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Background Resource Planning

SAP began in the 1970s as a software company that developed ERP software to integrate business processes. [1] It launched its first financial accounting software in 1973. [2] SAP later introduced additional software like customer relationship management, supply chain management, and business intelligence solutions. [3] Today, SAP is the leading ERP provider with most Fortune 500 companies using its software.

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50 views

Background Resource Planning

SAP began in the 1970s as a software company that developed ERP software to integrate business processes. [1] It launched its first financial accounting software in 1973. [2] SAP later introduced additional software like customer relationship management, supply chain management, and business intelligence solutions. [3] Today, SAP is the leading ERP provider with most Fortune 500 companies using its software.

Uploaded by

jgd2080
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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SAP BACKGROUND

Having introduced our topic, generally about resource planning software, I should then review what the literature has to say about it. Enterprise resource planning (ERP) systems are integrated software packages designed to provide complete integration of an organisation's business information processing systems and all related data. These systems are conceptually based on event driven systems concepts, which include the capturing of both financial and nonfinancial data to facilitate access and ad hoc analysis. (Gelinas et al. 1999,). Otherwise, the ERP Center website stated that ERP is a software mirror image of the major business processes of an organisation, such as customer order full fill and manufacturing. ERP is the finest expression of the inseparability of business and information systems. While, SAP stands for Systems Applications and Products in Data Processing where it was designed and developed by five IBM engineers during the 1970s. SAP developed as a standards based software alternative to custom built ERP software. SAP also has been in the forefront of ERP software ever since. In 1973, SAP launched its financial accounting software product. They focused on realtime data processing from where in the coming few years SAP named it as R/1 where R stands for real-time and the number 1 referred to single layer of software database, the application software and presentation running on a single system. The database layer is responsible for storing and retrieving the information. The application software layer has the SAP applications running for carrying out business operations. Even the programs running in the application software layer are stored in the database and when the SAP system is started first time, it loads from the database. The presentation layer offers the user interface capabilities and allows the users to work with the SAP system. The division into the three layers from software oriented point of view does not mean that they are completely separate software components. There is overlapping among them. At that time, computer industry was in its infancy stage and only the big companies had mainframe computers. R/1 belongs to the mainframe era. Then SAP was initially designed to be run on the mainframe and was called that release was called R/2 (Release 2). SAP quickly caught on to the client server model with a later release called R/3 and this was the most popular version of SAP. After R/3, later versions of their core software were launched called Enterprise Central Component (ECC).

The automation industry needs of an enterprise are endless. SAP soon realized that corporations needed business intelligence to mine data from their daily operational data and extract meaningful trends that could enable further business opportunities. SAP BW was born and morphed into BI after buying out Business Objects (BO). After the hugely successful R/3, SAP created more and more niche software like Customer Relationship Management (CRM), SRM, XI, now called Process Integration or PI and once again living up to the standards of SAP by maintaining tight integration with their core ECC software. Through the process of developing these software components, SAP has slowly moved from standard client server architecture to a completely web-based architecture where every transaction can be run from just a browser. These new dimension products developed on the web standards based framework (NetWeaver) are all under new umbrella called mySAP Today, SAP ERP is market leader and also the most exhaustive and complex ERP-system providing solutions for the functional areas accounting and controlling (including treasury and asset management), production and materials management, quality management and plant maintenance, sales and distribution, human resources management, and project management. SAP ERP also comes in industry specific packages (SAP Industry Solutions). In the past few years, SAP has developed additional products such as data warehousing (Business Information Warehouse - BW), Strategic Enterprise Management (SEM), Advanced Planning, Advanced Planning Optimizer (APO) for SCM, Customer Relationship Management (CRM), etc. The mySAP.com initiative is an answer to the often criticised weaknesses of ERP systems with regards to E-Commerce capabilities. Today's ERP systems are therefore often referred to as ERP II or second generation ERP and they are considered to be part of the whole family of comprehensive integrated business solutions, referred to as ENTERPRISE SYSTEMS. SAP is all powerful software and everything, but you might ask How does it help me?. Roughly more than 70% of all Fortune 100 and more than 50% of all Fortune 500 companies use SAP as their core ERP software. What this gives you is tremendous job opportunities with these companies. These companies have enormous appetite for qualified IT consultants in the field of SAP. These jobs are not just for computer engineers or the likes of them. There are multiple tiers of consultants working in SAP for these companies. SAP is one of the very few softwares where there is a clear distinction between functional and technical areas of expertise. For companies, this means that there is a clear and logical division of the type of work performed and hence leads to increased productivity and efficient implementation and maintenance lifecycles. For individuals, this means more jobs and more specialization required for the same.

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