP SAP R/3 and the All In One and SAP Business One solutions for SMEs. These solutions are very easy to use and affordable. SAP Business One is especially designed for businesses which have between 10 and 100 employees. It covers all the vital operations for successful businesses like e-commerce, warehouse and reporting, partner management, customer relationship management and accounting.
The Products and services for SAP integrate all the functions and services of business ranging from human resources, financials, distributions, sales, processing, manufacturing and management. The effect of this integration is that the businesses can now make proper decisions for management, strengthen its relationship with customers and then optimize the supply chains. Most of the buoyant SMEs have implemented and entrenched the SAP R/3 in to their operations and management.
The SAP market share in the world
In April 2010, Gartner Inc. Report, titled Market Share: Business Intelligence, Analytics and Performance Management Software, Worldwide, 2009, the analyst firm based in Germany ranked and named SAP number one in the whole world in terms of Business intelligence, Performance Management Software and Analytics Applications .
The data and research about these aspects was conducted in the year 2009. According to the report, SAP had a market share of 22.4% which was the highest. According Sanjay Poonen who is the deputy vice president of SAP, the SAP's portfolio for businesses offers the best and most innovative Business Intelligence, Enterprise Performance Management and analytic application solutions in the global market. In these aspects, SAP leads followed by Oracle then Microsoft and finally Tier II
According to Sanjay Poonen, these SAP solutions offer increase in sight and they give all the organizations the tool which helps in making employees smarter. It also helps in the quick making decisions and this ensures that business decisions and functions are made and executed as so as possible. The SAP provides all the information which the business managers and users can use to bring positive impacts and development within their organization.
In the Gartner Report, SPA Business Intelligence (BI) market revenues increased by 4.2% from 2008 to 9.3 billion in 2009. The SPA BI platforms had market share of 64.2 of the global revenues from BI. The SPA suites for Corporate Performance Management had a 20.8% share in the global Corporate Performance Management suites market. The performance management software and analytic applications had a 15% global market share. In the year 2009, the revenues from SAP Business Intelligence software for all the above stated segments had the highest figure of 2.1 billion US dollars.
Gartner defines revenues from software to include all those revenues generated from hosting, subscriptions, new licenses, technical support, appliances, updates and maintenance. The revenues from hardware and professional services are expressly excluded in the Gartner's total software revenue computation. Many other analysts, commentators, customers and even governments have rated SAP very highly because of its various features and real time solutions.
The advantages of SAP over other similar ERP systems
According to the independent researches conducted by various independent analyst firms, SAP is the leader in ERP systems-Enterprises Resource Planning for the last 30 or so years. Even though the competition is stiffer because of the new entrants in to the market, it still retains the largest global market share in the Corporate Performance Management, Business Intelligence and in the Enterprise Performance Management and Analytic Application solutions.
Most of its advantages and why it is different and better from the others are similar to the benefits and advantages of these others other ERP systems. They include the following
SAP is well established: It has been there in the past and will be there in the future. Some people prefer the cheap ERP solutions from the new and recently established ERP solutions companies. They are however highly disappointed when these companies disappear from business shortly after establishment
Upgrades: SAP undertakes wide reviews of its products. It also keeps on upgrading its earlier versions so as to ensure that its customers and clients get the best. It has also invested extensively in Research and Development. It keeps reinventing and inventing new ERP solutions to make the management of the business operations easier for all.
Large market share: SAP has been rated by various analysts as the global leader in various aspects of ERP. These include Enterprise Performance Management, Business Intelligence, and analytic application solutions.
Business and industry focused solutions: SAP products are designed and meant to ensure maximization of resources at the same time reducing those costs which are customized for industries and businesses.
Strong architecture: The SAP architecture is superbly and distinctively strong and superior. It is process centered and feature a foundation which operates in communication with flexible businesses which are enterprise wide in real-time.
Large customer base: SAP has approximately 17,500 customers and presence in over 50 different states across the world. Its products are designed with the needs of every business and customer in mind. It is so far known as one of the most innovative companies in the world.
Partnership: SAP has partnered with several other companies to ensure that it offers the best to its customers. This has enabled it to offer various products in which its customers can choose from.
Products variety: SAP offers various products which are designed for large businesses and corporations and others designed for SMEs.
The new mySAP.com which is the SAP's latest software release provides interaction of data and makes processing of web connections easier than in most other ERP systems.
Integrated treasury capabilities: SAP was the first company all over the world to implement this feature which allows the Corporate Treasury Departments to function in house banks. It does so by automating portfolio management, cash flow control and investment trades.
