SAP is an acronym for Systems, Applications, and Products. Developed by a German software company, SAP allows businesses to track a multitude of business interactions. Using SAP allows a business to manage every facet of their business, including human resources, inventory management, logistics, financials, and sales, in one place.
There are several components of SAP, including Supply Chain Management, (SCM), Customer Relationship Management (CRM), Business Intelligence (BI), and the most advanced of the components, Enterprise Resource Planning (ERP).
What is SAP and How Does it Work?
The easiest way to break down how SAP works is to focus on one component. In this case, let’s talk about SAP ERP. The SAP system is normally structured as a three-tier client server. This three-tier architecture allows for scalability. It can be built with one or two tiers, but clients commonly want the flexibility offered by three tiers. When built as a three-tier system, this is what each tier offers:
Tier 1: Presentation
The presentation tier can be installed on any computer than runs Mac OS or MS Windows and is the tool that provides interface for communication between the user and the system.
Tier 2: Application
The application tier carries out the duties of SAP, including processing transactions, executing logic, running reports, and interfacing with the other applications. If the load of information exceeds the processing power of a single server, it is possible to distribute this tier between several servers, lightening the load for each.
Tier 3: Database
Two types of material are stores in the database tier: SAP application programs and data generated by the business. For example, a sales order is considered business generated data and would be stored here.
How Does SAP Help Businesses?
While they may appreciate the technological sophistication of SAP, at the end of the day business owners are more interested in how it can help them grow their enterprises. What is SAP, and what can it do for a company?
Here’s a quick list of four things SAP can help a business accomplish:
- The ability to make better decisions. SAP’s decision support system offers real-time data that allows those in charge to make more informed decisions, taking the guess work out of the equation.
- SAP connects departments. Rather than relying on a mix of tools to get information to each other, departments can check in one place for the information they need. For example, the sales department can easily see how much inventory is in stock and accounting can check on the number of the recent sales.
- Puts everyone is on the same page. Every company has experienced the irritation of reports that don’t match up. For example, a report from manufacturing may indicate that the inventory count on a particular item is one number, while logistics reports it as another. With SAP, everyone has access to the same data.
- Information is available in real-time. Gone are the days of looking at the most recent reports and trying to figure out where you are at the moment. SAP keeps everything up-to-date.
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Protera Technologies, Inc., a global Total IT Outsourcing Services Provider for SAP-centric organizations, was formed in 1998 to provide comprehensive end-to-end IT solutions for customers with SAP at the core of their IT resources. Protera Technologies has capitalized on its unbeatable experiences with SAP to evolve into a pioneer of end-to-end Total IT Outsourcing Global Solutions that cover all IT needs of an organization. As one of only a few SAP Global Partners providing Total IT Outsourcing Global Solutions, Protera Technologies provides truly comprehensive solutions to organizations of every size. We aim at keeping our clients competitive and confident by providing them with the hosting platform necessary to thrive in the global economy. For more information contact the expert Protera team at www.protera.com or firstname.lastname@example.org