Small Business Brief

Technology & Software

SAP and ERP: Understanding the Connection

Starting a business from the ground up is very hard. But keeping a business organized through many seasons of growth and transformation is incredibly difficult.

That’s why 50% of all new businesses fold within their first five years. It’s difficult to build different teams and departments in a company that actually work together toward a common goal, rather than just worrying about their own tasks.

But that’s why SAP ERP exists. Wondering what SAP and ERP stands for? The answer has to power to transform how you run your entire business. Keep reading to learn all about this efficient type of software, so you can make your company more effective than ever before. 

What Is ERP?

ERP stands for Enterprise Resource Planning. It is software that small, medium and large-sized companies can use to essentially run their entire business from one platform.

SRP software can be used to handle a business’s finances and counting, budgeting, and reporting. But it can also be used across departments, such as in HR, product procurement, compliance, and supply chain management.

It streamlines how companies handle many of their daily operations. And by providing one application for all departments to use, communication and data transfer throughout the company is very fluid. 

It keeps everything in one place, so that information and files aren’t stored in multiple locations. Rather than different departments using different software and struggling to communicate across departments, one platform ensures all employees are on the same page. 

And it centralizes all of the information found within a company. So rather than isolated departments, each creating its own database of information, everything is stored centrally in the ERP software. 

ERP software is used across a wide variety of industries, from manufacturing to software development, retail to logistics, and everything in between. 

Understanding SAP and ERP

So what is SAP, then?

SAP is a German company that has created its own version of ERP software. The software goes by the same name as the company; Systems Applications and Products (SAP).

SAP ERP is one of the most popular versions of ERP software, having a long reputation in the ERP industry. Currently, the software is used by tens of thousands of organizations worldwide. 

The modules found within SAP ERP software cover almost every department and task that takes place within a company. 


Is SAP the only ERP you should consider? While it might be the most popular, it might not be the perfect fit for your industry or business.

There are various SAP alternatives that you should research before downloading any piece of software. After all, the ERP that you choose is going to be responsible for making your business run all day, every day. 

Taking your time to make the right decision ahead of time can save you a lot of money and headaches. 

Manage Your Business the Right Way

Now that you know what SAP and ERP mean, you know that enterprise resource planning software is essential to an organization that wants to thrive.

So figure out if SAP is the right version for you, or if one of the alternative ERP solutions is a better fit, and start managing your company the right way.

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