SAP Business One is a topic that many technology experts around the world are interested in. This software has also attracted considerable attention from small and large enterprises in many different industries. So, what is SAP B1? How does this software work, what is the cost of implementation and what are the benefits of implementing this software? Find out more details with BAP Software through the article below!
1. What is SAP Business One (SAP B1)?
SAP Business One abbreviated as SAP B1, is an integrated management software system for small and medium enterprises (SMEs). This software system is a tool to assist enterprises in effectively managing all available resources, minimizing operating costs, and improving the efficiency of production and business activities.
SAP B1 is a system that integrates all the important business information of the enterprise, including areas such as Finance, Sales, Customer Relations, Production Department, Inventory Management…
2. How does SAP B1 software work?
SAP Business One integrates all activities in the enterprise and is designed on the On-Premise or Cloud platform.
The server is responsible for storing all databases, and users from departments in the enterprise connect to the Database network via the Internet. Not only that, but the SAP B1 system also decentralizes applications, users, and connects to the database scientifically, ensuring high security.
All information and data, vouchers of departments in the enterprise are automatically stored and processed on SAP B1 software consistently, automatically updated when there are changes. Thus, the database network in the enterprise is always synchronized and continuously updated over time.
3. Difference between SAP Business One and SAP S/4HANA
SAP S/4HANA and SAP Business One are both new-generation ERP solutions that help enterprises manage their resources, production and business activities. However, these two platforms have some differences such as:
- In terms of enterprise size:
SAP Business One is usually operated for SMEs, while SAP S/4HANA is often used by large, financial, and highly technical enterprises.
- In terms of operating costs: SAP Business One has a much lower price than SAP S/4HANA.
- In terms of features:
SAP B1 has an easier-to-use and more intuitive interface, with financial, business, and enterprise management features. SAP S/4HANA focuses on business decisions, cost management, production delivery, and database management.
- In terms of technology:
SAP B1 uses its database technology, integrating more satellite applications. SAP S/4HANA applies in-memory technology to process data at extremely high speed.
If your enterprise is a small to medium-sized one, then SAP B1 is a suitable solution. If your enterprise is a large-scale one, with equity capital and a team of highly qualified technicians, you should use the SAP S/4HANA platform to promote business operations and bring higher profits.
4. Top benefits of SAP B1
SAP Business One can support enterprises to perform management activities, here are some benefits when applying this software to your business management system:
- SAP B1 application helps enterprises cut costs such as business administration costs, selling and service costs, production and business costs, and tax payments for enterprises.
- Easily find information when needed, and make suggestions quickly and accurately.
- Synchronize information systems, reduce errors and time wasted entering data.
- SAP B1 supports VAS reporting, making financial statements compliant with accounting standards in Vietnam.
- SAP B1’s data processing speed is extremely fast, the software configuration is user-friendly.
- Improve product and service quality.
- Increase employee compliance at work, ensuring employees have higher self-discipline.
5. Why you should use SAP Business One
Besides the benefits that the SAP Business One brings to enterprises, here are some reasons to choose this software to standardize operations in business administration:
- SAP Business One is the world’s leading reputable and stable software:
SAP B1 is developed and operated by one of the world’s leading business management companies, so the quality of the software is always guaranteed stable.
SAP B1 also has a lot of outstanding features such as the ability to automate work, improve and standardize business, synchronize the information on the system, connect data between departments, and update information quickly.
- SAP B1 software configuration is simple and easy to use:
SAP B1 is designed simply, to make statistical reports according to intuitive graphs, and the functional system is scientifically arranged to help users easily use and find information. In addition, SAP B1 is also the software used in many countries around the world, including Vietnam, while updating the laws of the host country to operate most effectively.
- SAP Business One can handle a lot of flexible situations:
This is one of the typical reasons you should apply SAP B1 in business administration. Because SAP B1 runs data on the Database and can expand, shrink, and process data depending on the situation of the business. As an enterprise grows and expands its business scale, the SAP system can change and expand more features to serve the enterprise’s goals.
- The data in the SAP system is strictly secured:
The database in the SAP is designed and focused on security. The platform runs in a Linux environment – this is an environment that is highly appreciated by the technology world for its security level.
Not only that, SAP B1 also integrates advanced technology to support sub-applications to access data but still ensure good security. Moreover, SAP B1 also decentralizes users, approves information according to its standards, and secures multi-layer user information to limit information leakage.
- Appropriate operating costs:
SAP B1 is a software system that operates depending on the size of the enterprise. Enterprises need to invest an appropriate amount of money in the SAP B1 when it first starts operating. However, after only a period of use, business processes and employee working speeds are improved, improving overall performance, thereby, saving costs and bringing great profits to enterprises. Thus, the investment cost for SAP B1 is completely reasonable.
- Ability to integrate with other applications:
SAP Business One can integrate with many other platforms such as eBanking, and DMS through connection methods such as API, intermediate database, and Excel… These systems are considered as satellites around SAP B1, making the business better managed.
- SAP B1 can be accessed by smartphone or laptop version at any time:
SAP Business One integrates Web browsers such as Firefox, and Chrome on Windows and on Smartphone operating systems such as Android and IOS. These applications help users access SAP B1 anytime, anywhere, employees can work and managers can control work from anywhere with smart devices connected to the Internet.
6. SAP Business One module
Up to now, the SAP Business One is divided into 10 main modules. The division of business segments into modules makes management more efficient and time-saving. Moreover, the customers can choose to use 1 or several modules to suit the needs of the enterprise instead of having to buy all the modules leading to wasted resources. This is also a notable advantage of SAP Business One.
