SAP01 Introduction

April 2012


In 1972, five systems analysts began working nights and weekends to create standard software with real-time data processing. Twenty-five years later their vision is a reality: SAP is the world’s market and technology leader in business application software.

On April 1, 1972 five former IBM employees founded SAP as Systems Analysis and Program Development in Mannheim, Germany. Their vision was to develop and market standard enterprise software that would integrate all business processes. The idea came to them through their work as systems consultants for IBM when they noticed that client after client was developing the same, or very similar, computer programs. The second part of their vision was that data should be processed interactively in real-time, and the computer screen should become the focal point of data processing. By the end of the 1970s, new generations of powerful computers provided the framework for a comprehensive software system, and a major step in the development of SAP software - the R/2 System – was taken in 1978. In the same year, as sales headed toward the DM 10 million milestones, SAP began operation of its own computer center in Walldorf which, when completed in 1980, united development teams under one roof. That year SAP’s software became even more attractive with the addition of order history to the product range. SAP has grown and diversified its operations over the years.

In addition to the facts mentioned in the previous slide, SAP has shown continuous growth from 1972 till the 2000s. As mentioned before, in 1972, SAP worked in the R/1 environment with 9 employees, making 300,000 euro in revenue. In 1979, SAP worked in the R/2 environment with mainframes technology; with 60 employees and 50 customers in 2 countries, making 5.1 million euro in revenue. In 1992, SAP started with the R/3 in client/server environment with 3200 employees and 2800 customers in 35 countries; making 424 million euros in revenue. In 2000, SAP started which is one-step-business with 25,000 employees and 15000 customers in 120+ countries, making 6.3 billion euros in revenue. In 2005, SAP started SAP Business Suite, SAP Netweaver and Enterprise Service Architecture with 35800+ employees and 32000+ customers in 120+ countries making 8.5 billion euros in revenue.


Product overview


Before SAP came into being as a company, the concept of enterprise resource planning, or ERP, was not existent. SAP invented and established the ERP system. ERP is a single software solution that combines all the departments and functions of a company into a single computer system. When information and activities are seamlessly combined in this way, the flow of decision-making and action taken across departments of a company is smooth and efficient. The company as a whole functions effectively, transparently, with minimal waste of resources, and makes a profit.

The 1980s saw the emergence of competitors providing business software; SAP became the market leader in providing ERP solutions.

The internet boom in the 1990s changed the market scenario. In the new, internet-dependent economy; companies discovered new methods of interaction and trading. Business processes stretching across company borders were defined. To meet these challenges, SAP developed SAP R/3 with the client-server concept, uniform look and feel of the graphical interfaces, and the ability to run on computers from different vendors. The R/3 concept is relevant to this day.

In the 2000s, SAP redefined ERP with the idea of an enterprise portal and user-defined access. ERP is no longer just a system with a database, but a combination of basic processes such as purchasing, sales, and production. With solutions like SAP NetWeaver, you can integrate people, information and processes within the company and beyond.

This slide depicts the products offered by SAP for different sized companies: from small to large-scale companies; for example, SAP Business suite, SAP ERP, SAP All-in-one and SAP Business One.

SAP Business Suite is for large companies, and is the world's most comprehensive family of adaptive business applications, providing the best-of-breed, industry-specific functionalites for your enterprise. SAP’s software is built for complete application integration, unlimited scalability, and easy collaboration over the Internet.

SAP ERP is also for large companies. It helps in improving the alignment of strategies and operations; enhances the productivity of your enterprise; and allows easy and quick adaptability, which is essential for rapidly changing industry requirements.

SAP All-in-One is the brand name for vertical solutions offered by SAP for mid-sized companies, which is based on the technology of SAP Business Suite. These preconfigured SAP systems can be used by companies that have a limited number of employees and relatively stable processes.

SAP Business One is affordable, easy-to-use ERP software designed specifically for small and midsize businesses. It enables you to manage your critical business functions across sales, distribution, and financials, all in a single integrated system. With SAP Business One, you can instantaneously access a complete and up-to-the-minute view of your business, and so respond to customers faster and enable more profitable business growth.



SAP provides business solutions for various industries. These business solutions can be specific to a particular industry, or be applicable across industries. For example, the SAP for Banks package is applicable to the financial services industry. However, SAP CRM, or Customer Relationship Management, can be used by the financial services industry, the consumer industry, and many more.

The technical parts of an SAP solution are called components. For example, SAP CRM is the solution to be implemented; two of the components of this solution are SAP NetWeaver Portal and SAP NetWeaver Business Intelligence.


SAP NetWeaver is SAP’s web-based, integrated technology platform. It provides the development and runtime environment for SAP applications. That is, you can use SAP NetWeaver for custom development and integration with other applications and (NON-SAP) systems.

As shown in the slide, SAP Netweaver is been divided into 4 different parts. In People Integration employees are given user-friendly interface for accessing relevant data from different systems. Information Integration provides access to all sorts of information in a company. Process Integration enables the connection of non-SAP and SAP systems in different versions on different platforms. Application Platform supports ABAP, JAVA and Web Services. It provides the complete development infrastructure on which you can develop your business applications.



