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Analysis of advantages and disadvantages of SAP software

SAP is the core platform of digital transformation. When implemented correctly, businesses will have a centralized data system, standardized processes to make decisions faster, and scale easier than competitors.

When carefully analyzing the advantages and disadvantages of SAP accounting software, businesses not only understand the system but also achieve many strategic values. This article by Bizzi will analyze comprehensively so that managers can make wise investment decisions after clearly understanding the advantages and disadvantages of SAP software.

SAP ERP Overview: The #1 Enterprise Resource Planning Solution

Before analyzing the advantages and disadvantages of SAP software, let's learn about the concept. 

What is SAP ERP?

SAP ERP (Enterprise Resource Planning) is a comprehensive management solution of SAP SE - the world's leading enterprise software corporation.
This system helps connect, automate and standardize all core business processes, all integrated on a single platform, with real-time data. including:

Which businesses should adopt SAP software?

SAP ERP is suitable for businesses looking for a systematic, international standard management solution, especially:

The stature and position of SAP ERP software

SAP ERP software has long been chosen by many businesses. Up to now, SAP ERP has affirmed its position in the ERP market. Specifically:

Advantages and disadvantages of SAP ERP 2 software

7 ưu điểm vượt trội làm nên “thương hiệu” của phần mềm SAP

SAP software is famous worldwide and considered the "standard" in the ERP (Enterprise Resource Planning) field thanks to the following outstanding advantages - these are the points that make up the "brand" of SAP:

Comprehensive system integration and seamless data flow

SAP stands out for its ability to connect multiple departments in a single system: accounting, finance, sales, human resources, and supply chain are all operated on the same platform. This helps eliminate “data silos” and reduces errors in information exchange between departments.

Practical example: Vinamilk has deployed SAP to manage the entire milk supply chain, distribution system and financial management. Thanks to that, the company has optimized processes, saved operating costs and improved the ability to make quick decisions. This is a clear proof that SAP is not only suitable for large corporations but also brings reliability and operational efficiency.

Real-time and in-depth data analytics capabilities

SAP not only manages data but also provides predictive analytics capabilities with built-in AI/ML technology. Businesses can forecast market demand, optimize inventory and detect risks early.

SAP HANA – an in-memory database platform – enables processing of millions of records in seconds, thereby providing real-time reports, supporting administrators to make faster and more accurate decisions.

Standardize processes and optimize work performance

SAP helps businesses automate repetitive tasks, standardize operating procedures according to international standards, and increase employee productivity. As a result, businesses minimize manual errors, shorten processing times, and increase productivity across the organization.

Highly scalable and customizable

An important difference of SAP is the ability to customize modules by industry. For example, modules for manufacturing, retail, logistics, banking and finance, etc. are all designed in depth. In addition, SAP also supports multiple currencies and languages, suitable for corporations operating in many countries. This is the factor that makes SAP the top choice for global businesses.

Ensure security and compliance with international regulations

SAP uses advanced security technologies, including data encryption, multi-layer authentication, and granular authorization at the management level. The system also complies with international security standards such as GDPR and ISO/IEC 27001, ensuring that business data is always protected, secure, and transparent.

SAP software is famous worldwide and considered the "standard" in the ERP (Enterprise Resource Planning) field thanks to the following outstanding advantages - these are the points that make up the "brand" of SAP.

Rich product ecosystem

SAP does not stop at ERP but also develops a large ecosystem: SAP SuccessFactors (human resource management), SAP Ariba (supply chain management), SAP Concur (cost management), etc. to help businesses gradually expand according to demand, without having to integrate additional external software.

Global reputation and extensive deployment network

SAP is currently one of the world's largest ERP providers with hundreds of thousands of customers in more than 180 countries. In Vietnam, many leading enterprises such as Vinamilk, Petrolimex, Sabeco have trusted and chosen SAP. This is a testament to its global stature and position, and at the same time affirms its brand reputation in the market.

Above are the advantages of SAP software. If a business wants to fully utilize the power of SAP to increase management efficiency, reduce operating costs, and create long-term competitive advantages, then simultaneous analysis Advantages and disadvantages of sap software is an indispensable step.

6 major disadvantages of SAP and how to overcome them

Below are 6 major disadvantages that businesses often encounter when deploying or using SAP, along with solutions to maximize the power of the system:

Huge initial implementation costs and hidden costs

SAP ERP requires a huge initial implementation cost, including: software license, hardware infrastructure, consulting and implementation services, staff training, maintenance and periodic upgrades. In addition, there are hidden costs such as integration with other systems, continuous training for new employees, or process adjustment according to business requirements. This is a big barrier for SMEs and large enterprises.

The implementation process is complex, lengthy and expert dependent.