6.1. Purchase deployment subsystem
The first module of SAP Business One to mention is purchasing planning. With this module, companies can plan for the quantities, types, and times of goods, materials, and supplies they will purchase. This subsystem is implemented in 4 steps:
Step 1: List commodity standards: Managers need to establish criteria for goods to be purchased such as quantity, size, lot number, order time, and so on.
Step 2: Run the MRP tool: This is the built-in planning tool of SAP Business One. Just a simple operation, users quickly get a detailed plan, fully completing the initial criteria.
Step 3: Create a Proposal Directory: After running the MRP tool, if the criteria need to be modified, the user can create this recommendation list to meet the need.
Step 4: Set up orders: The last step is from the plan in step 2, the user creates an order to return goods from the warehouse or work order to the factory or create an order from the seller.
6.2. Production management module at the factory
The second module is production management and product costing at the factory. This is the module that includes the design of product structure, determination of input materials, production machinery, and human resources. This module has main functions such as setting material norms, setting work orders, and calculating product costs.
6.3. Purchasing process management subsystem
Besides the purchasing planning module, there is also a purchasing process management module. This module helps enterprises track the purchasing process, saving costs, resources, and time. This module has functions such as creating purchase orders, making price reports, selecting suppliers, creating orders, making delivery records, recording goods in stock, and paying for goods to suppliers.
6.4. CRM management module
The CRM module is the customer relationship management module. This module is responsible for customer information management, record keeping, taste analysis reports, and marketing campaign recommendations.
6.5. Retail process management module
In the retail process management module, the SAP B1 provides functions such as quoting, creating orders, issuing invoices, and tracking payments. Thanks to this module, users limit errors, save time in order processing, and synchronize information with other departments.
6.6. Warranty service management subsystem
After the retail process, enterprises need to have a warranty and maintenance policy for products and services to improve the customer experience. The warranty service management module was born to solve this problem through main functions such as service calls, individual customer cards, service contracts, and analysis reports.
6.7. Warehouse management system
The warehouse management module provides more efficient warehouse management solutions. SAP system continuously updates goods properties such as goods name, size, quantity, serial number, and goods condition.
This helps warehouse managers control and track goods more conveniently. SAP B1 has several warehouse management functions such as import, export, warehouse transfer; warehouse inventory; the list of goods and materials; inventory list.
6.8. Project management subsystem
The project management module helps enterprises support the process of forecasting, planning, and resource allocation in projects. In addition, this module also helps to monitor progress, and quality, and ensure the budget for the project during implementation.
6.9. Financial management subsystem
Finance – accounting department is one of the important departments in the enterprise. The financial management module supports enterprises to control details of financial activities such as receivable accounting, payable accounting, inventory accounting, fixed asset accounting, and so on. prescribed accounting standards.
6.10. Budget control subsystem
The last module is the budget control module. This module is responsible for allocating the budget according to the set rules. Moreover, the module also can warn and confirm transactions of large value, exceeding the budget for managers to monitor and decide accordingly to the situation of the enterprise.
7. Which business group should implement SAP B1?
Every enterprise that is facing difficulties in management, optimizing human resources, and improving production and business efficiency can consider implementing SAP B1.
In terms of scale, the SAP B1 can meet the needs of small and medium enterprises to large corporations with a lot of subsidiaries.
In terms of industries, the SAP Business One can optimize the activities of many enterprises in the industry group such as retail, travel and tourism, real estate business, the livestock and poultry farming, and so on.
However, the SAP B1 is really suitable for the group of small and medium-sized enterprises rather than large-scale ones.
8. What types of SAP Business One software should enterprises deploy?
SAP B1 has a total of 3 types of software: the SAP Business One On Cloud, the SAP Business One On-Premise, and the SAP Business One Hybrid. SAP Business One Hybrid is a combination of two main types of SAP B1 to meet customer needs.
8.1. SAP Business One On Cloud
SAP Business One On Cloud is a cloud-operated SAP B1 system that can share data without a server and a team of technicians. The SAP B1 On Cloud is usually constantly updated, upgraded to the latest version, and suitable for small and medium-sized enterprises.
8.2. SAP Business One On Premier
SAP Business One On-Premise is an ERP system with operating principles and functions similar to SAP Business One On Cloud. However, SAP Business One On Premium requires high server construction to deploy the software. Because of the facility requirements, this type of the SAP B1 software is only suitable for medium-sized enterprises and above.
8.3. SAP Business One Hybrid
The third type of SAP B1 software is named SAP Business One Hybrid. This is an ERP solution that works in the form of a parallel approach, combining SAP B1 On Cloud and SAP B1 On-Premise.
9. How much does SAP B1 software implementation cost?
The cost of implementing the SAP Business One software depends not only on the cost of licensing but also on the size of the enterprise, the number of modules to be installed initially, the number of employees in the enterprise, maintenance costs, and so on.
- Deployment costs:
Deployment costs include licensing fees for vendors and technicians to deploy the system. Depending on the size of the business and the number of employees as well as the industry, the deployment cost will vary.
- Periodic maintenance costs:
When using SAP B1, enterprises are required to maintain the system by updating to the latest version, upgrading software, fixing unexpected problems, and so on. All these costs will depend on the situation of using the SAP system of the enterprise.
- System upgrade cost:
This fee includes the fee for upgrading and improving the system such as transmission lines, information processing speed, and connection equipment. This is a recurring cost because enterprises need to regularly upgrade the SAP B1 system to ensure efficiency in work.
Thus, to calculate the cost of implementing SAP B1 software specifically, you need to provide information about the enterprise such as the size, number of employees, and the purpose of using the system of that enterprise.