SAP Ecosystem of Applications and Development Tools:

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Trajectus 5 Minute read
SAP stands for Systems Applications and Products in Data. SAP is both the brand name and the name of the ERP (Enterprise Resource Planning) program. European multinational SAP Software was established in 1972 by Wellenreuther, Hopp, Hector, Plattner, and Tschira to enable multinational companies to manage their business operations and customer connections.
SAP is considered a leading vendor in ERP and has more than 425K in over 185 countries. Oracle ERP, Netsuite, Microsoft Dynamics are some of SAP market rivals, especially when some of these vendors have cloud-native applications and IaaS platforms as a complete deployment solution. This blog will focus on SAP applications and the benefits of its integrated modules.

What is SAP ERP? Why is it Required?

Depending on how information and communication are managed. Organizational structures can be broadly divided into
  • Decentralized Framework
  • Centralized system, also referred to as ERP.
With a centralized information and data management system in an organization.
  • Data is kept in one place and shared with different Departments
  • Access to information or data from other departments is available to departments

Key benefits of the centralized system are:

  • The centralized approach has several advantages, including the elimination of data duplication, discontinuity, and redundancy.
  • Real-time information sharing between departments.
  • Control over numerous business operations is provided by SAP Company.
  • Increases productivity, improves inventory control, encourages quality, lowers material costs, effectively manages human resources, and lowers overheads to increase profits
  • Improved customer interactions, higher throughput. Moreover, it enhances customer service.
  • A central enterprise management system is therefore necessary.
  • Enterprise resource planning, or ERP, is another name for the centralized enterprise management system known as SAP Software.
  • Systems Applications and Products in Data Processing, or SAP, is the acronym.

SAP Modules

The various types of SAP modules include
  • Functional Modules for SAP
  • Technical Modules for SAP
These SAP functional and technological modules are closely related to one another. Key SAP Modules are listed below.

Functional SAP Modules

SAP FI Module: Financial Accounting is referred to as FI.
The SAP FI module is extremely reliable and addresses practically every financial business process seen in different sectors. It is one of the SAP ERP modules that is frequently used.
SAP CO Module: This stands for Controlling Cost Accounting, gives managers and decision-makers information to help them understand how the company's money is being spent. They can reduce costs by using CO.
SAP HCM Module: This stands Human Resources. SAP-HR is another name for SAP Human Capital Management (HCM). The sub-modules of SAP HCM that aid in personnel administration are Personnel Administration (PA), Organizational Management (OM), Time, and Payroll.
SAP MM Module: The Materials Management (MM) module in SAP is made up of a number of components and sub-components, such as Master Data, Purchasing, and Inventory.
SAP QM Module: QM stands for Quality Management. Production, sales, procurement, material management, and other important SAP business operations all include SAP QM (Quality Management).
SAP PP Module: PP stands for Production Planning. A SAP module called SAP PP (Production Planning) was created specifically for combining the many departments engaged in manufacturing and production. It has several different parts, including a data center, a BOM, a work center, a CRP, etc.
SAP SD Module: SD stands for Sales and Distribution. An essential component of SAP ERP, SAP Sales and Distribution (SD) includes business procedures needed for product selling, shipping, and billing. The module and SAP MM and SAP PP are strongly connected. Customer and Vendor Master Data, Sales, Delivery, Billing, Pricing, and Credit Management are important SAP SD sub-modules.
SAP BW Module: BW stands for Business (Data) Warehouse. A top data warehousing and reporting tool is SAP BI (Business Intelligence) or SAP BW. It assists in transforming raw data into knowledge and insights that enhance profit margins.
SAP Basis Module: An interface between a database, operating system, communication protocols, and other SAP modules like FI, HCM, SD, etc. is provided by SAP Basis, a collection of software and tools.
SAP CRM Module: CRM refers to customer relationship management in SAP. The industry leader in customer relationship management software is SAP CRM. A key factor in improving customer connections is SAP CRM.
SAP Hana Module: Hana stands for High-performance Analytic Appliance. An in-memory computing platform called SAP HANA enables real-time data analysis. It presently dominates the BI market.
SAP EC Module: EC stands for Enterprise Controlling.
SAP TR Module: TR stands for Treasury
SAP IM Module: IM stands for Investment Management
SAP IS: where IS stands for Industry Specific Solution
SAP PS Module: PS is Project Systems
SAP CAC: Cross Application Components
SAP SCM: SCM stands for Supply Chain Management
SAP PLM: PLM stands for Product LifeCycle Management
SAP SRM: SRM stands for Supplier Relationship Management
SAP CS: CS stands for Customer Service
SAP SEM: SEM stands for STRATEGIC ENTERPRISE MANAGEMENT
SAP RE: RE stands for Real Estate
SAP PM Module: Plant Maintenance is the PM
SAP Security:
SAP FSCM: FSCM stands for Financial Supply Chain Management
SAP XI: XI stands for Exchange Infrastructure
SAP Solution Manager:
SAP LE: LE stands for Logistics Execution
SAP APO: APO stands for Advanced Planning and Optimization
SAP AFS: AFS stands for Apparel and Footwear Solution
SAP CC: CC stands for Convergent Charging
SAP ITS: ITS stands for Internet Transaction Server
SAP ICM: ICM stands for Incentive and Commission Management
SAP KW: KW stands for Knowledge Warehouse
SAP MDM: MDM stands for Master Data Management

