Saturday, October 17, 2009

SAP-The leader in ERP


SAP was founded in 1972 as Systemanalyse und Programmentwicklung by five former IBM engineers in Mannheim, Baden-Württemberg (Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther).As part of the Xerox exit strategy from the computer industry, Xerox retained IBM to migrate their business systems to IBM technology. As part of IBM's compensation for the migration, IBM acquired the SDS/SAPE software, reputedly for a contract credit of $80,000. The SAPE software was given by IBM to the founding ex-IBM employees in exchange for founding stock provided to IBM, reputedly 8%. It may be noted that, at the time they left IBM, the ex-employees were quite senior engineers in IBM Germany rather than founding engineers in the sense of Hewlett-Packard's founders.

The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications and Products in Data Processing").In 1976 "SAP GmbH" was founded and the following year it moved headquarters to Walldorf. SAP AG became the company's official name after the 2005 annual general meeting (AG is short for Aktiengesellschaft).In August 1988, SAP GmbH transferred into SAP AG (a corporation by German law), and public trading started November 4. Shares are listed on the Frankfurt and Stuttgart stock exchange.The founding members Dietmar Hopp, Hasso Plattner, Klaus E. Tschira and Hans-Werner Hector form the executive board.One of the main reasons of SAP's success has been the data integrity and data security.Many of the market products failed miserable in the data security part.SAP products pioneered the ERP technolgy.The compny main product has been SAP ERP.The name of its predecessor SAP R/3 hints at its functionality: the "R" stands for realtime (even though it is not a realtime solution), the number 3 relates to a 3-tier architecture: database, application server and client (SAPgui). R/2, which ran on a Mainframe architecture, was the first SAP version.SAP ERP is one of five major enterprise applications in SAP's Business Suite.

The other four applications are:
1.customer relationship management (CRM) - helps companies acquire and retain customers, gain deep marketing and customer insight, and align organization on customer-focused strategies.
2.product lifecycle management (PLM) - helps manufacturers with a single source of all product-related information necessary for collaborating with business partners and supporting product lines.
3.supply chain management (SCM) - helps companies enhance operational flexibility across global enterprises and provide real-time visibility for customers and suppliers 4.supplier relationship management (SRM) - customers can collaborate closely with suppliers and integrate sourcing processes with applications throughout the enterprise to enhance transparency and lower costs .Other major product offerings include: the NetWeaver platform, Governance, Risk and Compliance (GRC) solutions, Duet (joint offering with Microsoft), Performance Management solutions and RFID.


SAP offers a systematic approach to enterprise SOA, which is the technical standard that enables various enterprise software applications to exchange data effectively. Through enterprise SOA, SAP is focusing on enabling more flexible business processes as well as creating technical connections between IT systems and building a common language for business.

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