OPPORTUNITIES AND CHALLENGES IN DATA ANALYSIS USING SAP: A REVIEW OF ERP SOFTWARE PERFORMANCE

Abstract

This review systematically explores the opportunities and challenges of using SAP for data analysis within ERP systems, emphasizing its advanced analytics, real-time processing, and scalability. Drawing on 80 studies from diverse industries and countries, the review identifies SAP's strengths in enhancing decision-making, improving operational efficiency, and supporting growth in dynamic business environments. However, it also reveals significant challenges, such as high implementation costs, complex integration, and usability issues that hinder effective adoption, particularly for SMEs. A comparative analysis with other ERP systems, such as Oracle ERP and Microsoft Dynamics, highlights that while SAP excels in real-time analytics and comprehensive functionalities, alternatives may offer more cost-effective and user-friendly solutions for smaller organizations or those with limited IT resources. The review underscores the need for strategic planning, comprehensive training, and a phased implementation approach to maximize SAP's benefits and minimize its drawbacks. Organizations should conduct thorough cost-benefit analyses and consider customizing SAP to meet specific operational needs. For industries where real-time data processing is critical, prioritizing SAP’s analytics capabilities is recommended, whereas others might benefit more from alternative systems. This study contributes to the existing literature by providing new insights into the global applicability of SAP’s benefits and challenges, guiding organizations in making informed decisions about ERP system implementation based on their strategic goals and resources. The findings highlight the importance of a tailored approach to ERP adoption, ensuring alignment with long-term business objectives and enhancing overall organizational performance.