Technical SAP Modules

SAP ABAP is the industry standard programming language for SAP applications (Advanced Business Application Programming). Java can also be used to program in SAP.
SAP NetWeaver: By enabling businesses to operate all software features on a single platform, this module aids in the technical management of the other modules and applications within the SAP ecosystem.

Advantages of integrating modules from SAP

Businesses that include SAP modules into their structure boost production capacity and enhance customer connections. These additional benefits are:
  • Greater flexibility in process management
  • Time management
  • Improved corporate communication, cost savings
  • Longer customer lifetime value
Industries:
  • Aerospace & Defense
  • Automotive
  • Banking
  • Chemicals
  • Consumer Products
  • Defense & Security
  • Engineering, Construction & Operations
  • Healthcare
  • Higher Education & Research
  • High Tech
  • Industrial Machinery, Components
  • Insurance
  • Life Sciences
  • Media
  • Mill Products
  • Mining
  • Oil & Gas
  • Professional Services
  • Public Sector
  • Retail
  • Sports & Entertainment
  • Telecommunications
  • Travel & Transportation
  • Utilities
  • Wholesale Distribution
Line of Business
  • Asset Management
  • Sustainability
  • Finance
  • Human Resources
  • Information Technology
  • Manufacturing
  • Marketing
  • R&D, Engineering
  • Sales
  • Service
  • Sourcing and Procurement
  • Supply Chain
Featured Solutions
  • Big Data
  • Customer Engagement
  • Internet of Things
  • Rapid Deployment Solutions
  • Security
  • Small & Medium Enterprises
  • User Experience
Products:
Business Applications:
  • Business Suite
  • CRM
  • Enterprise Asset Management
  • Enterprise Resource Planning
  • Financial Management
  • Human Capital Management
  • Procurement
  • Product Lifecycle Management
  • Supply Chain Management
  • Sustainability
Database & Technologies
  • Application Foundation
  • Business Process Management and Integration
  • Cloud Computing
  • Content and Collaboration
  • Database
  • Data Management
  • Data Warehousing
  • Enterprise Information Management
  • In-Memory Computing (SAP HANA)
  • Mobile
  • Security
Analytics
  • Applied Analytics
  • Business Intelligence
  • Data Warehousing
  • Enterprise Performance Management
  • Governance, Risk, Compliance
  • Predictive Analytics
Mobile
  • Mobile Apps
  • Managed Mobility
  • Mobile Platform
  • Mobile Secure
  • Mobile Services
Cloud
  • Applications
  • Business Networks
  • Infrastructure
  • Platform
  • Social Collaboration

