Management With SAP: Benefits and Costs

Author: Sangita Nath

Implementing the right ERP solution is critical for organizational success. In 2022, an estimated 1.2 million organizations were using ERP software globally. As one of today’s leading solutions, SAP offers numerous benefits for successful ERP implementation.

Use our guide to what an SAP application is to better understand how to use SAP software and the costs associated with SAP implementation.

What Is SAP Technology Used for in Business?

SAP (System Applications and Products in Data Processing) is an integrated ERP software businesses use to maintain and operate on a single source of truth. Companies that use SAP ERP solutions ensure separate departments operate on one system, sharing the same product, customer, sales, HR, and operations data.

Companies using SAP ERP manage nearly every business process with the software to maintain a centralized and efficient operational hub. 

Some of the main uses of SAP software include:

  • Customer relationship management
  • Sales
  • Manufacturing
  • Finance and Accounting
  • Human resources
  • Project management
  • Supply chain management

SAP technology provides a solution for each of these business uses, allowing departments to work collaboratively, sharing one primary source of data.

4 SAP Benefits for Business Management

SAP Business Suite 4 HANA (SAP S/4 HANA) helps medium and large-sized businesses operate more efficiently and cost-effectively.

Though SAP offers many different advantages for improving internal processes, there are a few key benefits of using SAP software organizations should be aware of when implementing this ERP solution, including the following.

1. Streamline Business Processes

SAP enterprise software is designed to eliminate the repetitive, time-consuming, or error-prone tasks that make up various business processes.

From inventory management to financial reporting to hiring to customer support, SAP solutions help departments streamline daily business activities.  

Learn more about SAP ERP on our blog:



One way that SAP helps to increase operational efficiencies is through automation. For example, SAP provides a convenient way for sales and marketing teams to automate campaigns and convert highly qualified leads more efficiently.

2. Increase Profitability

One of the primary SAP advantages and why it’s used to integrate business processes is that the software reduces operating costs, increasing profitability. ERP solutions, including SAP, are considered one of the leading ways for large organizations to reduce their administration and overhead costs.

For example, SAP financial management features allow organizations to automate key accounting activities, reducing operating costs and improving financial accuracy. 

The built-in financial planning and analysis features improve cash flow and control spending based on historical and financial modeling data.

SAP Benefits

3. Improve Productivity

One of the main reasons why SAP is used is its effectiveness in optimizing business performance.

In particular, SAP software helps businesses make better use of resources, particularly labor costs, which are maximized through robust project preparation and management features as well as interdepartmental collaboration functionalities.

The software’s built-in business intelligence technology helps businesses identify opportunities to increase efficiencies, eliminate redundancies, and achieve performance metrics more productively.

4. Enhance Data Transparency

The process of ERP implementation has created room for businesses to undergo a digital transformation. Businesses managing multiple different databases can now view all data within a single source of truth, preventing duplication and errors due to manual entry.

SAP cloud automation allows a master database to be shared across multiple departments all accessing the most accurate version of organizational data at once. 

From project teams to production support to inventory to billing, SAP makes all activities transparent and easy to monitor.

Costs of SAP ERP Implementation and Deployment

SAP is a comprehensive software solution suitable for medium-sized and enterprise-level businesses. The SAP ERP system (S/4HANA) is available on a per-license basis, with single licenses starting at $1,350.

In addition to purchasing licenses, it’s also recommended to engage with an SAP Systems Integration partner to help manage SAP ERP implementation. SAP service providers can develop a tailored ERP implementation plan to help you achieve a smooth SAP deployment process and timeline.

Looking to Eliminate Busy Work to Maximize Productivity?

SAP centralizes all of your data and powers it with automation to optimize workflows, unify recordkeeping, and simplify decision making

Learn About SAP Implementation

Some of the services included in SAP ERP software implementation and deployment include:

  • Leading the SAP implementation project with an implementation team overseeing ERP deployment
  • Developing a business road map with an ERP implementation strategy
  • Configuring the SAP system with ERP customizations
  • Conducting SAP integrations tests
  • Performing an ERP evaluation to ensure software optimization

ERP implementation is conducted in phases, so it’s important to ask your SAP partner to walk you through the steps for ERP implementation ahead of time.

Each ERP consultant or SAP implementation partner will charge their own rates, so research top competitors to ensure you get the best value for successful ERP implementation.

Get Expert SAP Implementation With Ameri100

Achieve a successful SAP implementation process with Ameri100. As an SAP-focused company, Ameri100 has the expertise your business needs to implement SAP ERP software and integrate existing business systems to meet your organization’s goals.

Learn more about our SAP implementation services or contact us today to speak with an SAP solutions expert.