Generally an ERP implementation is a large scale tedious process. It involves at least 20-30 dedicated consultants across different modules working round the clock. After working for extended hours & many months it finally leads to a successful GO LIVE project. This scenario is typical of a medium sized firm. However for bigger firms the stakes are much higher and also the pressure for a successful Go LIVE.
SAP is the world’s leader in software solutions and the 3rd independent software provider in terms of revenues. There are a lot of reasons why not just large scale companies but even small to medium sized companies are migrating to SAP as the platform. Let’s have a closer look at the reason for companies choosing to migrate to SAP
1. Brand Name: SAP is a brand name, if SAP software is installed apart from the business benefits which you derive, it also comes with a label that the client company has strong dedication towards improving their internal business processes to align with the industry best practices. Thus the companies don’t have to reinvent the wheel they can follow the industry specific best in class solutions to which all SAP products are aligned.
2. Tailor Made: SAP continuously improves its processes and application and is fast and adaptive. It is likely that a client would find a software solution which maps its core business processes smoothly. They have different variants for each of the software like Rapid deployment solutions, Cloud based offering which considerably reduces the implementation efforts and are more or less plug and play.
3. Product Support: SAP has a dedicated support for any product related issues via remote assistance and the consultants for SAP support are much easy to find as compared to its other close competitors like JD Edwards and Microsoft Navision. SAP also has been continuously improving its product with frequent new releases, corrections to bug fixes via standard Note, Patch level and Service packs. Thus it keeps the software up-to-date.
4. ROI: Return from SAP investment is seen in less than a year to a maximum of 3 years. Even for a large sized firm with complex processes the benefits are realized much faster which is far ahead of the results seen with the other software solutions which are not fully comprehensive.
5. Strong Customer Partner base: SAP definitely has become synonymous with ERP due to its huge dominance across the globe. Its processes our enriched with real time customer knowledge base which it has been carrying since over last 3 decades. This proven track record further boosts the confidence in the product. Thus, both partner and customer stay committed to SAP and benefit from their continuous improvement strategies.
It is observed since many years that the market for SAP is more specifically dominated by America, Europe and Middle East clients rather than the Asia pacific region. These clients can afford implementation via SAP partners and develop a sustainable model to digest the recurring cost but not so with their Asian counterparts who are looking for low cost solutions.
SAP’s reputation is of being overly expensive and complicated which scares the potential buyers. But this has been fast changing now with SAP offering flexible deployment options with very little customizations needed in them and thus reducing the recurring cost of Support consultants and maintenance of the product .Thus it offers tailor made unique solution and focusses on attracting newer clients giving them more value from their software investment. Thus it has been noticed that of late the numbers of customers migrating to ERP in Asia Pacific region has been steadily increasing in both number and in budget. Some of the recent migrations to SAP show similar understanding as seen in these implementations which were done by ATOS.
• Pascual Laboratories Manila, Philippines Implemented SAP ERP End to End Best practices accomplished on time and on Budget without any custom enhancements
• Full scope implementation of SAP ERP 6.0 for PTT Asahi, an Asian giant in the chemical Industry also had its business processes now governed with SAP
Migration to SAP should be a decision which incorporates holistic view of understanding the existing versus To-be landscape. It should seamlessly integrate with the legacy and Non-SAP systems to ensure it does not do more harm than good. A thorough understanding of your business processes and getting it mapped onto SAP products can help to deliver a successful migration project.