All the SAP Netweaver components provide a platform for different SAP and non-SAP systems.

SAP Netweaver XI delivers open integration technologies that support process-centric collaboration across the extended value chain.

SAP Netweaver BI enables you to integrate data from across the enterprise and transform it into practical, timely business information to drive sound decision-making.

SAP Netweaver Mobile provides a "future-proof" mobile runtime environment based on open and flexible technology standards and a powerful development environment for building integrated mobile solutions with native or browser-based user interfaces.

SAP Netweaver MDM ensures cross-system data consistency and helps integrate business processes across the extended value chain.



SAP ERP combines a proven, robust ERP solution with extended functionality that is applicable across the enterprise. It allows you to better manage corporate assets and critical business processes.

This application incorporates four SAP solutions.

SAP ERP Financials is for a company’s funds management.

SAP ERP Human Capital Management covers all aspects of human resource management, from the hiring process to payroll, training, and so on.

SAP ERP Operations is for automating and streamlining procurement and logistics; product development and manufacturing; and sales and service.

SAP ERP Corporate Services is for a company’s travel management; environment; health and safety; real-estate management; and development of efficient incentive programs.






SAP ERP is a solution that can be seen as a subset of the SAP Business Suite, providing all the SAP components necessary for operating a state-of-the-art ERP business. Currently, the main components of SAP ERP is similar to that of SAP Netweaver components, which has already been discussed. The slide depicts the main components of SAP ERP.

The Components of SAP ERP are SAP SEM – SAP Netweaver XI, SAP Netweaver Mobile, SAP ECC – SAP Netweaver Portal, cProject Suite - SAP Netweaver BI, SAP Netweaver MDM.



R/3 is three-tier architecture comprised of application and database servers. SAP R/3 runs on several databases, such as Oracle, Informix, DB2 for UNIX, DB2/400, and Microsoft’s SQL Server 6.0. ERP is a successor to R/3. SAP ERP addresses the core business software requirements of the most demanding midsize and large organizations in all industries and sectors.



SAP Business Suite is a complete package that integrates in one unit solutions for the customers, employees, suppliers, and partners of a company. It is based on SAP Netweaver and allows the integration of SAP and non-SAP components.

SAP Netweaver has the SAP ERP Central Component, which comprises of several components. SAP SRM provides employees with demand information directly from their work centers using internet and marketplace. SAP CRM enables the customer to contact companies through a number of communication channels. SAP PLM offers functions for product development, product safety, quality, and maintenance. SAP SCM is used to plan and optimize supply chains across company boundaries.


SAP Business Suite provides a number of solutions to meet different business challenges. However, sub-areas of many businesses many times have similar requirements. Different solutions, therefore, contain similar components like SAP CRM, SAP SEM, SAP Netweaver XI, SAP Netweaver Mobile, SAP SCM, SAP ECC, SAP Netweaver Portal, SAP SRM, cProject Suite - SAP Netweaver BI, SAP Netweaver MDM. These components can be adapted to meet multiple business requirements.


SAP provides custom-made packages for about twenty industries. There are more than 20 industry packages such as Automotive, Banking, Chemicals, Healthcare, Logistics Service Providers, Mining, Oil and Gas, Public Sector, and Retail. All industry solutions feature special functions based on proven business practices of the individual industries.



xApps, or cross applications, are business applications developed in Java. They are based on the SAP Netweaver platform. The applications are designed to run on top of existing, heterogeneous IT systems by integrating them into cross-functional, end-to-end business systems that let you execute enterprise-wide strategies with greater ease and efficiency. SAP xApps are the packaged composite applications for managing critical product definition processes such as SAP ERP, SAP SRM, SAP CRM, SAP PLM, and SAP SCM.


SAP xApps are a new breed of integrating standard software that provide the basis for continual improvement and innovation; adapting existing systems to new business strategies. xApps connect existing, heterogeneous systems with cross-functional, integrated processes and thus enable greater flexibility in the enterprise.

For example, with SAP xApp Resource Portfolio Management, you can develop and manage complex IT and research development projects. Some more examples are SAP xApp Cost and Quotation Management, SAP xApp Product Definition and SAP xApp Emissions Management.




Today, business solutions are expected to be ready for change, to be flexible and to remain so in spite of fluctuating budgets and schedules. This is where SAP All-in-one excels.

SAP All-in-one is an industry-specific on-premise solution that is highly configurable and has the flexibility to adapt as your business grows. With SAP Business All-in-One, you can choose from qualified SAP partner solutions, with industry best practices built in, or choose SAP’s fast-start program, which lets you start with the basics and get quick results.

As shown in the slide, SAP All-in-One works on the Sap Netweaver platform which integrates all the SAP ERP components – SAP SRM, SAP PLM, SAP SCM and SAP CRM.



SAP Business One is affordable, easy-to-use business management software designed specifically for small and midsize businesses. It enables you to manage the critical business functions across Financials, Human Resources, Logistics and Customer Relationship Management, all in a single integrated system. With SAP Business One, you can instantaneously access a complete and up-to-the-minute view of your business, so that you can respond to customers faster and grow the business more profitably. It provides accurate, up-to-the-minute views of business data. SAP Business One is easy to buy and quick to install.