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ERP & SAP Job Descriptions

What is ERP, the advantages and disadvantages of SAP

ERP stands for Enterprise Resource Planning. ERP is software that allows companies to integrate different operations within a single program. While ERP is a generic name to refer to enterprise resource planning, SAP is the best-known ERP software.

In this article, we will explain what is ERP, why it is important, and also the advantages and disadvantages of SAP.


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1. What exactly is ERP

ERP (Enterprise Resource Planning) is a software that allows combining production, logistics, inventory, accounting, and human resources operations in the same program.

One of the advantages of ERP systems is their ability to automate processes, resulting in time and cost savings for companies. This is because the implementation of an ERP within the company can bring a large amount of important information on business performance onto the same platform, thus giving order and consistency to all the data generated day by day in the project. 

When talking about ERP, it is impossible not to mention SAP.  And the difference between the two concepts is very simple.

ERP is the generic name used to refer to an enterprise resource planning system, any system, regardless of brand or function; SAP is a specific ERP, and one of the best known.

1.1 Why is ERP crucial for a business

There are certainly many good reasons why ERP is critical to a company’s success. Below are the most relevant ones, let us analyze them together considering the various areas of business management.

  • Firstly, a good ERP implementation helps companies better manage financial activities, from payroll administration to sales reports.
  • ERP also helps provide a clearer picture of the company as a whole.
  • ERP helps improve customer relations and accompanies the company in the technological adaptation that is so much in vogue in recent years.
  • As a unified system, ERP promotes data compatibility in all its areas.

Also read how to implement an efficient ERP in 6 steps

2. Systems, Applications, Product (SAP) in Data Processing

Systems, Applications, Product (SAP) in Data Processing

The name SAP comes from a German multinational company founded in 1972 by former IBM employees. Since then, in the name of this world-renowned company, SAP services or “Systems, Applications, Products in Data Processing” have been used in almost all areas of business administration.

The company’s development has been so rapid that it has become the leader in ERP software. Its services stand out for covering both administrative and customer needs and providing the necessary tools.

Particularsly, there are three basic characteristics of the SAP system: Tailor-made, Canned, and Open Source.

2.1 SAP: a Tailor-made system

Firstly, when one speaks of a system as tailor-made, it means that it has a high degree of personalization. And this, in system terms, refers to a large number of modules that SAP offers. These modules allow each company, small, medium, or large, to adapt it to its own objectives and use only the functionalities that are of interest to it.

Although they have some disadvantages such as unforeseen events and the cost of the process, they meet the needs of the client in a more positive way when dealing with small or medium-sized businesses.

2.2 SAP: a canned system

Then, a canned system means that it includes the systems of companies that produce software to meet the needs of the market on a broader level. The canned system is marketed through software licenses.

The experts’ conclusion on this feature is that it is very difficult to develop a system that encompasses all business functions. For this reason, they say, companies buy a canned ERP that is tailor-made to their needs.

2.3 SAP: an open-source system

Last but not least, as a group of programs, SAP system handles large amounts of data, analyses it, and allows for faster and more compliant processes.

SAP is an open-source system that can be modified by the client, and in the specific area of SAP the programming language is ABAP. The fact that the programs are open provides excellent benefits to the companies that use them.

2.4 Characteristics of the ABAP language

  • Goal-oriented programming
  • Simple language
  • Event-driven
  • Ready for multi-language environments

Moreover, the ABAP language has elements to declare data, internal control elements, operational elements, and database access.

3. The advantages and disadvantages of SAP

SAP systems have their pros and cons. We will detail the main advantages and disadvantages of SAP.

3.1 Advantages of SAP

Simplicity

Firstly, one of the advantages of SAP is its ease of use. The interface is very intuitive and, although its use can become more complex with the addition of modules and new functions, it is not necessary to have the in-depth technical knowledge to understand and enjoy the tool.

