Overall impression
The centrality of SAP in the provision of business software cannot be gainsaid. The company develops software programs which enhance productivity for various companies across the globe. SAP ensures efficiency and productivity in areas such as customer relations, human resources management, accounting as well as enterprise resource planning. Because of these services, SAP has become a global leader in the provision of business software. It is against this backdrop that the University of Houston-Downtown invited the vice president of SAP, Jeff Word, for a talk with its students. Word’s introductory message to the students encompasses the working of SAP technology. He observes that SAP is a software that runs the planet. In this regard, Wood implies that various companies across the world use this technology to improve their productivity.
Word opines that between 100,000 and 180,000 companies in the world use this technology to run their operations. Because of its wide applicability, SAP Company has employed more than 55,000 employees in 120 countries to help it achieve its strategy. Wood observes that he has travelled to 70 out of the 120 countries to promote the company’s global business agenda. He opines that SAP technology draws a wide range of applications. For example, 65% of chocolates used in the world is made of technologies that run on SAP. Every computer used in the world as well as iPhones are made using technologies that run on SAP. According to Word, the United States’ military and nuclear super carriers employ SAP technology to increase efficiency and effectiveness of operations.
Throughout the presentation, Woods expresses his satisfaction regarding the achievements that his company has made over the years. Leading companies on the SAP’s technological enterprise include ABP, Procter and Gamble and NASA among others. To underscore the centrality of the company in global economy, Word opines that 50% of the world’s GDP get into SAP systems daily. This figure implies most companies have entrusted in SAP to ensure that the company monitors its financial systems. The degree of trust symbolizes the company’s commitment to excellence in the field of enterprise systems. The high level confidence in the company is the reason 79% of companies dealing in consumer and life products have their systems run by SAP against 83% of companies dealing in discrete manufacturing. On the other hand, 75% of energy and natural resource companies have their systems run by SAP against 57% of financial service companies. Wood regards 57% as the lowest penetration in the financial service industry although he insists that the lowest penetration in this industry is a global phenomenon.
Word believes that it is not possible to hide anything from SAP because the system is able to detect any malicious activity and illegalities. This proposition can boost the confidence of clients who are willing to try the technology for the first time. He identifies the four types of services that this application can offer. These services include On-premise, on-device, on-domain and cloud computing. Word added that the company’s revenue streams are realized when the company provides licences of business software to its clients. In addition, SAP provides maintenance services and offers consultation to already-purchased business software. The company utilizes media to communicate to its 32,000 enterprise customers. Word posits that the company is developing a new services-oriented architecture (SOA) to allow users of the application to link and connect.
As at 2009, SAP had registered a significant increase in customers in over 120 countries. The company uses its SOA (NetWeaver) to link and connect with its more than 100,000 customers globally. The acquisition of Sybase, Inc. in 2010 and the increasing number of subsidiaries enable the company to increase its operations across the world. Wood describes this acquisition as a success story and strength of the company to ward off competition from its main rival, Oracle.
Relationship between the talk and Motiwalla’s proposition
This talk draws important relationships with the material in this course. Motiwalla developed an approach towards understanding and implementing ERP systems to ensure success in contemporary businesses (9). Throughout the book, the author has made deliberate attempts to enlighten the readers so that they can understand the essential components of an ERP system as well as the processes involved in the implementation of these systems. The complete implementation of ERP systems enable corporations to enhance their success and productivity. Motiwalla’s book and Word’s talk have a point of convergence because they both place emphasis on the centrality of ERP systems in the improvement of business operations. Woods believes that ERP systems offer a stage upon which business productivity and success can be achieved.
His vision and Jeff’s proposition
Motiwalla envisions a future in which most businesses shall recognize ERP systems as the ultimate way of realizing full business potential. He believes that the challenge of the contemporary business enterprises lies on their ability to acknowledge the technological revolution and adjust accordingly to increase success. On the other hand, Word proposes sharing of knowledge about SAP so that business can know how it works and adjust accordingly. Wood proposes the establishment of an innovation lab to help in the management of servers and increase the performance of the company.
Enterprise systems
Enterprise systems (ES) is a broad term that describes application software. This software is usually large-scale and used in organizations to enhance business systems. ES is used to enhance flow of information within a company as well as information reporting and analysis. Various types of ES include enterprise planning systems, customer relationship management and enterprise resources planning systems (Motiwalla 13). These systems are built on various software platforms. For example, SAP relies on Netweaver while Oracle relies on Fusion. ES enable companies to streamline their operations by reorganizing their internal and external processes. The enterprise resource planning (ERP) is the most common type of ES used in many businesses.
Impacts of enterprise systems
Enterprise systems have impacts on various sectors such as health and business. ES helps in running lean organizations by eradicating potential areas that may encourage inefficiency. Modern businesses rely on these systems to increase productivity and process information much faster than the conventional systems. Enterprise systems enable businesses to cope with emerging challenges and encourage further advancements in technology to solve technological challenges (Duan & Li 672). The advent of technological movement has put pressure on businesses to use modern technology in the management of its affairs. Because of this revolution, clients put their trust on business that run electronically. In this regard, it is incumbent upon businesses to identify existing gaps and seek technological solutions. Enterprise systems offer this solution. In a study to impact of enterprise resource planning system on healthcare service delivery, Motiwalla observed that ERP provides critical information technology applications which aid in effective healthcare service delivery.
Conclusion
This study sought to examine the role of SAP in light of the talk that SAP VP Jeff Wood delivered at the University of Houston-Downtown. The study reveals that SAP plays a significant role in helping business increase productivity. The study reveals that enterprise systems provide describe application software that helps business to realize success and growth.
Works Cited
Duan, Lian, and Li Da Xu. "Business intelligence for enterprise systems: a
survey." Industrial Informatics, IEEE Transactions on 8.3 (2012): 679-687.
Motiwalla, Luvai F., and Jeffrey Thompson. Enterprise systems for management. Upper
Saddle River, NJ: Pearson Education, 2012.
Word, Jeff. “SAP TALK.” University of Houston-Downtown. Available at
http://uhdmediasite.uhd.edu/Mediasite/Play/70bd29f9d1d14c0ca444cfa9c6bb36581d
Word, Jeff. “Inside SAP.” Available at https://www.youtube.com/watch?v=2IAlxzv_UY4
