NTT DATA Business Solutions
Justin Schiffman | January 17, 2019

10 Good Reasons Why You Should Opt for SAP

Anyone who is concerned with corporate IT will not get around making acquaintance with , especially in the European countries. SAP, founded in 1972 in Walldorf, is by far and away the undisputed market leader in IT business solutions. And, very quickly, SAP has become an established international brand, as well.

Nevertheless, especially mid-sized and smaller companies are somewhat reticent to the software giant’s solutions. Often, they have concerns about the prices of SAP products and the power of the software vendor. However, from our point of view, there is no reason for such questioning. Why? Let’s put it this way: to make a well-founded assessment, some facts should be viewed in relation to other issues or, in other words, in another overall context. Read on and you will see, what I mean. There are ten arguments in favor of SAP that speak for themselves.

1. Is SAP Too Expensive? No.

The most important argument against the introduction of an SAP system is the high price. The first thing that can be said in response is that SAP also has inexpensive solutions for SMEs in its range – particularly cloud solutions. And the second point is that, for a relatively high investment, users are also offered a great deal. The systems are based on the latest technology and offer numerous functions with which business processes can be mapped end-to-end and innovative scenarios realized. Therefore, the price should be viewed at least in relation to the direct usage of the software – and the best thing would be to consider the return on investment. Anyone who does that will quickly reach a positive judgment and view the price as an argument for SAP. In addition, for the many new cloud solutions, modular price models are offered. Cost is therefore dependent on the components of a solution that are actually utilized and the number of users.

2. Is SAP Too Complex? No.

In addition to the high price, critics of SAP also frequently cite the high complexity of the solutions. They would, therefore, not be suitable for the midmarket – or so, goes the argument. Here too, the cloud solutions in particular are proof to the contrary. These are not any more complex than other ERP software for SMEs. And even in relation to the other SAP systems, it is worth taking a more nuanced view. It is true that these systems are indeed complex. This is due to the fact that they offer a wealth of functions. And that puts every company in a position to satisfy its individual requirements. However, it is not true that these systems are therefore not at all suitable for the midmarket.

Whether many or few functions are necessary does not depend on the size of a company. Rather, it has something to do with the business model. There is quite a clear argument here for SAP, which is that the broad range of functions offered might, therefore, suit many medium-sized enterprises. They are even dependent on it. The worry that, due to having fewer resources – compared to large corporations – they cannot handle the demanding SAP systems, can be countered. Because, with the right project method when introducing the system, it can be ensured that just the functions that are actually needed are implemented – not anymore and not any fewer. An SAP solution can, therefore, also be introduced merely on a smaller scale – but precisely suited to a company’s needs. With it, operations are then also possible with little time and cost.

3. SAP Is Scalable and Can Easily Be Rolled out Internationally

SAP systems are easily scalable. What this means in concrete terms is that, when introducing a system, only a few functions can be used at first – and even these perhaps only by a limited number of users. Price and complexity remain low! If the initial experiences have been explored and it turns out that further business processes can also be reasonably supported with SAP, successive functions can be added and users integrated. A solution established like this in one country can then also be effortlessly rolled out internationally. Here, it is extremely advantageous that SAP systems are available in different languages. SAP S/4HANA, for example, is available in 29 country-specific versions in 16 languages.

4. SAP Integrates All Specialist Departments

Many software companies offer outstanding solutions for individual departments of a company: an ERP system for commercial processes, a PLM application for the development of new products or CRM software, with which customer data can be managed. The problem is that, as solutions from different providers can only be interlinked with some effort, a consistent flow of data is hardly possible. This provides a further argument for SAP. After all, SAP offers solutions that can be seamlessly integrated for all specialist departments. In this way, it is possible to implement end-to-end processes across specialist departments and even beyond the company.


5. SAP Offers Predefined Processes and Best Practices

Anyone who decides on an SAP system receives far more than merely software. It is also possible to access a large amount of predefined processes and best practices. This orientation towards the standard ensures on the one hand that the software introduction proceeds quickly and smoothly. On the other hand, assurance is provided that business processes are being optimally supported in reality by IT.

6. SAP Is Quick to Introduce

As has been said, SAP maintains several predefined processes and best practices that considerably speed up introducing a system. What is more, as partners of SAP, many system companies have developed specific procedural models for implementation. Depending on the scale of the project, going live will realistically take between 6 and 36 months.

7. SAP Ensures Independence from Implementation Partners

What about system companies? As a rule, a company will decide on a system company with which it introduces an SAP system. However, it is of course possible that during the course of the project the cooperation does not work as desired. Or perhaps going live is still achieved together, but there is also a desire for the two to go their separate ways afterwards. An important reason to use SAP comes into play here. Because, either way, given that a huge volume of system companies in Germany are familiar with SAP, changing partner is possible without too much difficulty. Everyone who uses SAP therefore makes themselves independent as a result.

8. SAP Is Well-Known among Users and IT Staff

SAP is widespread in Germany and Europe. This makes it easier for companies to find new employees who are familiar with SAP systems. This applies to both users and IT staff. Long training periods can therefore be avoided.

9. SAP is Up-to-Date

More than 15,000 developers are employed by SAP worldwide. They all jointly ensure not only that faults are rectified in the existing systems as quickly as possible and that any necessary changes are undertaken. They are also constantly working on innovations using the latest technologies. SAP users can therefore assume that their solutions are always as up-to-date as possible and that they profit from new opportunities very quickly.

10. SAP Offers Investment Security

SAP is classified in terms of sales, profit and number of customers as a giant company. That is pleasant for SAP and its shareholders. It is, however, also good for the users. Because, due to its size and economically sound situation, it is very unlikely that SAP will get into financial difficulties any time soon. And, for a company that uses SAP systems, this means that its investment is safe in the long term.

Which Arguments in Favor of SAP Are Decisive Depends …

All this shows that there are numerous arguments for using SAP and the typical reservations about SAP can easily be cleared up. Everyone who therefore categorically rules out SAP solutions is limiting its own choices. That is the case above all because SAP’s portfolio is very broad and offers something for every company – including SMEs. Finally, which strategy the company follows always depends on a quite individual situation. Which general conditions are in place? And which requirements must be fulfilled? Answers to these questions should always form the basis for a decision. As a consulting company, we help find these answers, in order to then select a suitable solution.

Could we make you curious to gain more information on SAP? Just contact us. We will be glad to help you find the right SAP solution for your specific requirements.

– Justin Schiffmann, Account Management New Customers, NTT DATA Business Solutions AG