What is SAP and How Can It Improve My Small Business?

Systems Applications and Products in Data Processing (SAP) has revolutionized the infrastructure of companies around the world. While companies that use SAP have historically been medium and large in size, there are many ways in which a small business can take advantage of this technology. You don’t have to be a Fortune 500 company to benefit from SAP. Let’s take a closer look at how SAP can improve your small business.

Boosting Productivity

When using an SAP system, you can eliminate some of the redundancies that are inevitable, even if you only have a few employees. This is because communication is more streamlined, which means you can have areas that are separated, with some shared elements. For instance, if you have a small team, data entered can be seamlessly accessed from geographically dispersed locations.

SAP ensures everyone with authorized access to internal systems has updated information without having to input data that has already been entered from a different location. It’s a way of ensuring your infrastructure is separate, but interdependent. This works exceptionally well for small companies that hire remote workers and need to minimize access to information without creating communication problems.

Enhancing Capabilities

SAP software includes cloud-based solutions the are wide-ranging, such as financial planning, human resources, customer relationship management, sales and supply chain management. These are offerings that can help a small business get to the next level because of the integrated nature of the system. There are few systems, if any, that can enable a small business to leverage limited resources for both short and long-term growth with the same ease of SAP. Another benefit is that enhancements are offered, which means there are solutions that accommodate business growth without having to constantly replace software.

Reducing Costs

One of the reasons for the popularity of SAP is that it addressed the need for companies to purchase different systems to manage data in different departments. This previously meant they incurred the cost of buying software and maintaining it. It also meant there was segregation of data, which made it difficult to produce comprehensive reports. The same applies to a small business that has to track data using different software programs. You can essentially generate reports regarding any area of your business from one platform.

SAP can help you keep all data in one program, which makes it more efficient to access information. It also reduces the need to buy new systems to accommodate business growth. Since SAP supports companies of all sizes, it doesn’t matter how big your business grows, there’s a solution that will fit your needs, even if you expand globally. Given the capabilities of eCommerce, it makes sense to have an infrastructure that accommodates exponential growth.

Complying with Regulations

Every business has to be mindful of laws and regulations. Even as a small business, you’ll need to know the laws of your industry and ensure compliance. SAP helps you implement best practices for your industry to drive compliance. This is no small matter. In fact, it’s the reason why SAP is appreciated by many organizational leaders. Mitigating risk is a priority for every business and it’s not always easy in a world that’s ever-changing.

Additional Benefits

In addition to the reasons already detailed, small business owners appreciate SAP because of its flexibility. You can essentially structure the system how you see fit based on what works best for your operations. You can create your own rules, including how and when information can be accessed. It’s easy to isolate personal data so that it’s only available for view by authorized personnel. One of the best features that’s appreciated by small business owners is the ability to use SAP’s reporting functions for strategic and tactical planning. It enables you to conduct a deep dive analysis to understand what’s happening in your organization and make informed decisions.

To make a decision about whether or not SAP is a good solution for your business, it simply requires asking yourself whether or not your internal structure is efficient. Your goals should be to find the most efficient method of achieving your operational objectives. If you believe you’ve already achieved that goal, then SAP might be an option for the future.

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