SAP stands for Systems, Applications, and Products in Data Processing and ERP stands for Enterprise Resource Planning, hence combining both abbreviations can be understood as software that is meant for the use of the enterprise holistic use.
SAP holds its initiation in the year 1972. It was formed by 5 former IBM employees from Germany who thought of such a revolutionary idea to develop software that can satisfy the needs of an organization.
The company offers solutions based on cloud, premises and hybrid deployment models that enable its customers who are normally small and medium-sized enterprises to integrate various functions of management processes like production, finance, human resource, sales, IT, accounting, etc. This facilitates the effective use of resources, including manpower, machines and production capacities.
The various solutions offered by SAP for various management functions are as follows:-
- Human Capital Management (SAP HCM)
- Production Planning (SAP PP)
- Materials Management (SAP MM)
- Project System (SAP PS)
- Sales and Distribution (SAP SD)
- Plant Maintenance (SAP PM)
- Finance and Controlling (SAP FICO)
- Quality Management (SAP QM)
In 2011, the company launched SAP HANA, an in-memory database platform that is at the forefront of the company's future strategy. HANA was a major development project for SAP, which has said it intends HANA to take the place of the traditional databases SAP has used for its business applications.
SAP also has cross-application components, such as enterprise document management systems and product lifecycle management (PLM), which can be implemented with any of the main modules.
The SAP ERP system is the foundation of SAP software, but other application software is also available that supports specific, complex business functionality; this is called the SAP Business Suite.
The SAP Business Suite is a bundle of business applications that provides integration of business and processes, as well as industry-focused functionality.
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