Flexibility

Another advantage is that the flexibility offered by this system allows companies to create rules in the SAP system. This will make it possible to channel possible errors and mistakes. In companies, it is possible to decide which employees have access to the data handled by the SAP system.

3.2 Disadvantages of SAP

Periodic system update

Among the disadvantages of the SAP system, we could say that it needs a periodic system update every few years. And this entails an economic cost that may be difficult to assume for some. In addition, with each upgrade there are changes in functions, some disappear, others are added, and it can be confusing.

High Costs

Besides the aforementioned disadvantage in terms of the unexpected or disproportionate costs that the SAP system can generate, it must be taken into account that in order to apply this system it is necessary to acquire the software and hardware to run the programs in the company and, in addition, the cost of hiring employees who are responsible for using this technology.



4. What are the SAP solutions?

SAP offers solutions in a wide range of areas, such as Finance, CRM, Network and Expense Management, Digital Supply, Human Resources, Business Technology, Industry and more.

Below are the features of each of them.

Discover What is SAP Integration Solutions

4.1 ERP and Finance

SAP ERP and Finance

Firstly, Enterprise Resource Planning offers various financial reports. For example, the reports include cash flow projections based on inventory management and order status.

These types of reports also provide the possibility of duplicate entries, as this is done automatically.


SAP FICO is a functional component of SAP ERP. Many large companies use it to generate and manage financial statements. For example, it is useful to create reports, but also for analyzing the decision-making process.



Explore the role of the SAP FICO Consultant


4.2 CRM and customer experience

SAP CRM and Customer experience

Then, a CRM (Customer Relationship Management) is a tool that helps companies to understand customer needs and to respond to those needs.

In turn, an SAP CRM system allows companies to optimize workflow and create knowledge sharing. It also improves account management, and all this helps companies to effectively address customer needs.


A CRM (customer relationship management) consultant, otherwise known as a CRM expert, is a specialist in customer relationship management software and the relationships themselves.
Usually, a CRM expert works for an ESN or a BtoB agency. He/she may work in a large group or in small structures and must mainly work with customer service, marketing, and web marketing.


If you what to know more about this expert, read also the entire job description of the CRM Consultant.


On the other hand, the role of e-CRM occupies an important place in the field of customer relations on the web; since it coordinates the implementation of digital campaigns across all of the digital platforms of a company.


Salesforce is a CRM (Customer Relationship Management) platform that enables companies to simplify and optimize customer interactions. The Salesforce consultant deals with the IT side of customer relationships and specializes in the Salesforce ecosystem. His role consists of advising companies on implementation strategy and conducting studies to meet all customer needs.


Also discover the role of the Salesforce Consultant


4.3 Network and expense management

SAP Network and expense management

Spending management refers to the practice of managing supplier relationships and company purchases. It helps to identify the money spent and make the most of it. In this sense, SAP leads to greater efficiency by automating the entire process. It also reduces supply costs and risks by keeping track of what is brought in, from whom, and for how much.

4.4 Digital supply chain

SAP Digital supply chain

In addition, the Digital supply is the result of the application of digital technologies. With its end-to-end connectivity, SAP eliminates the use of paper. It also eliminates manual data entry and makes everything reliable and easy.


The IoT is undoubtedly a rapidly expanding sector. Consequently, the role of IoT consultants is growing. They can also help a company in transforming its existing products into connected objects as part of a global innovation process.


Discover the job description of the IoT Consultant


4.5 HR and staff interaction

SAP HR and staff interaction

On the HR side, SAP helps in organizational management and tracks attendance. It also helps to accurately verify payroll and ensure overall HR compliance. Moreover, it improves employees’ feelings and attachment to the company and productivity.

4.6 Experience Management

SAP Experience Management

Moreover, SAP Experience Management helps monitor the interaction of people and the company. In other words, it enhances the experience of interacting with a company to uncover opportunities for improvement. It also reduces the gap between companies and customers.


