SAP Ebooks

What is SAP ERP

The SAP ERP application is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. It allows for open communication within and between all company functions.


SAP stands for Systems, Applications and Products. It uses the concept of modules (“individual programs that can be purchased, installed, and run separately, but that all extract data from the common database”).SAP AG, the company that provides the enterprise resource planning solution has upgraded the package and lauched it as SAP ECC 6.0 in 2005. ECC stands for Enterprise Central Component. The purpose of positioning it as ECC is to enable SAP to build and develop an environment of other products that can function upon the foundation of the central component.

SAP’s ERP solution includes several modules that support key functional areas – some of them are –

* SAP ERP Financials
* SAP ERP Logistics
* SAP ERP Human Resource Management

The evolution of mySAP ERP

SAP R/3 through version 4.6c consisted of various applications on top of SAP Basis, SAP’s set of middleware programs and tools.

When SAP R/3 Enterprise was launched in 2002, all applications were built on top of the SAP Web Application Server. Extension sets were used to deliver new features and kept the core as stable as possible. The Web Application Server contained all the capabilities of SAP Basis.

As a result of marketing changes and changes in the industry, other versions of SAP have been released that address these changes. The first edition of mySAP ERP was launched in 2003 and bundled previously separate products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management (SEM) and extension sets. The SAP Web Application Server was wrapped into NetWeaver, which was also introduced in 2003.

A complete architecture change took place with the introduction of mySAP ERP edition 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction Server were also merged into SAP ECC, allowing users to run them under one instance. Architectural changes were also made to support an enterprise services architecture to transition customers to a services-oriented architecture.

More than 2,300 customers are using the latest version of mySAP ERP, since it was released in early 2005, according to SAP. SAP reported a 20% growth in new ERP license deals in the second quarter of 2005.

Benefits of SAP ERP

* ERP allows easier global integration (Barriers of currency exchange rates, language, and culture can be bridged automatically)
* Updates only need to be done once to be implemented company wide
* Provides real-time information, reducing the possibility of redundancy errors
* Creates a more efficient work environment making it easier for employees to do their job which leads to effectiveness

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