About Sap Company

ABOUT SAP COMPANY:  SAP is the leading Enterprise Information and Management Package worldwide.  By the use of SAP, it is possible to track and manage, in real-time, sales, production, finance accounting and human resources in an enterprise.  SAP, the company was founded by five Ex-IBM Engineers in Germany in 1972.  SAP stands for Systems, Applications, Products in Data Processing.  SAP AG is the maker of SAP software, located in Walldorf, Germany close to the beautiful town of Heidelberg.  SAP has subsidiaries in over 50 countries around the world from Argentina to Venezuela.  SAP AG is now the third largest software maker in the world, with over 17,500 customers (including more than half of the world's 500 top companies).  SAP employs over 27,000 people worldwide today, and had revenues of $7.34 billion and Net Income of $581 million in first financial year.  SAP is listed in Germany (where it is one of 30 stocks which make up the DAX (Deutscher Aktien Index known as German Stock Index)) and New York Stock Exchange.  Presently there are 44,500 installations of SAP, in 120 countries, with more then 10 million users.  In 1979, SAP released SAP R/2 (which runs on mainframes) into the German market. SAP R/2 was the first integrated, enterprise wide package and was an immediate success.  For years SAP stayed within the German borders until it had penetrated practically every large German company.

 At the end of 80’s, Client server architecture became more popular and for more growth SAP AG launches SAP R/3 in 1992.  SAP R/3 is a client/server based application, utilizing a 3-tiered model. A Presentation layer, or client, interfaces with the user, Application layer houses all the business-specific logic, and the Database layer records and stores all the information about the system, including transactional and configuration data.  SAP today is available in 46 country-specific versions, incorporating 28 languages including Kanji and other double-byte character languages. SAP also comes in 21 industry-specific versions.

What Makes SAP different?

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Traditional computer information systems used by many businesses today have been developed to accomplish some specific tasks and provide reports and analysis of events that have already taken place. For Example accounting general ledger systems. Occasionally, some systems operate in a "real-time" mode that is, have up to date information in them and can be used to actually control events. A typical company has many separate systems to manage different processes like production, sales and accounting. Each of these systems has its own databases and seldom passes information to other systems in a timely manner.

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SAP takes a different approach. There is only one information system in an enterprise, SAP. All applications access common data. Real events in the business initiate transactions. Accounting is done automatically by events in sales and production. Sales can see when products can be delivered. Production schedules are driven by sales. The whole system is designed to be real-time and not historical.

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SAP structure embodies what are considered the "best business practices". A company implementing SAP adapts it operations to it to achieve its efficiencies and power. The process of adapting procedures to the SAP model involves “Business Process Re-engineering” which is a logical analysis of the events and relationships that exist in an enterprise’s operations.

Need of SAP in any Organization:

 Technology playing a major role in today's business environment. So many companies and corporations have adopted information technology on a large scale by using Enterprise Resource Planning (ERP) or SAP systems to accomplish their business transaction and data processing needs.  Many large corporations use several different and separate information systems, often because they have merged with and/or acquired other companies with varied systems. An ERP system or SAP integrates these separate information systems and results in improved data reliability and processing efficiency. 

SAP is not used only by large corporations but becoming popular with small to mid-sized companies also.

 SAP R/3, introduced in 1992, is the most used ERP system in the world.

Benefits of using SAP:

 Improve alignment of strategies and operations •

Run your enterprise in accordance with strategy and plans, accessing the right information in real time to identify concerns early.

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Pursue opportunities proactively.

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Achieve corporate objectives by aligning workforce and organizational objectives.

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Find the best people and leverage their talent in the right job at the right time.

 Improve productivity and insight •

Leverage self-services and analytics across your organization.

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Improve operational efficiency and productivity within and beyond your enterprise.

 Reduce costs through increased flexibility •

Use enterprise services architecture to improve process standardization, efficiency, and adaptability.

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Extend transactions, information, and collaboration functions to a broad business community.

 Support changing industry requirements •

Take advantage of the SAP Net Weaver platform's latest open, Web-based technology to integrate your end-to-end processes seamlessly.

 Reduce risk •

Solve complex business challenges today with SAP, your trusted partner for longterm growth, with 30 years of experience working with organizations of all sizes in more countries than any other vendor.

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Join SAP's world-class partner network, uniquely qualified to support the best business practices in more than 25 industries.

 Improve financial management and corporate governance •

Gain deep visibility into your organization with financial and management accounting functionality combined with business analytics.

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Increase profitability, improve financial control, and manage risk.

 Optimize IT spending •

Integrate and optimize business processes.

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Eliminate high integration costs and the need to purchase third-party software.

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Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing.

 Gain higher ROI faster •

Install SAP ERP using rapid-implementation techniques that cost less than half what traditional approaches cost.

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Leverage preset defaults and prepackaged versions available for specific industries.

 Retain top performers •

Retain your top performers through clearly defined career and development plans.

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Link employees' performance to compensation programs such as variable pay plans and long-term incentives.

 Provide immediate access to enterprise information •

Give employees new ways to access the enterprise information required for their daily activities.