what is sap

What is SAP means? Definition and Full Form of SAP Software

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‘SAP’ is an acronym for ‘Systeme, Anwendungen, Produkte der Dataenverarbeitung,’ in German, meaning ‘Systems, Applications, and Products in Data Processing.’ Founded in 1972, SAP—with its headquarters in Walldorf, Germany—is the global market leader in collaborative, inter-enterprise business solutions (i.e., business software). SAP employs close to 40,000 employees worldwide, with more than 100,000 installations in about 40,000 companies in 120 countries. More than 12 million people use SAP on a daily basis. There are more than 20 industry-specific ‘Industry Solutions,’ known commonly as ‘IS’ (IS-Oil, IS-Retail, IS-Bank, etc.).

The SAP ERP system consists of complex integration of different modules or applications, each representing part of the basic business process. SAP software runs on a 4th generation programming language called Advanced Business Application Programming (ABAP).

SAP is an Enterprise Resource Planning (ERP) product capable of integrating multiple business applications with each applicant is representing a specific business area. SAP ERP processes a product that is capable of great depth in specific application area. 

The SAP Graphical user Interface

What is SAP?

SAP has also developed a user interface called the SAP graphical user interface (SAPGUI), which runs on Windows 3.1/95/98/NT, Motif, OS/2 presentation manager, and Macintosh. All SAPGUIs look identical, regardless of the operating system on which they are running. This interface varies according to the version of SAP or SAPGUI you are running; however, the difference in appearance is minimal. The appearance of the screens and means is configurable.

The Application Integration

SAP is an “Enterprise Resource Planning” (ERP) software product capable of integrating multiple business applications, with each application representing a specific business area. These applications update and process transactions in real time, thus allowing seemingly effortless integration and communication between areas of a business. 

Customizing Tools


The cornerstone of SAP is its ability to be configured to meet the needs of your business. This is done by customizing or adapting the system to your business requirements, which is the process of mapping SAP to your business process. Since SAP version 3, the “Reference Implementation Guide” (IMG) for R/3 customizing has been available. Until this version, customizing had to be done in the menu paths of the system with considerably more hassle. This IMG screen is the backbone for SAP and the entries placed in it determine how the system functions. We will be using this screen extensively for the purpose of configuring the SD module.

History of SAP

SAP was founded by five former IBM employees, in 1972, to develop a standard business application software, with the goal of processing business information in real-time. The company, SAP GmbH, was started in Mannheim, Germany.

  • During 1973, the company released its first financial accounting software, ‘R1’ (the letter ‘R’ stands for ‘Real-Time Processing).’
  • In the late 1970s, SAP ‘R/2’ was released with IBM’s database and a dialogueoriented business application.
  • R/2 was further stabilized during the early 1980s and the company came out with a version capable of processing business transactions in several languages and currencies to meet the needs of its international clientele.
  • SAP GmbH became SAP AG in 1988. Later on, the company established subsidiaries in countries such as the United States, Sweden, Denmark, and Italy.
  • The 1990s saw the introduction of SAP ‘R/3,’ with client-server architecture and GUI, which ran on almost any database, and on most operating systems.
  • SAP R/3 heralded a new era in enterprise computing, moving from a ‘main frame’ to a 3-tier architecture (Database->Application->User interface), which became the new industry standard.
  • By 1996, the company had more than 9,000 installations worldwide. By the end of the 1990s, SAP had introduced the e-commerce enabled my SAP suite of products for leveraging ever-expanding web technology.
  • SAP began the twenty-first century with the Enterprise Portal and role-based access to business information.
  • SAP continues to evolve and innovate, bringing cutting-edge technologies to business-information processing. SAP has already introduced SAP Net Weaver, which is based on Enterprise Services Architecture (ESS) with application integration across diverse platforms for providing one-stop end-to end business processing. With Net Weaver, companies can now integrate people, information, and processes.

List of ‘Solutions’ Currently Available

Currently, SAP Solutions include the following:

  • SAP ERP
  • SAP
  • SAP Business Suite
  • SAP R/3 and R/3 Enterprise
  • SAP for Industries
  • SAP xApps
  • SAP Solution

Also See: What is SAP IDES?