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Posted September 11 2019
Written by Createch SAP

What is SAP?

Did you know SAP is ranked #1 in the ERP market today? But what is SAP?

SAP means "Systems Applications and Products in data processing".

The SAP Software system was developed in 1971 by five IBM engineers, Hopp, Wellenreuther, Hector, Tschira and Plattner, who worked together on an internal project. In June 1972, they left IBM and founded the SAP company. Today SAP, or SAP SE, is a multinational Software Corporation officially Headquartered in Walldorf, Baden-Wurttemberg, Germany. The well renown corporation has shares traded on the public stock exchange with regional offices in 180 countries and serves over 425,000 customers around the world. «SAP is committed to supporting every customer to become a best-run business» and is counting 80% of its market as SMEs (Small Medium Enterprises).

Supply Chain Diagram

With 47 years of presence, SAP is known as the world’s largest provider of Enterprise Application Software. The SAP Software portfolio offers end to end solutions and covers most of its clients’ business requirements whether it is a financial, operational, human resources or e-commerce concern. Although SAP is well known for its ERP Solutions, its software portfolio consists of a broad product catalog.

SAP Definition and History of the SAP Company

So, what is SAP? In first place, it is its famous ERP (Enterprise Resource Planning) software which can be referred to as a centralized System. Launched as a full financial accounting system, the first version of SAP ERP was known as SAP/R1 for Real-Time data processing. The SAP R/1 software represented advanced technological capabilities in which the one tier architecture included the three layers (Presentation + Application + Database) in one system server.

Although we speak of an ERP Software, we should refer to it as an ERP System. Why? Because an ERP serves as the core environment or central unit which integrates all components enabling a business to operate through connections by all resources whether human, material, financial and processes.

In 1979 SAP R/2, a two-tier architecture, was released to handle different languages and currencies. The three layers were installed in two separate servers (Server one for Presentation and Server two for Application and Database).

Naturally, SAP continued to offer better products and upgraded R/2 to R/3, the client/server version of the software in which the three layers Presentation, Application and Database were each installed in separate servers.

In the 1990’s many new modules were added to the core system FI CO FInancial accounting and COntrolling: MM Material Management (purchasing, inventory and master data), WM Warehouse Management, PP Production Planning, SD Sales and Distribution, HR Human resources and several others.

SAP further grew by creating several complements to the ERP software such as: an enterprise data warehouse SAP BW Business Warehouse, a CRM (Customer Relationship Management), an SCM application (Supply Chain Management), etc…

Starting in 2008, SAP expanded further its offer with the acquisitions of Business Objects, Ariba, SuccessFactors, hybris and Concur solutions.

SAP HANA: The New In-Memory Database

In 2010, SAP released its game-changer in-memory database, SAP HANA, designed to support high volume of data and allow real-time analytics. This SAP HANA database would also become the foundation and technology platform for their cloud computing strategy with SAP Cloud Platform (SCP).

SAP Fiori_Launchpad_screen 2_Createch Montreal Canada

SAP S/4HANA : Intelligent ERP

SAP HANA’s new abilities also led SAP to redesign completely it’s ERP to provide their customers with the first ever Intelligent ERP: SAP S/4HANA.

S/4HANA was first released in 2015 and was designed to make SAP ERP users more efficient with better and simpler processes, better user interface (SAP Fiori), real-time insight and analytics, automated tasks and even predictive, machine learning, and AI features embedded.

The diagram below shows the SAP ERP evolution in time:

SAP ERP Evolution

First released on-premise, S/4HANA, which is considered as the “digital core” of SAP’s portfolio, is now also available in the cloud (SaaS), either in a multi-tenant edition (public cloud) or single-tenant edition (private cloud).

SAP S/4HANA delivers a next-generation ERP Software. Its platform includes modern technologies, including Big Data, Internet of Things (IoT), mobility and real time data which are easily accessible by all users through tablets, smartphones and computers.

SAP has reached a new frontier with S/4HANA: The intelligent Enterprise.

The Intelligent Enterprise by SAP

What is an Intelligent Enterprise? It’s about Business Strategy that allows rapid data transformation into Insight or predictive analytics. It’s about nurturing the process automation, innovation, and optimal experiences.

There are several types of ERP Solutions. SAP S/4HANA is developed to answer and fit the industry specific needs it serves. Whether it’s financial, purchasing, production or inventory management, S/4HANA will guide you in making informed decisions at any time. SAP S/4HANA is the leading technology built for innovation as it takes advantage of the many benefits of the industry 4.0.

Intelligent EnterpriseAs an SAP Specialist, Createch can help you transform your business into an intelligent Enterprise. Createch can assist you redefine the customer experience, deliver a step change in productivity and inspire total workforce engagement to achieve game changing outcomes.

Why choose SAP Software?

To Improve productivity and profitability both through process optimization and innovative solutions. To have access to an Intelligent ERP (S/4HANA) and to the whole SAP products portfolio designed to fit all your business needs.

Some of the Key Business Benefits of SAP Intelligent ERP have been measured and summarized in the infographic below:


ERP Reinvented: Gain Business Agility with Intelligent ERP!

You would like to learn more on SAP solutions and how they can help your enterprise: contact our experts today!

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