The advantages of using SAP R/3 over other ERP software
The SAP R/3 which was introduced in 1992 has been credited and applauded for simplifying transaction processing and reducing the workload by a very great margin. It has been rated and ranked by most analyst firms as the leading and most used ERP system globally. The tools for managerial and Financial Accounting (FI) in Sap R/3 are contained in controlling (CO) and Financial Accounting modules. The FI module's General Ledger function provides the complete record of all the information required by external financial reporting.
The SAP R/3 accounting data is accurate and complete because the SAP system has integrated the business transactions which were entered from all the company's operational areas. In addition to the already stated modules, SAP offers modules like Materials Management (MM), Investment Management (IM), Human Resources (HR) modules and Sales and Distribution (SD).
The SAP R/3 Management Accounting include profitability analysis, cost center accounting, product costing, profit center accounting, activity based costing and internal orders. The payable SAP R/3 accounts contain 4 different types of blocks namely Manual, Vendor, Audit and the Receiving block. The blocks are meant to reduce the chances of making wrong payments.
Its advantages include:-
· The software package for SAP R/3 has been designed to allow all businesses to operate several business processes within one integrated information system efficiently and effectively.
· This software is highly customizable using the SAP ABAP/4 which is the company's programming language.
· The software runs on six different types of platforms and is therefore suited for all businesses regardless of their sizes.
· It has been voted by most ERP clients as the best in marketing, human resources, supply chain management and finance.
· The SAP R/3 is an international product which meets the tax, language and fiscal requirements of most countries across the world.
· The software includes various attractive features like the client /tier system which is three-tier. The provision of the 3-tier system offers easier adaptation and scalability of the various needs and interests of large as well as small businesses.
· The SAP R/3 is readily available in 14 different languages including French, Spanish, Germany, English, Russian, Japanese and Chinese among others.
· The software incorporates various currency features which provide vital capabilities for processing by the large and multinational corporations and businesses.
· The SAP R/3modules are professionally organized by the core functional areas of supply chain management, marketing, human resources and finance. Information for each of these modules is entered separately about all the modules are integrated fully and they are updated frequently in order to provide applications which are real time. This means that all the data which is entered in to one of these modules is automatically updated immediately and it is thereby reflected in all the core functional areas.
· The SAP R/3 is composed of one virtual file structure which is and without subsystems.
· The accounting features of SAP R/3 are modeled on the Germany accounting techniques and styles. They are efficient and well organized in the provision of financial reports and accounting statements and in the processing of information for accounting.
· The SAP R/3 has a check writing feature. This feature at the SAP R/3 Accounts Receivable component lacks in most other similar ERP programs.
· The SAP R/3 offers immediate and real-time updated reporting: The program offers equal accessibility of all the data saved in the system. This therefore means that users can directly access the financial data from the computer screen instead of meeting with the controller, treasurer or any other person.
· It also provides single data entry point in which data which has entered from another location can be sent instantly to all the other modules within the ERP system.
· The SAP R/3 has been designed and organized with the concept that businesses operate series of processes. This means that the entities implementing R/3 will in most cases be required to change and reorganize them selves so as to fit properly within the programs and make the best use of it.
The Future Of SAP In Terms Of Career And The Salary Scale
There are endless career opportunities for persons in the SAP. Every business is being reformed as the world turns out to be a global village. SAP consultant careers are making millions of dollars per month. You can be employed or employ yourself if you have undergone the required SAP training. You can get all the latest information about SAP consultant careers.
There are various Human Resource and training institutions which offer advice and information on SAP career path, career planning, assessment and the choices available. SAP is without doubt one of the jobs for the future. Recruiting firms for supply chain management professionals are in most cases requiring proficiency in ERP systems like SAP. If you are trained on this, you stand a better chance of securing employment easily than another person whop is not trained
An experienced SAP consultant averagely earns an annual package of over $ 80,000. The salary varies depending on the modules which one has specialized in. For instance, a SAP MM consultant earns more than a SAP AM consultant. As you gain more experience, the salary will be revised upwards.
According to ITJobsWatch.co.uk, the average month for 3 months for jobs related to SAP was £56,830. The average daily rate for the months under consideration was £466. This was an increase of around 6% compared to the same period the previous year. SAP project manager was paid the highest in UK at £75,654 while SAP project manger was paid £47,072 per month. View also the diagrammatic illustration below which compares SAP salaries from various countries
It will without doubt fulfill your dreams of a good salary, nice car, good home, happy family, investment and flexible working. The salary scales may also vary from one country to another. The developed countries offer the highest salary packages but the cost of living is higher. Some sites like the www.glassdoor.com offer adequate and latest information on the various salary packages. Visit these sites for all the information about the salary ranges of SAP experts.
