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What is Sap? – Features, Information, Uses, and More

The SAP system, an acronym in English for ” Systems, Applications, Products in Data Processing ” translated into Spanish as Systems, Applications and Products for Data Processing, is business management software that optimizes tasks and resources companies have.

SAP System Features

Despite computer development, SAP software still shares specific characteristics. It makes them easier to identify while giving them advantages over other types of software. We detail the most outstanding characteristics of this system :

A Modular Platform

For an SAP program to be installed and used on different computers in the same company, it must have a structure that is comfortable and usable by all operators. In addition, it must be able to group, through modules, the tools necessary for the specific work of a section of the company.

Layers of Using Information

One of the key characteristics of all SAP is its ability to take advantage of any information that a company has, whether credentials, accounting books, personnel lists, customer databases, etc. All this is to facilitate the company’s work and provide an understanding of its situation.


Not all companies have the same size, function or needs. Therefore, each SAP software developed must take into account the particularities of each company. In this sense, the developers of this type of system are in charge of designing programs specifically adapted to the company’s characteristics.

Use of Open Source

SAP systems must be able to communicate with different types of computers while maintaining and using other programs that can become vital to a company. To achieve this, an SAP needs to be an open-source program that can be modified according to the company’s needs and technological development.

Business Intelligence

Thanks to the development of artificial intelligence, modern SAPs include this technology in their functions. Thanks to “business intelligence”, all the company’s tasks are optimized, including the possibility of analyzing market parameters in search of new opportunities.

What is a SAP System For?

The utilities of an SAP system vary according to the integrated modules and tools. In this way, they can remain fast adapted to the needs of any company, whether they are large businesses or even SMEs (small and medium-sized companies). Thus, in an SAP system, you can find modules dedicated to the following areas :

Financial Management and Treasury

From these modules, it is possible to manage everything related to the company’s finances correctly. Thanks to tools and utilities, it is possible to create and maintain ledgers and auxiliary books and allow payments and loans to be made.

Production and Quality Management

The modules focused on these functions allow users to know in real-time everything concerning production. From the product planning itself (series or order manufacturing, etc.) the management of warehouses and spare parts, including quality control in each phase of product manufacturing.

Personnel Management

Another advantage of SAP software is that it gives better personnel and human resources control. Thus, the tools available in these modules allow you to create and manage payroll, carry out productivity controls, manage personnel for work assignments and can even include tools for hiring new personnel.

Commercial Administration

With this module, it is possible to know the business situation at the moment. For this reason, its tools allow you to manage purchases and sales, carry inventory stock, create customer contact lists, etc. The most developed modules also focus on analyzing the market situation and looking for new business opportunities.

Examples of SAP Modules

By understanding what areas the modules of an SAP are focused on, you can better understand the functions of the modules of SAP Business Suite 6 (the most recent version of the SAP system). Below are the examples of the most crucial SAP modules that are acquire when purchasing this system:

Supplier Relationship Management (SAP SRM)

It provides methods and processes for the correct relationship with other supplier companies.

Supply Chain Management (SAP SCM)

It helps plan, monitor, and directs all of the company’s supply networks, from product development to delivery to the customer.

Which Companies Can use a SAP System?

Although the first SAP systems were design for large industrial companies. They can be apply to virtually any business regardless of size to get the maximum benefit from its modules in medium to large businesses in the following sectors.

Transport Services

Transport companies have to manage a series of disparate tasks ranging from routes, schedules, and customer service. Human resources and, in general, all issues related to the massive movement of people require advanced assistance that allows them to organize all the tasks and help reduce the time required to accomplish tasks.

Public Services

Many national or local governments have improved their efficiency thanks to the implementation of SAP systems. In this way, government management can centralize many public services such as security, the health system and even the treasury. Examples of this are found throughout Europe, especially in Asian countries such as China.

Heavy and Discrete Industries

Being so flexible, SAP can be apply in any industry, from heavy to sub-specialize and high-tech. For this, they can include new modules that meet the specific needs of the sectors.

Financial Services

Formerly banks and other companies in the financial sector implemented SAP systems as a resource in the management of human resources and internal portfolios. Thanks to the development above in Business Intelligence. SAP software can study the financial situation and provide reports and business advice.


SAP remains one of the world’s leading producers of software for the management of business procedures. Developing solutions that facilitate biological data processing and info flow across organizations.

Also Read: What is a Computer System? – Components, Examples, and more

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