What is SAP-ERP?

What is SAP?

SAP stands for Systems, Applications and Products in data processing. It is one of the ERP softwares but it’s an undisputed market leader in enterprise application software, helping companies of all sizes and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP system. SAP machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP’s end-to-end suite of applications and services enables its customers to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improves people’s lives.

Founded in Walldorf, Germany in 1972

What is ERP?

An Enterprise Resource Planning system is a packaged business software system that allows a company to:

  • Automate and integrate the majority of its business processes
  • Share common data and practices across the entire enterprise
  • Produce and access information in a real-time environment

About SAP

Systems Applications and Products

SAP Facts & Figures


World Leader in enterprise business software solutions

  • 4th largest independent software supplier in the world
  • World’s largest ERP vendor
  • More than 2,500,000 users in over 50+ countries
  • More than 21,000 R/3 installations worldwide
  • An average of 25% of revenue invested in R&D
  • High customer and employee satisfaction
  • No. 18 in the Best Global Brands 2020 report by global brand consulting company Interbrand, boosted by its response to the COVID-19 pandemic.

SAP Business Partners

Why SAP is Unique?

  • Highly integrated
  • Comprehensive functionality
  • Complex data structures
  • Availability of data
  • Single point of entry
  • On-line data capture and real-time update
  • Requires strong application knowledge
  • Causes personnel and organizational structure changes
  • Causes business process changes

Industries Served By SAP

  1. Raw Materials, Mining Agriculture
  2. Oil and Gas
  3. Chemical
  4. Pharmaceutical
  5. Building Materials, Clay, Glass
  6. Building and Heavy Construction
  7. Primary Metal, Metal Products, Steel
  8. Industrial and Commercial Machinery
  9. Automotive
  10. Ship, Aerospace & Train Construction
  11. Transportation Services, Tourism
  12. Electronic/Optic Equip., Common Devices
  13. Wood and Paper
  14. Furniture
  1. Consumer Packaged Goods – Food
  2. Consumer Packaged Goods – Non-Food
  3. Clothing and Textiles
  4. Retail and Wholesale
  5. Communication Services, Media
  6. Storage, Distribution, Shipping
  7. Utilities
  8. Financial Services, Banks and Insurance
  9. Government, Public Admin. and Services
  10. Museums and Associations
  11. Healthcare and Hospitals
  12. Educational Institutions, Unis, Research
  13. Consulting, Software
  14. Services

SAP – The Product

Original product was SAP R/2 on the mainframe introduced in 1972

SAP R/3 introduced for smaller platforms in 1992

Developed using a fourth generation proprietary language developed by SAP called ABAP/4

Major SAP versions:

ECC (without SAP’s own Database version)

HANA (the SAP’s own Database) launched in 2010:

Sap launched S/4HANA application in 2015 on its own database(HANA) and this application is updated every year & its 2021 ,the latest so far has also been launched in Oct.2021.Its the most popular and highly demanded application of SAP

List of SAP Products

  • SAP S/4HANA (Enterprise Resource Planning on-premise and cloud)
  • SAP Business ByDesign (SME Cloud Enterprise Resource Planning)
  • SAP Business One (Small enterprise Enterprise Resource Planning)
  • SAP CRM (Customer Relationship Management)
  • SAP ERP (Enterprise Resource Planning)
  • SAP PLM (Product Lifecycle Management)
  • SAP SCM (Supply Chain Management)
  • SAP SRM (Supplier Relationship Management)

SAP – Client/Server Environment


Software/hardware combination that can make a request for services from a central repository of resources


– Software/hardware combination that can provide services to a group of clients in a controlled environment

Three-Tier SAP Structure

  • GUI – Graphical User Interface or Web Interface
  • Application server (one or many)
  • Database server (one single location)

SAP Components

  • SAP R/3 is comprised of modules categorized in three core functional areas:
    • Financial
    • Human Resources
    • Logistics
  • Special software packages on top of R/3, targeted to specialized vertical industries:
    • Industry Solutions (IS)
  • Special set of modules positioned between the technical and functional areas of the system:
    • Cross Application (CA) Modules
    • Workflow (WF)