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Introduction to SAP

Nov ā€˜19

What is ERP?

ERP stands for Enterprises Resource Planning. ERP term is used for software that controls or manages the data of a whole organization (company) which has many departments like sales, production, finance accounting and human resources etc. There are plenty of ERP vendors in the market like :

  1. Bean
  2. Oracle (Finance Module)
  3. PeopleSoft (specialty in HR module)
  4. SAP

SAP handles multiple modules (SD, MM, PP etc.).

Types of ERP?

There are two types of ERP software systems.

  1. Decentralized: -

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Data is maintained for each department and a particular department canā€™t access other departmentsā€™ data. So, it is more time-consuming and money consuming.

  1. Centralized: -

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Data is maintained at a central location (Means one database for every module) and a department can access data of other departments OR we can say that each department/module is connected with a common database. It increases productivity. Better customer interaction and also internal interaction.

Introduction to SAP

SAP stands for System Application & Products in Data processing. SAP is also an ERP used by thousands of customers. The business functions within SAP ERPā€™s software are called modules.

For SME (Small and mid-size enterprises/companies) SAP released Business One software.

  1. SAP was founded in 1972 by 5 IBM employees.
  2. In 1980, They released R/2 system. R = Real time 2 = Two tier architecture
  3. In 1990, They released R/3 system.

SAP R/3 Architecture Model

SAP R/3 has three layers as below.

Presentation layer: UI

The presentation layer consists of the user interface (UI), which runs on a client machine that uses a standard graphical user interface (GUI). The UI can be a web browser or propriety software, such as SAP GUI.

Application layer:

The application layer is where all the major work is done by ABAP programs.

Database Layer:

The database layer is where all the persistent data is stored. The database is typically managed by a relational database management system (RDBMS).

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