What is SAP Software? SAP Full Form & Abbreviation

What is SAP Software?

SAP Software is a European multinational, founded in 1972 by Wellenreuther, Hopp, Hector, Plattner, and Tschira. SAP software suite maps financial, logistics, sales, human resources, and many other business processes. SAP software is the market leader in the ERP system, helping companies of all sizes better manage complex business processes by giving employees of different departments easy access to real-time insights across the enterprise.

SAP Full Form

SAP stands for Systems Applications and Products in Data Processing. SAP is an ERP software that helps run the day to day operations of an enterprise. SAP is also the name of the ERP (Enterprise Resource Planning) software as well as the name of the company. SAP system offers real time visibility across the entire enterprise. It can be used by every individual in the organization.

SAP Full Form

SAP is a client-server-based software which is also called R/3. (Where "R" stand for real time data process & 3 stand for 3-tier.

1. Database,
2. Application servers
3. Client

History and Growth of SAP:

• SAP was founded in 1972 by Wellenreuther, Hector, Hopp, Plattner, and Tschira.
• Earlier it was called System Analysis and Program Development (German: Systemanalyse und Programmentwickung) after that it was renamed as SAP.
• 1972 – when the first version launched. SAP company has 0.3-million-dollar revenue with just nine employees.
• 1979- R/2 mainframe version launched. The revenue reached 5.1 million with 60 employees and 50 clients in two countries.
• 1992- R/3 client/server version launched. The revenue figure reached 6,266 million. Employee strength reached around 3200 with around 2800 customers in 35 countries.
• 1999- mySAP.com with one step Business launched. The company revenue went up to 7341 billions and employee strength reach to 25,000. The customer base expands to 15,000 customers around in 120+ countries.

SAP Advantages

• SAP system eliminate duplicate data.
• Business processes are standardized.
• Planning, tracking, scheduling & management, becomes easier.
• Enables integration with E-commerce.
• Cost-effective as it reduces administrative expenses.
• Helps to automate reporting & monitoring of the projects
• SAP helps to enhance Customer Service through better Customer Interaction.
• Offers consistency across the whole division.
• Increases efficiency, productivity, and better management of resources.

Dis- advantages of SAP:

• The Implementation of ERP for a small organization can be expensive. So, it is quite expensive to purchase and implement.
• SAP systems are always complex; therefore, some organization may not adjust according to it.
• You need to hire experts to maintain the SAP systems.