Jira is a multifunctional platform developed by Atlassian that facilitates the management of development and Agile projects. It is a tracking software that allows teams to define activities, identify blockages and share information.


Also discover the role of the Jira Administrator


4.7 Business Technology Platform

SAP Business Technology Platform

SAP Business Technology Platform has data and database management and analytics, and also intelligent technologies which helps simplify any company’s adaptation to instantaneous market changes.

4.8 Digital Transformation

SAP Digital Transformation

SAP provides leading intelligent applications and technologies such as AI and machine learning. It helps companies and organizations reinvent themselves, and become more customer-focused and profit-driven.

4.9 Small and midsize businesses

Certainly, small and midsize businesses face a number of challenges. These include cash flow management, supply chain operations, and employee engagement. SAP helps these companies understand the latest industry trends. It also helps them reinvent product branding and embrace leadership change.

4.10 Industry solutions

SAP Industry solutions

Finally, SAP also offers more than 25 industry-specific ERP solutions to help companies. With that, organizations get an overview of industry-specific business processes. Some of these industries are aerospace and defense, banking, defense and security, insurance, and high-tech.

To conclude this discussion about what is ERP and the advantages and disadvantages of SAP, it is important to mention S/4HANA. This is because it represents one of the most vibrant areas of enterprise IT. Investing time in developing one’s skills in S/4 can lead to a successful and reliable career. But what is this new iteration of SAP’s ERP all about? 


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About us Podcast Interviews

Being a Buoy and Other SAP Project Management and Career Tips

SAP project management expert John Micale is Customer Experience Account Manager at oXya, a Hitachi Group company delivering leading SAP run management, consulting and cloud hosting services.

John is tasked with ensuring that a consistent, high-quality service is provided to all of the company’s customers, overseeing client relationships, project management and business development.

He tells us about his career beginnings and shares tips for efficient SAP project management and career advancement.

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Interested in SAP careers and SAP project management? You might also enjoy this interview about another possible career path for an SAP consultant.

How did you get started in tech? How did you start working at oXya?

I’ve been using computers, playing video games and using technology since I was a kid. When it was time to choose a university, I decided to pick one that specialized in engineering and technology. I earned my degree in computer engineering, and that kind of led me on to this track of IT and how I wound up at oXya. And it’s kind of a funny story.

When I was in school, I was looking for a job in my last year. I was doing interviews and did an interview with oXya. I had no idea who they were or what SAP and Basis were, but they were really compelling, and they said that they could teach me.

I actually got a job offer from them. But I still had one semester of schooling left, so I couldn’t take the job. But they said “try again in the springtime. And so, I applied for the job again in the spring and they hired me. I really appreciated that opportunity from them.

What are the advantages of working at a specialist consultancy or service management company like oXya, as opposed to working in-house for a sole company?

Number one is definitely diversity in experiences. So, having the exposure to different industries, different customers using different products. You gain a lifetime’s worth or even multiple lifetimes worth of experience and background in just a few years. And I think that was incredible for me and for many of my colleagues working at oXya. 

Number two is diversity in projects and technologies. So, touching every kind of operating system and version, every kind of database product, every kind of SAP product. Many companies say “OK, I’m going to use ECC, or I’m going to use Linux.” And that’s it. That’s the decision they made and maybe, every 10 years, they change products and you’re stuck with the same thing. Having that diversity keeps you sharp. 

Another thing is that clients who typically use SAP are large and very corporate customers. And, if you are working with them, you’re automatically included in a very corporate environment. Being part of a smaller company like oXya, we have more of a startup-like vibe. So you kind of get the best of both worlds. You get smaller teams and a tighter community, and you move more rapidly, but you can still support this product, SAP, which is this huge corporate tool. 

What about the challenges?

The learning curve is really steep. For example, I didn’t know what SAP was, or I didn’t have a lot of strength in database technologies, and to take all of that in at once is quite a lot. If you stick with it, you can catch up at some point, but the learning curve is really steep.

