Can any body give me a brief of this both terminology and difference between them. Thanks Regards Shaival Tiwari shaival.tiwari@rediffmail.com 9824013689
From India, Mumbai
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SAP is ERP, but ERP is not SAP. SAP is part of ERP. ERP stands for Enterprise Resource Planning, where various tools are utilized. SAP is one of these tools. Other tools include HCM management software like PeopleSoft, HRMS, and others.
From India, Pune
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Dear Shaival,

ERP (Enterprise Resource Planning) is a concept, and SAP is an ERP tool (software). However, SAP has become synonymous with ERP because it has been widely used in around 26 industry verticals and enjoys a market share of 60% across the globe.

The other ERPs in the market are BAAN, JDEdwards, ORACLE ERP, MFG PRO, Microsoft Business Solutions (Navision and Axapta), and RAMCO. These are very familiar, however, even Tally also has ERP functionalities in it.

ERP is a concept where the information flow from one function to another is integrated very tightly. Each of these ERP products has its own uniqueness, and SAP scores over other ERPs because of its evolution. In fact, SAP was the first company to design this ERP tool that linked the various functions of an organization.

Let us take the case of Salary Processing:

Case-1 - Without any ERP or any software (manual processing):

You calculate attendance based on the Register, arrive at the number of days present and absent, manually reconcile leave, and finally, once the days payable are calculated, you will arrive at the person's agreed salary. Note down that, send the salary calculation sheet to the accounts department. Based on your sheet, the accounts department will either prepare a cheque or cash and hand it over to every employee, obtaining a signature on the voucher.

CASE-2 - With ERP Software:

Imagine the attendance is taken through the access card machine/swipe card or some sort of excel sheet. This data will flow to ERP for calculation for salary eligibility (how much to pay), and you can also cross-check or allow the system to process the salary slip and statement. The Salary Slip automatically gets mailed to every employee, and the salary statement goes to the accounts department, which will have details like Employee Code, Name, Designation, Dept., and Salary payable, and more importantly, the BANK Account number. The accounts department, based on the salary statement, will send the intimation to the bank with a single cheque authorizing to debit the company account and credit the employee with his salary, and all the relevant account entries are passed in the ERP software, such as Basic, PF, etc., which will be accounted in respective general ledgers as Expenses, Liability, etc. - ALL THIS IS DONE WITHIN FEW HOURS or FEW DAYS.

This is the fun of ERP!!!

Don't get lost between ERP and SAP. However, as mentioned earlier, SAP enjoys a monopoly because of the standard business sets (configurations) which can be used straight by organizations without reinventing the wheel.

Hope this was useful.

From India, New Delhi
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Dear Dhananjaya P, i am doing MBA HR .could u please explain me what other softwares i should learn to b at a (good) managerial position in HR Many Thanks
From India, Shahkot
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Hi Dhananjaya P,

I was pursuing my MBA in HR, which I had to leave in between because of some personal problems. I am currently working as a Manager in HR. Could you please suggest which course I should pursue in HR to maintain my position?

Please also suggest a distance learning institute for the same if possible.

Regards,
Mamta
Email: mamtaraina@gmail.com

From India, Lucknow
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Ms. Chandni,

As far as HR professionals are concerned, there is no specific IT course to boost one's career; however, it depends on personal choice. I assume that you are well-versed in using MS-Office, emails, and the internet, addressing the basic requirements. Let me now address your core issue.

You need to be clear on whether you aspire to lead a life as an HR Generalist, HR Employee Management Specialist, HR Recruitment Specialist, etc. On the software front, are you willing to become a Techno-Functional Consultant?

The role of a Techno-Functional Consultant is very demanding, requiring commendable experience in HR practices, rules, regulations, etc. You can consider getting certified in SAP-HCM (costing around 3 Lacs) or Oracle PeopleSoft (you'll need to find out the training details). These certifications will help you understand how the software is designed for HR and how to apply it according to the organization's needs.

Before proceeding, you need to decide whether you want to continue as a core HR professional or shift your focus to becoming an ERP consultant in the HR module.

Regards,

Dhananjaya P.

From India, New Delhi
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Ms. Chandni,

When it comes to HR professionals, there is no specific IT course that can significantly advance one's career. However, it ultimately depends on personal preference. Assuming that you are proficient in using MS Office, emails, and the internet, these skills fulfill the basic requirements. Let me address your primary concern.

You must first determine whether you aim to pursue a career path as an HR Generalist, HR Employee Management Specialist, HR Recruitment Specialist, etc. On the software front, are you interested in becoming a Techno-Functional Consultant?

The role of a Techno-Functional Consultant is quite demanding. It requires a solid understanding of HR practices, rules, regulations, etc. You may consider obtaining certifications in SAP-HCM (which could cost around 3 Lacs) or Oracle PeopleSoft (you will need to inquire about the training details). These certifications will provide insight into how these software applications are tailored for HR purposes and how to utilize them based on organizational requirements.

Before delving into these certifications, it's crucial to decide whether you want to remain a core HR professional or shift your focus towards becoming an ERP consultant specializing in the HR module.

Regards,

Dhananjaya P.

From India, New Delhi
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SAP is the name of a company founded in 1972 under the German name (Systems, Applications, and Products in Data Processing) and is the leading ERP (Enterprise Resource Planning) software package. The original name for SAP was German: Systeme, Anwendungen, Produkte, German for "Systems Applications and Products." The original SAP idea was to provide customers with the ability to interact with a common corporate database for a comprehensive range of applications. Gradually, the applications have been assembled, and today many corporations, including IBM and Microsoft, are using SAP products to run their own businesses.

ERP is a package with the techniques and concepts for the integrated management of business as a whole, for effective use of management resources, to improve the efficiency of an enterprise. Initially, ERP was targeted for the manufacturing industry mainly for planning and managing core businesses like production and the financial market. ERP software is designed for basic.

From India, Jaipur
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Hello Dhananjaya,

I really liked your explanation in relation to SAP and ERP, which helped me to understand many terms. Thank you so much for that. I really think that you can help me well with my query.

I have a bachelor's degree in Electronics and Telecommunication Engineering and a master's degree in HR (Human Resources) with one year of experience in HR. I am about to start my MBA in MIS (Management Information Systems) with knowledge of ERP and SAP. I wanted to know on which profile I can work. Are there any work profiles that require knowledge in HR as well as Information Systems? Please guide me on this! This will help me greatly!

I am looking forward to hearing from you. Thank you for your kind attention.

From India, Nashik
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Dear DHANANJAYA,

I gained a lot from your detailed description about the difference between ERP and SAP and how the software works. I have pursued BBA specializing in Logistics and Supply Chain. I have been thinking of pursuing a SAP training course. I am confused in selecting from two modules, i.e., LIS (Logistics Information System) or MM (Material Management). I would like to seek your valued advice on this matter.

Regards, Mukund Pandey

From India, Kolkata
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