SAP erp

SAP ERP application is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. It allows for open communication within and between all company functions.

Advantages

• Allows easier global integration (barriers of currency exchange rates, language, and culture can be bridged automatically)
• Updates only need to be done once to implemented company-wide
• Provides real-time information, reducing the possibility of redundancy errors
• May create a more efficient work environment for employees
• Vendors have past knowledge and expertise on how to best build and implement a system

Disadvantages

• Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high
• Inflexibility - vendor packages may not fit a company's business model exactly and customization can be expensive
• Return on Investment may take too long to be profitable
• Implementations have a risk of project failure 

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