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What is SAP? A detailed definition of the SAP ERP system

As mentioned above, SAP is an acronym for “System Application & Products” which creates a common centralized database for all applications running in an organization. The application has been assembled in such a versatile way that it handles the entire functional department within an organization. Today, leading companies, including Microsoft and IBM, use SAP products to run their own businesses.

R/2, running on a mainframe architecture, was the first version of SAP. SAP products generally focus on enterprise resource planning (ERP). SAP applications are built around the R/3 system which provides the functionality to manage product operations, cost accounting, assets, materials, and personnel. SAP’s R/3 system runs on most platforms, including Windows 2000, and uses the client/server model.

SAP provides most of the business applications including:

1. SAP Knowledge Store (KW)

two. Product Lifecycle Management (PLM)

3. Human Resource Management Systems (HRMS)

4. Supplier Relationship Management (SRM)

5. Supply Chain Management (SCM)

6. Customer Relationship Management (CRM)

7. Advanced Scheduler and Optimizer (APO)

8. Business Information Store (BW)

SAP NetWeaver is the latest technology introduced by SAP. SAP products are mainly focused on large organizations which are mainly part of Fortune 500 companies and it is the number one choice for ERP system all over the world. SAP has software solutions called SAP Business One (SAP B1) and SAP All-in-One that are primarily created for small and medium-sized organizations. SAP products are used by millions of people around the world and in more than 120 countries and are constantly growing. SAP had more than 38,400 employees in more than 50 countries and more than 36,200 customers worldwide as of January 2007.

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