Candidates who want to pursue a career in ERP generally and SAP in particular are required to posses various skills some of which may not entirely be taught in class. ERP is a dynamic concept which changes often; all candidates must be prepared to accept change and move with it. Undergoing training on SAP is not self sufficient to guarantee you success. ERP has undergone many chances since its inception and so is SAP, you will need to update your skills frequently.
Having knowledge about how the other similar ERP systems operate is also advantageous. Companies will always prefer employing persons who possess several skills and who are capable of performing and discharging various services at various positions effectively.
The SAP Jobs opportunities
As SAP professional, you will get a job regardless of whether you are experienced or not. This is a new field of professional studies which has not been ventured in to like most other fields of study. The beginning salary is usually good and will keep on increasing as you acquire more experience. You can generally get employment from the following a
ERP vendors: SAP professional can be employed by ERP vendors. These vendors require SAP professionals for deploying, implementing and for pre-consultation services among other purposes. Earlier, most ERP vendors hired professional son service basis. This has changed and most of them now employ SAP professionals permanently in order to maintain secrets of their business.
Large Corporations: The largest corporations invest millions of dollars in ERP in order to maintain their market share. The competition is very stiff and so all the companies are looking for the ways of surviving. Most of them are investing in hiring those professionals trained on innovation and modern concepts and strategies of doing business. You should apply to the IT departments of the various large corporations and you will without doubt secure a well paying job.
Popular SAP Job Tags and Their Description
Application Developer or Programmer: This is professional who takes care of the instruction and language parts of IT. To get this job you must have thorough and clear understanding of the SAP software codes. As is the case with most other jobs, formal training is not adequate. You must prove that your personal capabilities are better and above the other interested applicants. This job is very well paying but in most cases it requires that you must have an experience acquired some where else.
Functional Consultant: You can be employed or employ yourself as a functional consultant. You will need to have a thorough understanding of the technical aspects of SAP. The advantage of this type of job is that it does not embrace so much in experience and qualifications. You must however have passed all the SAP modules well.
SAP and ERP training: The SAP salary scales will without doubt attract very many people to the training. Many people are making lots of money in training others on SAP. SAP training has been incorporated in to the training of various other courses related to business. Companies and businesses are also training their employees in their Humans resource, Credit management, Finance, Public relations and production among others on this new technology.
If you are qualified you will charge your training and consultation services per hour and you will in the ultimate be making a lot of money. In most cases, you must be accredited to train SAP. The institutions which offer this training must also be accredited.
SAP Consultant Jobs
SAP Consultants in the US earns a salary of between $67,602 and $115,609. The difference is caused by the varying levels of expertise and experience. The industries also offer varying levels of salaries; the salaries vary for SAP Bachelor of Science, SAP Master of Business Administration (MBA) or SAP Information Technology.
Popular States For SAP Consultant Jobs
The top most states in offering consultant jobs for SAP professionals include
Ø Texas
Ø New York
Ø Philadelphia
Ø Houston
Ø Chicago
Ø Atlanta
Ø Illinois
Ø Georgia
Ø Washington, District of Columbia
Ø Thousand Oaks, California
Ø United Kingdom
Ø Germany
Top Companies For SAP Consultant Jobs
Ø International Business Machines (IBM) Corp
Ø IBM Global Services
Ø Deloitte Consulting LLP
Ø SAP America, Inc.
Ø Accenture
Ø Request Technology, LLC
The Contract Job Opportunities In SAP
There are various SAP contract jobs in which you are engaged to offer your services you services for a fixed duration. The contract may be renewable or non-renewable. Some employers will offer you the option of permanent employment of the option of renewing the contract further if you perform well in your initial contract. Most employers prefer to hire contractually as a way of assessing your contribution to the overall performance of the company.
If you don't know understand what is SAP, please start reading from the top of page...
If you have good SAP skills and sufficient experience, your services will always and forever be in high demand. The public sector and other key corporate ERP projects will keep on receiving investments. They will always need professional to port the applications to the users. These professionals are none other than those who are trained on SAP. It is for this reason that SAP contract jobs will keep on increasing and being more and readily available. In the IT market, the most sought skills are SAP and then Oracle, Tier II and Microsoft in that order. See the diagrammatic illustration below