Introduction to SAP

SAP is a neatly integrated Business software to process all functionalities of an organisation in order to obtain a UNIFIED solution, ERP software.

SAP is a leader when it comes to easy integration among all the departments

What is SAP?

SAP is a neatly integrated Business software to process all functionalities of an organisation in order to obtain a UNIFIED solution, ERP software.

SAP is a leader when it comes to easy integration among all the departments

What is ERP?

ERP term used for software that controls whole organizations different departments.

For example, SAP, Oracle, People soft, JD Edwards are some of the top.

SAP History

SAP stands for System, Andwen dungen, Produkte in der Datenverarbeitung which – translated to English – means Systems, Applications, Products in Data Processing.

• The first releases were R1 and R2 which were mainframe only applications.
• SAP started as R/2 that is Real-Time architecture with 2 servers
• In 1979 SAP released SAP R/2 into the German. The first integrated, enterprise-wide package and was an immediate success.
• This got changed in later years as R/3 that is Real time architecture with 3 servers.
• Towards the end of the 80′s, client-server architecture became popular and SAP responded with the release of SAP R/3 (in 1992).
• The SAP R/3 enterprise application suite for open client/server systems has established a new standard for providing business information management solutions.
• The "R" was for "Real-time data processing"
• Each functional division within an organization is divided into modules.
• SAP started with a financial applications.
• Modules such as Logistics, HR were added later on.

SAP Application Modules

1. Material Management - Managing procurement, inventory, and warehouse operations
2. Sales and Distribution - Handling sales processes, customer management, and order fulfillment
3. Production Planning - Managing manufacturing processes and production schedules
4. Financial Accounting - Recording and managing financial transactions and reporting
5. Controlling - Cost accounting, budgeting, and internal reporting
6. Human Capital Management - Managing employee data, payroll, and HR processes

Congratulations! You now have a foundational understanding of SAP and its evolution. This knowledge will help you as you dive deeper into specific SAP modules and functionalities.