From an implementation perspective, why do organisations usually choose to implement SAP based ERP solutions instead of keeping many separate legacy systems?

Difficulty: Easy

Correct Answer: Because SAP helps integrate fragmented legacy processes and data into a single, standardised system, improving visibility, control, and efficiency across the entire organisation.

Explanation:


Introduction / Context:
Implementing SAP or any large ERP system is a major decision for an organisation. This question explores the main reasons for choosing such a solution instead of continuing to rely on many separate, disconnected legacy systems. Understanding these drivers is important for both Business Analysts and technology professionals working on ERP projects.


Given Data / Assumptions:

    • Organisations often start with multiple departmental systems that do not integrate well.
    • Management seeks better control, visibility, and standardisation across the company.
    • SAP is one of the leading vendors that addresses these needs through integrated ERP solutions.


Concept / Approach:
Companies choose SAP to standardise and integrate key business processes such as finance, procurement, manufacturing, and sales. By moving to a single system of record, they reduce data duplication, improve data quality, and enable real time reporting. Standard processes embedded in SAP help enforce best practices and regulatory compliance. While implementation requires effort and change management, the long term benefits include improved efficiency, faster decision making, and better coordination between departments.


Step-by-Step Solution:
Step 1: Identify key goals of an SAP implementation: integration, standardisation, and improved visibility.Step 2: Review the options and look for the one that mentions consolidating fragmented processes and data into a single system.Step 3: Option A states that SAP integrates legacy processes and data, and highlights benefits such as visibility, control, and efficiency.Step 4: Options B, C, and D clearly contradict known reasons for SAP adoption by trivialising its role or making incorrect claims.Step 5: Select option A as the correct answer.


Verification / Alternative check:
Case studies of SAP projects consistently emphasise integration and standardisation as primary business drivers. Organisations report better cross functional reporting and process control after successful implementations. There is no credible source that presents SAP as a purely entertainment tool or a system that requires no process change. This supports the correctness of option A.


Why Other Options Are Wrong:
Option B misrepresents SAP as a small personal tool, which is inaccurate. Option C incorrectly claims that SAP removes the need for process change; in reality, process harmonisation is a major part of SAP projects. Option D is entirely false, suggesting that SAP is used only for entertainment, which conflicts with its enterprise planning and control focus.


Common Pitfalls:
Some stakeholders expect that simply installing SAP will automatically fix process problems without any redesign or change management. Others underestimate the effort required to harmonise data and master records. Recognising that SAP is a powerful integrator but still requires strong governance and project management is essential for realistic expectations.


Final Answer:
Because SAP helps integrate fragmented legacy processes and data into a single, standardised system, improving visibility, control, and efficiency across the entire organisation.

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