SAP implementation usually takes 6-18 months, even longer for multinational corporations. Enterprises must conduct in-depth business analysis, build detailed blueprints and test multiple rounds. This process depends largely on the capacity of the consulting team and can lead to risks in progress and costs if not controlled.

Complex interface and requires extensive training

SAP has a professional but complex interface, making it difficult for new users. Enterprises must organize intensive training courses for employees to grasp how to use it, resulting in a lot of time and cost before the system is put into effective operation.

Risks and limitations of deep customization

One of the weaknesses of SAP is the risk of over-customizing the system. Deep modifications can cause errors when upgrading the version, increase the complexity of maintenance and make the business dependent on the original implementation partner for a long time.

Concerns about old versions

Currently, SAP ERP 6.0 (ECC) will cease support in 2027. This means that businesses that have not yet migrated to SAP S/4HANA may face security risks, reduced performance, and high upgrade costs. This is one of the major challenges that many organizations are considering.

Challenges in managing invoices and input costs

Although SAP is a comprehensive ERP system, the process of processing input documents and invoices is still not optimal. Businesses often have to enter data manually or process through many steps, leading to time-consuming, error-prone and delayed cash flow management.

Despite many advantages, businesses still face challenges when implementing SAP ERP.

Optimal solution from Bizzi.vn: Automating financial and accounting processes

SAP is the backbone of business management, but to optimize the entire value chain, it is necessary to add in-depth automation solutions. From the advantages and disadvantages of SAP software, Bizzi plays the role of an "accelerator layer" for SAP - helping businesses:

Aspect How Bizzi Supports Benefits for Businesses
Accounts Payable Automation (AP Automation) Bizzi automatically scans invoices, extracts data and reconciles with POs from SAP. Reduce 80% manual data entry, reduce errors, speed up processing.
Smooth integration with SAP Support Open API, File Integration, Connection with on-premise system. Fast, non-disruptive deployment of existing SAP systems.
Support for phased deployment Bizzi can be applied even if the business has not completed a full SAP implementation. Optimize processes early, increase ROI during ERP implementation.
Real-time reporting and analysis Provide dashboard of invoice status, debt, and expenses. Help leaders control budgets and forecast cash flow accurately.
Compliance and Security Bizzi ensures data compliance with Vietnamese legal standards (electronic invoices, taxes) and security during data transmission. Reduce legal risks and ensure data security when integrating ERP.
Optimize operating costs Reduce the need to hire additional data entry staff, better control costs. Businesses quickly recover their SAP investment by reducing OPEX costs.
Bizzi integrates with SAP S/4HANA

 Which businesses should invest in SAP?

Choosing an ERP solution should be based on the size, industry and long-term development strategy of each business.

Suitable for: Large, multinational corporations with complex processes

For example, large-scale manufacturing, oil and gas, and retail businesses often choose SAP for comprehensive management and international compliance.

Target audience: Small and medium enterprises (SMEs)

With SMEs, Advantages and disadvantages of SAP software The cost of implementing SAP can be beyond your means. In addition, the complexity of operations and the long implementation time also create many challenges. Therefore, SMEs should consider more flexible and cost-effective ERP solutions.

One suggestion is Bizzi ERP – a solution that focuses on financial and accounting automation, helping SMEs manage invoices, cash flow and input costs effectively, while easily integrating with other systems when expanding later.

When to Consider Other ERP Solutions

Not every business needs SAP. Based on Advantages and disadvantages of sap and t softwareDepending on the size and goals, other options may be considered:

Conclude

Choosing SAP = choosing to change the way the business operates. This is a strategic decision because it affects processes, data, people, and long-term vision, so leaders must first clearly understand the advantages and disadvantages of SAP software.

Nếu doanh nghiệp chỉ nhìn nó như một khoản đầu tư ngắn hạn, sẽ khó khai thác hết giá trị mà SAP mang lại: Hãy đặt trọng tâm vào việc “lựa chọn đúng phiên bản và đối tác phù hợp”.

Tích hợp toàn diện hệ thống ERP trong đó có SAP, Bizzi là giải pháp tối ưu hóa quản lý tài chính – kế toán cho những doanh nghiệp đang sử dụng hoặc có kế hoạch triển khai SAP. Bizzi không phải là đối thủ, mà là đối tác tích hợp hoàn hảo để SAP hoạt động hiệu quả hơn. Các giải pháp mà Bizzi mang lại sẽ bổ trợ toàn diện cho doanh nghiệp trong việc tự động hóa quản lý tài chính. Để được tư vấn giải pháp phù hợp với doanh nghiệp, đăng ký đặt lịch demo tại đây: https://bizzi.vn/dat-lich-demo/

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