And the projects don’t ever end. That can be a good thing too, that can be in the good category. It depends on what kind of personality you have, but there’s no respite. You are working for a big corp, and they have this upgrade project that lasts two years. And then that’s it for them for a while, whereas, on our side, we’re doing a new project every three months, and it hasn’t stopped in 10 years for me.

After two years in a technical position, you transitioned into a more managerial role. What advice would you give to other specialists looking to take that step?

Being a manager is a job. It’s not just an extra task that you have to do. It took me a long time to realize that, and I see that mistake happen often with new managers. To do it correctly, you have to prioritize that role. It’s not just about having to approve someone’s time off or something like that. The investment in training and people is a full job. If you’re mixing this job as a manager with your technical job, for example, that’s often a recipe for disaster where you choose one priority over another and one of those two will suffer.

Internal company relationships are really important too. That’s an important part of being a manager. It’s not about being a brown-noser or saying nice things to your boss. But management roles are based on trust and execution. There’s not a binary output most of the time, so you have to be a reliable person, and you have to make sure that you are sharing your reliability and your credibility with your managers and with your team.

What are the keys to effective SAP project management?

Understanding the project. I think that’s like the number one. It sounds like a silly thing to say, but I think often folks come in and they say “OK, here’s a project and I’m going to follow a checklist.” But you have to really understand why. Why are we doing this project? What is the real purpose?

Normally there’s a CIO or CFO at some company who has to make some decision, and that trickles down eventually to many projects. And, if you’re not aware of the big picture, then you might not really understand what kind of impact you’re trying to make. So first, you really need to understand the project.

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Secondly, coordination in SAP project management is incredibly important, the synergy. And not just internally with your teams and your company, but with your customers or with their third parties. Every customer now has 5-10 vendors, and there’s an expectation that vendors can work together, that there can be synergies and there is not a weak link.

Also, keeping commitments is really important for project management. Everything is essentially a stack of dominoes. If you miss a target, that’s going to affect the whole project. And that doesn’t build trust and or credibility. So, if you’re making commitments, they have to be realistic and you have to keep those commitments. Everything else falls right into place once you meet that.

The deadline to migrate to S/4HANA is rapidly approaching. What do you see as the biggest challenges for a smooth transition?

It all starts with a kind of a legacy mindset. Most customers that are on ECC today say “it’s been working this way for 10 years, 15,20 years. Why do we need to change it?” They say “they will move the goalposts again. Why do we need to make this transformation?”

But the web of external interfaces that connect to ECC makes any concept of transformation really challenging for most customers, especially these really legacy customers. S/4HANA is designed to solve that problem. It’s designed to eliminate the complexity, simplify the code base, simplify the connectivity to it, and kind of futureproof SAP customers from that kind of problem in the future. But making that transformation is still really painful and usually very expensive.

I think the value proposition is really what isn’t obvious for most customers. If you can communicate the future state of the company, not what it will look like in one year or two years after some migration or upgrade, but what it’s going to look like in 5, 10, 15 years; if you can make them see how S/4HANA or cloud-based tools can reimagine their supply chain or things like that, I think that’s when they have the a-ha moment.

It’s not about taking your car and just changing the tires. It’s about turning it electric. It’s a total redesign of the whole concept.

What’s the best career advice you have ever been given?

I would say I had two great career advices. One was to stay humble and have humility with your peers, have humility with your customers. If you’re scoring all the time, it feels good to think that you’re a champ and everything goes right. But then you’re exposing yourself to vulnerabilities or blind spots. So, stay humble. Wins are wins, which is great, but sometimes you need to have an open perspective.

And the second best advice I have been given is: be a buoy. What do I mean by that? Like a buoy in the ocean. Sometimes you want to just be like a Godzilla and knock stuff around and shake things up, especially when things aren’t going well. But, almost all the time, people are looking for stability. They’re looking for reliability, accountability. And, I’ve realized over the years that people will flock to you naturally if you’re stable, if you’re consistent. So be a buoy like in the ocean.

