Segregation of Duties (SoD) analysis is crucial in SAP ERP systems for ensuring compliance and mitigating risks related to unauthorized access. SoD analysis helps businesses identify and resolve conflicts in user authorizations, preventing fraud, errors, and data misuse. By enforcing proper role assignments and access restrictions, organizations strengthen internal controls and adhere to regulatory standards like SOX and GDPR. Effective SoD management reduces financial and operational risks, enhances transparency, and ensures that no single user has excessive control over critical business processes.