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SAP History

SAP was founded in 1972 in Germany and has grown to become a leading provider of business solutions. It offers an integrated ERP system called R/3 that includes applications for production planning, materials management, sales, finance, and more. These applications share a single database for consistent data across the enterprise. The main advantage of SAP is this high level of integration among applications.

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34 views2 pages

SAP History

SAP was founded in 1972 in Germany and has grown to become a leading provider of business solutions. It offers an integrated ERP system called R/3 that includes applications for production planning, materials management, sales, finance, and more. These applications share a single database for consistent data across the enterprise. The main advantage of SAP is this high level of integration among applications.

Uploaded by

Tony
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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SAP was founded in 1972 in Walldorf, Germany.

It stands for Systems, Applications


and Products in Data Processing. Over the years, it has grown and evolved to become
the world premier provider of client/server business solutions for which it is so well
known today. The SAP R/3 enterprise application suite for open client/server systems
has established a new standards for providing business information management
solutions. 
SAP product are consider excellent but not perfect.  The main problems with software
product is that it can never be perfect.
The main advantage of using SAP as your company ERP system is that SAP have a
very high level of integration among its individual applications which guarantee
consistency of data throughout the system and the company itself.
In a standard SAP project system, it is divided into three environments, Development,
Quality Assurance and Production.
The development system is where most of the implementation work takes place. The
quality assurance system is where all the final testing is conducted before moving the
transports to the production environment.  The production system is where all the
daily business activities occur.  It is also the client that all the end users use to perform
their daily job functions.
To all company, the production system should only contains transport that have
passed all the tests. 
SAP is a table drive customization software.  It allows businesses to make rapid
changes in their business requirements with a common set of programs.  User-exits
are provided for business to add in additional source code.  Tools such as screen
variants are provided to let you set fields attributes whether to hide, display and make
them mandatory fields. 
This is what makes ERP system and SAP in particular so flexible.  The table
driven customization are driving the program functionality instead of those old
fashioned hard-coded programs.  Therefore, new and changed business requirements
can be quickly implemented and tested in the system.
Many other business application software have seen this table driven customization
advantage and are now changing their application software based on this table
customizing concept.
In order to minimized your upgrading costs, the standard programs and tables
should not be changed as far as possible.  The main purpose of using a standard
business application software like SAP is to reduced the amount of time and money
spend on developing and testing all the programs.  Therefore, most companies will try
to utilized the available tools provided by SAP.

What is the Purpose of R/3?


The sole purpose of an R/3 system is to provide a suite of tightly integrated, large-
scale business applications. 
The standard set of applications delivered with each R/3 system are the following: 
 PP (Production Planning) 

 MM (Materials Management) 

 SD (Sales and Distribution) 

 FI (Financial Accounting) 

 CO (Controlling) 

 AM (Fixed Assets Management) 

 PS (Project System) 

 WF (Workflow) 

 IS (Industry Solutions) 

 HR (Human Resources) 

 PM (Plant Maintenance) 

 QM (Quality Management) 
These applications are called the functional areas, or application areas, or at times the functional
modules of R/3. All of these terms are synonymous with each other. 
Traditionally, businesses assemble a suite of data processing applications by
evaluating individual products and buying these separate products from multiple
software vendors. Interfaces are then needed between them. For example, the
materials management system will need links to the sales and distribution and to the
financial systems, and the workflow system will need a feed from the HR system. A
significant amount of IS time and money is spent in the implementation and
maintenance of these interfaces. 
R/3 comes prepackaged with the core business applications needed by most large
corporations. These applications coexist in one homogenous environment. They are
designed from the ground up to run using a single database and one (very large) set of
tables. Current production database sizes range from 12 gigabytes to near 3 terabytes.
Around 8,000 database tables are shipped with the standard delivery R/3 product. 

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