Where do you see yourself in 5-10 years?

I want to help radically change what customers experience from SAP outsourcing. That’s like a super bold claim, but I think that outsourcing as a concept has always had a bad rep. And I think that a partner can be more empathetic, less transactional. We can be an equal in their organization and be a real partner.

And I’m seeing with my customers that, when they’re treated this way, we get a different experience. They treat us like people, they treat us like partners. They even have more flexibility with us, which says a lot. They don’t have to give us any kind of flexibility, but they do it.

So, I would really like to make that kind of change, and I really want to help train others in this kind of methodology.I want our industry to be more empathetic and more partner-focused. In the real sense. Not in the corny corporate sense, but in a real in a real sense. To really make a difference. Because, otherwise, what are we doing?


For more tips on SAP project management, careers and consulting, make sure to follow John on LinkedIn.

You can also explore our S/4HANA careers guide for a comprehensive overview of how to embark on this promising career journey.


Check out more of our interviews in our podcast episodes.

Categories
ERP & SAP Job Descriptions

The Different S/4HANA Roles

What are the different S/4HANA roles that IT professionals can choose to take?

As a result of the impending 2030 deadline, businesses still relying on SAP’s older software find themselves in a race against the clock to migrate to S/4HANA; a lengthy and hefty task. But early adoption has been sluggish, and few SAP specialists have had the chance to get hands-on experience with the technology.

Demand for S/4 skills is higher than ever and will only increase in the coming months. Both newcomers and SAP veterans have now the chance to jump on the S/4HANA bandwagon and give a boost to their career.  

Functional vs. Technical roles

Just as with ECC6, there are two main categories of S/4HANA roles: functional and technical. However, these two categories often overlap with one another, and the best specialists have a combination of the two.

Then, functional roles essentially serve as the link between business and solution development, helping organisations design and implement S/4HANA environments. These profiles combine a sound technical understanding of SAP’s ERP suite with domain expertise – having knowledge of, for example, finance or HR. They also possess strong communication and leadership capabilities. Therefore, a functional expert has a strong business background and a very good understanding of business flows and processes. Thus, that leads them to be responsible for customising the ecosystem after the implementation of new flows or after an evolution in the core model.

On the other hand, technical roles, as the name suggests, have more to do with the development (coding), monitoring and running of S/4HANA applications. Their main strength is in IT, and less so in industry knowledge or interpersonal skills. However, that doesn’t mean technical profiles don’t need to be competent in these areas – soft skills are becoming more and more crucial for IT professionals.  

Functional roles

Specialists in functional S/4HANA roles come from a technical background or are at least well-versed in the technical requirements and capabilities of S/4HANA. Then, domain or industry expertise is a must, as they must have a good grasp of all those non-IT-related concepts to design efficient solutions.

Moreover, a great part of the functional specialist’s job is coordinating with business leaders, end-users and all the other roles involved in the SAP project. Consequently, they also must be good communicators and have well-developed project management and organisational skills. 

Also, the specific role within the team mostly depends on the depth of focus and level of seniority. The main functional roles include:    

Business Analyst

Firstly, SAP Business Analysts are responsible for assessing and defining the business case driving S/4HANA implementation. These professionals understand the ins and outs of SAP’s platform, leveraging great business and industry acumen to identify what ERP solutions can be applied to optimise company operations. They also help train end-users in the use of the platform.

They often come from a business background or have extensive experience in the specific industry and practice (e.g. Finance or manufacturing), a skillset they complement with S/4 training and know-how. Others started in IT and have later garnered valuable business and consultancy expertise.  

Application / Module expert

These are very focused business analysts or more technical profiles specialised in a particular S/4HANA module (e.g. Finance, Sales). These subject matter experts can provide advice and implement SAP components or oversee their day-to-day operations — or both. It is a must for module experts to be proficient in the area of business to which their module relates.

