What is SAP ERP? An Essential Guide
SAP ERP refers to any enterprise resource planning software developed by the SAP company. Discover their most popular ERP products and their key features below.
What is SAP ERP?
SAP ERP is any enterprise resource planning (ERP) product developed by SAP. The company was founded in 1972 and has since developed dozens of ERP solutions for various business sizes and industries. Historically, SAP ERP referred to the legacy product with the same name, also known as SAP ECC, released in 2004.
SAP’s ERP solutions integrate core business functions, including financial management, asset management, manufacturing, project management, and sales, into one comprehensive platform.
How to Use SAP ERP Software
Operating SAP ERP software is fairly straightforward. Navigate the system using menus, tabs, and icons, starting from a customizable dashboard. The home screen can display key performance indicators (KPIs), notifications, and quick links to frequently used functions.
Every user needs valid credentials and access permissions. Users can be assigned specific roles within the system based on their job responsibilities. Although the navigation and tools are intuitive, training is recommended to ensure employees can maximize the system’s benefits.
Examples of Products
The dozens of ERP solutions from SAP over the years have given businesses access to tools designed to simplify workflow processes. Top features include integrated financial management, supply chain management, and CRM tools.
SAP S/4HANA
SAP S/4HANA is a modern and versatile ERP software offering a wide range of functionalities that cater to various industries, including logistics, manufacturing, finance, human resources, supply chain, services, and procurement. Its HANA in-memory database enables real-time processing and analysis and provides organizations with an up-to-date view of their operations. It’s suitable for medium to enterprise-level businesses with complex needs, especially those expanding globally.
This is SAP’s flagship product, with a strong push from the developer for its legacy users to migrate to it.
SAP Business One
SAP Business One offers integrated support for various departments, including finance, sales, supply chain management, production, and project management. This solution is suitable for a wide range of industries and is specifically designed for SMEs, focusing on ease of customization and extensibility through third-party add-ons. It’s natively deployed on-premise, but it can be cloud-hosted too.
SAP Business ByDesign
SAP Business ByDesign is a fully cloud-based ERP designed for small and midsize enterprises (SMEs). It provides features for various business operations, including finance, customer relationship management (CRM), marketing, sales, service, human resources, project management, supplier relationship management, supply chain management, and more. The solution offers several advantages, including completeness, adaptability, an excellent customer experience, and affordability with predictable ownership costs.
SAP Business All-in-One
SAP Business All-in-One was an ERP solution tailored for midsize companies. SAP discontinued the product between 2017 and 2018, with support for existing users ending after 2025.
It offered an adaptable approach to enterprise resource planning (ERP) and catered to the core business software needs of midsize companies, from customer acquisition and product innovation to talent management and financial reconciliation. It streamlined business processes, supported fast deployment with industry-specific solutions, and encouraged quick user adoption.
SAP ERP (ECC)
SAP ERP, also known as SAP ECC, is an on-premise Enterprise Resource Planning (ERP) system designed for large enterprises. It offers solutions across various operational areas, including manufacturing, procurement, sales, finance, and human resources. More than 25 industries have adopted this versatile ERP system, which is available in 37 languages.
SAP ECC is no longer actively sold. While support for existing customers still exists, it is planned to be canceled in 2027. The company is encouraging current users to migrate to the cloud-based S/4HANA platform.
Key Features of SAP ERP
Most SAP ERP products include:
- Financial tools: This includes features like a general ledger and accounts payable/receivable.
- Sales forecasting: Enables users to gain insight into potential sales based on historical records.
- Manufacturing: This can include scheduling, Bill of Materials (BOM), and inventory control.
- Supply chain management: Tracks product movement along the supply chain and manages warehouse stock.
These are just general features that the ERPs will have, and it’s best to look at the individual product features to get a better understanding of its modules.
Alternatives
As popular as SAP is, it’s not always the right fit for businesses seeking ERP software. Some top alternatives include:
- JD Edwards: JD Edwards ERP solutions, distributed by Oracle, offer an integrated suite of user-friendly business applications to streamline work. Two solutions, EnterpriseOne and World, focus on different industries.
- Oracle Fusion Cloud ERP: This is Oracle’s direct competitor to SAP S/4HANA. It’s a cloud-based ERP built for large global enterprises with extensive customization options and industry-specific packages.
- NetSuite: NetSuite ERP integrates business accounting, CRM, and eCommerce capabilities. Hundreds of third-party add-ons make it highly customizable and suitable for multiple industries. It’s considered one of the top ERPs for midmarket companies.
