What is SAP Technology? Definition, Benefits & Uses

SAP technology has been a boon to businesses for decades. Since its early beginnings in the 1970s, it has been instrumental in helping companies achieve efficiencies in their operations by enabling effective use of data.

But what actually is it, and why does it have such a well-established reputation? This article aims to answer those questions and explore the benefits that SAP tools can bring to all different kinds of organizations. 

It also takes a look at how your business can make the most of your existing SAP tech stack without having to go through expensive upgrading or migration processes.

What is SAP technology?

Let’s begin with the basics—what are SAP technologies? The answer is any kind of software created by the innovative enterprise application software development company SAP SE, based in Germany.

SAP essentially invented enterprise resource planning software (ERP) over half a century ago. It released its first ERP solution way back in 1972, completely transforming how businesses used technology to manage their data.

The thing that was different about SAP software was its modular architecture. It gave businesses the option to customize their solutions according to their specific needs. 

To this day, SAP software is the global standard in ERP and can be installed on-premises, via the cloud, or by deploying a hybrid of the two.

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SAP software solutions 

Having a basic understanding of what SAP technology means is one thing, but it’s good to get into the specifics. Here are a few of the top SAP tech products and a broad overview of what they’re designed for.

SAP S/4HANA

SAP S/4HANA is SAP’s flagship ERP product and is designed to meet the needs of medium and large enterprises. It offers analytical and transactional processing and is particularly strong when it comes to real-time analytics. This makes it an ideal choice for companies that rely on this, such as finance or airline businesses.

There’s an SAP S/4HANA Cloud option that users can access via a web browser, and it’s updated quarterly.

SAP Business One

For smaller companies with up to around 350 or so employees, there’s SAP Business One. It provides a one-stop solution that incorporates every element of your business, from accounting through inventory and sales management to reporting and analytics. It can also be deployed either on-premises or via the cloud.

SAP Business ByDesign

Another ERP option is SAP Business ByDesign, which shares some features with SAP Business One but is targeted at companies in a fast growth phase. To this end, it prioritizes scalability. 

For instance, it allows a user count of 20 all the way up to 1500. It also provides a basic Financial Management system alongside full-size inventory and complex manufacturing management capabilities.

SAP Business Network

SAP doesn’t just specialize in ERP software. Over the years, it’s built upon its legacy to launch a large number of other products to meet the needs of businesses of all sizes. A good example is SAP Business Network, which is a B2B collaboration platform focusing on logistics and supply chain optimization.

What are the main advantages of SAP technology? 

Let’s explore the ways SAP technology benefits businesses. This isn’t an exhaustive list, but it does cover some of the most important advantages you’ll discover when implementing a SAP solution. 

Good mobility

One of the big upsides is that you can connect SAP solutions and the cloud, meaning you can access a centralized business database regardless of your location. It also means that you can use a wide variety of devices to interact with the software, so it’s extremely convenient.

Ensures transparency

Another of the main benefits of SAP technology is that it increases transparency in everyday operations. Because all business-critical data is available on one central hub, all stakeholders can access it whenever they need to. In addition, this prevents all the problems that can emerge when data is siloed.

Cost efficiency

Implementing SAP solutions lowers data-related costs because the continuous availability of real-time information helps create efficiencies across the board. The ability to make data-driven decisions helps companies optimize processes such as production and supply chain management. This, in turn, saves money.

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Easy customization

No two businesses have exactly the same operational requirements, so the ability to customize SAP technology solutions precisely to your needs is a big plus. The modular nature of SAP software makes it a straightforward matter to select only the elements you need to create a solution that’s a perfect fit for your business.

Improved analysis

With a SAP technology platform, you get access to accurate data updated in real time. This enables you to make strategic decisions based on the most up-to-date information. The analysis that emerges from these robust foundations is of much better quality and leads to vastly improved business outcomes.

Robust data security

Data is the lifeblood of any modern business, and that means the security of that data is of paramount importance. SAP ERP software uses built-in security systems and firewalls to make sure no unauthorized personnel can access your data.

SAP technology use cases

There’s a broad variety of SAP technology, meaning the use cases are also many and varied. Here are some of the areas of business where using an SAP technology platform can give you an edge over the competition.

Supply chain management

Managing your supply chain efficiently is a fundamental aspect of business success. With the SAP SCM module, you can optimize your supply chain processes and ensure timely delivery. Inventory is updated in real time, which is crucial for simplifying procurement tasks.

Customer relationship management

SAP’s customer experience modules enable businesses to boost customer relationships by unifying their sales, marketing, and service data. For instance, a company could use SAP to enrich customer engagement by leveraging existing customer data and incorporating customer feedback.

Workforce management

SAP solutions can also be instrumental in assisting with personnel management. The SAP SuccessFactors software is ideal for assigning tasks and monitoring them. Companies can also use payroll and recruiting data to conduct strategic planning to meet evolving workforce needs.

Financial management

Financial management software by SAP provides an integrated framework within which you can control invoicing, billing, and cash flow analysis. There are also dedicated spend management solutions, such as SAP Ariba and SAP Fieldglass, that are useful for improving costing estimates.

Inter-team collaboration

Because all SAP software is underpinned by data centralization, it’s perfect for facilitating collaboration between teams. Everyone from your sales team to your finance experts can use SAP tools to come together and streamline inter-team workflows.

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Procurement

Simplifying the procurement process is straightforward with SAP software. Inventory is updated in real time and the advanced analytics functionality enables you to establish required ordering volumes with pinpoint accuracy. In short, it makes the entire procurement process much more efficient.

Transform how you interact with your legacy SAP technology

You might have just begun using SAP technology, or maybe you have an extensive legacy SAP setup. Either way, it’s vital to explore the most effective options for SAP integration with your other business systems.

One of the best options available for making the most of your SAP systems is OpenLegacy AI-Powered Chat. This tool makes it possible to enjoy intuitive, conversational access to the data and processes that reside in your existing SAP ecosystem. 

Powered by advanced language models like Generative Pre-trained Transformer (GPT), it lets you interact with your SAP tools using a simple chat interface with no need for expensive upgrades or migrations. Simply connect with it and use intuitive chat messages to find answers, generate insights, and execute a range of transactions.

Here are a few examples of the kinds of messages you can send using OpenLegacy AI-Powered Chat to perform any function with your SAP system:

• “Which items are out of stock?"
• "List orders received during Q2 this year."
• "What is my meeting schedule for today?"
• "Show me the top five most profitable products."

The key strength of OpenLegacy AI-Powered Chat is that it understands context, so you can depend on it to supply accurate responses and relevant information. Its intelligent approach allows you to get the answers you need to complex questions that require cross-departmental insight.

You can deploy it on the cloud, too, which means it’s easily accessible on the go. In short, it’s a quick, effective, one-stop solution that sits on top of your SAP infrastructure to help you interact with it in a natural way.

Maximize your business operations with OpenLegacy & SAP technology integration 

With the OpenLegacy Hub, you can transform your legacy SAP software into modern solutions with no need for costly migrations or time-consuming upgrades. Unleash the potential of OpenLegacy AI-Powered Chat to make the most of your SAP tools and easily optimize all your business processes.

If you’d like to know more about SAP technology and how you can leverage innovative OpenLegacy solutions to get the full benefit from it, why not reach out to one of our experts today? We have years of experience in helping businesses just like yours take advantage of the full range of capabilities of their legacy systems.