What should you consider when buying SAP software?
If you are considering purchasing SAP software, it is because you are aware of the capabilities of this business software, which can increase the efficiency of processes in your company.
In this article, we will guide you through the decisions you need to make if you want to make a smart decision.
What is SAP: Software and Business
SAP has two definitions. On the one hand, SAP stands for Systems Applications Products, the company founded in 1972 by Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner and Claus Wellenreuther, which today has more than 70.000 employees and 65 billion in annual revenue.
The second definition of SAP refers to the ERP system. In its founding year, SAP launched the financial accounting system RF. RF is the basis of the first ERP system, which was later released under the name SAP R/1.
The origins of SAP
Compared to the time before ERP systems existed, SAP represented enormous progress in the management and control of a company. To understand this, it’s worth looking back at the past.
Before ERP software like SAP existed, all data generated within a company had to be documented and processed manually or in a custom-developed system. While this was still manageable for individual business units, networking proved highly problematic: different database systems used different file formats that were often incompatible.
As a result, not all systems functioned perfectly, leading to inconsistencies. The consequence: The processes could not be executed, or only with a delay.
An example of how the processes used to be
A simple example will help you understand this better. A company sells various products and has a warehouse and an online shop. Inventory is tracked in logistics software to which the online shop has no access.
Instead, the inventory is only checked when the order is processed. The result: The customer doesn’t receive their goods and the company makes no revenue.
This example can be applied to all areas of the company, from purchasing and accounting to marketing and sales.
From ERP solutions for large corporations to lean cloud solutions for medium-sized businesses
This has changed with SAP. It offers standardized software that combines all previously separate functions, thus consolidating all data in a uniform format from the outset. This has enormous advantages for all industries.
It helps the company to link processes and departments, thereby increasing efficiency. At the same time, an ERP system facilitates performance evaluation and data-driven decision-making for the company’s future.
Today, SAP offers not only an ERP system, but also various specialized solutions.
SAP has not stood still, but has changed over time. Over the years, increasingly sophisticated solutions have been added, tailored to the needs of industry, banking, media and retail.
While initially the software company’s customers were primarily large corporations, today the company increasingly targets small and medium-sized enterprises with a wide range of products.
SAP in the age of digitalization
The entire economy has fundamentally changed in the last two decades. Under the banner of digital transformation, profound change processes are taking place, modifying business models, structures, and value chains. This is also reflected in ERP systems.
The need for ERP systems that adequately reflect the faster and more agile working methods in companies and markets has grown. SAP Business ByDesign SAP has launched an ERP system that meets precisely this need.
It is specifically tailored to the needs of small and medium-sized enterprises that want to survive in a digitally transformed landscape.
Unlike the on-premise solution SAP Business One, it does not have its own digital infrastructure, but is operated in the cloud.
The advantages are numerous: Company users can easily access the system via the internet. A physical presence at the company is not required.
By purchasing SAP software, companies also save on personnel costs associated with setting up and maintaining an ERP system infrastructure. Furthermore, SAP Business ByDesign offers a scalable solution for companies anticipating strong growth.
Buying SAP software: the basics of a license
SAP is a powerful ERP (Enterprise Resource Planning) software specifically designed for manufacturers and distributors, as well as retailers and service companies, and is aimed at all types of businesses.
The price depends on many factors, such as the number of users who will use the software, the changes you need to make to adapt it to your company’s needs, and many other considerations.
One of the innovations you should be aware of is that SAP has strongly committed to a cloud model, which has significantly lowered the price threshold.
In the past, SAP’s management software was a leader in on-premises enterprise software, which is great news, but comes with implementation costs and expenses that are eliminated with the cloud version.
What does that mean for you?
It means you can leverage the full potential of SAP without having to worry about your own internal IT infrastructure.
How much does it cost to implement SAP in a company?
While this isn’t the answer we’d like to give you, the reality is that the price of purchasing SAP software depends on it.
What does it depend on? Your needs and what you’re hiring for. If you want to start asking the questions that will get you closer to a reliable answer, consider the following:
- How many user licenses do I need?
- What type of user licenses are best suited for my company?
- What about users who only need access to the data and not to Business One?
- Which modules within SAP B1 need to be configured?
- How many companies and locations will need the Business One modules?
- Are there any important third-party plugins for my business that need to interact with the system?
- What kind of support will I need after commissioning?
- What adjustments will my ERP solution require?
- How many users need to be trained?
- Do I need in-house training or distance learning?
Buying SAP software, conclusion
If you’re interested in purchasing SAP software, you can start by answering the questions we just addressed. Alternatively, feel free to contact us for a no-obligation consultation so we can advise you on selecting the most suitable solution and offer a personalized demonstration for your business. We look forward to hearing from you.n, können Sie mit der Beantwortung der Fragen beginnen, die wir soeben beantwortet haben. Sie können sich auch unverbindlich mit uns in Verbindung setzen, damit wir Sie bei der Auswahl der für Sie am besten geeigneten Lösung beraten und Ihnen eine persönliche Demonstration für Ihr Unternehmen anbieten können. Wir werden auf Sie warten.