SAP ERP is business resource planning software created by SAP SE. ERP software, also known as enterprise resource planning software, is modular software designed to integrate the main functions of a company’s core business processes into a unified system.

An ERP system is made up of software modules that each focus on a specific business function, such as finance and accounting, human resources, production, materials management, or customer relationship management (CRM). Organisations only use the modules that are required to run their specific business. Click here to learn more on SAP finance Malaysia. 

What does SAP stand for?

SAP was originally known as System Analysis Program Development when translated from German. Each letter is pronounced separately. The “SE” in SAP SE’s full corporate name stands for Societas Europaea, which is similar to the term “Inc.” in the United States.

SAP is a multinational software company that dominates the ERP market. The company currently serves over 180 countries and provides on-premises, cloud, and hybrid deployment models, though cloud computing is the focus of the majority of its development efforts.

SAP’s ERP products enable customers to run their business processes, such as accounting, sales, production, human resources, and finance, in a unified environment, with data from each module stored in a centralised database. Close integration and a shared data store ensure that information flows from one SAP ERP component to another without the need for redundant data entry, and they aid in the enforcement of financial, process, and legal controls.

SAP ERP Central Component (SAP ECC), the most widely installed SAP system, is an on-premises ERP system that is typically implemented in medium-sized and large businesses. SAP ECC, as an on-premises ERP system, is typically deployed in a three-tier, client-server architecture. The presentation tier, application tier, and database tier are the three tiers.

The presentation tier displays the SAP graphical user interface (SAP GUI), which can be installed on any computer running Microsoft Windows or macOS. The SAP GUI serves as the user’s interface with the ECC.

ECC’s application tier is its heart. It is in charge of processing transactions, executing business logic, running reports, monitoring database access, printing documents, and interacting with other applications. The database tier is where transactions and other data records are kept.

ECC is the ERP system at the heart of SAP Business Suite, a broader set of modules that handles other common business processes like supply chain management (SCM) and product lifecycle management (PLM).

S/4HANA is SAP’s in-memory ERP platform, which was released in 2015. It is a large-scale rewrite of the Business Suite that has been optimized for the SAP HANA in-memory database platform. According to SAP, S/4HANA is intended to reduce complexity and eventually replace SAP ECC.

SAP S/4HANA Cloud is a subscription-based SaaS version of S/4HANA that offers the benefits of HANA’s in-memory processing and real-time data accessibility. SAP software helps organisations to manage nearly every aspect of the business, from finances to HR, procurement and logistics.

Business Suite includes a broad range of business applications as well as industry-specific functionality. Besides ECC, it includes modules for CRM, PLM, SCM and supplier relationship management (SRM).