Most common SAP modules and how it is used

1. SAP Financial Accounting (FI) Module: The most popular of the many SAP modules, the SAP FI module addresses the area of management of financial transactions in businesses. The main justification for this is that it can be used in all industries, unlike other SAP modules. There is no industry cap, and usage is unrestricted by the size of the business. This module is available to all small, medium, and large-sized businesses. One of its key advantages is that it may be used without SAP ERP. Any ERP system can incorporate the SAP FI module.
Through a centralized system, it assists employees of the finance department in managing their data connected to all financial and commercial transactions. The SAP FI module is adaptable and performs admirably in terms of economics and reporting needs. A company can receive its current financial state in the market with the aid of the financial accounting module. For better working outcomes, SAP FI is integrated with other SAP modules such as SAP SD, SAP MM, SAP PP, and more.
2. SAP Controlling (CO): Management Accounting and Control Module: Another significant SAP module made available to enterprises is SAP CO. The control module aids in the process analyses of the enterprise's planning, reporting, and monitoring operations. It covers techniques for organizing and visualizing expenses necessary for financial reporting. An individual can plan, monitor, carry out, and report expenditures thanks to the control module. Cost components, cost centers, profit centers, internal orders, functional areas, etc. are all included in control. It involves overseeing and setting up master data covering. All businesses must perform cost and profitability analyses; hence the SAP CO module is a module that all industries require.
3. SAP Sales and Distribution (SD) Module: All transactions, including inquiries, quotes, pricing, and more, are managed via the SAP SD module. The module makes managing and controlling inventory much easier. The SD module does credit and risk management, bid tracking, and client contracts management in addition to defining pricing conditions.
4. SAP Materials Management (MM) Module: The SAP MM module, as its name implies, controls the materials that are needed, used, and created by businesses. Different supply procedures are managed by this system. Vendor master data, consumption-based planning, purchasing, inventory management, invoice verification, etc. are some of the more well-known sub-components of the SAP MM module.
The logistics department includes SAP MM, which supports the management of an organization's purchase activities. It backs up every element of material management (planning, control, etc.). It serves as the foundation for logistics, which also comprises the warehouse management, project systems, factory maintenance, sales and distribution, and production planning modules.
5. SAP Quality Management (QM) Module: The SAP QM module supports quality management in production across all organizational activities. By taking a planned and practical approach to managing quality across various processes, this quality management module aids an organization in accelerating business growth. The SAP QM module collaborates on issues with the procurement and sales, production, planning, inspection, notification, control, audit management, etc. The following fundamental tasks are carried out by SAP QM during the creation of goods:
  • Quality Planning
  • Quality Notices
  • Quality Inspection
6. SAP Human Capital Management (HCM) Module: The SAP HCM module enhances data management and business processes in the HR division of organizations. This module is used to manage all aspects of an HR department, including hiring new employees, assessing their performance, handling promotions and compensation, managing payroll, and other related tasks. This SAP ERP HCM module is used to manage the work of managing the specifics and task flow of the most significant resource, namely the human resource.
With just a five-person team at the beginning, SAP has grown to serve more than 425,000 clients across 180 nations. SAP environments can be complex and daunting but there are many service companies who can help you successfully manage and grow your revenues with the right integration. Trajectus is here to help with the skill sets of our SAP consulting arm.

Benefits of using SAP

1. Risk mitigation: Organizations can increase company productivity and minimize revenue losses by minimizing the impact of interruptions on users and the business.
According to the IDC report, users of HANA had a 21 percent increase in user gross productivity.
2. Improved IT team productivity: With up to five times higher productivity and an 18% increase in database administration efficiency, SAP HANA enables the creation of custom applications that significantly boost developer and database administrator productivity.
3. Reduced operational costs: Organizations can reduce their operating costs and save more than $845,800 per organization annually to find inefficiencies and acquire a greater understanding of expense structures.
4. Higher levels of business productivity: According to the IDC report, utilizing data in novel ways for custom applications raised revenue and enhanced worker productivity while lowering operating expenses. This generates value for each organization of over $6.45 million/R100M per year through more revenue, higher productivity, and lower costs

Conclusion

The SAP solution can be adapted to complex requirements and customization of your business needs. If you are stuck with a no-upgrade situation or your business growth is stymied by lack of insights, schedule a 15 min session with our SAP consultants to understand how you can maximized your ROI and current deployments through integration or Lift-n-Shift to the Cloud.

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THE AUTHOR
Avinash Panchal
Head of Information Technology

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