A good example of an SAP application expert is the SAP FI/CO consultant or analyst. These professionals are specialists in de Finance and Controlling modules, expertise which they combine with financial wisdom to help companies produce reports and streamline operational costs. 

Solution Architect

As their title suggests, solution architects are the ones designing the S/4HANA environment based on the company’s business needs. They also have a big-picture mentality, which they mix with a deep understanding of SAP tools and other software and hardware tools to devise custom-made ERP systems.

In addition, architects need to be good at communicating their vision and collaborating across the many teams involved in a project, both in technical roles and in more business-related areas.

Project Manager

Somewhat the least technical role of them all, the project manager coordinates the full life-cycle implementation and configuration of S/4HANA projects. Think of them as a sports team coach. The project manager keeps track of project goals and progress while ensuring that every moving part is on the same page.

Moreover, these are individuals with strong leadership and communication skills and that have a knack for problem-solving. They possess a good understanding of the S/4HANA platform and its different modules. In fact, SAP project managers usually have a business background as well as expertise in core modules (e.g. Supply Chain or Finance). Under today’s continuous improvement and delivery (CI/CD) paradigm, project managers must also be proficient in Agile development methodologies.

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Technical roles

These are the developers and specialists responsible for delivering and maintaining the SAP solutions as designed by the functional half of the team. Technical specialists are also often involved in the design phase of a project and can help advice on capabilities or ways of approaching a problem. The best specialists in technical positions tend to have good business and domain knowledge and are able to put themselves in the shoes of the functional specialist.

Technical S/4HANA roles include:   

ABAP Developer

Creates, tests and implements S/4HANA solutions using SAP’s proprietary ABAP language. These are SAP’s hardcore coders, in charge of the platform’s back end and making the application work. They also are, of course, great coders, and they need to possess strong analytical and problem-solving skills.

The best ABAP developers combine mastery of S/4HANA modules with great creativity to deliver efficient and lean software solutions. They are also fluent in DevOps and Agile development methodologies and work well in CI/CD product cycles. 

SAP Fiori Developer

They are the front-end counterpart of ABAP developers. SAP Fiori is SAP’s advanced user experience (UX) engine. Fiori developers work together with their ABAP piers to develop the visual interface of S/4HANA applications.

In addition, these technical professionals are good coders, but they also possess skills in end-user-related areas like psychology

SAP Basis Administrator

The equivalent of a System Administrator in other platforms, SAP Basis administrators configure and ensure the correct performance and the reliability of the whole S/4 environment. They also have a mix of technical and interpersonal capabilities and do a lot of landscape management and monitoring.

Basis administrators have a deep understanding of the S/4HANA ecosystem and its different modules, but they are also knowledgeable in ABAP, Linux and Java. They also have good collaboration skills, as they need to coordinate with technical colleagues and end-users to keep the system in perfect shape. 

Security Analyst

Moreover, administers and monitors security roles and authorization profiles for S/4 systems. Security analysts can be also considered a more focused version of a basis administrator, combining deep technical knowledge of the SAP environment with a focus on security.

Security analysts are proficient in SAP’s role-based security concepts and Profile Generator. They also need to be able to speak to infrastructure-level security concerns to other, less technical roles within the IT team or business managers.

Data analyst

Lastly, these professionals leverage business intelligence and data management to produce insights that help inform business decisions. They are also experts in data engineering and databases, able to create high and low-level data product designs based on business and technology requirements. Moreover, data analysts are experts in SAP HANA in-memory database, and they need fluency in Agile methodologies to be able to collaborate effectively with the rest of the technical team. Additionally, the best data analysts possess good business and domain acumen, which lets them reach deeper and more actionable insights and better communicate with their business peers.

Want to make the most of S/4HANA’s career potential? Also Check our comprehensive S/4HANA Careers Guide.


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